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06/12/2021 04:02pm

Influx of large B2B firms distorting distribution channels; FMCG distributors plan stir

image Influx of large B2B firms distorting distribution channels; FMCG distributors plan stir

New Delhi, 6 Dec (KNN) The last few years especially since the wake of covid-19, the influx of organized B2B distribution firms in form of e-commerce or offline businesses has created price disparity in the FMCG market.

This is vastly impacting the traditional distributors, hence the apex body of distributors of Fast moving consumer goods (FMCG) has reached out to those companies, as published in Business Standard.

“Companies such as JioMart, ElasticRun offering lower prices on products are hurting the business of traditional distributor,” said All India Consumer Products Distributors Federation (AICPDF).

It is likely that the federation will meet FMCG firms to resolve the issue.

“The traditional trade is destroyed due to deep discounts offered by other players creating a monopoly,” said Dhairyashil Patil, President of AICPDF.

If the demands put forward by AICPDF in the letters sent to major FMCG companies are not met, the federation will start a non-cooperation movement against those companies from January, 2021.

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