Dabur reaches out to distributors as quick commerce disrupts general trade
New Delhi: Dabur India has reached out to the All India Consumer Products Distributors Federation (AICPDF), representing over 450,000 FMCG distributors and 13 million kirana stores, to reaffirm its commitment to general trade partners amid shifting consumption patterns and growing pressure from online sales channels.
The move comes as digital platforms—from quick commerce to modern trade—gain ground in FMCG (fast moving consumer goods) distribution, putting traditional kirana networks under stress. Dabur, which derives over 70% of its sales from general trade, has been increasingly focused on capturing growth in emerging channels. But this shift has triggered concerns among small retailers and distributors over margins, pricing power and inventory levels.
'Our general trade stockist partners are not just channels of distribution, they are our growth partners, our frontline ambassadors, and the reason brand Dabur reaches every corner of India,' said CEO Mohit Malhotra, noting the company's intention to protect and enhance distributor returns under its new 'Vision' strategy.
Dabur said it discussed emerging opportunities and the evolving market landscape with AICPDF members during the meeting.
The outreach follows a one-time inventory correction Dabur, maker of Vatika shampoo and Real drinks, undertook in the September quarter of FY24, where it reduced inventory levels with general trade partners from 30 to 21 days to prevent a supply glut.
"To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalize inventory in the general trade, which resulted in a temporary dip in sates during the quarter,' Mathotra had said during the company's September quarter earnings announcement.
'This is a one-off correction, spring cleaning that we have done, and that too only at the request of our distributors, so that our ROI (return on investment) of the distributors improves,' he had said in October.
'New channels' growing ahead of general trade has put some pressure on the profitability of Dabur India's general trade partner, Malhotra said during the company's September quarter earnings call. The initiative resulted in a consolidated revenue decline of 5.5% in the September quarter.
While general trade continues to drive bulk of revenue, newer channels are gaining share fast. E-commerce, modern trade and quick commerce together contributed 24% to Dabur's business in FY25, the company has said. Quick commerce, though still a small fraction of sales (2–7%), is growing rapidly, driven by urban convenience and discount-led consumer behaviour.
To adapt, Dabur has unveiled a go-to-market overhaul as part of its FY28 strategy to drive double-digit revenue and profit growth. This includes expanding in both rural and urban India, scaling presence across digital-first platforms, and improving demand forecasting and stock replenishment.
'Our renewed strategy is designed to harness the strength of our core while unlocking future-ready engines of value creation…With new product formats, enhanced supply chain capabilities, and a renewed focus on customer-centricity, we are confident that our general trade partners will continue to thrive alongside us as we steer Dabur into the next growth orbit,' Malhotra added.
The balancing act is delicate. While Dabur wants to tap the momentum in emerging channels, it cannot afford to alienate the general trade ecosystem—especially at a time when retail margins are under pressure and pricing power is eroding in many FMCG categories.
AICPDF, for its part, has been vocal about the disruptive impact of online platforms. Earlier this year, it launched a nationwide campaign against deep discounting and delivery-linked promotions by quick commerce players, arguing they distort market dynamics and undercut small retailers.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
United News of India
3 hours ago
- United News of India
AP: Ethiopian Delegation visits RTGS cent
Vijayawada, June 12 (UNI) A delegation from Ethiopia visited the Real-Time Governance Society (RTGS) located in the Secretariat on Thursday. The 10-member delegation, led by Girum Ketema Teklemariam, Director of Ethiopia's Digital Agriculture and Finance Program, is currently touring Amaravati. As part of their visit, the delegation toured the RTGS facility. RTGS Deputy CEO M. Madhuri welcomed the delegation and explained the functioning of RTGS. She described how RTGS is acting as a technological bridge between the government and the people. She stated that the RTGS system took shape from the visionary ideas of Chief Minister Nara Chandrababu Naidu and that Andhra Pradesh was the first state in the country to implement such a system. She mentioned that a comprehensive data lake is being developed by integrating data from all government departments, which will help make governance more streamlined and effective. The government aims to deliver all services directly to citizens via their mobile phones, eliminating the need for people to visit government offices. As part of this initiative, a WhatsApp Governance system under the name 'Mana Mitra' has been launched. Currently, 455 types of services are being offered through WhatsApp Governance, to expand to over a thousand services shortly. An 'Aware Hub' has also been set up to provide real-time information on weather changes to the public. RTGS is continuously monitoring weather conditions in collaboration with ISRO. To ensure greater transparency and efficiency in government operations and to deliver better services to citizens, RTGS is extensively utilizing Artificial Intelligence. A dedicated AI Hub is being established within RTGS for this purpose. RTGS is also providing the necessary technological support to government departments to ensure that the benefits of government schemes and programs effectively reach the people. The Ethiopian delegation expressed appreciation for the functioning of RTGS and praised the Government of Andhra Pradesh for establishing such an impressive technological system. Accompanying the delegation were Agriculture Department Joint Director Balasubramanyam, Assistant Director VUV Ramana, and others. UNI DP BD
&w=3840&q=100)
Business Standard
a day ago
- Business Standard
Dabur reaffirms support to general trade amid quick commerce disruption
Amid growing distribution disruption due to emerging quick commerce channels, home-grown fast-moving consumer goods (FMCG) firm Dabur India has reaffirmed its commitment to general trade distributors. This came on the heels of the company's Chief Executive Officer, Mohit Malhotra, meeting the All India Consumer Products Distributors Federation (AICPDF) on Wednesday. 'Our general trade stockist partners are not just channels of distribution, they are our growth partners, our frontline ambassadors, and the reason brand Dabur reaches every corner of India. Their entrepreneurial spirit, agility, and deep market understanding have helped us navigate challenges and seize opportunities across decades,' said Malhotra in a statement. This comes as channels like quick commerce gain ground, becoming growth drivers for packaged foods companies. 'As we roll out our new vision strategy, we intend to work with these partners to not only tap emerging opportunities but also ensure that their return on investment is protected and enhanced,' Malhotra said. The maker of Real fruit juices and Hajmola candy recently unveiled its refreshed strategic vision to achieve sustainable double-digit compound annual growth rate in both top line and bottom line by FY2027–28. The new strategy, he said, strikes a fine balance between stability and disruption, scale and agility, and heritage and modernity. 'With new product formats, enhanced supply chain capabilities, and a renewed focus on customer-centricity, we are confident that our general trade partners will continue to thrive alongside us as we steer Dabur into the next growth orbit,' he added. In the September quarter of FY25, the company also undertook a one-time inventory rationalisation exercise for the general trade channel, reducing inventory levels with GT partners to 21 days from 30 days to prevent a supply jam.
Mint
a day ago
- Mint
Dabur reaches out to distributors as quick commerce disrupts general trade
New Delhi: Dabur India has reached out to the All India Consumer Products Distributors Federation (AICPDF), representing over 450,000 FMCG distributors and 13 million kirana stores, to reaffirm its commitment to general trade partners amid shifting consumption patterns and growing pressure from online sales channels. The move comes as digital platforms—from quick commerce to modern trade—gain ground in FMCG (fast moving consumer goods) distribution, putting traditional kirana networks under stress. Dabur, which derives over 70% of its sales from general trade, has been increasingly focused on capturing growth in emerging channels. But this shift has triggered concerns among small retailers and distributors over margins, pricing power and inventory levels. 'Our general trade stockist partners are not just channels of distribution, they are our growth partners, our frontline ambassadors, and the reason brand Dabur reaches every corner of India,' said CEO Mohit Malhotra, noting the company's intention to protect and enhance distributor returns under its new 'Vision' strategy. Dabur said it discussed emerging opportunities and the evolving market landscape with AICPDF members during the meeting. The outreach follows a one-time inventory correction Dabur, maker of Vatika shampoo and Real drinks, undertook in the September quarter of FY24, where it reduced inventory levels with general trade partners from 30 to 21 days to prevent a supply glut. "To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalize inventory in the general trade, which resulted in a temporary dip in sates during the quarter,' Mathotra had said during the company's September quarter earnings announcement. 'This is a one-off correction, spring cleaning that we have done, and that too only at the request of our distributors, so that our ROI (return on investment) of the distributors improves,' he had said in October. 'New channels' growing ahead of general trade has put some pressure on the profitability of Dabur India's general trade partner, Malhotra said during the company's September quarter earnings call. The initiative resulted in a consolidated revenue decline of 5.5% in the September quarter. While general trade continues to drive bulk of revenue, newer channels are gaining share fast. E-commerce, modern trade and quick commerce together contributed 24% to Dabur's business in FY25, the company has said. Quick commerce, though still a small fraction of sales (2–7%), is growing rapidly, driven by urban convenience and discount-led consumer behaviour. To adapt, Dabur has unveiled a go-to-market overhaul as part of its FY28 strategy to drive double-digit revenue and profit growth. This includes expanding in both rural and urban India, scaling presence across digital-first platforms, and improving demand forecasting and stock replenishment. 'Our renewed strategy is designed to harness the strength of our core while unlocking future-ready engines of value creation…With new product formats, enhanced supply chain capabilities, and a renewed focus on customer-centricity, we are confident that our general trade partners will continue to thrive alongside us as we steer Dabur into the next growth orbit,' Malhotra added. The balancing act is delicate. While Dabur wants to tap the momentum in emerging channels, it cannot afford to alienate the general trade ecosystem—especially at a time when retail margins are under pressure and pricing power is eroding in many FMCG categories. AICPDF, for its part, has been vocal about the disruptive impact of online platforms. Earlier this year, it launched a nationwide campaign against deep discounting and delivery-linked promotions by quick commerce players, arguing they distort market dynamics and undercut small retailers.
