FMCG distribution in India: Study of the structure and functioning of distribution channels for FMCG firms in India

Abstract

Channels of distribution help bridge the gap between the producers and the end consumers. Hence, they are the middlemen facilitating the flow of services and goods. The FMCG industry in India is one of the growing sectors and the success of this industry depends to a large extent on the wellfunctioning of the distribution networks. The key decisions that a firm needs to take with respect to distribution channel management are – design of the channel structure, governance including conflict resolution and relationship management. A gap in the expected-actual outcome from a distribution channel essentially means a failure/flaw in either of these decision making processes. Our study of the major FMCG firms in India, is aimed at discovering the major challenges that they are facing currently and some of the measures being taken to tackle them. Based on our study and comparative analysis of these firms, we aim at proposing recommendations for the challenges that we have identified.