Will You Sell Through Super Market ?

Supermarkets, Malls, Departmental Stores, Large Retail Chains like Big Bazaar, DMart etc. form a distinct channel of B2B distribution called organized retail or Modern Trade (MT). As opposed to General Trade (GT) where distributors, wholesalers, dealers, stockists, retailers etc. form an intricate network of channel partners – MT is a simpler form of B2B distribution where brands sell directly to MTs. Thus the channel relieves brands from the hassles of managing large number of intermediaries yet gives assured sales from supermarket store- shelves month after month. At present, MT is the fastest growing B2B distribution channel in India accounting for about 10% of total retail market. It is estimated that MT shall account for 30% of total retail market by 2030.

As a brand / manufacturer – would you consider MT a preferred B2B channel ? If you are channel partner – would you be worried about competition from MT ? Let us discuss comparative merits and demerits of MT for small and medium manufacturers.

MT And Indian Retail Distribution Market

Indian retail industry is huge – estimated to be worth $ 1.1 trillion. General Trade (GT) accounts for about 88% of total market, followed by Modern Trade (MT) accounting for about 10% of market and online (e.g. Amazon, Flipkart etc.) accounting for 2% (Source: IBEF).

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