 "Colgate")
From Unilever Plc to Colgate-Palmolive Co., consumer goods makers in India are facing distribution blues that have nothing to do with pandemic-induced shortages and bottlenecks. The trusted middlemen that brands have traditionally relied on to reach millions of small neighborhood stores in 8,000 towns and 660,000 villages are in revolt.
It’s a mutiny that the multinationals have invited upon themselves.
About 90% of what gets consumed in the continent-sized economy flows through a pipe known as “general trade”: Brands appoint third-party distributors who stock bulk inventory, despatch goods in small quantities to shops in their area, collect cash and offer retailers unsecured credit at zero interest (without the cumbersome “know-your-customer,” or KYC, checks of the formal financial system).
