Saturday, March 12, 2011

Traditional Outlets vs Modern Trade , the scales tilt again.

FMCG companies need to , and they are refocussing on traditional outlets since the sales in modern trade are slipping .
Companies have a marked increase in throughput from neighbourhood ,traditional stores . The advantages cited are;
  • fresh stocks , due to lower pipelines
  • Better merchandised
  • Very high CRM , due to personal interaction of the outlet owner/manager with the customer
  • Increased margins are given by the companies which are getting passed on
  • ease of "touch and feel"
Traditional sales for established FMCG companies like Dabur account for 95% of their sales , it continues to define and decide the market direction.

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