Emami Ltd., a flagship venture of the Kolkata-based Emami Group, has initiated a huge restructuring of its distribution network, and is planning to cut dependence on the wholesale network, putting its products directly on retail shelves.
Analysts, while interacting with a leading English daily, said that FMCG companies which are small-to-mid-sized, for getting their brands to far-flung markets, majorly use indirect sales via wholesalers, mainly due to higher cost of servicing a direct sales network.
Emami’s annual sales revenue is mainly constituted of 50-55% wholesale, and the firm is looking to cut it down to around 40%.
While in the previous year, Emami increased its direct outlet reach by nearly 90,000 and will add around 100,000 another in the coming fiscal.
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