Maharashtra’s FMCG distributors plan to stop selling selected products from leading company HUL from January 1, as the company has not entered into negotiations with them over the issue of the price disparity between traditional distributors and retailers. organized B2B distributors. However, HUL has stated that its agreements with its channel partners are “non-exclusive” and stated that the prices they offer at various channels, such as General Trade, Modern Trade, eCom, and Cash and Carry B2B, may be different in depending on factors such as cost of operations and channel structures.
The HUL spokesperson said, “We sell and distribute our products across all channels such as general commerce, modern commerce, eCom, Cash and Carry B2B, etc., to enable our buyers and consumers to purchase our trusted brands. “. However, depending on buyers’ buying habits, channel structures and operating costs, the assortment offered may differ, the spokesperson added. He added that as the channels evolve, Hindustan Unilever Ltd (HUL) will continue to undertake new initiatives with the aim of helping to increase the business of its distributors and strengthen its distribution. The development comes against the backdrop of a rapid evolution of consumer goods distributors (FMCGs) in search of a “parity field” among manufacturers between traditional distributors and other organized distribution companies. business to business (B2B).
The Federation of Indian Consumer Products Distributors (AICPDF), an organization representing retailers and distributors, is in talks with several manufacturers of consumer goods. He previously called for a “non-cooperation” against FMCG companies from next year if B2B retailers, such as Jiomart, Walmart, Metro Cash and Carry, Booker, ElasticRun and udaan continued to sell products. at lower prices. r, AICPDF, which represents more than four lakhs of distributors and wholesalers across the country, said it has received responses from several FMCG manufacturers on this matter, with the exception of HUL, which did not did not respond. Its distributors in Maharashtra had decided not to sell HUL’s Kissan brand products.If the company does not respond within a week, it will also stop selling HUL products under the Glow, Lovely and Ron brands.
However, HUL said it has a long-standing relationship with its distributors based on trust and mutual benefit. “Our distributors have told us overwhelmingly that they will reject any attempt to create a wedge between the company and our trusted distributors,” said a spokesperson for HUL. General Commerce (GT) continues to be the company’s largest channel and our distributors (redistribution stockists) are and will remain its valued partners, he said. to enhance the capabilities of our GT network, ”HUL said. Previously, AICPDF wrote to companies to inform them that B2B resellers offer FMCG products to local resellers and stores with substandard products, which they are offering and now “negatively affects” their reputation and goodwill. “
Therefore, our request is that we also receive these products at prices at which we can also offer the same prices as the Jio Mart / B2B companies,” the association said in an open letter to the FMCG companies. In addition, the AICPDF had also stated that its members “will not launch any new product from the company” unless it obtains a commitment from the producers of consumer goods that said product is not available from B2B retailers.