New Delhi: Dabur India has reached out to the All India Consumer Products Distributors Federation (AICPDF), representing over 450,000 FMCG distributors and 13 million kirana stores, to reaffirm its commitment to general trade partners amid shifting consumption patterns and growing pressure from online sales channels.The move comes as digital platforms—from quick commerce to modern trade—gain ground in FMCG (fast moving consumer goods) distribution, putting traditional kirana networks under stress. Dabur, which derives over 70% of its sales from general trade, has been increasingly focused on capturing growth in emerging channels. But this shift has triggered concerns among small retailers and distributors over margins, pricing power and inventory levels.Read this | Dabur stock lacks triggers amid weak financial show“Our general trade stockist partners are not just channels of distribution, they are our growth partners, our frontline ambassadors, and the reason brand Dabur reaches every corner of India,” said CEO Mohit Malhotra, noting the company’s intention to protect and enhance distributor returns under its new “Vision” strategy. Dabur said it discussed emerging opportunities and the evolving market landscape with AICPDF members during the meeting.The outreach follows a one-time inventory correction Dabur, maker of Vatika shampoo and Real drinks, undertook in the September quarter of FY24, where it reduced inventory levels with general trade partners from 30 to 21 days to prevent a supply glut. “To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalize inventory in the general trade, which resulted in a temporary dip in sates during the quarter,” Malhotra had said during the company’s September quarter earnings announcement.“This is a one-off correction, spring cleaning that we have done, and that too only at the request of our distributors, so that our ROI (return on investment) of the distributors improves,” he had said in October.“New channels” growing ahead of general trade has put some pressure on the profitability of Dabur India’s general trade partner, Malhotra said during the company’s September quarter earnings call. The initiative resulted in a consolidated revenue decline of 5.5% in the September quarter.While general trade continues to drive bulk of revenue, newer channels are gaining share fast. E-commerce, modern trade and quick commerce together contributed 24% to Dabur’s business in FY25, the company has said. Quick commerce, though still a small fraction of sales (2–7%), is growing rapidly, driven by urban convenience and discount-led consumer behaviour.Read this | Quick commerce is rocketing. So, are kiranas on the way out?To adapt, Dabur has unveiled a go-to-market overhaul as part of its FY28 strategy to drive double-digit revenue and profit growth. This includes expanding in both rural a in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. 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Dabur engages with distributors as rapid delivery services shake up traditional retail.
