As consumers in India today, we are spoiled for choice when it comes to buying our regular fast-moving consumer goods (FMCG) products. A wide range of retail formats across traditional trade, modern trade and online stores make it convenient to replenish our homes without giving it much thought. In contrast, FMCG manufacturers regularly lose sleep over the best strategies to get their brand of products into an increasing number of homes, thereby driving growth and reaching untapped markets.
Companies today have a very limited view of wholesale stores and feeder markets beyond their existing reach. To bring a data-oriented approach to tapping growth potential through wholesale reach, Nielsen analytics and data science experts collected and analysed primary data on wholesale from 1,200 towns and over 6,000 villages. More than 150 variables covering population, connectivity, amenities and infrastructure across towns and villages were analysed. This resulted in the ability to estimate, for the first time, wholesale sales and stores by towns and villages using predictive modelling. This research has revealed some actionable insights on wholesalers in India.
According to the data, there are about 3.3 lacs wholesalers in the country, half of whom are semi-retailers, who sell directly to consumers as well. Interestingly, the contribution of retail sales from these semi-retailers is almost as much as modern trade in India, which is approximately 9% of the total FMCG sales. This has an implication on the kind of assortment that companies can take to these stores vis-à-vis pure wholesalers.
For more details, download the full report (top right).