General trade vs modern trade, where should I start, and how do the margins actually work?
The short answer
General trade (kirana stores) still moves 70-75% of India's FMCG volume and has lower entry costs, but it runs through a layered chain, manufacturer to C&F agent to superstockist to distributor to retailer, with distributor margins typically in the 10-12% range and retailer margins layered on top around 25-30%. Modern trade (chains like Reliance Retail, Nykaa's own stores) has fewer, bigger gatekeepers but demands upfront costs like listing fees and slotting allowances, plus long payment credit cycles that strain working capital. Most category-appropriate D2C brands start with a handful of modern trade accounts to build brand credibility, then use that traction to negotiate general trade distribution.
A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.
Here are the resources
Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.
3 resources3 India-specific3 link-checked
Read
📄 Article
✓ Link checkedIndiaFreeIntermediate
Why we picked it
The clearest map of India's GT supply chain layers, manufacturer to C&F agent to superstockist to distributor to sub-stockist to retailer, which most D2C founders have never had to navigate before.
Why we picked it
The most direct breakdown of what distributors and retailers actually take as margin in GT vs MT, essential for pricing your product to leave enough room for the whole chain to want to sell it.
Why we picked it
A clean side-by-side comparison of GT and MT operating models, good as a first orientation read before diving into the margin and distribution-chain specifics elsewhere in this pool.
