General trade vs modern trade, where should I start, and how do the margins actually work?
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.
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3 resources, 3 India-specific, 3 link-checked.
📄 Article
✓ Link checkedIndiaFreeIntermediate
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.
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.
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.
