Article

Distributor Margins in FMCG: GT & MT Explained

Scico Free Intermediate India

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.

  • Distributor margins typically run 10-12% depending on category and competition
  • Retailer margins are layered on top, often 25-30%
  • MT carries higher upfront costs (listing fees, slotting) than GT, but lower long-run operational complexity

It answers 2 questions

  1. General trade vs modern trade, where should I start, and how do the margins actually work?
  2. How do I get a distributor or stockist to actually push my brand in general trade?

Read with it

  1. The clearest map of India's GT supply chain layers, manufacturer to C&F agent to superstockist to distributor to sub-stockist... Kirana Club Article The Complete Guide to FMCG Distribution in India Kirana Club
  2. A practitioner's operator-level walkthrough of scaling offline distribution specifically for a D2C-born brand, distinguishing... medium.com Article Scaling Offline Distribution Like a D2C Brand in India - Part 2 Sameer Lodha
  3. A clean side-by-side comparison of GT and MT operating models, good as a first orientation read before diving into the margin... PPMS Article Modern Trade vs General Trade in FMCG: India Channel Guide PPMS
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