Article

India - Distribution and Sales Channels

International Trade Administration (US Dept of Commerce) · trade.gov Free Intermediate India

A government trade-commission guide to how India's distribution system is actually structured - the three-tier distributor/wholesaler/retailer model - written for outsiders entering the market, which makes it unusually clear and structural.

  • India typically runs a three-tier distribution structure: distributor, wholesaler, retailer.
  • Large FMCG players can run 40-80 distributors across the country.
  • Useful structural map before you negotiate any single distributor relationship.
Open on trade.gov ↗

It answers 2 questions

  1. What's the difference between modern trade and general trade, and which should I start with?
  2. What terms should I negotiate with a distributor (margins, credit, exclusivity)?

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