Dabur reaches out to distributors as quick commerce disrupts general trade | Company Business News-OxBig News Network

New Delhi: Dabur India has reached out to the All India Consumer Products Distributors Federation (AICPDF), representing over 450,000 FMCG distributors and 13 million kirana stores, to reaffirm its commitment to general trade partners amid shifting consumption patterns and growing pressure from online sales channels.

The move comes as digital platforms—from quick commerce to modern trade—gain ground in FMCG (fast moving consumer goods) distribution, putting traditional kirana networks under stress. Dabur, which derives over 70% of its sales from general trade, has been increasingly focused on capturing growth in emerging channels. But this shift has triggered concerns among small retailers and distributors over margins, pricing power and inventory levels.

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“Our general trade stockist partners are not just channels of distribution, they are our growth partners, our frontline ambassadors, and the reason brand Dabur reaches every corner of India,” said CEO Mohit Malhotra, noting the company’s intention to protect and enhance distributor returns under its new “Vision” strategy. 

Dabur said it discussed emerging opportunities and the evolving market landscape with AICPDF members during the meeting.

The outreach follows a one-time inventory correction Dabur, maker of Vatika shampoo and Real drinks, undertook in the September quarter of FY24, where it reduced inventory levels with general trade partners from 30 to 21 days to prevent a supply glut. 

“To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalize inventory in the general trade, which resulted in a temporary dip in sates during the quarter,” Mathotra had said during the company’s September quarter earnings announcement.

“This is a one-off correction, spring cleaning that we have done, and that too only at the request of our distributors, so that our ROI (return on investment) of the distributors improves,” he had said in October.

“New channels” growing ahead of general trade has put some pressure on the profitability of Dabur India‘s general trade partner, Malhotra said during the company’s September quarter earnings call. The initiative resulted in a consolidated revenue decline of 5.5% in the September quarter.

While general trade continues to drive bulk of revenue, newer channels are gaining share fast. E-commerce, modern trade and quick commerce together contributed 24% to Dabur’s business in FY25, the company has said. Quick commerce, though still a small fraction of sales (2–7%), is growing rapidly, driven by urban convenience and discount-led consumer behaviour.

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To adapt, Dabur has unveiled a go-to-market overhaul as part of its FY28 strategy to drive double-digit revenue and profit growth. This includes expanding in both rural and urban India, scaling presence across digital-first platforms, and improving demand forecasting and stock replenishment.

“Our renewed strategy is designed to harness the strength of our core while unlocking future-ready engines of value creation…With new product formats, enhanced supply chain capabilities, and a renewed focus on customer-centricity, we are confident that our general trade partners will continue to thrive alongside us as we steer Dabur into the next growth orbit,” Malhotra added.

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The balancing act is delicate. While Dabur wants to tap the momentum in emerging channels, it cannot afford to alienate the general trade ecosystem—especially at a time when retail margins are under pressure and pricing power is eroding in many FMCG categories.

AICPDF, for its part, has been vocal about the disruptive impact of online platforms. Earlier this year, it launched a nationwide campaign against deep discounting and delivery-linked promotions by quick commerce players, arguing they distort market dynamics and undercut small retailers.