Indian salesperson threatens supply disruption to protest Reliance Reuters

© Reuters. File photo: On October 21, 2021, a shopkeeper selling consumer goods showed Reliance’s JioMart point-of-sale machine, which he used to order supplies for his store in Sangli, Maharashtra, Western India. The photo was taken in October 21, 2021. Reuters/

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By Aditya Kalra and Abhirup Roy

New Delhi (Reuters)-According to a letter seen by Reuters, household goods salespeople in India threatened that if consumer goods companies offered Reliance Industries products at lower prices, they would interrupt the supply of mom-and-pop stores.

Reuters reported last month that Indian salespeople representing companies such as Reckitt Benckiser, Unilever (NYSE:), and Colgate-Palmolive (NYSE:) said that as mom-and-pop stores increasingly cooperate with them, their sales It was down 20-25% last year. The trust of Indian billionaire Mukesh Ambani.

Ambani’s heavily discounted products have prompted more stores to place digital orders through his JioMart Partner app. This poses an existential threat to more than 450,000 company salespeople who have been ordering each store in a vast country for decades. The corner provides services.

Quoting a Reuters report, the All India Consumer Goods Distributors Federation, which has 400,000 members, has sent a letter to consumer product companies that demand fair competition, stating that they must obtain products at the same price as Reliance and other large corporate distributors.

The group stated in the letter that if the demand for price parity is not met, its sales staff will stop distributing products to mom-and-pop stores. If this partnership continues after January 1, it will not supply newly launched consumer products.

The letter said: “For many years, we have won the reputation and goodwill of retailers by providing them with good service… We decided to launch a’non-cooperation’ campaign.”

Dhairyashil Patil, president of the group, said the letter has been sent to Reckitt, Hindustan Unilever, Colgate and 20 other consumer products companies.

Neither the three consumer product companies nor Reliance responded to requests for comment.

In India’s nearly 900 billion U.S. dollar retail market, mom-and-pop stores or “kiranas” account for 80% of the market. Approximately 300,000 such stores in 150 cities order products from Reliance, and the company has set a goal of reaching 10 million cooperative stores by 2024.

Traditional distributors told Reuters that their business has been affected because they could not match Reliance’s pricing, so they were forced to cut their fleet and employees.

Jefferies (NYSE:) estimated in March that Kiranas will steadily increase Reliance’s purchase share “at the cost of traditional distributors.” Jefferies estimates that by 2025, Reliance’s sales of this type may soar from only US$200 million in 2021-22 to US$10.4 billion.

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