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Friday, October 30, 2020

Logistics handicap bigger FMCG firms, while private labels, local brands find space in kirana stores

During the ongoing lockdown, private labels and local brands have emerged as a beneficiary as they have now started to occupy a space in households which was earlier ruled by bigger FMCG companies. Regional brands and private labels are now more readily available at kirana stores and have filled the void created by bigger firms, as logistics and production has become an issue.

Like retail chains, online grocery delivery service Grofers has also said that it is now making its own label brands in increased capacity. Bikram Singh Bedi, President-Strategy and New Initiatives said that they have ramped up manufacturing significantly (for our private label). With this, they are able to ensure that any shortage of supplies from large national brands is supplemented with their private labels. In times like this, direct control over supply with the manufacturer helps.

Local stores and kirana stores are dealing with issues of their own. A grocery distribution chain in Noida said that it was unable to immediately secure the supplies of a well known atta brand and to make up for that, it had to stock up on locally packed wheat flour. A similar case was also witnessed after the lockdown when local manufacturers pushed hand sanitizers as demand had shot up while supplies of well-known brands were drying up.

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