Tapping rural India has been the biggest challenge for follower brands when it comes to the fast-moving consumer goods (FMCG) space.
The companies in the top three positions in a particular category always had an advantage in terms of rural distribution compared to other players in that category. The early-mover advantage helped leader brands to create entry barriers for others.
Why does the age-old distribution model (Distributor-wholesaler-retailer), created donkey’s years back, still prevail in the FMCG space? It’s not surprising that this is an entry barrier created by market leaders!