All Indian Federation (AICPDF) distributors have called Hindustan Unilever (HUN) boycott products after the company met with their representatives and overcomes their concerns about business-to-business platforms that emerged and cash players, such as Best, Jumbodail, Walmart, Metro Cash and Carry, Association said on January 4.
“Hul has provided a guarantee that it will give serious consideration to protect the interests of its distributors and will take action on bad practices on the market if proven correct,” said the association.
Therefore, he added, we ended the protest against Hul for now and will oversee the development on the market for the next three months. “If the company does not increase its practice after three months, then we will start the campaign again.”
AICPDF, however, will continue to be agitation against the FMCG Colgate-Palmolive (India) company and the distributor in Maharashtra will not share fresh colgate max. AICPDF has warned that if the company continues to ignore its demands, distributors will boycott other brands by colgate-palmolive.
“We have written all large companies in the FMCG segment and most of them have given us guarantees about overcoming our concerns, but Colgate-palmolive continues with a stubborn attitude,” said the association in a strong press statement on Tuesday.
“Therefore, as previously announced, we will start the max colgate fresh brand boycotter in Maharashtra Market and if the company still does not pay attention to our complaints, then we will stop storing Colgate Vedshakti also from next week and so on,” warn AICPDF. .
Colgate-palmolive on Tuesday in submission of regulations informed that he was directly involved with the distributor on this issue. “Please note that companies have strong relationships with distributors and supply chain partners, developed for the past eight decades, based on mutual trust, justice and transparency,” said the company in a response to the clarification sought by the exchange sought by the exchange. News report that certain colgate-palmolive products will go shelves in Maharashtra.
“Furthermore, the company involves with network distributors directly on a sustainable distribution to overcome their business challenges including but are not limited to the return of their investment fair,” the company gets information.
Colgate-palmolive, however, also said that it was not involved with AICPDF.
“Please also note that the company does not know any information in this case that requires disclosure for exchanges. Furthermore, there is no material impact of news articles about the company and the company will ensure that the supply of its products remains uninterrupted in a situation,” he added.
Conflict reports between FMCG companies and their distributors appeared in the first week of December when AICPDF wrote to 25 FMCG companies, demanding parity margins with the B2B online platform and cash players and carrying. While most companies held talks with associations in December-end, Hul and Colgate-Palmolive have not responded, which emit associations that are already dissatisfied and cause boycott their products in Maharashtra.
This association accused that FMCG companies such as Hindustan Unilever and Colgate-Palmolive offer a higher margin on these platforms, hurt their members. FMCG companies offer a margin of 3.5-5 percent to traditional distributors, but the new platform can negotiate a margin of 12-15 percent, considering their bulk orders, the distributor said.
