Tata Consumer embraces digital distribution, cuts ties with dealers, distributors
The consumer products company has terminated contracts with its 40 national distributors and 5,000 dealers, say sources
- Jul 8, 2020,
- Updated Jul 8, 2020 10:08 PM IST
Tata Consumer Products (TCPL), the new entity formed by the merger of Tata Global Beverages and the consumer products division of Tata Chemicals, has terminated contracts with most of its distributors and dealers to make way for digital distribution of its products including Tata Salt, Tata Sampann, Tata Tea, Tetley, Eight O'clock Coffee and Himalayan water. According to sources, TCPL severed its long standing contract with 40 nationwide distributors and 5,000 dealers to try the direct dealership strategy, at which the FMCG giant Hindustan Unilever (HUL) excels.
"The company has cancelled the contracts with its entire network of distributors, which will come to 40 in number, and there are at least 2,000 small dealers working under them. Besides, they terminated the services of another 3,000 dealers. With this, the overall dealer network strength will come down to 4,000 from earlier 9,000," said a distributor from Assam.
Tata Consumer Products (TCPL), the new entity formed by the merger of Tata Global Beverages and the consumer products division of Tata Chemicals, has terminated contracts with most of its distributors and dealers to make way for digital distribution of its products including Tata Salt, Tata Sampann, Tata Tea, Tetley, Eight O'clock Coffee and Himalayan water. According to sources, TCPL severed its long standing contract with 40 nationwide distributors and 5,000 dealers to try the direct dealership strategy, at which the FMCG giant Hindustan Unilever (HUL) excels.
"The company has cancelled the contracts with its entire network of distributors, which will come to 40 in number, and there are at least 2,000 small dealers working under them. Besides, they terminated the services of another 3,000 dealers. With this, the overall dealer network strength will come down to 4,000 from earlier 9,000," said a distributor from Assam.