11.1 Why this Article is necessary

11.1.1 In food business, sales and distribution are often treated as a simple last step: “Produce it well and sell it somehow.”

11.1.2 This is no longer true. The present sales and distribution ecosystem have become heavily distorted and, in many cases, structurally inefficient.

11.1.3 Therefore, any business that blindly aligns itself with today’s dominant channels risks becoming a self-induced failure, even with good products and good intentions.

11.1.4 This Article exists to ensure that sales strategy is not based on fashion, noise, or volume obsession, but on economic truth and long-term viability.

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11.2 The old system worked for a reason

11.2.1 The traditional chain of manufacturer → distributor → retailer lasted for decades because it had a basic internal balance.

11.2.2 Each layer had:

• A clear responsibility,

• A clear value addition, and

• A fair margin aligned to that value.

11.2.3 This balance is getting lost. In many modern models, costs have increased sharply while responsibility and value addition have not increased proportionately.

11.2.4 This business acknowledges that the old system was not “outdated” by default. It was often simply efficient and disciplined.

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11.3 Modern retail as a warning sign

11.3.1 Modern retail models copied from the West promised better shopping experience and brand visibility.

11.3.2 However, for food and FMCG, they often became:

• High-cost structures,

• Wastage inducing, and

• Pilferage and shrinkage prone.

11.3.3 Many modern retail experiments failed not because consumers did not enter stores, but because the backend economics could not hold.

11.3.4 Therefore, this business will not treat modern retail as a “premium default”. It will be evaluated only if the numbers and controls make sense.

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11.4 E-commerce and the illusion of scale

11.4.1 E-commerce improved consumer convenience, and that is a real contribution.

11.4.2 But on basic business fundamentals — such as:

• Cost-to-serve,

• Returns and damage,

• Wastage, shrinkage and pilferage,

• Packaging and last-mile inefficiencies —

It often becomes even more expensive than modern retail.

11.4.3 The idea that “losses are fine today because scale will bring profits tomorrow” has repeatedly proved to be a risky myth.

11.4.4 This business will not base its survival on volume-chasing logic unless unit economics are already stable and proven.

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11.5 Quick commerce as the fragile extreme

11.5.1 Quick commerce provides even faster service and creates excitement.

11.5.2 But the business economics often become more fragile due to:

• Extreme delivery costs,

• Higher operational leakage,

• Demand volatility, and

• Pressure-driven discounting.

11.5.3 Therefore, this business sees quick commerce as a channel that may create visibility, but it cannot be assumed to create viability.

11.5.4 Visibility that destroys economics is not marketing. It is self-harm.

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11.6 The real question: should we align with a failing pipe?

11.6.1 If the dominant distribution systems are inefficient and loss-heavy, then entering them blindly is equivalent to tying our business to a weak vehicle and hoping it will win a race.

11.6.2 This business therefore treats channel choice as a strategic survival decision, not a tactical sales choice.

11.6.3 Any channel is acceptable only when it:

• Respects unit economics,

• Protects product integrity and quality, and

• Strengthens long-term trust.

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11.7 The alternative direction: direct contact models

11.7.1 When conventional channels become distorted, new models naturally emerge that bring manufacturers and consumers closer.

11.7.2 These are not “new inventions”. They are often old ideas returning with better tools.

11.7.3 Examples from everyday Indian life already exist:

• Milk delivered directly to homes by a local dairy,

• Newspapers delivered directly by publishers,

• Subscription-based supply of essentials.

11.7.4 This business recognizes that direct models can work well when:

• Routes are dense,

• Repeat consumption exists,

• Subscription discipline is possible, and

• Service is predictable.

11.7.5 Direct models may not always scale nationally, but they can scale deeply in selected clusters, which is often more profitable than shallow national scale.

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11.8 How this business will choose channels

11.8.1 This business will not choose channels based on popularity. It will choose based on economic and operational fit.

11.8.2 Every channel option must be tested on:

• Cost-to-serve,

• Leakage and wastage risk,

• Payment discipline and credit cycles,

• Returns/rejections handling, and

• Brand trust impact.

11.8.3 Channel choice must also match product nature. For example:

• Farm-grade commodity pathways behave differently from packaged multi-ingredient products,

• B2B ingredient selling behaves differently from D2C.

11.8.4 Therefore, channel strategy will always be linked to the utilization matrix defined earlier (farm-grade → graded → primary processed → secondary → tertiary).

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11.9 What this Article protects us from

11.9.1 This Article protects the business from:

• Joining loss-making channel ecosystems blindly,

• Falling into the “volume will fix it” myth,

• Discount addiction, and

• Building growth on unsustainable unit economics.

11.9.2 It also protects the business from wasting years chasing fashionable distribution models that do not match our product and capability reality.

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11.10 In simple words

This business believes sales is not about shouting louder. It is about choosing a channel where:

• The product remains honest,

• The customer is served well, and

• The business remains alive.

If a channel cannot support all three, we will walk away — even if others are running toward it.

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11.11 Why this Article follows Marketing Philosophy & Communication

11.11.1 Article 10 ensures we communicate truthfully and responsibly.

11.11.2 Article 11 ensures we deliver that truth through channels that do not destroy economics.

Marketing without viable channels becomes theatre. Channels without integrity become manipulation. This business accepts neither.