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24 Jul 2019, Edition - 1471, Wednesday

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Entry of giants into online sales will hit distribution system, retail network

Covai Post Network

The online stores like Amazon offering about 10crore products for sales and big chain of stores entering into retail marketing, besides creating adverse impact on the distribution system, also damage small retail network system, Federation of All India Distributors Association (FAIDA) said today.

The distributors purchased products from manufacturers by paying full cash and supply to retail outlets, small or big by offering credit terms, without any guarantee or safety for realising the due, FAIDA president, Ch Krishna said.

Participating in the silver jubilee celebrations of Coimbatore Consumer Products Distributors Association (CCPDA) here, Krishna said that there was no no security for the money and recognition to the distributors from both the Central and State government policies.

The distributors were considered as brokers and slaves and there was the need to strengthen the system, since the next generation was not not willing to take over distribution, he said.

The distributors, who have already faced the challenges of both GST and Demonetisation, have to face more challenges in future, while billing and transactions of over rs.50,000, Krishna said.

CCPDA former president T S Mohan Shankar suggested for creation of a separate ministry or Board to take care of business activites of distributors, since they worked on a wafer-thin margin, including the products by MNCs.

He asked the president of local chapter of Indian Chamber of Commerce and Industry, Vanitha Mohan, to assist the members, who are also the members of Chamber to help to solve the disputes between them and industry.

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