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With lower margins and higher landing rates, the general trade dealers are facing continuous conflict with organised wholesale stores – that’s the insight from our conversation with Hindustan Unilever Ltd.’s distributors in Western Uttar Pradesh.
They told us,
1. HUL has raised prices of key stock keeping units such as Taj Mahal one kilogram, Lux sets and Surf Excel one kg,
2. with many players present in the tea space, Taj Mahal (due to the price hikes) might lose some market share to other organised players in the short term,
3. the company is propelling the dealers to cover the smallest retailers present in the territory,
4. the dealers face negligible need for higher working capital requirements and
5. company is aggressively pushing the retailers to order from the mobile application – Shikhar.
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