D2C brands in India have disrupted e-commerce with agility and innovation, but when they step into General Trade (GT) or kirana retail, the dynamics shift drastically. The experience of Zoff Spices highlights how entering kirana retail is far more complex and capital-intensive than digital channels. Despite challenges, kirana retail remains the largest opportunity for scale in India’s FMCG landscape.
Unique Features of General Trade for D2C Brands
General Trade (kirana retail) is often termed the Holy Grail for brands because of its unmatched reach.
Massive Market Size: India has ~13 million kirana stores, with over 10 million in Tier II and smaller cities.
Consumer Growth Potential: By 2030, India will add ~110 million middle-income and 14 million high-income households, strengthening kirana’s role as a retail growth driver.
Proven Success Stories: Brands like Mamaearth used kirana retail as a key growth lever to achieve unicorn status.
Distribution Chain & Kirana Retail Dynamics
Unlike e-commerce, where brands directly connect with end-users, GT involves multiple stakeholders: distributors, wholesalers, and retailers.
Shift in Customer Base: In GT, the retailer becomes the actual customer for the brand, not the end-consumer.
Distributor Partnerships: Building strong distributor networks is essential for long-term presence.
Hybrid Fulfilment Models: Many D2C brands adopt Direct-to-Retailer (D2R) initially, but sustainable growth often requires a Distributor-led fulfilment structure for speed and reliability.
Challenges for D2C Brands Entering GT
Transitioning from digital-first to offline is like moving from a 100-metre sprint to a marathon.
Capital Does Not Equal Speed
Even with large budgets, GT growth is gradual.
Relationship-building and trust take time.
Retailer Expectations
Retailers demand credit facilities, reliable supplies, and attractive margins.
They prioritize trust and service over flashy marketing campaigns.
Data Desert
Unlike e-commerce, GT lacks direct consumer data.
Brands often depend on secondary sales patterns and distributor reports.
Relationship Building
GT thrives on relationships, not performance marketing.
Winning retailers’ trust is more valuable than analytics dashboards.
Future-Proofing with Tech Platforms like Badho
Digital platforms such as Badho bridge the gap between D2C agility and GT complexities.
Plug-and-Play GT Entry: Simplifies onboarding and helps brands bypass traditional bottlenecks.
Direct Retailer Engagement: Offers loyalty programs, promotions, and real-time communication.
Market Insights: Provides real-time data on inventory and sales, reducing the “data desert” problem.
Hybrid Fulfilment Solutions: Supports both direct fulfilment (for new markets) and distributor-led fulfilment (for high-demand regions).
Top Lessons & Conclusion
The kirana ecosystem is not just a sales channel—it is the neural network of Indian retail. Success requires patience, adaptability, and the right partnerships.
Brands must shift their focus from end-consumer engagement to retailer relationships.
Building trust and ensuring timely deliveries is as critical as brand awareness.
With tools like Badho, D2C brands can enter GT strategically, scale faster, and achieve long-term growth.
