One of the least understood parts of FMCG distribution, especially for brands new to markets like Punjab, is the role credit plays in keeping the whole system moving.
In traditional trade, wholesalers often extend credit to retailers — allowing them to stock products and pay after they've sold through some or all of it. This isn't informal generosity; it's a structured system built on years of relationship and trust, and it's a major reason why smaller retailers can afford to stock a wide range of products without large upfront cash outlays.
For a new brand, this matters because it directly affects how fast a product moves into the market. A distributor with strong, established credit relationships across their retailer network can get a new product stocked faster than one still building that trust.
It also means brands need realistic expectations around payment cycles — money moving through a distribution network often follows this same credit rhythm, and understanding it prevents frustration around what might otherwise look like slow payment turnaround.
Credit cycles aren't a workaround in traditional trade — they're the infrastructure that makes the entire system function.
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