Digital Planet

May 30, 2026 · Industry Insights

Why 80% of Traditional Distributors' Sales Collapse Is Caused by Manufacturers

A deep dive into the sharp sales decline of traditional FMCG distributors reveals that over‑stocking, price‑war induced margin squeeze, slow execution chains and aggressive competitor moves—driven largely by manufacturers' outdated policies—are the primary culprits, and outlines how digital correction and proactive manufacturer reforms can reverse the trend.