MNCs to Wholesalers: Meet sales targets or lose distribution rights

In a bizarre move, some national and multinational companies are threatening their Kashmir based wholesalers of snatching them of distribution rights of their products for failing to meet their yearly sales targets.
Kashmir, which is primarily a consumer economy, has witnessed this year little economic activity and the tourism was completely off due to five-month long unrest. Wholesalers here say these MNC providing various product lines such as FMCGs, pharmaceutical, garments and other products despite knowing the situation which was not suitable for meeting the targets are pressurizing to force them to leave distribution so that they can provide it to other traders in lieu of huge royalty sums.
As per Commercial Taxes Department officials, there are around 55 wholesale distributors for various companies in Kashmir whose turnovers run into several hundred crores.
However, these distributors are facing harassment from their respective companies for failing to meet the set targets.
“I got warning from the company either to increase sales volume or they will cancel my distributorship and give it to another person,” said a distributor of a FMCG company operating in South Kashmir. He does not want to be named.
“Our area was badly hit, leave aside selling anything, I was not able to visit my godown, in this situation how could I have done any business, but unfortunately the company and their forwards agents are not ready to listen to our genuine pleas,” he said.
“Distributors in Kashmir are facing tough time due to pressure being put by companies to achieve the sales targets which is quite impossible for us given the fact that almost all the establishments remained closed for over four months and economy of Kashmir is in doldrums following strikes and restrictions,” said vice chairman of Kashmir Economic Forum, Jan Muhammad Koul, who himself is a distributor.
“We are receiving delegations from across Kashmir of distributors who are claiming that they are being harassed in the pretext of failing to meet targets and in some cases are threatened by companies of revocation of distribution contract,” he said.
“But this approach of companies is hurting them badly,” he said adding that the outside companies should take lenient view towards the Kashmir- based distributors due to the prevailing situation.
Chief Spokesperson, Kashmir Traders and Manufacturers Federation, Farhan Kitab said the companies working in Kashmir should understand about the conditions of the local businessmen here. “We are passing through difficult times and are yet to regain from losses incurred during past few months and coming months of winters will be also harsh as the sales dip during this time of the year,” he said adding that the outside companies must have lenient view towards their distributors who promote their companies in Kashmir irrespective of all difficulties.