KCDF Press meet
The Kerala Consumer Products Dealers Forum (KCDF), a coalition of prominent trade associations including the All Kerala Distributors Association (AKDA), All Kerala Chemists and Druggists Association (AKCDA), Supermarket Welfare Association of Kerala (SWAK), and Bakers Association Kerala (BAKE), recently held a press meeting to address their unified stance against the principal companies over margin concerns. The Chairman of KCDF Sri Mujeebur Rahuman (AKDA), along with the General convenors Sri Mohanan (AKCDA), Georffin Petha (SWAK), and Sri Kiran (BAKE) addressed the Press and briefed the challenges and issues faced by the dealers.
KCDF, the alliance representing a broad spectrum of Kerala's retail, wholesale, and distribution sectors, has decided to take significant steps in advocating for fair trade practices. For years, the margins for dealers have remained stagnant, despite the increasing costs and overheads associated with running their businesses. The consortium's grievance centers around the principal companies' reluctance to revise the margin structure in favor of the dealers, which has prompted the KCDF to demand a fair and equitable adjustment to cope with the rising operational expenses.
During the press meeting, the KCDF outlined a bold strategic move aimed at pressuring these principal companies to reevaluate their margin policies. The forum has decided to take a firm stance by refusing to promote any new products that do not offer a minimum of 20% retail margin, along with a corresponding increase in distributor margins. This decision is not taken lightly, as it represents a significant shift in how business will be conducted going forward. The forum believes that such measures are necessary to ensure the sustainability of their businesses amidst the drastic increase in overheads. By taking this stand, the KCDF aims to highlight the critical need for a more equitable distribution of profits within the supply chain, ensuring that all stakeholders, especially the distributors and dealers who play a crucial role in reaching the end consumers, are fairly compensated for their contributions. The KCDF's action sends a clear message to the principal companies about the importance of revisiting and revising their margin policies to reflect the current economic realities faced by dealers across Kerala.