Avenue Supermart: a compounding machine?

MT means modern trade. This includes Dmart, Reliance Retail, Vishal Mega Mart etc. GT means general trade. Typically FMCG companies will directly deliver to MT companies while for GT, they will serve through their distributor network. FMCG companies excercise more control over their distributor network, as they are fragmanted without any large player. GT will also account for the bulk of FMCG sales. Hence, FMCG companies tend to protect their GT partners. A case in point, was when Parle refused to serve the small pack of Parle G to Udaan and told them to buy from their distributors instead. This was to ensure that their distributor network doesnt get destroyed by Udaan.
KVI means Key Value Item. It is the main selling pack size of any product. FMCG companies tend to restrict the KVI allocation to MT and instead sell them through GT. For eg, for Nestle, their 70g Maggi Masala flavour is a KVI. You go to any MT store, and you will rarely ever see that pack size. You will mostly see the 280g or 560g pack. The 70g pack is pushed primarily through their GT network. Hope this clarifies.

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