Badri Singh spent 3 years as a sales representative for a major beverage company in Delhi. His day typically started at 8:00 am starting his route in Old Delhi and ended well after 7 PM after visiting 30-35 retail outlets, negotiating displays, resolving retailer issues and then meeting the distributor to put his daily orders for processing and fulfillment. Despite his dedication, the long hours, extensive travel in all weather conditions, and high pressure to meet targets began taking a toll.
When a quick commerce company launched operations in his area and offered him the role of Operations Manager for their new dark store, the opportunity was too good to pass. "I know the retail landscape inside out. I understand inventory management, retail relationships, and consumer behavior patterns. But in the traditional FMCG hierarchy, becoming a manager would take at least another 3-5 years. Now I make approximately the same money, my designation is that of a manager, and I work fixed shifts in a smaller geographic area," Badri recalls.
Right from when the FMCG industry started taking shape in India some 50-60 years ago, brands have always needed a crack team of foot soldiers and distributors to ensure the products are placed on the right shelves in the right markets in front of the right consumers. But in the last few years, especially after quick commerce became the country’s new darling, a perfect storm is brewing in this critical part of the FMCG ecosystem, with far-reaching consequences for the entire supply chain.
According to a recent Economic Times article, there are atleast 15-20 million such feet-on- street workers. Tata Consumer Products, for instance, reports an annual voluntary attrition rate of approximately 15% among its frontline staff and about 8% within its managerial sales ranks. Bikano faces a higher attrition rate of 25% among its sales professionals. Some FMCG companies are experiencing attrition rates as high as 40-50% at the frontline level, nearly double the pre-pandemic levels.
The situation has become so dire that several leading FMCG companies are now constantly operating with 15-20% fewer salespeople than their sanctioned strength. “There are challenges of attrition in traditional salesforce roles, perhaps the highest among all functions, but there is no option,” says Mayank Shah, VP at Parle Products.
This exodus of sales talent to the gig economy has severe ramifications. When retailers don't get serviced with the right frequency:
The problem is particularly acute for general trade, which still accounts for approximately 80% of FMCG sales in India. With such scarcity of on-field personnel, companies are now able to visit only about 60-70% of their retail universe with the desired frequency, down from over 85% pre-pandemic.
For FMCG brands to thrive in this new reality, adapting is essential. Companies need to:
Industry experts widely agree that the future of FMCG distribution is clearly in a hybrid model, where technology complements human touchpoints, rather than replacing them entirely.
For brands struggling with the challenge of under-serviced retailers and therefore lesser number of orders, Badho steps in as a critical solution for FMCG brands facing salesforce shrinkage. Badho's innovative platform helps brands maintain market presence and growth even with reduced field teams through:
A national sales director who recently implemented Badho's solutions notes, "We have been able to maintain 92% of our retail coverage while operating with only 70% of our previous field force strength. Badho has basically given us a digital extension of our sales team."
The ongoing exit of salespeople from FMCG to the gig economy is a fundamental shift and a new ground reality, not just a passing trend. Brands that fail to adapt will find themselves trapped in a cycle of coverage gaps, execution inconsistencies, and skyrocketing recruitment costs.
Fortunately, at Badho, we have had a lot of interest from FMCG companies who acknowledge that technology isn't just a stopgap but a strategic advantage in this new environment. By partnering with innovative solutions like Badho, these brands are wowing their customers and their distribution network, strengthening their distribution networks, and ultimately, winning in a market where agility is everything.