How Price Undercutting happens via Wholesale Trade?

Wikipedia defines price undercutting as: 'Price cutting, or undercutting, is a sales technique that reduces the retail prices to a level low enough to eliminate competition'. It is obvious that price under-cutting happens mostly to boost volume sales. This article is about how undercutting works in the context of Indian FMCG. Brief Overview of the …

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Wholesale market in India

Wholesellers are none but middlemen who buy products from distributors (wholesale/retail) and sell them to retailers. In most cases, the retailers come to the wholesellers to buy products to replenish their stock. However, wholesellers may also sell to end consumers, but such sales are minimal. In the Indian FMCG market, we have broadly two types of wholesellers: 1. …

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