The changing structure of distribution channels in Pakistan
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 27 April 2010
Abstract
Purpose
The purpose of this paper is to consider the impact of the entry of international wholesalers upon existing fast moving consumer goods (FMCG) channel structures and the relationships between channel members in Pakistan.
Design/methodology/approach
The paper draws on primary and secondary data. Industrial and published sources are used to describe the retail industry and traditional channel structures in Pakistan. Semi‐structured interviews with industry experts and channel participants (manufacturers, distributors, local and organised wholesalers and retailers) over the period illustrate the perspectives of different channel members.
Findings
Although currently holding small market share, the entry and growth of international, consolidated wholesale has opened alternative channel structures. This poses a threat to some channel members and creates relationships that alter the distribution of power in the channel. In this fluid situation, there is the possibility of substantial change in Pakistan's FMCG retail.
Research limitations/implications
The nature of the Pakistan retail market creates difficulties in compiling statistics or generalising from observations. The paper uses published statistics, industry reports and interviews to nevertheless be able to comment on this important market.
Originality/value
The paper looks at an under‐researched market and comments upon the first steps in that market towards consolidation and internationalisation. In looking at the reactions of extant market players to this recent development, the paper provides useful insight and guidance to those (manufacturers, retailers and analysts) interested in retail in Pakistan.
Keywords
Citation
Aman, A. and Hopkinson, G. (2010), "The changing structure of distribution channels in Pakistan", International Journal of Retail & Distribution Management, Vol. 38 No. 5, pp. 341-359. https://doi.org/10.1108/09590551011037572
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited