# Wholesale and retail trade: Value chain, from upstream to the customer

Distributors, warehouses and stores moving finished goods from factories to households

Source page: https://www.materialinsights.org/industries/wholesale_retail/value-chain/

#### Value chain, from upstream to the customer
**Criticality to the chain:** 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 **Brand owners and sourcingBranded consumer-goods manufacturers**3 · Important

Make and market the packaged food, personal care, apparel and electronics that fill shelves, and sell them to distributors or directly to large chains on trade terms.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why important:** Many brands compete in each category, but a retailer that loses a leading brand loses footfall, and replacing it takes months of ranging and promotion. Technologies Demand forecasting and S&OP planning Trade-promotion management Barcodes and GS1 product data Distributor management systems Depends on Commodities [Wh Wheat](https://www.materialinsights.org/commodities/wheat/)[PO Palm oil](https://www.materialinsights.org/commodities/palm_oil/)[Su Sugar](https://www.materialinsights.org/commodities/sugar/)[Ct Cotton](https://www.materialinsights.org/commodities/cotton/) Chemicals [Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[PET PET resin](https://www.materialinsights.org/chemicals/pet/) Energy [HI Energy-intensive industry](https://www.materialinsights.org/energy/e_heavy_industry/) Industries [Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)[Household and personal care](https://www.materialinsights.org/industries/household_care/)[Apparel and footwear](https://www.materialinsights.org/industries/apparel/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)**Examples:** Hindustan Unilever, Nestlé, Procter & Gamble, Samsung Electronics

**Sourcing agents, importers and private-label contract buyers**2 · Supporting

Find, audit and contract factories for retailers' own-label ranges and imported goods, and manage quality checks, shipping documents and duties.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why supporting:** A competitive field of agents and trading houses; a retailer can switch agent within weeks, though moving factories takes longer. Technologies Supplier audit and compliance platforms Product lifecycle management (PLM) Trade-compliance and customs software Lab testing and certification Depends on Commodities [Ct Cotton](https://www.materialinsights.org/commodities/cotton/) Chemicals [Dye Dyes](https://www.materialinsights.org/chemicals/dyes/) Energy [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Apparel and footwear](https://www.materialinsights.org/industries/apparel/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** Li & Fung, Intertek, SGS  Stage 2 **Wholesale and distributionDistributors, stockists and carrying-and-forwarding agents**2 · Supporting

Hold regional stock for brands, break bulk, extend credit and deliver daily to thousands of small shops, earning a small trade margin.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why supporting:** Fragmented and local; brands appoint replacement distributors in weeks, though credit relationships with shops take time to rebuild. Technologies Distributor management systems Salesman order-taking apps Route planning Credit tracking Depends on Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) Energy [ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/)[Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Redington, Ingram Micro, Jumbotail

**Cash-and-carry and B2B wholesale platforms**2 · Supporting

Sell in bulk to small retailers, hotels and caterers from large depots or apps, competing with traditional distributors on price, range and credit.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why supporting:** Several competing operators and traditional distributors offer the same goods, so buyers switch easily. Technologies B2B ordering apps Warehouse management systems Embedded credit and buy-now-pay-later for shops Data-driven assortment Depends on Commodities [Ri Rice](https://www.materialinsights.org/commodities/rice/)[Pls Pulses](https://www.materialinsights.org/commodities/pulses/) Chemicals [PP Polypropylene](https://www.materialinsights.org/chemicals/polypropylene/) Energy [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/)[PCM Latent heat and cold storage](https://www.materialinsights.org/energy/e_latent_heat/) Industries [Real estate](https://www.materialinsights.org/industries/real_estate/)[Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)**Examples:** Metro Cash & Carry India (Reliance), Flipkart Wholesale, Udaan, Costco  Stage 3 **Warehousing, cold chain and transportRetail warehouse and fulfilment operators (3PL)**3 · Important

Run distribution centres that receive, store, pick and dispatch goods to stores and homes, sold to retailers on per-pallet or per-order contracts.^[5](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251127708001.pdf)
**Why important:** Several capable operators exist, but moving a distribution centre or contract takes months; India's logistics cost was 7.97% of GDP in 2023-24, so efficiency here matters. Technologies Warehouse management systems Automated sortation and conveyors Handheld scanners and RFID Transport management systems Depends on Commodities [St Steel](https://www.materialinsights.org/commodities/steel/)[Tm Timber](https://www.materialinsights.org/commodities/lumber/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[LFP Lithium iron phosphate batteries](https://www.materialinsights.org/energy/e_li_lfp/)[PV Solar photovoltaics](https://www.materialinsights.org/energy/e_pv/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/)[Real estate](https://www.materialinsights.org/industries/real_estate/)**Examples:** Delhivery, Mahindra Logistics, DHL Supply Chain, TVS Supply Chain Solutions

**Cold-chain storage and reefer transport operators**3 · Important

Store and move chilled and frozen goods (dairy, meat, ice cream, vaccines) at controlled temperatures for brands and grocers.^[5](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251127708001.pdf)
**Why important:** Capacity is thinner and more specialised than ambient warehousing, so a lost facility forces costly rerouting or spoilage. Technologies Ammonia and CO2 refrigeration Reefer trucks with telematics Temperature data loggers Blast freezers Depends on Commodities [Mk Milk & dairy](https://www.materialinsights.org/commodities/dairy/)[Py Poultry](https://www.materialinsights.org/commodities/poultry/) Chemicals [NH3 Ammonia](https://www.materialinsights.org/chemicals/ammonia/)[HFC Fluorochemicals and refrigerants](https://www.materialinsights.org/chemicals/fluoro_intermediates/)[PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/) Energy [HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/)[PCM Latent heat and cold storage](https://www.materialinsights.org/energy/e_latent_heat/)[ICE Internal combustion engines and gensets](https://www.materialinsights.org/energy/e_engines/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)**Examples:** Snowman Logistics, Lineage, Americold  Stage 4 **Store infrastructure and enablersMall owners and retail real-estate developers**3 · Important

Build and lease shopping centres, high-street units and big-box sites to retailers, earning rent plus a share of sales.^[2](https://www.ibef.org/uploads/industry/Infrographics/large/Retail-Infographic-May-2026.pdf)
**Why important:** Good sites are scarce and leases run for years; India's top seven cities leased a record 8.9 million sq ft in 2025, showing tight demand. Technologies Footfall analytics Building management systems Central chillers Tenant-mix modelling Depends on Commodities [Cem Cement](https://www.materialinsights.org/commodities/cement/)[St Steel](https://www.materialinsights.org/commodities/steel/) Chemicals [Con Construction chemicals](https://www.materialinsights.org/chemicals/construction_chemicals/) Energy [HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/)[LED Lighting and displays](https://www.materialinsights.org/energy/e_lighting/)[Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Real estate](https://www.materialinsights.org/industries/real_estate/)[Construction and infrastructure](https://www.materialinsights.org/industries/construction/)**Examples:** Phoenix Mills, DLF, Simon Property Group, Unibail-Rodamco-Westfield

**Retail technology vendors (POS, ERP, store systems)**3 · Important

Supply point-of-sale terminals, merchandising and ERP software, electronic shelf labels and self-checkout that run stores and track stock.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why important:** Several vendors compete, but replacing a chain's core merchandising system is a multi-month, high-risk project. Technologies Cloud POS and ERP Electronic shelf labels Computer vision for shelf monitoring Self-checkout kiosks Depends on Commodities [Cu Copper](https://www.materialinsights.org/commodities/copper/) Chemicals [ABS ABS](https://www.materialinsights.org/chemicals/abs/) Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/) Industries [Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)**Examples:** Oracle Retail, NCR Voyix, SAP, Ginesys

**Payment networks and merchant acquirers**4 · Critical

Route card and instant payments from shoppers to retailers and settle funds, charging merchant fees (often zero for UPI in India).^[4](https://newsonair.gov.in/government-says-nearly-55-49-crore-users-onboarded-on-upi-as-of-june/)
**Why critical:** Few rails exist: UPI, run by a single operator (NPCI), carried about 241.6 billion transactions worth ₹314 lakh crore in 2025-26, and cards rely on a handful of global networks. Technologies Card networks and EMV chips UPI and QR-code payments Soundbox payment alerts Tokenisation and fraud scoring Depends on Chemicals [PVC PVC](https://www.materialinsights.org/chemicals/pvc/) Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/) Industries [Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)**Examples:** NPCI (UPI, RuPay), Visa, Mastercard, Pine Labs  Stage 5 **Customer-facing storesSupermarket and hypermarket chains**2 · Supporting

Sell food and daily essentials in high volume at thin margins, using scale buying, own-label goods and fast stock turns.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why supporting:** Shoppers can switch chain or channel within days; the top 10 retailers hold 34.9% of top-250 revenue, so no chain is a chokepoint. Technologies Automated replenishment Loyalty data and pricing analytics Store refrigeration Own-label development Depends on Commodities [Ri Rice](https://www.materialinsights.org/commodities/rice/)[Mk Milk & dairy](https://www.materialinsights.org/commodities/dairy/)[Su Sugar](https://www.materialinsights.org/commodities/sugar/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[HFC Fluorochemicals and refrigerants](https://www.materialinsights.org/chemicals/fluoro_intermediates/) Energy [HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/)[LED Lighting and displays](https://www.materialinsights.org/energy/e_lighting/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/) Industries [Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)[Household and personal care](https://www.materialinsights.org/industries/household_care/)[Real estate](https://www.materialinsights.org/industries/real_estate/)[Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/)**Examples:** Walmart, Avenue Supermarts (DMart), Reliance Retail, Tesco · Top 10 retailers ≈ 34.9% of top-250 retail revenue, FY2023

**Specialty fashion and electronics chains**2 · Supporting

Sell apparel, footwear, beauty or consumer electronics through branded stores and apps, earning higher margins on design, curation and service.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why supporting:** Highly competitive; customers move between chains and online marketplaces easily. Technologies RFID item tagging Omnichannel order management Fast-fashion design and replenishment Extended warranty and service systems Depends on Commodities [Ct Cotton](https://www.materialinsights.org/commodities/cotton/)[Cu Copper](https://www.materialinsights.org/commodities/copper/) Chemicals [PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/) Energy [LED Lighting and displays](https://www.materialinsights.org/energy/e_lighting/)[HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/) Industries [Apparel and footwear](https://www.materialinsights.org/industries/apparel/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Real estate](https://www.materialinsights.org/industries/real_estate/)**Examples:** Trent (Westside, Zudio), Inditex (Zara), Croma, Best Buy

**Independent and franchised neighbourhood stores (kirana, convenience)**1 · Commodity service

Sell daily needs close to home in small quantities, often on credit to regulars; in India mostly independent family-run kiranas, supplied by distributors or B2B apps, plus a growing number of franchised chains.^[2](https://www.ibef.org/uploads/industry/Infrographics/large/Retail-Infographic-May-2026.pdf)
**Why commodity service:** Millions of stores compete street by street; any one is easily replaced, even though the format as a whole is central to Indian retail. Technologies UPI QR codes and soundboxes Shop-keeping and billing apps B2B reordering apps Small chest freezers Depends on Commodities [Ri Rice](https://www.materialinsights.org/commodities/rice/)[Pls Pulses](https://www.materialinsights.org/commodities/pulses/)[PO Palm oil](https://www.materialinsights.org/commodities/palm_oil/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[LED Lighting and displays](https://www.materialinsights.org/energy/e_lighting/) Industries [Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)[Household and personal care](https://www.materialinsights.org/industries/household_care/)**Examples:** Apna Mart (franchised neighbourhood grocery, India), Seven & i Holdings (7-Eleven), Lawson

**Store cleaning, security and facility services**1 · Commodity service

Provide housekeeping, guards, pest control and maintenance to stores and malls on outsourced contracts.^[1](https://www.deloitte.com/content/dam/assets-shared/docs/industries/consumer/2025/deloitte-global-powers-of-retailing-2025.pdf)
**Why commodity service:** Many local and national contractors; switching takes weeks. Technologies CCTV and electronic article surveillance Cleaning machines and chemicals Facility-management software Depends on Chemicals [Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/)[Cl2 Chlorine](https://www.materialinsights.org/chemicals/chlorine/) Energy [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Household and personal care](https://www.materialinsights.org/industries/household_care/)**Examples:** Quess Corp, SIS Group, ISS

## Other sections

- [Overview](https://www.materialinsights.org/industries/wholesale_retail/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/wholesale_retail/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/wholesale_retail/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/wholesale_retail/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/wholesale_retail/linked-industries/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/wholesale_retail/materials/index.md)
- [Chokepoints and risks](https://www.materialinsights.org/industries/wholesale_retail/risks/index.md)
- [Sources](https://www.materialinsights.org/industries/wholesale_retail/sources/index.md)