Wholesale Grocery Channel: What are Subchannels?

15 de September del 2023
Wholesale Grocery Channel: What are Subchannels?

The Wholesale Grocery Channel in Mexico is an essential component of the product distribution chain, especially for local consumers and small businesses.

The Channel is divided into three subchannels. These subchannels play specific roles in the supply chain and offer a more detailed view of product distribution in the country.

The subchannels in the Wholesale Grocery Channel are defined based on the characteristics of the business and the types of customers they serve. Next, we will explore the subchannels:

• Pure Wholesale (MP): It is made up of routes (with and without merchandise on board) and counters. It is the Traditional Wholesale Channel in which the regular customers are: Medium Wholesalers, Regional Self-Services and Traditional Points of Sale.

• Cash & Carry (C&C): “warehouse” type Point of Sale of any size or dimension that uses “racks” and displays merchandise in cut boxes. In these points of sale, the sale of larger volumes is encouraged by obtaining lower prices per scale, however, they are also enabled to sell per unit (piece) to the final consumer with different prices.

• Own Self-Services (ASP): Point of Sale of any size or dimension (mini super, medium AS or large AS) that uses “shelves” and displays the merchandise by piece, enabled to sell to the retailer and final consumer when selling by unit ( piece) or for larger volumes, defining prices in each case.

The existence of these subchannels is essential to understand the diversity and complexity of the Wholesale Grocery Channel in Mexico. Each of them plays a unique role in the supply chain and meets specific customer needs.

In addition, they reflect the adaptability of this channel to serve a wide variety of products and market niches. Knowledge of these subchannels is essential for both wholesalers and the industry, as it sheds light on how to improve business strategies to grow in the Wholesale Grocery Channel.

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