There are a lot of factors involved unfortunately and it’s not so cut and dry. Dealers try to sell you what they get the most benefit from. For eg Asian paints(and the rest too) gives them certain targets to hit to get rewards. If they sell x amount they get to take their gamily for a trip to kerala and if they hit xx amount they get to take them for a free trio to Paris etc. At these events families of distributors all across India meet up and become friends and this leads to them trying to hit these targets every year. They also get rewards like bikes and tablets etc. Apart from that it’s about ease of stocking and replacing, ease of payment ie most work on money upfront so the bigger the discount the better, margins are thin so dealers need to keep this in mind too. Then the availability of tinting machines etc. The above is just b2c for the distributor. They also need to negotiate b2b contracts which are longer term with for eg a car service center for automobile paints etc and pricing is key here. So pricing is very important in this industry. Add the number of players currently with each one undercutting each other and giving better rewards + new big players coming in it’s only going to get tougher with everyone trying to tempt distributors to sell their products.
Source: My wife’s family has a side business of a paints shop which has been handed down from her grandparents
Not a sebi advisor. Apologies for the above post since its not directly linked to Indigo since they don’t stock it in their shop but hopefully it helps with the discussion
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