The Cost of Shelf Space: Rethinking Retail Strategy in Pakistan’s FMCG Market
When I first began selling Emborg in Pakistan, I had what most new brands can only dream of today:
✅ Full portfolio support across chilled and frozen
✅ Over 60 SKUs in active rotation
✅ Equipment provided by the principal
✅ Retail space, though limited, was negotiable
That was a different time—when retail was still an open door for new FMCG players.
Today, that door is still open... but it’s far more expensive to walk through
❄️ Cold Chain, Hot Costs
Retail, especially in chilled and frozen categories, is no longer a launchpad—it’s a high-risk, high-cost battlefield.
Electricity tariffs have spiked. Generator costs are unpredictable.
Retailers are cautious about allocating precious cold-chain space unless you're:
Paying induction fees
Providing branded equipment
Or backed by a principal with deep pockets
New entrants without these resources face a brutal reality:
Getting on the shelf is no longer the goal. Selling through is the only thing that matters.
🛒 The Shift: Retail is Not Just Distribution. It's a Channel You Have to Design
Most new brands think: “If I get retail space, I’ll sell.”
But retail is not the strategy—it’s the result of it.
Today’s landscape demands business design thinking from the very beginning.🔍 Let’s Break It Down: What’s Changed?
1️⃣ Space Is a Scarce Commodity
Cold-chain space is monopolized by big players
Store owners expect commercial incentives to list new brands
Merchandising staff now comes at a premium
2️⃣ Electricity Costs are a Killer
Frozen and chilled categories carry ongoing operational costs
Retailers often push these onto brands—unless you provide freezers
3️⃣ Retailer Leverage Has Grown
The shift from distributor power to retailer power is real
Chains now dictate terms, from margin expectations to marketing contributions
4️⃣ High Competition, Low Loyalty
Consumers have choices
Brands must invest in pull marketing, not just placement
🎯 Surviving Retail in 2025: A Business Designer’s Playbook
As someone who now operates at the intersection of commerce, systems, and strategy, here’s how I guide new FMCG brands:
✅ 1. Start Small. Go Deep.
Focus on 1–2 key cities
Identify high-fit retailers with your target audience
Build loyalty before scaling geography
✅ 2. Leverage DTC + eCommerce
Use platforms like Pandamart, KraveMart, or your own store
Learn fast → refine messaging, pricing, and SKU mix
✅ 3. Design Cold-Chain Economically
Share freezer space via partnerships
Lease equipment or co-brand with a local player
Consider hybrid SKUs (ambient + chilled formats)
✅ 4. Push for Pull
Run in-store demos
Use storytelling, sampling, and influencer-led education to build trial
Don’t just aim to “get listed”—aim to get repeated
✅ 5. Focus on Hero SKUs
Pick 2–3 products with the highest repeat potential
Invest 80% of your budget in those first
💡 Final Thought: You Don’t Break Into Retail. You Design Your Way In.
Retail in Pakistan isn't dead - it’s just more selective and structurally expensive.
What worked 10 years ago doesn’t work now.
Brands must be smarter. Leaner. More intentional.