Distribution Channel Practices and Consumer Disconnect in the FMCG Industry: Implications for Economic Development in Rivers State

Abstract:

The performance of firms in the Fast-Moving Consumer Goods (FMCG) industry depends not only on product quality but also on the effectiveness of distribution channels in delivering products to consumers at the right place, time, quantity, and price. This study examined the influence of distribution channel practices on consumer disconnect, measured through customer engagement, and its implications for economic development in Rivers State, Nigeria. A quantitative survey design was employed. Data were collected from 256 marketing, sales, distribution, and key-account managers as well as major distributors across 32 registered FMCG firms. Descriptive statistics and linear regression analysis (SPSS version 25) were used. Results showed significant positive relationships between digital distribution practices (R² = .785), channel responsiveness (R² = .639), information sharing (R² = .742) and customer engagement. The study concludes that effective distribution channel practices strengthen manufacturer–consumer relationships, reduce disconnect, and support firm performance and economic development. Firms are advised to expand digital platforms, improve responsiveness, and strengthen information-sharing mechanisms.