How To Plan Distrbutor Search - A Short Guide
Manufacturers do not sell directly to consumers - they need distribution channels to reach markets. Wider the reach of distribution - larger is the customer base and resultant sales. No wonder, distribution is considered backbone of any market. However, building distribution network in India has remained an uphill task for small businesses for far too long. Hassles of inter-state trade, compliance with multiple taxation - VAT, CST, state-specific entry taxes, Octroi, road permit etc has hobbled Indian SMEs for long. As a result - only large companies like HUL, Colgate Palmolive, Maruti etc could afford to build pan-India distribution channels so far. However, introduction of GST has opened new opportunities as hassles of inter-state trade is now mostly gone - creating a level playing field for SMEs. India is now truly a Pan-India market. To leverage the opportunity, SMEs need to have a plan of action to locate and appoint dynamic and resourceful distribution partners acro