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Showing posts with the label Distribution

Why Distribution Negotiation Fail And How To Safeguard Success

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  Manufacturers and channel partners are two sides of same coin - one produces and the other sells. Together, they make a successful business entity. Though the relationship is mutually beneficial and one should court the other like a perfect marriage - in reality, it does not happen always. As part of vanik.com online platform - everyday we come across large number of manufacturers looking for channel partners - as also eager channel partners seeking suitable manufacturers. We connect the two and many of them manage to build successful distribution channels - benefiting both partners. However, in several cases, in spite of best intentions on both sides - deals do not materialize.  Why does it happen ? What are the deal breakers in manufacturer - distributor negotiation ?  Based on my research - here's a short list that both manufacturers and channel partners should be aware of to avoid future disappointment. This Is Not A General 'Why Deals Break' Type Article A deal ma...

How Not To Fail - Lessons For Start-Up Entrepreneurs

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  Entrepreneur has a dream - to create next Airbnb or Uber. Founders have bright 'ideas' -  firmly believe their tech start-up can change the market - bringing in millions of dollars. However, in reality,  most start-ups fail. Why such bright and talented group of people fail so often and so miserably ? To be fair to start-ups - any business can fail. For any new business, the growth path is littered with obstacles, uncertainties and insecurities. A wrong decision at wrong time can kill it, especially during early days. However, even with so much uncertainty and insecurities - most small business survive and manage to grow while most start-up, even with considerable funding, fail. Many analysts have written volumes on start-up failure. But irony is, start-ups continue to fail even with so much accumulated knowledge on start-up failure. There's a section of society - specially VCs – who believe such failures are OK. They continue to rationalize failure with colourful theor...

Channel Sales In Post Covid Days - How to Prepare

Are You A Brand - Building Sales Channels Across India ? Are You Channel Partner Looking For Distribution Opportunity ? Whether you are a manufacturer, looking for distributors, dealers, wholesalers, agents, franchise or an aspiring business looking for distributorship, agency, franchise - there's huge disruption awaiting you ! The Corona pandemic has disrupted everyday life - from consumer to brands to channel partners - everyone is severely affected. Its no longer business as usual - every business has to change itself to survive and grow in post-Covid days. B2B sales channels are lifelines for any brand. How does one secure existing channels and grow new ones in this changed world ? Frequent lock-downs and social distancing norms have forced organizations to shift towards digital. As per Accenture research, 46% of SMBs have invested in digital infrastructure for a clear shift towards online and contact-less sales process. In fact, importance of digital channels fo...

Your Product Is Doomed To Fail - Without Distribution

Distribution is the backbone of Indian market. It ensures smooth passage of a product from factory gate to retailers across India. No matter how good a product or how competitive the pricing - it’s unlikely to grow big and reach sizeable market without distribution support. Its comparatively easy to drive marketing campaign and create awareness/demand through large spending in Electronic And Print Media - but sales is unlikely to grow if consumers do not find the product in nearby retail store. Online is surely an alternative - but is still in its infancy - accounting for only 2% of total Indian retail market.   So, how does one plan for distribution ? Ensuring a product reaches large number of consumers across a vast country like India using poor infrastructure (transportation, warehouse, cold chain etc.) is a challenge. The challenge gets even more difficult given huge diversity of language, custom and local regulations. Indian distribution industry is highly fragmented - ...