Distribution Opportunities in India

  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...

Wholesale and Distribution are two key components of any B2B sales channel. While distribution is more organized and account for lion's share of b2b sales in urban areas - wholesale remains a prime source of retail supply in rural areas. In a country like India where 90% of retail market is unorganized, spanning across millions of small stores - its impossible to reach significant number of stores directly through distributors. Usually, companies develop strong distribution channel in Tier-1 Tier-2 cities - but as one goes deep in the countryside, dependence on wholesale channel increases. Majority B2B supply to retailers in rural India happens through wholesalers. Typically, a brand selling Pan-India - may have a wholesale component ranging from 20% to as high as 50-70% depending upon category and concerned brand's dependence on rural market. Wholesale Vs. Distribution Both wholesaler and distributor buys from manufacturer in bulk and sell to retailers. However, the similarity...