Distribution Opportunities in India

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...

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 - ...

The core of marketing is, and always been, understanding the target audience and customizing presentation for achieving desired goals. Depending upon target audience - the presentation undergoes major changes and has variously been coined as B2C (Business To Consumer), B2B (Business To Business), B2G (Business To Government) etc. While B2B marketing employs highly rational, detailed and analytic presentations to hammer home value propositions and return on investment, B2C marketing employs emotion-driven, catchy, impulse-based communication designed to appeal customer desire. Deficiency Of B2B And B2C Marketing A common thread that runs through both approaches is a largely one-way communication to convince the customer to buy a product or service, mostly overlooking customer's unique views, liking and tastes. Though B2C marketing is meant to be directed at individual consumers' desire - in practice it targets a particular demography such as 18-25 year-old women, or 35-50 ye...