Digital disruption is empowering customers across India. Armed with Internet search tools and product comparison websites – customers are demanding more value for every rupee. The middleman chain between manufacturer/importer and retailer is crumbling from onslaught of e-commerce giants like Flipcart, Amazon, Snapdeal etc. Brick and mortar retailers have even gone to Govt of India for protection – demanding more control over e-commerce trade. However, such resistance has proved to be futile historically as consumer choice and economics ultimately decides the winner. Continue reading
- Distribution is the backbone of Indian market. It facilitates flow of products from factory gate to all parts of India. Reaching customer’s doorstep in a large 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 – to get products to all corners of the country – the manufacturer has to manage large number of small and medium intermediaries. In a nutshell – unlike developed countries, India does not have a national network enabling manufacturers to distribute their products far and wide.