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.
To be successful in India – companies have no option but to build distribution network bottom up. Some multinationals like Coca Cola tried to circumvent this tedious process by buying Indian companies. However, such companies are usually not available for sale. Successful Indian companies like Hindustan Unilever, Asian Paints, Pidilite, ITC, Maruti, Tata etc. are known for huge distribution networks spanning all corners of India. Building pan-India distribution is one reason why big brands with deep pockets like Coke and Pepsi are taking so long to reach profitability and scale. On the flip side, gaps in distribution provide opportunities to new entrants. For example, in bottled water industry, many small companies have built strong local businesses, by focusing on small towns where national brands like Bisleri or Kinley are not available easily. Similarly, in mobile handset industry, Micromax gained significant share by targeting customers in tier II and tier III cities.
Its clear that one cannot do without a quality distribution network. Since this is not available off-the-shelf, it must be built out (and maintained) slowly and painstakingly. And to do this, companies have to locate potential intermediaries across India and engage them in meaningful negotiation.
So, how does one reach out to potential distributors across India and build distribution network ? India has over 900 TV channels, Times of India is published from 22 cities. Advertising in such diverse media channels is a challenge, that gets further complicated by barriers of language, geographical distance and local custom.
What is required is an on-line portal exclusively devoted to agency/distribution business where companies as well as agents/distributors/franchise assemble for mutual negotiation. Online interaction transcends distance and language barrier – as has been demonstrated by successful Indian e-commerce portals. What’s more, even overseas companies can use such a route to reach out to Indian distributors/dealers/agents/franchise/retailers.
Vanik.com fulfils this vital task of enabling companies and aspiring agents/distributors to assemble here and conduct business. You will find here thousands of opportunities listed here. Everyday, hundreds post messages here – looking for agents/distributors or seeking agency/distribution opportunities.
We invite manufacturers/ exporters/ producers / buyers / agents / distributors / logistics operators and related service providers to join this information sharing / dissemination initiative and multiply your respective businesses. This is a great networking platform where everyone wins. Let us all make vanik.com a phenomenal success.