Distribution Challenges and Workable Solutions PDF

136 Synopses
ROUND TABLE
DISTRIBUTION CHALLENGES AND WORKABLE SOLUTIONS
Avinash G. MULKY
The distribution channel structure remains home delivery, and personalised service; R Nargundkar, Senior Dean e Academics,
an important yet little researched issue, modernisation of retail, however, is picking Institute of Management Technology,
especially in the Indian context. As the up in many sectors. Ghaziabad, focusses on the demand side of
pathway along which products, information, In the second part, the article reports on the distribution channel i.e. the consumer,
and finance flow between manufacturers a panel discussion featuring academic and while touching upon different types of
and end-consumers, designing and industry experts, on the challenges in industries, fast moving consumer goods
maintaining an efficient channel would be designing, constructing, and managing (FMCG), durables, B2B, and services
important elements in a company’s distribution channels in India. marketing. Making several suggestions that
competitiveness. This round table article S Rajendran, Chief Marketing Officer, Acer could help these various industries
provides an overview of distribution Computers, describes the evolution of differentiate themselves, he emphasises
channels, identifies the key issues that Acer’s information technology (IT) that customer satisfaction is most important
impact distribution channels in India, and distribution model, particularly the at the strategic level, and that technology
attempts to develop an agenda for future challenges the company faced as they could only play a secondary role.
channel related research. moved from a semi-direct business model to Banupriya Sudhakar, Director, Nielsen,
The first part of this round table article an indirect business model, and the details the process of retail audit or retail
analyses the constituents, structure, challenges of IT distribution. Consolidation measurement that tracks the consumer
functions, and contributions of distribution in the IT marketplace, redefinition of offtake for FMCG through retail trade, and
channels and focuses on the characteristics distributor roles, and convergence of surveys the Indian retail landscape. She
of the distribution channel structure in products, are emerging trends he sees in suggests that trends like personal
India. Some perspectives that emerge from distribution structure. Changes in consumption mindset, nutrition and
this overview are that channel structures technology, business models, and supply wellness, digitisation, partaking in global
vary across countries and industries and that chain dynamics are the challenges ahead. V brand culture, lifestyle upgrade, and
the level of economic development of Jaigopal, Senior Vice-President, Madura emphasis on time saving could shape
a country is an important factor in Coats, presents the distribution system and demand in the near future, and that
determining the nature and characteristics market experiences of a textiles and thread connectivity would emerge as a key factor
of channels. Some other determining factors business, a consumer business with an affecting trends in the long term. Prof Ashis
are the presence of organised retail, use of intense countrywide distribution network. Mishra of IIMB focusses on the Indian retail
technology and data by channel members, He sees the principal challenge in his field as scenario in recent years. He provides
customer awareness, Internet penetration, that of cost effective reach. He observes a SWOT analysis of the Indian retail sector
logistics, and implementation of laws and that rural affluence is an emerging trend, and suggests that growth is the Indian retail
regulations. In India, where the distribution and that critical challenges such as channel sector is inevitable and given its low
channel structure is largely traditional and profitability, high cost to serve, sales force penetration levels, organised retail is not
the penetration of organised retail is very attrition and effectiveness, and lack of likely to impact unorganised retail in India.
low, the traditional retailer offers several market intelligence among others, need to He also looks at FDI in multi-brand retail and
advantages such as convenience, credit, be addressed. the expected response from manufacturers.

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