Distribution

E-Commerece

Shabbir Chunawalla

Exponential growth is seen in online commerce. Brands make efforts to reach the customers through a variety of channels — on line and offline (omnichannel approach). Corporates and organisations put apps which serve as shopping platforms. Brands reach the remote and interior areas of the country through online shopping. It is estimated that by 2023-24, the e -commerce revenue will reach $100 billion. Thus the current decade is an important decade for e-commerce. Consumer electronics including mobile phones is a major category selling through e-commerce (PwC). Soon after categories such as groceries, apparel, consumer durables, life-style products would be selling reasonably well on e-commerce sites.

Most companies would have a variety of channels. There would be offline sale through sellers and there would be e-commerce.

Some brands would be direct-to-consumer brands. Many small players would also sell online. Companies would create super apps and there would be fintech apps on e-commerce sites. Convenience factor has boosted the sales on e-commerce sites. Sellers sell online through a third party or a site of their own. There could be hybird models of sale.

Distribution in India

Shabbir Chunawalla

Indian markets have changed quite a lot in the last few years but still the distribution system has remained the same. Goods produced by the factories move to the Consignment and Forwarding Agents (C&FA). Some of them are Consignment and Selling Agents (C&SAs) as well. The goods further pass down to the stockists in the towns, who put them into the wholesale and retail outlets. The consumers lift the products they need from the retail outlet, where they can see, touch, feel and buy them. In the last 400 years, the system has remained unchanged.

There are signs of change now. We come across multi-level marketing from Oriflame, Amway and Modicare. In your outings, if you come across a comely woman soliciting your attention, it should not be mistaken as her falling for you. She could be a representative of a multi-marketing company.

There are organised retailers now. They run convenience stores and super and hyper markets all across the country. They are located in big malls.These organisations do direct purchasing in bulk from manufacturers and big marketers and pass on the benefits of economies of scale to the buyers.In future, these big retailers might send their representative to the customers.

There are online retailers who sell electronics, books, appliances, mobiles, books and outfits by creating a marketplace and bringing the buyers and sellers in contact. They are supported by powerful algos and payment gateways. They sell products at discounts and do the home delivery by a tie up with the logistics companies. Many more changes are perceptible — direct marketing, vending of brands, teleshopping and TV channel selling. A lot is likely to change in the age-old distribution system.