Distribution in India

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.

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