Easing The Distribution Path

Tech interventions are speeding a brand’s journey to the store

- Chitra Narayanan

The sheer explosion in the number of brands you see at a grocery store today is mind-blowing.

At least 10 different spice brands, including a few regional players, jostle for attention in the masala shelf. Some seven juice brands, including two start-ups, catch the eye. From rice to sauces to pickles to soaps, every category has multiple selections.

If the customer is confused, so is the tiny kirana store owner. What to stock, how much and where to get it from? Of course, there is the age-old wholesale/distributor route. Look at the catalogues brought by the sales agent and place orders and wait for it to be delivered at the doorstep. But today, the kirana store owner (at least in some cities) also has the option of visiting hypermarkets like Metro Cash n

Carry and Lots, or leveraging e-commerce marketplaces like Udaan and Ninjacart, earning higher discounts, incentives and rewards.

On the other hand, the oldworld distributor gives the store owner credit.

With the kirana store retailer now having multiple avenues of sourcing and getting savvy about where he can earn maximum margins, offline distributors have no option but to up their game. Gone are the days when they could bank on decades-old personal relationship.