Professional Documents
Culture Documents
Marketplace
National / State
Cluster of districts / District HQ
Sub-district (Thesil/Block) Feeder town
2
3
4
5
Present situation
Up to level 3 companies have direct representation Can service using sales cum distribution vans Challenge to reach level 4 & 5 with stocks in time Last mile distribution level 5 crucial existing models unviable
CFAs
First link Supplement company depots Cater to one region or state Either invest in stocks & move it to next level Or acts as transporter provides godown space for stock keeping supplies to redistribution stockists Orders booked by company representatives and passed on to CFA for execution
Redistribution stockists
At District HQ or larger cities Supplies to both urban & rural markets Invest in stock, employ sales men covers rural & urban retailers as per permanent journey plan (PJP) Usually covers about 30% of rural retailers
Wholesalers
Control 50% of rural supplies and consumption 70% of rural markets beyond reach of direct distribution No clear distinction between wholesaler & retailers especially in feeder markets Wholesalers believe that business is speculative and not distributive supports brand during boom, abandons during slump In urban markets retail-based distribution, so wholesale neglected In rural markets, wholesalers exploited their advantage of reach undercutting & distribution of fakes Need to build wholesalers loyalty to companies
Retailers
Last link before consumers Stock from wholesaler in feeder towns or supplies from stockists in vans May have permanent shops, or may be mobile (door to door & haats)
Traditional Retail
No. of % of % of Outlets Total Retail per Village % of Population Villages Population Outlets village > 5000 3 22 14 28
Category
Represents 17% villages, 54% rural popln & 60% rural wealth 2001 5000 1001 Hardly any shops in 60% 2000 small villages <1000
14
32
32
16
22 61
25 21
33 21
9 2
Product Category
Food articles Tobacco products Cosmetics / toiletries Groceries Stationery Electricals
Shops %
75 69 68 53 39 31
14
6 4 4 3 2
Penetration %
62 58 56 55 52 48 47 46 45 44 40 34
70% of groceries, toiletries, daily needs from villages 80% of durables from nearby towns 70% of clothes, footwear from nearby towns
Godrej Aadhar
Retail venture of Godrej Agrovet Future Group 70% stake All requirements of rural households Insurance, micro-finance, credit, sourcing agri-products Soil & water testing, weather information, pricing information, advisory Tie up with Eicher Motors, HDFC Bank, Apollo Hospitals, BPCL
3 A Bazaar
Mobile retail through mobile vans Only in J.P Nagar of UP, covers 700 villages Five mobile vans Groceries, FMCG, stationery, garments Each van 3 to 5 villages per day Sales per van Rs. 15 to 20 K per day Quality products, fair prices, at doorstep