Strategic innovations in distribution channels - an emerging market perspective and case studies from consumer packaged goods (CPG) industry of India

摘要

Distribution channels are pathways along which products traverse from producers or manufacturers to the end consumers. It can include wholesalers, retailers, distributors and even the internet itself. They have been classified as routes along which products, information, and finance flow (Mulky, 2013). The distribution channels for CPG industry in India is unique in many ways and has distinctive differences vis-a-vis the Western CPG distribution ecosystem: 1. Organised Retail's contribution in overall sales of CPG industry in India is insignificant. The distribution ecosystem is characterized by the multiple levels of unorganized retailing and wholesaling. 2. Presence of large base-of-pyramid (BOP) and rural markets with a large consumer base. These markets have inherent deficiencies in terms of infrastructure and pose unique challenges for distribution. 3. Distortions in the taxation structure and variance across Indian states which affected the overall logistics and warehousing resulting in cost and design inefficiencies for the firms.