In retail business, distribution plays a key role, as itdecides the where, how, whom and when for products to reach their ultimatedestination. Manufacturers and retailers need a number of distribution models,channels and intermediaries at varying degrees of importance and priority,depending on the consumer, product or region. Retailers have to zero down on aright mix of distribution model and network that can enact the balancing act tothe fullest, profiting everyone involved in the entire chain. There are notextbook solutions or standard procedure to facilitate a flawless distributionin the retail sector; however, the parties involved can give serious thought toessential general parameters that can help them move ahead in the rightdirection.


Retailers have to plan more than one distribution model fordifferent segments or regions. The supply chain network may vary according tothe requirements of either the product or the consumer. A distributionstructure that is perfect for home furnishing may turn out to be a failure whenit is used for food and beverage category. Likewise, what works in Maharashtra might not have the same effect when it is implemented in Himachal Pradesh.Retail market in India is as varied in nature as the demographics of the country;each market has to be dealt locally to gain a competitive advantage.


Identification of the right consumer is of paramountimportance in distribution. Not every company needs distribution networks thathave a pan-India presence. Some products or services may have consumersthroughout the country, while certain products may sell only in select regions.Woolens would have no buyers in southern cities like Chennai, that don't havethe privilege of experiencing a cold winter. You have to decide on a supplychain network keeping in mind your consumer base.


Indian Retail companies should also be ready to work withmultiple networks, given the very disjointed and fragmented nature ofdistribution channels in India. Companies sometimes use hundreds of distributorsand stockists to ensure that their products reach millions of consumers inevery nook and corner of the country. Of course, the number of channel partnersor distributors is commensurate of your target consumers and segments. It isalso important to invest on training or coaching the people involved in yourretail network, as they can give you very high returns in the long run.


Targeting a consumer segment that fits the bill for yourbusiness, identifying the areas and regions where you can get your targetconsumers and then picking the right mix of distribution model(s) would keepyou ahead of your competitors in the business.


Mark Stepen is a Consultant with a wide range of experiencein the IndianRetail Industry, specialized in Retail Brand Management, Supply ChainManagement, Franchising, Visual Merchandising, Mall Management and other nicheareas.


Source: Ezinearticles.com