GST to transform India’s distribution and supply chains | ValueNotes Connect – Nov 17

ValueNotes Connect

Welcome to the November issue of ValueNotes Connect.

The recent implementation of the GST in India has had its share of teething problems. Though most (formal sector) companies have been able to achieve compliance, the problem is with the vast number of connected entities – in the supply or distribution chains. Many small suppliers and distribution channels that are in the unorganised sector have traditionally dealt in cash. Moreover, they are not accustomed to formal record-keeping, accounting systems and technology. Going forward, they will have to completely change the way they operate in order to be GST-compliant. Further, the single tax is leading to a rationalization of logistics systems (warehouses, transport, etc.).

Even as GST implementation problems are expected to get resolved over time, supply chains and distribution channels will be substantially disrupted. Though some early indicators suggest consolidation and benefits of scale, the picture is quite complex and can vary by sector or industry. Little wonder, that in recent months, we’ve seen a surge in the interest around channel intelligence in India on our website. In case you missed some of our popular articles, here they are…

The distribution advantage in Indian markets: While brand, patents and such like corner much attention – in a market like India, distribution is one of the most critical competitive advantages (or barriers).

Breaking the distribution barrier in retail?: Distribution networks are vital to manufacturers of consumer goods in a large and diverse country like India. They have served as significant barriers to entry for new entrants.

Disruption is not only about technology: Is it possible to disrupt an industry without a technology advantage? India’s Patanjali might well fit the bill…

Healthcare equipment – reaching rural markets in India: Suppliers are finding that markets in semi urban and rural areas behave quite differently from the large cities. The industry is dealing with these differences in multiple ways.

Do read about how our channel intelligence on the competitors’ sales and distribution models helped an FMCG firm streamline their go-to-market strategy.

As always, we hope you enjoy reading our newsletter, and we look forward to your comments.

Best regards.

The distribution advantage in Indian markets

by Arun Jethmalani

Competitive advantage stems from multiple sources. While brand, patents and such like corner much attention – in a market like India, distribution is one of the most critical competitive advantages (or barriers).

more>>

Breaking the distribution barrier in retail?

by Varsha Chitale

Distribution networks are vital to manufacturers of consumer goods in a large and diverse country like India. They have served as significant barriers to entry for new entrants. However, ecommerce seems to be lowering these barriers…

more>>

Disruption is not only about technology

by Arun Jethmalani

When we hear terms like “disruption” of industries or economies, it conjures up images of technology driven innovators. Is it possible to disrupt an industry without a technology advantage? India’s Patanjali might well fit the bill…

more>>

Healthcare equipment – reaching rural markets in India

by Varsha Chitale

In order to tap opportunities beyond the metros and tier I cities in India, healthcare devices suppliers need to do much more than enhance their distribution networks and sales reach in smaller cities and towns.

more>>

Insights

  • Case study: Channel intelligence helps FMCG firm streamline their go-to-market strategy

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Some client problems we have solved:

  • Feasibility study for an e-commerce platform for home-chefs
  • Infant foods store assessment study
  • Study on e-commerce business models in the FMCG sector
  • Channel partner margin study for tissue paper converters
  • Channel intelligence for orthopaedic implants & prosthetics
  • Channel partners & customer perception study on the branded lubricants market
  • Market intelligence on roasting & allied equipment for peanuts & luxury nuts
  • Opportunity assessment study for the infrastructure pipe market for water, sewage and gas

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