The global e-commerce market has grown exponentially in the last few years, driven largely by the Internet, smart phones, online payments, and businesses offering their products and services online. Things are no different in India. According to a recent report published by PwC, the country’s e-commerce sector has grown by 34% (CAGR) since 2009 to touch USD 16.4 billion in 2014; and it is expected to be in the range of USD 22 billion in 2015.

While e-commerce has lowered the barriers to entry for new businesses, a strong distribution network is vital for manufacturers of consumer goods in a large and diverse country like India. Varsha Chitale argues that despite the hype around e-commerce, brick and mortar will remain the dominant mode of retail, and distribution networks will continue to be a source of competitive advantage.

Varsha also tells us why setting up a distribution network in a B2B industry in India – like medical devices – is a challenge for manufacturers. She believes that partnering with a local company might be their best option.

On another note, we’d like to share with you our latest research report on India’s faucets industry.

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