India is an enormous country, and challenging to say the least. Infrastructure is poor; regulations and tax structures, which vary by state (29 in total!), are complex. Things are further complicated by the country’s cultural and linguistic diversity.

As consumer buying preferences continue to evolve in a market like India, distribution is one of the most critical competitive advantages (or barriers). However the “distribution” industry itself is unorganized and localized for the most part, and plugging into a national network isn’t quite an option. It must be built out (and maintained) slowly and painstakingly. And to do this, an understanding of how it works is crucial.

In some product categories, eCommerce may have helped circumvent distribution barriers. However, this comes at a cost, especially in the discount-driven Indian market. Successful companies (or those that want to succeed in India) have no option but to build distribution – with eCommerce as a part of the chain.

We recently helped a manufacturer of air-conditioners penetrate India’s tier 2 & 3 markets – do read our case study. And here’s how we helped an FMCG firm understand the sales and distribution models of their peers so they could strengthen their go-to-market strategy.

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

Best regards.