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Retail & Supply Chain Professionals

 

Are distribution channels vital for the Industry??

Created by : Shishir Srivastava, Sales/BD Manager, Reliance Retail  | 12 15 2008 11:51:10 +0000
Industry : Retail Chain/LogisticsFunctional Area : Business Models(Strategy & Execution)
Activity:  219 views;  last activity : 07 06 2010 20:18:09 +0000
With the retail sector booming like anything, and with the big players stepping into the country, and India is the major Global investment platform for the Organized retail sector, and to succeed in this format one needs to know how the things are run in the country and from very old days it is the distributors, who are the middlemen between a company and the sellers, and one who knows consumers behaviour, by doing this they are encashing in the middle... So what do you think are distributors vital for the industry??
  
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I don't agree with Sudhanshu,  distribution channels are necessary, one can't invest in everything specific people are required for specific jobs, and distributors are very much needed, not only bigger players are in the picture here but small retailers are also present in the country and they need distributors who bring in the goods at proper time and are very effective in their job, and they are the old players they know how to run things, and the big players who are coming to the organized retail sector in the country would face difficulty without distributors.. so they are very vital for the industry...
 
By Dayanand Deshpande, Senior Consultant, Ernst & Young  | 12 15 2008 13:35:50 +0000
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According to me yes, they are the one's who supplied products to the retailers and even now it is the same case, and they are the one who is having more knowledge in the market and the consumer's behaviour, A distribution channel provides right service at the right time to the seller. A distribution channel plays an important role in enhancement of sales growth. Resellers can interact with the vendor through this intermediate and the organization can concentrate on the market as it gets true review of the market through a distribution channel. Distribution channel provides initial first level help to vendors by answering their queries about the product. So yes they are vital for the industry...
By Shishir Srivastava, Sales/BD Manager, Reliance Retail  | 12 15 2008 11:51:58 +0000
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No they are not vital for the industry the organized retail can themselves know what is happening in the market by directly marketing it's product to the vendor, where he is cutting the middle men the distributor's, by which both the vendor's and manufacturer's have more profit for them selves than to the distributor..
By Sudhansu Jena, Logistics Manager, Target  | 12 15 2008 13:33:46 +0000
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