FMCG) companies, have always found it challenging to reach Indian rural markets. The potential of this market, constituting >70% of India’s retail landscape, has remained largely untapped, primarily due to challenges in rural distribution.
Due to the saturation of the urban markets, companies are adapting go-to-market strategies to meet their continuous growth ambitions. This is where Sales-as-a-Service (SaaS) emerges as a game-changing solution that can help overcome the limitations of traditional distribution models and achieve remarkable risk-free market expansion.
Challenges in Unorganized Retail Distribution
Customers choose convenience over brand loyalty.
So, to protect sales, companies want to maintain a full product range at every relevant outlet (numeric distribution). However, this is frequently compromised due to fears about cost and control.
Companies tend to experience diminishing returns for their cost of servicing, i.e., as shops get smaller, the order value per sales visit decreases, and the number of shops declines with increased distances. Concurrently, as the sales force expands, its management becomes more challenging.
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