Empower traditional selling channels rather than creating a new one.

doctorsbazaar.com
2 min readDec 6, 2021

Why are OEMs and brands shooting themselves in the foot by decimating a distribution network that helps them reach out to millions of retail outlets?

The country has around 450,000 traditional distributors, who have legions of salespeople to service every corner of the vast nation, including 600,000 villages.

What companies like Reliance, Amazon and other tech companies want to do is study the purchase patterns of products and consumption at a pin code level and then plan retail outlet density based on sales volumes and replicate product assortments via private labels and finetune in-store merchandising across retail outlets.

Is the sales target and incentive culture so bad that they are willing to write off their future to these tech companies. Covid pandemic meant both retailers and distributors are financially stretched. Bulk orders very often at steep discounts and generous credit period has enabled these companies to offer discounts to retailers that cannot be matched by existing channel partners.

Distributors typically earn a margin of 3–5% on product prices and mostly take orders physically once a week, making deliveries to retailers within a couple of days.

Reliance and other players are sowing seeds of distrust across the supply chain by making retailers think that more value can be captured by switching to them. We all know how short-term these discounts will last.

AttoMarket our collaborative Omnichannel commerce cloud can enable B2B commerce for OEMs and brands. the same app based ordering, payment via UPI/ Netbanking while enabling fulfillment via distributors. They can enable account specific pricing, schemes, incentives and offer credit.

DM us if you wish to know more about how we can help you digitize your B2B business.

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doctorsbazaar.com

Doctors Bazaar is an Enterprise platform for Medical Devices which performs Networking, Interaction and Marketplace functions. https://doctorsbazaar.com