Description
Remodeling City Whole Seller to Village Retailer Delivery business through E-Commerce
Remodeling City Whole Seller to Village Retailer
Delivery business through E-Commerce
By: Amit Bhushan Date:
4
th
Set! "#$4
%hough E-commerce or &obile based commerce is 'ic'ing in a big (ay)
ho(ever our thoughts to bring in e*ciency in overall systems and
suly chain is very limited and basis ast e+erience rather than
radical! ,or e+amle) the idea to reach village mar'ets is still basis
individual cororate driven! %his has -ailed earlier as it simle is not
cost e.ective! %his is so because small businesses are still not adoting
technologies and are com-ortable being -ringe layers (ith huge
deendencies on the larger cororates to bail them out -or -end -or
them at each ste! /n art it is also about %echnology roduct suliers)
(ho do not 0see1 them as otential customers and develo 0roducts1
that (ould be adoted by some o- these layers! Assumtion here is
that once a roduct is 0adoted1) then 0ayment1 model to ay bac' the
roduct develoer is about evolving a (in-(in model and can be
managed!
2ne o- the deendencies or rural /ndia is that it has to visit 03rban1
centers -or its shoing needs! Almost all rural retailers source
roducts -or consumtion basis a 0hub and so'e1 model -rom nearby
to(ns! Each retailer has their o(n list o- -avourite Whole sellers) (hom
he (ould visit at regular intervals to buy goods! %he Whole seller may
not necessarily be o.ering best rice or credit) but continues to strive
in business due to 0lac' o- in-ormation1 in mar'et! Also) each individual
retailer ma'ing their searate 0tri1 -or buying and 0transortation1 o-
(ares bac' to villages is not necessarily 0cost e.ective1!
E-Commerce or &-commerce in local language o- the village retailer
has the otential to substantially imrove the 0mar'et1 and bring
0e*ciency1 to the entire chain! %his could be in -orm o- an association
o- Whole sellers getting on board a suitable E4&-commerce 0roduct1
and aroaching the nearby rural mar'ets and 0enlist1 retailers in
villages! %he village retailers can lace orders directly through the
lat-orm! %he E4&-commerce Comany can 0ic'1 orders and deliver to
retailers and collect ayments! Due to ossibilities o- combining
deliveries -or several such 0retailers1) the E4&-commerce comany can
bring in considerable e*ciencies! Also) artnering (ith e*cient
sourcing (hole sellers or 0direct agents o- roducers1 has otential to
ensure 0best rices1!
%he biggest handica -or such mar'ets to 5ourish has been lac' o-
technology adotion amongst S&Es! %his can change due to S&AR%
mobile technologies (hich is raidly enetrating the mar'ets! %his is all
the (hile (hen actual solution develoment and romotion4adotion o-
such solution is not able to 'ee ace (ith the adotion o- S&AR%
mobile devices in rural /ndia! 6o( many S&AR% mobile devices
retailers in rural /ndia are able to itch device as a solution to some
genuine roblems o- eole rather than 7ust a ne( 0toy188888 2ther
issues that has hindered such develoments has been 0language1 in
(hich to conduct business) lac' o- collaboration amongst S&Es) issues
o- trust related to 0ayments1) issues o- 9uality and timely delivery o-
0hone orders1) ricing o- logistics) challenges (ith relation to
location4roads etc!) sensitivity and rocess maturity to handle
transactions :amongst S&Es; and so on! %he overall o- educating the
value chain is also considerable) besides lac' o- demonstrable (or'ing
models (ho have met success! Comanies vanishing in absence o- a
regulatory -rame(or' -or 0ayments security1) (ith 0substantial1 monies
are a big hindrance as mar'ets are susicious o- such layers!
While ma7or investment is going on to B-to-C layers at the national
level (ho are hogging limelight and getting in -unds by truc'loads!
Actually their scoe is very limited i!e! eating into the margins o-
retailers in city (ho are being reduced to a 'ind o- 0dislay sho1! %he
shoers 0chec'1 the actual devices at their shos (hile lace orders
on E4&-commerce layers due to 0rice1 considerations -or such
transactions! %hough not -or all roducts) this may be true -or a lot o-
(idgets and brands! %he E4&-commerce layers are able to sho( the
mullah to their investors -or more -unds (ithout much e.ort! %hus
there is a considerable need -or the S&Es to re-invent themselves in
-ace o- such challenges and t(ea' their business models! As more and
more eole become com-ortable (ith technology) such business
models may considerably change the (ay /ndia and many other
emerging mar'ets transact! %he otential -or large national layers to
so may actually be very limited) ho(ever as the S&Es< = esecially
those -rom rural areas adot technology) the otential goes u several
-olds and bring (ith it a (hole ne( dimension in term o- scoe!
,ostering a sense o- artnershi amongst S&Es may itsel- create ne(
business models (ith considerable gains in roductivity and gro(th
besides oening ne( hori>ons -or rural /ndia!
doc_814393367.doc
Remodeling City Whole Seller to Village Retailer Delivery business through E-Commerce
Remodeling City Whole Seller to Village Retailer
Delivery business through E-Commerce
By: Amit Bhushan Date:
4
th
Set! "#$4
%hough E-commerce or &obile based commerce is 'ic'ing in a big (ay)
ho(ever our thoughts to bring in e*ciency in overall systems and
suly chain is very limited and basis ast e+erience rather than
radical! ,or e+amle) the idea to reach village mar'ets is still basis
individual cororate driven! %his has -ailed earlier as it simle is not
cost e.ective! %his is so because small businesses are still not adoting
technologies and are com-ortable being -ringe layers (ith huge
deendencies on the larger cororates to bail them out -or -end -or
them at each ste! /n art it is also about %echnology roduct suliers)
(ho do not 0see1 them as otential customers and develo 0roducts1
that (ould be adoted by some o- these layers! Assumtion here is
that once a roduct is 0adoted1) then 0ayment1 model to ay bac' the
roduct develoer is about evolving a (in-(in model and can be
managed!
2ne o- the deendencies or rural /ndia is that it has to visit 03rban1
centers -or its shoing needs! Almost all rural retailers source
roducts -or consumtion basis a 0hub and so'e1 model -rom nearby
to(ns! Each retailer has their o(n list o- -avourite Whole sellers) (hom
he (ould visit at regular intervals to buy goods! %he Whole seller may
not necessarily be o.ering best rice or credit) but continues to strive
in business due to 0lac' o- in-ormation1 in mar'et! Also) each individual
retailer ma'ing their searate 0tri1 -or buying and 0transortation1 o-
(ares bac' to villages is not necessarily 0cost e.ective1!
E-Commerce or &-commerce in local language o- the village retailer
has the otential to substantially imrove the 0mar'et1 and bring
0e*ciency1 to the entire chain! %his could be in -orm o- an association
o- Whole sellers getting on board a suitable E4&-commerce 0roduct1
and aroaching the nearby rural mar'ets and 0enlist1 retailers in
villages! %he village retailers can lace orders directly through the
lat-orm! %he E4&-commerce Comany can 0ic'1 orders and deliver to
retailers and collect ayments! Due to ossibilities o- combining
deliveries -or several such 0retailers1) the E4&-commerce comany can
bring in considerable e*ciencies! Also) artnering (ith e*cient
sourcing (hole sellers or 0direct agents o- roducers1 has otential to
ensure 0best rices1!
%he biggest handica -or such mar'ets to 5ourish has been lac' o-
technology adotion amongst S&Es! %his can change due to S&AR%
mobile technologies (hich is raidly enetrating the mar'ets! %his is all
the (hile (hen actual solution develoment and romotion4adotion o-
such solution is not able to 'ee ace (ith the adotion o- S&AR%
mobile devices in rural /ndia! 6o( many S&AR% mobile devices
retailers in rural /ndia are able to itch device as a solution to some
genuine roblems o- eole rather than 7ust a ne( 0toy188888 2ther
issues that has hindered such develoments has been 0language1 in
(hich to conduct business) lac' o- collaboration amongst S&Es) issues
o- trust related to 0ayments1) issues o- 9uality and timely delivery o-
0hone orders1) ricing o- logistics) challenges (ith relation to
location4roads etc!) sensitivity and rocess maturity to handle
transactions :amongst S&Es; and so on! %he overall o- educating the
value chain is also considerable) besides lac' o- demonstrable (or'ing
models (ho have met success! Comanies vanishing in absence o- a
regulatory -rame(or' -or 0ayments security1) (ith 0substantial1 monies
are a big hindrance as mar'ets are susicious o- such layers!
While ma7or investment is going on to B-to-C layers at the national
level (ho are hogging limelight and getting in -unds by truc'loads!
Actually their scoe is very limited i!e! eating into the margins o-
retailers in city (ho are being reduced to a 'ind o- 0dislay sho1! %he
shoers 0chec'1 the actual devices at their shos (hile lace orders
on E4&-commerce layers due to 0rice1 considerations -or such
transactions! %hough not -or all roducts) this may be true -or a lot o-
(idgets and brands! %he E4&-commerce layers are able to sho( the
mullah to their investors -or more -unds (ithout much e.ort! %hus
there is a considerable need -or the S&Es to re-invent themselves in
-ace o- such challenges and t(ea' their business models! As more and
more eole become com-ortable (ith technology) such business
models may considerably change the (ay /ndia and many other
emerging mar'ets transact! %he otential -or large national layers to
so may actually be very limited) ho(ever as the S&Es< = esecially
those -rom rural areas adot technology) the otential goes u several
-olds and bring (ith it a (hole ne( dimension in term o- scoe!
,ostering a sense o- artnershi amongst S&Es may itsel- create ne(
business models (ith considerable gains in roductivity and gro(th
besides oening ne( hori>ons -or rural /ndia!
doc_814393367.doc