Why MSMEs fail to establish their brands through direct distribution model?

Establish Brands

MSMEs should change the way they do business otherwise they cannot sustain in their business.

I met many food product manufacturers in Maharashtra and Tamil Nadu recently who had similar problems in their Supply Chain. They sell their products through direct distribution channel. They do not know what is happening to their product brands beyond that. The distributors have started taking control of their brands over the years and the manufacturers have lost connection with the consumers and their feedback. The manufacturers started getting stocks returned from distributors because they are not sold and the shelf life is getting expired. 15 to 20% of the stocks are getting returned.

I told every manufacturer that the root cause for this problem is the manufacturer themselves for not establishing connection with consumers through retail channel. They should stop trusting distributors as their brand ambassadors and they should transform into direct sales model and still make use of distribution channel for delivery and collections. SupplyChainz is hand holding and transforming these manufacturers to the “new” way of distribution model.

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— By Sathyanarayanan Raman

By | 2018-04-16T09:17:08+00:00 April 16th, 2018|Blog|0 Comments

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