In the competitive consumer goods and FMCG market in India, distribution to unorganized retail has long been a daunting challenge, hindering companies' ability to tap into the vast potential of this market segment, which accounts for 90 percent of the Indian retail landscape.

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However, a solution is emerging, leveraging counterintuitive thinking and cutting-edge technology to drive exponential growth in market reach while optimizing resources, said Sunil Davis Kolangaden, Co-Founder and CEO at Prowess Selling Skills (PSSPL), a vector consulting group incubated start-up offering full-stack retail solution as a SaaS (Sales as a Service) model.

The Current Realities of Distribution and Retail

In the complex web of distribution and retail, multiple stakeholders face their own unique set of challenges.

“Customers seek convenience and availability, often showing little brand loyalty. Retailers grapple with limited footfalls and shelf space, while distributors struggle with the cost of servicing and credit risks. For companies, achieving full numeric distribution is a tough nut to crack, often leaving them with access to just a fraction of their target market,” he said.

Innovative Strategy for Market Expansion

With the rise of innovative strategies and technology, businesses can now break free from the limitations of traditional distribution models and achieve unprecedented market expansion.

“One key aspect of this approach is redefining the sales function, focusing on securing new outlets and adding product range with existing retailers. Transactional order taking is efficiently handled through technology-enabled tele-calling via an order management center, allowing for substantial increases in serviced outlets without expanding the sales team,” Kolangaden said.

“ By empowering the sales force with tools like ML and AI-based route insights, they can become brand ambassadors and problem solvers, providing superior service to targeted retailers through flexible journey plans,” he added.

Implementing Sales-as-a-Service (SaaS) Model

While the concept of a SaaS model might seem challenging to implement, it offers a risk-free solution for companies with well-established sales and distribution networks.

According to Kolangaden, under this model, a SaaS provider offers on-ground sales executives, retailer databases, comprehensive software suites, dedicated apps, and complete support throughout the sales process. The benefits include seamless continuation of current sales operations, no initial capital expenditure, and lower cost per sale compared to traditional approaches.

First Published:Aug 23, 2023 1:21 PM IST