Arunachalam What were the key success factors for Arogya Parivar, a bottom-of-the-pyramid initiative by Swiss pharmaceutical major Novartis? In this article, Meenakshee Sinha and Professor S.
Athira A Nair When Mihir Mehta started VS Logistics inthe industry was an upcoming one, and the Thane-based company had no ambition for scaling for the first five years.
The first thing I did was close my textile business and divert funds from there into VS Logistics.
In —18, they intend on touching percent growth rate. Inspiration and strategising On his frequent travels abroad, Mihir was inspired by the likes of Walmart and Tesco.
He recollects why he started VS Logistics: If the distribution is done in an organised manner, it will resolve many supply chain solutions, leading to fewer damages, the creation of more value to partners, and providing necessary sales data for partner brands to forecast their productions.
Inthe market size of the organised FMCG sector was nine percent of the overall organised retail market and is expected to reach 30 percent by Mihir handpicked the entire team to include experienced industry professionals.
Initially, we were only catering to the local Bhiwandi and Thane markets. VS Logistics claims to be the only company that provides third-party logistics support, B2B distribution, and B2C sales within the same organisation.
Fill rate is the percentage of the value of goods delivered against the purchase order amount. For example, if the order is for Rs 1 lakh and goods delivered are of only Rs 80, then the fill rate is 80 percent.
Revenue comes to VS Logistics in multiple ways — as CNF cost and freightas super stockists, and as modern trade distributors. In e-commerce too they make decent margins. Tying up with a third-party logistics partner, VS Logistics is now starting distribution centres in eight cities.
Traditional retail is expected to grow at 10 percent and modern retail at 20 percent. The overall retail market is expected to grow at 12 percent annually. FMCG will always be huge in a country with a population of 1.Past studies by Nielsen have shown that FMCG sales in India are driven by a number of controllable and uncontrollable factors.
While the uncontrollable ones include macro factors like GDP, inflation and employment rates, the controllable factors include marketing levers like advertising and distribution.
Fast moving consumer goods (FMCG) sector is an important contributor to the India’s GDP growth. Currently, FMCG industry is the fourth largest sector in the Indian economy and provides employment to around 3 million people.
The number of stockists used by a single FMCG manufacturer for all-India distribution may run up to a few thousand and these stockists may cover over a million retailers using systematic physical distribution.
The Central Statistical Organisation of the Government of India has in the past carried out a trade census which yielded useful. DISTRIBUTION SYSTEM ON FAST MOVING CONSUMER GOODS with regard to the FMCG distribution system in the rural markets.
August , Volume: I, Issue: VIII 20 RURAL FMCG DISTRIBUTION SYSTEM TABLE- 3: PERIOD OF USING FMCG Past 6 months months yrs yrs More than 5 yrs.
Much like the fast-moving consumer goods (FMCG) segment, for pharmaceutical companies, exploring rural markets in India and other emerging markets will need new .
further we will study role of distribution channel in fmcg via analysing role distribution channel in india’s top most fmcg company which is hindustan uniilever limited(hul). Hindustan Unilever Limited5/5(17).