Serving the Next Billion - PART 2

Competing with the Big Online Retailers

Serving the Next Billion - Part II

Dukaan & Digital

Transaction and Trade

Let’s, and just for the sake of comparing and understanding markets, compare Indian landscape to that of the United States. United States is a vast country roughly four times the size of India and about one-fourth of the population.  About half of the American people reside in 146 biggest counties most of those next to the coast. The rest is distributed over the vast landscape that is well connected and well served by roads, power, and all those good things of a developed country.

Indian population, on the other hand, is more or less evenly divided over the sub-continent but without proper connectivity between various trading centers. Simply put, a manufacturer/businessman cannot serve the whole of the country without relying on a network of distributors and retailors. To reach the villages and the small cities, he cannot let the World Wide Web decide his fate.

Then there is a huge matter of trust. A majority of trade is financed by the supplier/producer of goods with zero percent interest and short payment duration. It is virtually impossible to break or even disrupt these relationships.   As a result a whole lot of Business Houses are using Information Technology to strengthen these relationships instead of replacing them with the ‘amazon’ model of payment and delivery. To get there it will take more than one lifetime of Jezz Bezos and frankly with the dynamism being exhibited in the Indian market not many can wait.

Winning, Grinning, Thinning

But 2014 is still the year when the Indian e-commerce market has come of age. The market is dynamic but you are operating at a very low base.  While, we have millions of users with smart devices and internet access not all of those have a bank account and wherewithal to either buy online or request Cash on Delivery due to geographical constraint.

But he still wins, because he now has the tools to study and compare the choices that are made available to him at the storefront. Indian consumer had been taken for a ride for a long time. He had been unprotected by the government, abused by the manufacturers and mistreated by the sellers. Indian consumer has been through one of the worst market practices directed towards him and is a tough lot when it comes to trying new products and new service provider.

For the first time he has options and for the first time a buyer is aware of the prices and choices that exist.  He is happy but the retailor has to compete with not only the shop next door but also the one that exists in the palm of the hand of the buyer.

Beat the big ones to the punch

Do you know what the existing Brick-and-Mortar supply chain has over the big guns with their billion dollar investments (Flipkart, Amazon, et al)?

Established Relationships

No amount of bargains, sales, delivery turn around time can trump over an established relationship between a buyer and a seller. Hashbrown Systems helps you do exactly that: we strengthen your established relationships.

We understand the dynamics of Indian market. The relationships between buyers and sellers, and how strengthening of Business-to-Business relations is not only the key to competing with the likes of Amazon, it also serves the consumer better when he know his concerns are being addressed. The only way to serve your customer better is by knowing your customer better.  Add to that the potent mix of a time-tested supply chain and established relationships; businesses of all sizes would be able to better them at prices, products, procurements and before-sale and after-sale service.

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