FMCG companies also face several challenges that result in demand-supply gaps, increased distribution costs and wastage. However, with the growing economy, substantial opportunities have emerged for FMCG brands in the rural sector. According to NCAER (National Council for Applied Economic Research) study, the rural sector is growing at a CAGR of 3-4%. There’s a rising demand for products such as soaps, talcum powder, oil, tea, cigarettes, and hair oil, whose rural market shares crosses 50%. The fact that the capital expenditure by rural consumers is 63,500 crores against 49,500 crores by urban consumers is indicative of the growth rate and participation of the rural population.
The local distribution structure is fragmented in nature that raises the supply chain costs owing to redundant intermediaries affecting the distribution cycle. This is eliminated by establishing a strong network of distributors. They in turn appoint stockists and sub-stockists in order to cater to the locality-specific demands.
Due to ineffective communication technology FMCG businesses face severe challenges. Issues such as demand forecasting leading to multiple handling and wasteful interventions across distribution channels.
There’s no purchasing power parity across the rural belt which limits a company’s capacity to segment, position, and target products. This makes it difficult for companies to formulate effective pricing strategies. Nevertheless, retail players adopt alternative approaches to experiment and learn best practices. Although these challenges concern the future of FMCG in the rural belt, businesses are evaluating alternate mechanisms to streamline operations. They are weighing roadblocks and establishing a mechanism that simplifies distribution management to reduce costs and improve efficiency in rural space.
Effective distribution requires village-level shopkeeper, taluka-level wholesaler/dealer, district-level
stockist/distributor, and company-owned depot at state level. These many tiers increase the cost of
distribution. Rural markets typically signify complex logistical challenges that directly translate into
high distribution costs. Bad roads, inadequate warehousing and lack of good distributors pose as major
problems to the marketers. Out of the above all the biggest challenge what marketers face is making products
available i.e distribution. Due to various constrains like poor road connectivity, high cost, widely
scattered area have thrown biggest challenge in front of marketers to make product timely available for
Some major challenges for rural markets are widely dispersed i.e. large number of small market, dispersed population and poor road connectivity, low density of shops per village, inadequate banks and credit facility, poor storage facility, low investment capacity of retailer, poor communication of buyers, higher bargaining, poor visibility and display of products on rural shop.
Mitrakart extends the supportive hand to all the
distributors by directly connecting with all the brands and delivering large category of products at
their doorsteps. Mitrakart provides one stop shopping solution for all the distributors need
at their fingertips which reduces the transport cost, more stock replenishments and no blocked
working capital. Mitrakart promises a good ROI for all the channel partners by reducing the
dependency of the wholesalers. Since its order based no chances of higher inventory. Mitrakart links
the retailers and distributors with the technology where the order and delivery mechanism flows
smoothly. Mitrakart provides complete organized order and delivery system process at their
Mitrakart’s aggregate model provides an end-to-end Plug n Play Rural Supply chain Stack Solution which reduces the cost and expenses which provides a promising ROI
Mitrakart's aggressive distribution and supply chain model supports in stock rotation and replenishment's which help's the rural channel partner's double the business growth and make more profits
Mitrakart's supplies totally based on the order's received from the RCP's which ensures that no inventory dumped at RCP point , no investment gets blocked as well as product quality is well maintained at all levels
Mitrakart Micro entrepreneur's support's the distributor's by enrolling new retailers as well as generating orders to the RCP's
We provide large category of products which they can view and order through their mobile screen it's all at their fingertips as well as pay through multiple online payment gateways.
Mitrakart deliver's through the tech enabled platform to the RCP's doorstep. RCP's need not move out of their WH. They can view the order movements and delivery time at their fingertips.