In the ever growing world of digitization, e-commerce has changed the way Indians shop. Even the retailers & wholesalers who used to consider e-tailing as rival are now shopping their wares and stocks online.
The space that once conflicted with traditional way of shopping is now booming. Although offline trade distribution chain is procuring digitization but it is at a slower pace.
The fact is major chunk of the trade system do not own a website. And a handful of others who do, have outdated sites that consists only basic information about their brand. One of the biggest reasons why enterprise fail to have an up to date responsive website is because creating a website is easy however, updating and maintaining one is cumbersome. It is not only expensive but also time consuming.
Thus, it does not serve the purpose of general trade network, i.e. enabling smooth & easy business growth.
Although, the startup ecosystem has enormous potential of over USD 100 million for digitizing the supply chain but it is difficult to procure SMEs manufacturers, distributors, wholesalers and retailers. Many companies like Amazon Business, IndiaMart, Alibaba are disrupting the system by offering marketplace and data-driven business intelligence system to the wholesale ecosystem across varied categories.
These companies not only help connect manufacturers & resellers but also reduce cost, simplify processes, and enhance discoverability like the foreign trade network. However, despite all of it, these companies still lack understanding the nature of Indian general trade network as it is very different from foreign trade network.
Unlike foreign trade network, the Indian general trade network majorly functions on trust and is still largely a cash based economy. In India, manufacturers, distributors, wholesalers and retailers mainly prefer to deal within their trusted networks as they don’t have to risk their business. This is a one of the important reasons why a market place model will not succeed in India.
While on the other hand there are several players entering the market for technological disruption in this space. It is very important for them to understand that disruption is not just about bringing an abrupt change in the system but about adding more value to it. It is better these players focus on the future which is all about transparent data and analytics.
As the need of the hour is to introduce a digital ecosystem that enables smooth functioning of trade between the manufacturers, distributors, wholesalers and retailers. And one such system is Bnext – Wholesale Distribution Software that connects not just manufacturers to distributors but the entire supply chain the digital way.