"We are ramping up our innovation pipeline, deepening our distribution across both traditional and new-age trade channels and finding new and exciting ways to delight our consumers with differentiated quality and affordable … •Alternative channel development, ecommerce and rural parallel distribution •Modern trade operation, monthly P&L analysis on scheme and joint business plan development for key vendors. IPL Viewership Game: Did Bihar polls stump the finals? In the new normal, brands will need to re-create ‘peak moments’ that enhance shoppers’ affection. While the company will add around 30,000-40,000 outlets in the urban market, it has targeted to have atleast another 50,000 outlets in rural India within its fold - all of which will be serviced via direct sales. “There will be a 2X multiplier effect on our sales as we shift from the wholesale channel to direct sales,” Pandey says. In the urban markets, however, Emami relies on a simple two-tier distribution structure where the distributor buys the product from the company and sells it to the retailer directly. While the Group bought into Zandu in 2008, it bought Kesh King in 2015. “distribution”).They’re a key element in your entire marketing strategy — they help you expand your reach and grow revenue. India Business News  |  Indian Stock Market News  |  Bollywood Movies  |  Indian Cricket News  |  India News, 'Indian IT industry has to de-risk itself', Rs 1 lakh crore: Biyani's target for 2020-21. B2B and B2C companies can sell through a single distribution channel or through multiple channels that may include: “While we never questioned the resilience of rural markets, we have been highlighting the risk of consumers trading down in urban India, which accounts for as much as 70% of sales of consumer players in certain categories. How many IAS officers does India actually need? Avail Invitation Pricing Now But he added that “while penetration in categories like soaps, detergents and hair oil is high, several categories like skin cream and health supplements, where Emami is actively present, have low penetration. However, we have a request for those who can afford to subscribe: please do. Roy says restructuring of the distribution network becomes more relevant for the company as it is aggressively planning new product and category launches. Reducing dependence on wholesalers will give the company better control over its inventory, besides offering greater visibility to new brands, reports Avishek Rakshit. Follow us on Telegram, The company also enhanced focus on the marketing activities of healthcare products of Zandu.During 2012-13 the company fortified its direct rural reach across 600000 outlets. Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Volumes, too, fell by 2.6 per cent. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. Emami expects a 2X multiplier effect on sales as they shift from the wholesale channel to direct sales. Emami, which reported domestic sales of ₹2,142 crore in 2016-17, increased advertisement and sales promotion to ₹443 crore in that year from ₹430 crore the previous year. Emami has introduced brand extensions during the year, strengthening its presence after the outbreak of Covid-19, when there was a profound shift in consumer behaviour. Homegrown FMCG firm Emami is confident of delivering a stronger performance in FY21, despite a 26 percent degrowth in sales in the COVID-19 impacted April-June quarter, company founder and wholetime director R S Goenka said on Friday. Game changer: The acquired brands now have a larger footprint, says chairman R.S. During the year the company completed integration of the southern distribution channel of Zandu with Emami. As a subscriber, you are not only a beneficiary of our work but also its enabler. A direct presence, whether in cities or the rural belts, say experts, helps a company to control its inventory better besides giving new and slow brands better visibility. Besides, Emami has also “overhauled its international business” in key geographies generating 16 percent Y-o-Y global revenue growth. The impact on (our) bottom-line is also expected to be positive in the long run,” he told BusinessLine during an interview. However, this is not the case with the wholesale channel where the involvement of the company's own salespeople is nearly absent. According to Madan M Pandey, President Sales CCD, Emami began to explore options for increasing its direct distribution presence over the last one year. On its international business, the company said in its 2016-17 annual report it had marked a major presence overseas with 11% of its revenues coming from exports. In terms of accessing smaller towns, it will cover 25,000 to 27,000 such towns (with population of over 5,000) by FY-18. While the Group bought into Zandu in … Customize your preference and get a personalized recommendation of stories based on your interest. To spur rural consumption, Emami will add 11,000 villages to its distribution network, increasing those it reaches directly to 20,000. Log in to our website to save your bookmarks. The recovery time for the wholesale trade from demonetisation and GST roll-out has only made Emami increase focus on direct distribution. It has helped us keep apace with events and happenings. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. Last year, Emami increased its direct outlet reach by nearly 90,000 and will add around 1 lakh another in the coming financial year. Although the company's own salespeople will play the initial role of converting sales leads, eventually, the product supply will take place via its base of 1,200 distributors. Typically, the wholesale trade is known to prefer and push for faster moving and in-demand products. To achieve success i… Restructuring of the distribution network becomes more relevant for Emami as it is aggressively planning new product and category launches. Airlines issue flight delay/cancellation certificates for those looking to furnish proof. Emami is expected to reach out to 8.5 lakh outlets directly by the year-end; up from the 7.3 lakh outlets it reached out to by FY-17. Emami had net sales of ₹ 1,699 crore in 2012-13. You have reached your limit for free articles this month. “We’ve seen increasingly that the rural consumer is demanding products that are largely available in urban markets, though at lower price points," said N. Krishna Mohan, chief executive, sales, supply chain and human capital, at Emami.

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