Emerging markets are sought-after markets because of the potential and opportunities they provide for growth. While global CPG companies have been flocking to such markets, the route to market in such markets is tough. They are rife with distribution inefficiencies, and brands are often unable to control supply chain leakages or manage productivity.
Additionally, poor technological and broadband connectivity poses challenges to real-time data collection. Naturally, market penetration becomes very expensive.
What our current times have emphasised is that digital is the future of CPG in emerging markets. Even small traders and mom-and-pop stores are digitising their operations, encouraging transactions on WhatsApp and payment gateways.
At the heart of the digital transformation is to connect directly with the customers, to understand their needs and forecast demand. To do this efficiently and economically, brands must reinvent their trade models and implement B2B eCommerce Marketplace. The marketplace leverages the technological and logistics strengths of a brand to serve its channel partners and customers with best-in-class service.
Here’s how brands can capitalise on the market opportunities with a B2B eCommerce Marketplace:
Increase reach: Leverage technology & logistics muscle to drive reach. Start the planning of distribution by leveraging data from outlet universe and AI models to identify whitespaces. Drive penetration by working with sales teams and partner networks to drive whitespace penetration. Consolidate your distribution channels and integrate with direct retailer commerce.
Retailer success: Use the power of pull brands for adoption. A pull-based approach to distribution is a critical aspect of the digital supply chains of the future. A pull approach can counter the uncertainties of erratic demand. It can change ‘push products’ into ‘pull products’ when technology solutions enable retailers to order themselves, track deliveries and create a schedule for stocking their supplies.
In a pull system, your salespeople rely on actionable insights to know – What to sell, Where to sell, and for How much to sell it. They set the pace for demand. Such insights help execute your Route to Market strategy quickly and collaboratively with your customers in real-time.
Best in class service: Better service in a connected ecosystem. Provide your sellers and buyers with complete transparency into the supply chain and insights that will help them to make better buying decisions for their customers. Start by rolling out a retailer app for these channel partners.
Lower cost of sales: Digitally augment existing RTM. The basic principle is that your cost of sales and distribution should be reduced by at least 10% year-on-year by the use of technology. It happens when your spending is more focussed on sales growth.
