I am seeing an increasing number of distributors changing their business model from a national base to that of a regional distribution method.
While the concept may not be new, it is increasingly gaining ground. The reason, on a very basic level, is simple to understand. Slowdown has opened up avenues for these distributors who can now cater to specific needs of a particular region. This is a gradual shift from the arrogant national disty who could turn a blind eye to the needs of the regional resellers, especially in class B, C and D cities. Business dynamics now demand a shift, and the disties are responding to that.
I was discussing this with a disty who recently told me that his foot is now firmly rooted to the ground. We knew that the needs of different regions, parameters, and products were different, but we now realize how important these regions can be for our growth strategy. Their contribution is very vital. Even vendors have realized the importance of the regional model, and are setting up support centers, POCs in regions/zones depending on the demand for the product.
Companies such as HP, Cannon, among other are now targeting the tier two and tier three cities pan-India. HP is quickly losing not only business but also partners to Dell that has made an aggressive entry into the channel. HP is tapping regional resellers, thinking of building relationships with distributors who have a strong regional presence to regain its lost market.
The trend is catching up quickly. More and more distributors are either expanding their reach to regions, or are adopting the regional model. I see this as a win-win situation for all three: partners, customers and the disty himself. For a partner, he can avail support, share lead, has access to training, new products faster than before. All this translates into good customer service. And as word spreads, good branding exercise for the vendor.
These are however, initial stages. A lot has to be learned. There will be roadblocks, and there will be easy avenues. And amidst all these, there will be a new learning, a learning I want the partners to share with each other, so that each of you emerges a learned, better business man/woman.