RURAL

DISTRIBUTI
ON
Rural distribution is considered
a nightmare because of the
638,667 villages spread across
the country
 RURAL
DISTRIBUTION

RURAL RURAL
DISTRIBUTION DISTRIBUTION
 TRANSPORTATI
ON

WAREHOUSIN COMMUNICATI
G ON
 The transportation infrastructure remains
underdeveloped in rural India

Although India has the fourth largest railway

network in the world, many parts of rural India
remain outside its reach.

As regards road transport, nearly 50 percent of

the 6 lakh-odd villages do not have all-weather
roads.

Waterways are an easy transport option in states

like Kerala
 THREE
TIER RURAL
CWC/SWC WAREHOUSI
CO NG SET UP
s
OPERATIVES

RURAL
GODOWNS
Layer Channel Location
partner
Layer 1 Company depot / C&F National/state level
A
Layer 2 Distributor/van District level
operator/ super
stockist/ rural
distributor
Layer 3 Sub-distributor/ retail Tehsil HQ, towns and
stockist/ sub-stockist/ large villages
star seller / Shakti
dealer
 Nirma
(Ahmedabad)

Depot (Hyderabad,
Kolkata, Kanpur)

Direct Distributor (At the

district level)

Sub distributor / Big wholesalers

(At the tehsil level)

Retailer
Wholesaler
 Multiple Tiers, Higher Costs and Administrative
Problems

Non-Availability of Dealers

Poor Viability of Retail Outlets

Inadequate Bank Facilities

Inadequate Credit Facilities

Relying on Private Village Shops

 Syndicated Distribution
Satellite Distribution/Hub & Spoke Model
New Strategies for Rural Distribution
 S S
2 3

A
S S
S S 2 4 1
4 1
S S
3 2
Whol
e-
A A
saler
1 3
S Town S
2 3
S
S 4
1
S1 A
S4
4

A1 A4 Semi wholesalers S2 S3
S1 S4 Satellite markets
 Integrated Marketing Outlets

Combining In And Out Operations In

Rural Marketing

Rural Supermarkets

National And Regional Chain Stores