Distribution of consumer goods - the e-commerce way or the traditional way?
The internet is changing the lives of people around the world so much that it is as good as a daily commodity. Santhosh Muruganantham, founder of Kolapasi in Chennai, India, mentioned in a meeting, "Apps like Swiggy, Foodpanda have made people so lazy that they don't even want to cook two minute noodles at home, but they rather order it online". One thing that is creeping up in this situation is the retail distribution of consumer goods. Research has found that India's digital economy will be a $1 trillion a year industry by 2022. This is so insane but at the same time sane enough because of the amount of internet penetration that India has. So, why is it in a company's best interest to have an e-commerce model over a traditional model for distribution, especially in India. Yes, there is a majority (70%) of Indian population that lives in rural areas but internet penetration is growing in these areas too. The internet penetration is at around 20% as of 2017...