Distribution Model in HLL
As mentioned in one of my post - i mentioned about distrubution model of ITC. Now its time to tell you guys the model for the second biggest FMCG in India, HLL.
Starting with Factory, then to C&F and finally to the Distributors. In HLL they are called RS - Redistribution. For rural markets, the distributors are called Streamline RS.
Lets start with RS. They supply stock to Wholesalers, Retailers and IDC (Indirect Coverage). IDC is something like a RBD (Rural Brand Distributor) in ITC. Now in case of Rural Distributor (Streamline RS), they supply stock to Star Sellers (in different towns). The Star Sellers covers markets between 2 and 50 K. They are like SCPs (Stock Carrying Point) in ITC.
Apart from that, they also have Shakti in place (Women Empowerment and Selling).
Starting with Factory, then to C&F and finally to the Distributors. In HLL they are called RS - Redistribution. For rural markets, the distributors are called Streamline RS.
Lets start with RS. They supply stock to Wholesalers, Retailers and IDC (Indirect Coverage). IDC is something like a RBD (Rural Brand Distributor) in ITC. Now in case of Rural Distributor (Streamline RS), they supply stock to Star Sellers (in different towns). The Star Sellers covers markets between 2 and 50 K. They are like SCPs (Stock Carrying Point) in ITC.
Apart from that, they also have Shakti in place (Women Empowerment and Selling).
posted by MarkOUT at 8:21 PM
11 Comments:
In addition to all these entities they have introduced a new concept of SVSs (Super Value Stores). These are the new avatars of the friendly neighbourhood kiranawalas, differentiated using a banner which set them apart from other stores and brands them as SVSs. These are being developed to sustain the traditional distribution model during the onrush of the large retail chains. These carry HLL products available under special schemes, not available anywhere else. These stores also get an additional 3% commision on their monthly sales. This, I think would prove to be a highly effective way of preserving the traditional MOM and POP store reatiling model, which would be beneficial for both the company and the store owners.
Rightly said Iswinder .. Its like a substitute for the Organized Retail. What i feel is that, its never gonna be fully organized in India, rather a combination of Malls and Semi-Organized outlets like SVS looks possible
On the sames line Marico also have stores on similar lines. Its definately an intelligent step.
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ok wat bout modern retail format for hll is it diff from itc, marioc r on the same lines???
MARICO is on the same line of HLL, what i know. They get a % margin on the targets they achieve.
hey nitin this is Gaurav im studying in NMIMS.Can u send me a detailed report on HLL's Distribution network...actually i am intrested in knowing the entire details as to how the biggest fmcg manages such a great distribution network....my mail id is gauravkaura@gmail.com
i hv a proper distribution model of hll..if any1 requires mail me @roshcrazy@gmail.com...
btw, nice blog mate...liked it a lot... :)
I believe HUL is changing its distribution Model, where in the role of Distributor would be just collections and Order booking.
I' really like a copy of that HUL distriution network not only in GT but in Key a/cs and any other channel prevailing.. I believe HUl has gone from many to fewer RS recently. Id like any such info at abhishek8231@yahoo.com
as ABU said bout the new distribution model taken up by HUL. ne1 having more info plz share at sahu.rishav@gmail.com
what if open orders are in small quantities because its not economiically viable to despatach small quantites..which model should we use to cater with this problem?
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