Monday, August 20, 2007

Change in Distribution Channels – Water Purifiers

Water Purifiers as a segment has seen a lot of activity in the last few yeas. It has seen the entry of many new players like HUL with it's Pureit brand, Kent RO and even Philips has entered into this business, apart from the old horse Eureka Forbes . The reason why the segment has attracted so many new players is the growth potential that the segment has shown with increasing awareness among the consumers about waterborne diseases and increasing health and hygiene consciousness.


Traditionally the water purifiers were sold through the direct sales route, where the sales man would make direct sales calls to the consumers and sell the product. Infact at one point in time Eureka Forbes use to be seen as a training ground for budding sales professionals, but now it is said that companies might move out of the direct sales model. Direct selling is a time tested way of selling and one wonders why should that be changed, I could think of a few reasons,


First , could be the increased awareness on the part of the consumers in terms of water purifier as a category. In the initial days the selling process also required educating the consumer in terms of waterborne diseases and product benefits, which may not be that essential part of the sales process today. The consumers might find it far more easier and convenient to go and purchase from a retailer than a direct sales person coming to his/her home


Second, the emergence of competition has also lead to change in the dynamics of the industry. Both HUL and Philips have strong distribution networks for their products and thus for them the direct sales model would actually mean adding an additional channel of distribution. And last but not least would the emergence and growth of organized retail in the country, which provides the water purifiers with a right contact point to reach its consumers


It remains to be seen if Eureka Forbes would stick to its direct sales model or change in response to the changing preferences of its consumer and competition.

4 comments:

rob4world said...

Water Purifiers as a segment has seen a lot of activity in the last few yeas. It has seen the entry of many new players like HUL with it's Pureit brand, Kent RO and even Philips has entered into this business, apart from the old horse Eureka Forbes . The reason why the segment has attracted so many new players is the growth potential that the segment has shown with increasing awareness among the consumers about waterborne diseases and increasing health and hygiene consciousness.


Traditionally the water purifiers were sold through the direct sales route, where the sales man would make direct sales calls to the consumers and sell the product. Infact at one point in time Eureka Forbes use to be seen as a training ground for budding sales professionals, but now it is said that companies might move out of the direct sales model. Direct selling is a time tested way of selling and one wonders why should that be changed, I could think of a few reasons,


First , could be the increased awareness on the part of the consumers in terms of water purifier as a category. In the initial days the selling process also required educating the consumer in terms of waterborne diseases and product benefits, which may not be that essential part of the sales process today. The consumers might find it far more easier and convenient to go and purchase from a retailer than a direct sales person coming to his/her home


Second, the emergence of competition has also lead to change in the dynamics of the industry. Both HUL and Philips have strong distribution networks for their products and thus for them the direct sales model would actually mean adding an additional channel of distribution. And last but not least would the emergence and growth of organized retail in the country, which provides the water purifiers with a right contact point to reach its consumers


It remains to be seen if Eureka Forbes would stick to its direct sales model or change in response to the changing preferences of its consumer and competition.

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tips said...

Water Purifiers as a segment has seen a lot of activity in the last few yeas. It has seen the entry of many new players like HUL with it's Pureit brand, Kent RO and even Philips has entered into this business, apart from the old horse Eureka Forbes . The reason why the segment has attracted so many new players is the growth potential that the segment has shown with increasing awareness among the consumers about waterborne diseases and increasing health and hygiene consciousness.


Traditionally the water purifiers were sold through the direct sales route, where the sales man would make direct sales calls to the consumers and sell the product. Infact at one point in time Eureka Forbes use to be seen as a training ground for budding sales professionals, but now it is said that companies might move out of the direct sales model. Direct selling is a time tested way of selling and one wonders why should that be changed, I could think of a few reasons,


First , could be the increased awareness on the part of the consumers in terms of water purifier as a category. In the initial days the selling process also required educating the consumer in terms of waterborne diseases and product benefits, which may not be that essential part of the sales process today. The consumers might find it far more easier and convenient to go and purchase from a retailer than a direct sales person coming to his/her home


Second, the emergence of competition has also lead to change in the dynamics of the industry. Both HUL and Philips have strong distribution networks for their products and thus for them the direct sales model would actually mean adding an additional channel of distribution. And last but not least would the emergence and growth of organized retail in the country, which provides the water purifiers with a right contact point to reach its consumers


It remains to be seen if Eureka Forbes would stick to its direct sales model or change in response to the changing preferences of its consumer and competition.

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Riddhima Sharma said...

Water Purifiers as a segment has seen a lot of activity in the last few yeas. It has seen the entry of many new players like HUL with it's Pureit brand, Kent RO and even Philips has entered into this business, apart from the old horse Eureka Forbes . The reason why the segment has attracted so many new players is the growth potential that the segment has shown with increasing awareness among the consumers about waterborne diseases and increasing health and hygiene consciousness.


Traditionally the water purifiers were sold through the direct sales route, where the sales man would make direct sales calls to the consumers and sell the product. Infact at one point in time Eureka Forbes use to be seen as a training ground for budding sales professionals, but now it is said that companies might move out of the direct sales model. Direct selling is a time tested way of selling and one wonders why should that be changed, I could think of a few reasons,


First , could be the increased awareness on the part of the consumers in terms of water purifier as a category. In the initial days the selling process also required educating the consumer in terms of waterborne diseases and product benefits, which may not be that essential part of the sales process today. The consumers might find it far more easier and convenient to go and purchase from a retailer than a direct sales person coming to his/her home


Second, the emergence of competition has also lead to change in the dynamics of the industry. Both HUL and Philips have strong distribution networks for their products and thus for them the direct sales model would actually mean adding an additional channel of distribution. And last but not least would the emergence and growth of organized retail in the country, which provides the water purifiers with a right contact point to reach its consumers


It remains to be seen if Eureka Forbes would stick to its direct sales model or change in response to the changing preferences of its consumer and competition.

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Flip Jork said...

Water Purifiers as a segment has seen a lot of activity in the last few yeas. It has seen the entry of many new players like HUL with it's Pureit brand, Kent RO and even Philips has entered into this business, apart from the old horse Eureka Forbes . The reason why the segment has attracted so many new players is the growth potential that the segment has shown with increasing awareness among the consumers about waterborne diseases and increasing health and hygiene consciousness.


Traditionally the water purifiers were sold through the direct sales route, where the sales man would make direct sales calls to the consumers and sell the product. Infact at one point in time Eureka Forbes use to be seen as a training ground for budding sales professionals, but now it is said that companies might move out of the direct sales model. Direct selling is a time tested way of selling and one wonders why should that be changed, I could think of a few reasons,


First , could be the increased awareness on the part of the consumers in terms of water purifier as a category. In the initial days the selling process also required educating the consumer in terms of waterborne diseases and product benefits, which may not be that essential part of the sales process today. The consumers might find it far more easier and convenient to go and purchase from a retailer than a direct sales person coming to his/her home


Second, the emergence of competition has also lead to change in the dynamics of the industry. Both HUL and Philips have strong distribution networks for their products and thus for them the direct sales model would actually mean adding an additional channel of distribution. And last but not least would the emergence and growth of organized retail in the country, which provides the water purifiers with a right contact point to reach its consumers


It remains to be seen if Eureka Forbes would stick to its direct sales model or change in response to the changing preferences of its consumer and competition.

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