Usha plans 150 integrated rural distributors by year-end

Indian home appliances behemoth Usha International has embarked on a rural brand expansion strategy. The company plans to have 150 integrated rural distributors by the end of this year, with every distributor focusing on 100 retail points each, which in total will have 150 distributors focusing on 15,000 retail points.

Talking to Deccan Herald, Usha International Chief Executive Officer Dinesh Chhabra said, “We aim to garner over Rs 2,500 crore in revenues during Fiscal 2016-17, on the back of expanding our distribution in the rural sector. We divide India into markets (cities, towns) of above one-lakh population, and below one lakh population. In definition, markets with above one-lakh population will be served by urban distribution, while for those with below one-lakh population, we are developing exclusive distribution of Usha products, under the name ‘Integrated Rural Distributors’.”

“An integrated rural distributor would mean that he will deal in almost all our products, and will be building the last-mile connect to retail in the rural areas. We are placing our own system in place, and expecting the last-mile information of sales, deliveries and orders, and customer feedback, and thereby enabling the organisation to be nimble and serve more customers from rural areas effortlesly,” Chhabra said.

Until now, the company’s products would be retailed and serviced by a large urban distribution channel, and the company strategised that in order to tap the potential of the vast rural customer pool, it was necessary to create a separate rural distribution system.

“Simultaneously, it is also providing us an access to the vast market development taking place in rural areas. Earlier, these areas used to be serviced by urban distributors, but then it becomes very expensive to reach them, while the connect to the brand also doesn’t exist. But now with the current system we have created, we are able to build the brand connect to the last mile,” he added.

The company also plans to make its entire product range, including fans, sewing machines, appliances, and coolers, available to rural consumers, for which it has planned ‘Usha Joy Stores’ — a rural retail chain. “On a test basis, we have opened four stores in the last three months, and this year, we would like to open 46 more stores, to make it to 50 stores pan-rural India, by the end of this year,” he said.