Outlook For 2017 In e-Distribution Space

Demonetization being the defining move of 2016 for India -Its ­impact will be felt across business and service verticals. Following key trends are likely to emerge in 2017 in the tech distribution space:

–          Higher acceptance for e-distribution – There will be increased acceptability for e-payments at small and big retailers alike, leading to an increased number of retailers going digital with higher acceptance for e-based offline distribution

–          More Efficient Distribution  – This will be a surge in D2R business in India where manufacturers will directly bill to the retailers as per their need,  making the supply chain more efficient and at far lesser cost

–          Grey Market will Crash – Demonetization will lead to increase in cash-less transactions and hit the grey market massively (which, in case of accessories, can be as high as 70%)

–          Accessories under GST Net – GST implementation will lead to further adherence of taxation, leading to growth in tax-paid accessories

–          High-end Accessories market will boom – Increase in Smartphone penetration will lead to a major boom for high-end mobile accessories. We might be at tipping point in 2017 with multiple international brands making a beeline for India

This article is authored by Ajay Laddha, Co-Founder, YMS Mobitech Pvt Ltd.

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