With 200+ employees across India, 1400+ Crores turnover in the last financial year, VRP is one of the fastest growing distribution houses in India today. VRP also is the Guinness World Record holder for opening the maximum Retail outlets in one day for Xiaomi. We currently work in the Mobility Business, CE Business, IT Business with multiple brands and in Online Platforms & General Trade.
We identified that the Consumer needs are changing, and we need to cater to a larger and diverse Consumers and not restrict ourselves to any business line. Few months back, we introduced a Korean Fast Fashion Retail chain “The 2358 Store” across India and currently we have 15+ stores. These Stores run on a Franchise model and by end of FY 2020, we plan to expand to 100+ stores across India. India is a Young, Millennial country with a large middle-class population aspiring to be stylish, fashionable and at same time they want affordable prices. “The 2358 Store” is the perfect value proposition for such Consumers. We feel that this is the business model which can really work well in India and can give us better coverage and bottom lines for the organization.
We also understand the various IT Brands are planning to grow fast, while IT market in the last few Quarters have either been Flat or declining. This needs the right distribution partners to execute on ground apart from having the right Product, Pricing & Promotions offerings. Unfortunately, in the last couple of years we have seen lot of consolidation happening in the existing partner base for various reasons. Brands face the challenges of lack of investment, lack proper infrastructure, and the execution capabilities from their traditional channel partner base.
This is where VRP comes in as a right fit, as a Value-Added Distribution Partner with strong financial capabilities (we have BBB+ financial ratings), we have strong infrastructure capabilities with Warehousing & Manpower across India. We are a Tier 1 Distribution company but we have the capabilities to do Direct to Retail (D2R) and directly bill to T3 Reseller partners. We have created the complete backend Infrastructure for the same.
We are currently doing HP – Consumer PC Distribution Exclusively across Central & Eastern UP successfully since last few months. We are also the Tier 1 for Asus X509 range of Notebooks, exclusive for North India. We are looking to add few more brands in IT in the Value-Added Distribution model in the next couple of months.
Post Covid-19 pandemic, India is expected to see unprecedented slowdown, our lives are changing forever. Consumer Behavior will continuously evolve. Industry needs to adapt to deliver to the changing needs of the Consumer – Direct to Home, No Touch buying, Convenience of buying, Whether it is In-store experience, whether all Retailer should have their own online portal for the Customer to place orders and pay easily digitally and the Neighborhood Retailer delivers the orders to home. This is the way forward or the new normal expectations of a Consumer.
On a positive note, IT industry may see a surge in the consumption and see some growth as the new normal is Work from Home, Learn from Home. SMB segments will buy more for their employees working from home. There would be a boom in digital platform in various forms whether its learning, entertainment, shopping, or customer engagements.
India may become the Back office of the world with focus shifting from China to India across the world. Youth will be the focus Customer based on their Educational & in-home entertainment needs. From a product perspective, Entry & Mid Segment Notebooks will see growth with Price bands within Rs.40,000. There will also be a surge in Gaming Notebooks, Printing, Accessories and Consumables.
All the Brands may change the way business is done going forward. Need of the time is very a clear alignment on Online & Offline channel strategy, Product planning suitable to the new needs, Channel friendly policies to take care of the channel pain points – specially to support the cash flow, faster claim processing, may be no target based working to be done till this pandemic is normalized.
We see a lot of opportunity in the coming months and we will be focused to support our employees, our business partners to overcome the Covid- 19 challenges together Strongly and minimize the negative impact. We feel that by 1st Quarter of 2021, the economy and the businesses would be back to the normal levels.