During an interaction with Mobility Magazine, Mr. Mukesh Gupta, Partner at Rajchandra Agencies, details about the steps taken by the organisation to drive growth and the significance of collaboration amongst the industry players to ensure growth and balance.
Key Drivers
Innovation in technology, diversification into new product areas, and the capability to adapt according to the changing trends have been the driving factors behind the success of Rajchandra Agencies. Over the years, the company expanded its product and brand portfolio in sync with their growth strategy. This ensured variety and high availability for consumers of different tastes and needs.
Growth factors
The market demand for innovatively designed and popular brands has made the company expand into new product segments. Rajchandra Agencies understood the importance of digital convergence and technological innovation, and accordingly invested in partnering with the right brands. As a result, the company’s revenue has skyrocketed from 2 lakhs to 20 crores per month.
Rajchandra Agencies’ business model focuses on collaborating with the right brands
Rajchandra Agencies mainly focuses on the distribution of smartphones, mobile accessories, other telecom products and FMCG. The company has identified the critical issues in the distribution and took effective measures to ensure efficiency in all the associated operations and this enabled the company to set realistic targets and action-based plans that helped to attain success.
Change in the distribution business
Distribution is a bridge between the OEMs and their partners. During the pandemic, the IT and cloud-based services witnessed a boom.
Mr. Mukesh Gupta shares, “We expect the distribution business to consolidate in the near future because of the existing wafer-thin margins. Today, innovations are taking place faster. COVID-19 created unprecedented challenges for the distribution industry, but our first response was to remain agile and work closely with the interests of the partners and in line with customer needs. Rajchandra’s policy during the pandemic was to diversify into different business categories. Traditionally, the distribution industry has contributed a lot to the overall economy and provided employment to many. The government has taken the first positive step by including the distribution in MSME and this is a supportive measure for the distribution business. More such steps are needed to protect the interests of the trade.”
Road ahead
Mr Mukesh Gupta concludes, “The distribution model will change and consolidation is imminent, including FMCG industry. Controlling expenses and managing credit will be the biggest challenges in the near future.
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