Indian market is wide, versatile and holds enough space for every product category and price segment. After COVID-19, few products have been slow like flooring, veneer, doors but few like MDF, laminates, calibrated plywood, particle board, PVC boards and edge band tapes have scaled to an all time high specially during October and even November 2020. The payment flow was also better than expected.
The distributors were pro-active, thanks to plenty of knowledge and motivation extended by companies during the ongoing COVID phase. Now markets are settling down and escalating prices of every material is creating doubts. Laminate, PVC mica and edge tape manufacturers all are in alert mode. They have reduced production drastically due to unviable costs. The market is now looking towards wholesalers and traders for sales, payment and price support.
The wholesalers also need to be appreciated for their support to dealers for offering the credit & service facility during this tough time. They became the lifeline for the B2B chain with their active role. A very interesting fact about wholesalers is that during 10 years they were dependent on markets of metro cities. After COVID, they have opportunity to spread their aggressive reach to tier 3 cities & towns.
They must identify and capture this opportunity to expand with warehouse facilities, with an aim of slowly decentralizing from metros. Those who began their wholesale business 15 years ago are now at a stage of stagnancy with nearly 25-40 crore annual turnovers. For them, the time is ripe when products are plenty and manufacturing companies and new brands are growing. If distributors work with an efficient team and proper management of capital & product selection, they would see unprecedented growth.
The centralized warehousing with managed stock points, apt logistics and supply chain management would add to strengths. Although there would be lot of challenges, but you need to strongly focus on sales. It can improve your market presence and turnover. There is a golden era for distributors who are organized, fair and confident to move forward with honesty in books and clean dealings.
Thank you all for cooperation and blessings,
Wishing you and the Wood & Panel industry a very Happy 2021, dil se!
Pragat Dvivedi Founder Editor
Mail to “dpragat@gmail.com”, ( M) 9310612991.