How Manufacturers Are Now Directly Retailing To End Consumers

Posted by Arun Sharma on November 21st, 2019

The article's main focus is how business is changing and how the middle supply chain is getting eliminated. 

When I was doing an MBA from IIM Calcutta, I was taught that business has three models, these are Manufacturers followed by Whole Sellers and there after retailers. 

But, when I entered the real world of business, I saw that every body is trying to make money by breaking the business law. 

To make more profits, nowever days manufacturers are now directly retailing to end customers and they don't care about their supply chain, which plays a crucial role in expanding ones business. Their main aim is to cut down the over heads and make maximum profits out of every sale. 

I personally feels that this trend is actually a disaster and every goverment should take notice of this.

If this trend continues for years and years, it will bring lots of umemployment as you can just think that if there are 1000 whole sellers and 1000 retailers and every business hires atleast 10 workers then you can calculate that there is loss of 20,000 jobs. Its a big blunder.

I noticed so many companies which are into manufacturing, now have a well established retail web store and one such example is www.simcshandicrafts.com. SIMCS Handicrafts are actually manufacturers of handmade items from India and they export to more than 50 countries world wide. 

Now, SIMCS, has their own online portal and selling many products under their belt such as wedding candelabras, crystal candle holders and cremation urns and buyers are now taking advatanges of dicounted prices .

There are many such companies who started as manufacturers and but now they venturing into retail no matter online or offlines. 

Companies such utsavfashions and eshakti are the examples of my article topic.