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100X.VC Team
Written by various collaborators within Team 100X.VC
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Jun 01, 2024
Topic

Introduction:

The landscape of India's direct-to-consumer (D2C) market has been rapidly evolving, with significant growth in recent years. However, breaking into offline retail is a challenge for new-age D2C brands, with businesses primarily relying on India's complex and traditional distribution networks. 

Most Indian manufacturers utilise a three-tier system involving redistribution stockists, wholesalers, and retailers. For example, an FMCG business may have 40 to 80 redistribution stockists, each serving 100 to 450 wholesalers, who in turn serve between 250,000 and 750,000 retailers nationwide. India has around 12 million retail shops, the majority of which are small, family-owned businesses known as kirana stores. Further, fragmented distribution networks, resource-intensive sales force management, and a lack of data-driven insights all impede the smooth expansion of D2C brands into offline channels. These stores account for about 80% of all FMCG sales in the country​. To thrive in India's changing retail scene, businesses must capitalise on technological improvements and retain good supply chain ties. 

Baylink, where data meets distribution to make offline retail accessible, simplifies offline expansion for brands by providing a tech-enabled solution that bypasses traditional distribution complexities. Their data-driven approach ensures optimal store selection, sales strategies, and real-time insights, leading to accelerated growth and higher repeat rates. With reliable delivery, optimal product placement, and completely digitised processes, brands get an Amazon like experience for offline expansion. 

Baylink's solution, offers a ray of hope by combining digitally optimised distribution strategies, a flexible sales force model, and actionable data analytics to provide brands with the tools they need for successful offline expansion. Baylink provides a full-stack solution for data-driven offline expansion, with a dashboard offering brands unparalleled visibility into the entire supply chain, providing detailed insights down to the exact inventory levels and sales velocity on each shelf.

 

 

 

 

At the helm is CEO and CTO Sakshat Gandhi, whose coding proficiency a

ndretail background make him a perfect fit to lead Baylink. COO Siddharth Prakash, ensures smooth operations with his experience from Housing.com and Battery Smart. Dhara Bhasin, CFO, brings a solid foundation in financial management. Finally, Arihant Jain, CDO drives innovative marketing strategies at Baylink. This dynamic team is set to transform offline retail for D2C brands in India.

 

Market Opportunity:

With the D2C market expanding at such a rapid pace, Baylink's timing could not be better. 

The market holds tremendous potential, with a total value of $14.7 billion and a serviceable segment worth $1.83 billion. Baylink aims to capture a significant portion of this market, by 2025 by utilising its tech capabilities along with operational efficiencies. 

 

100X Thesis:

In India, offline distribution for consumer brands is still primarily based on intuition rather than data. Baylink is here to change that by providing consumer brands with store-level insights that allow them to not only identify stores but also optimize merchandising to sell to their target personas. 100X.VC believes Baylink will disrupt the distribution industry with a team that has the right mix of tech and operations experience, as well as a strong focus on data and intelligence.

 

Conclusion:

Baylink's value proposition extends beyond just market success. In envisioning a future where offline expansion is as seamless as building an online presence, Baylink aims to democratise access to offline channels. By removing distribution complexities and providing cost-effective sales solutions, Baylink enables even the most recent D2C brands to compete on an equal footing. Furthermore, Baylink's data-driven approach improves the offline retail experience by optimizing store operations and increasing customer engagement with products. In the long run, this approach promises to make offline retail more efficient, personalised, and ultimately, more successful for all stakeholders involved. As Baylink charts its course towards reshaping India's retail industry, its impact promises to be profound and far-reaching.

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