The rural distribution system is about to get a shot in the arm. Doing away with the “hub-and-spoke” system, HUL is betting big time on the “distributor-on-cycle” model – dubbed the “Shaktimaan” model. This novel idea is not only set to improve the reach of HUL products in the hinterland, it also has the potential to provide rural employment, and even encourage small-scale rural entrepreneurship.
At what scale this model delivers remains to be seen. But let us hope it clicks – because if other biggies follow suit, it could have a major influence in shaping the rural economy.
New ideas do emerge when a company fears competition. Until, few years back,Levers used to use a hand cart delivery system in crowded areas.
What ever changes take place will only benefit the consumer.