Supported by a hub-and-spoke distribution model, ITC has expanded its rural stockists network by 1.3 times over the last two years
In rural markets, ITC has deployed market-specific strategies to enhance direct coverage based on socio-economic indicators and market potential. Supported by a hub-and-spoke distribution model, ITC has expanded its rural stockists network by 1.3 times over the last two years. By leveraging the deep rural connections of ITC’s agri-business, consumer activations and market development activities were conducted in high-potential rural areas.
Enhancements to the digital ecosystem for the stockist channel have improved ITC’s distribution reach in rural markets.
In urban markets, ITC continues to leverage automation, data-driven insights and machine-learning solutions to enhance field-force productivity and performance. Emerging technologies like Generative AI are being used to automate operations and increase efficiency. Customised servicing based on outlet potential and retail engagement programmes have been implemented to drive demand for ITC’s products, with a focus on premium grocery outlets. Specific interventions aimed at driving premiumisation in general trade outlets have been carried out using advanced data analytics.
ITC’s multi-channel distribution network, which facilitates product availability in nearly seven million retail outlets, with more than one-third serviced directly, was strengthened during the year by adding new markets and outlets to its direct servicing base. Market coverage has increased to approximately twice the pre-pandemic levels.
The ITC trade marketing and distribution network has transformed into a smart omni-channel system. The ‘ITC e-Store,’ ITC’s exclusive D2C platform, continues to receive good consumer response. The platform, powered by advanced digital technology and robust fulfilment infrastructure, offers on-demand access to over 800 FMCG products across more than 45 categories. Category-specific D2C platforms like Classmateshop.com, Dermafique.com, Aashirvaadchakki.com and Fiama.in provide consumer insights and enhance ITC’s product franchise.
ITC’s digitally powered eB2B platform, ‘Unnati’, has rapidly expanded, covering nearly seven lakh outlets, with a significant number of retailers placing orders directly on the platform.
ITC executed over 100 new product launches across target markets and extended the distribution reach of several existing products to effectively leverage new routes-to-markets and meet the assortment needs of emerging channels.
During the year, ITC implemented several interventions to improve operational effectiveness and productivity, thereby strengthening its competitive advantage. These include supply chain and network optimisation, smart buying, efficient freight procurement and delayering operations through direct shipments to customers.
ITC continued to leverage an integrated planning and supply chain tool, powered by advanced algorithms, for inventory optimisation and productivity enhancement, significantly improving supply chain agility and market servicing through enhanced forecast accuracy. The supply chain network was redesigned to enhance the premium portfolio’s availability in both existing and target markets across urban and rural landscapes.
An IoT-based solution that monitors stock movements in real-time was used to improve vehicle turnaround time and enhance customer service through data analytics.
