'Reach Of The Net Has To Be Backed By Effective Distribution Models'

Internet has been prophesied to be the future. In some countries, it has already reached a stage where most transactions are conducted through online platforms. However, where does India stand? Biztech2.com spoke to Nupur Singh Andley, Senior Research Analyst-Connectivity, Springboard Research, to get her views on the topic.

Do you think that the Internet has become a viable way to target the rural market? Please cite your reasons for the same.

The Internet has been chosen as the communication platform of choice by almost all spheres of society. While facilitating connection with the farthest parts of the world, it offers users flexibility and significantly reduces the process duration. However, for the Internet to become a communication platform for mass usage by the rural market, one needs to first address the various challenges that the medium faces, which could otherwise prove to be detrimental to adoption and growth.

What strategies do you think companies should adopt surrounding the Internet as an option to target the rural market?

The use of the Internet substantially brings down time-to-market for any company aiming to enter a new segment such as the rural market. By leveraging the Internet medium for marketing and order processing functions, the company can eliminate the need to establish and manage a retail shop in the rural areas, thus proving to be cost effective and profitable to the business. However, one should look at the feasibility of operating online in such remote areas and iron out the challenges right at the onset of the operations.

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Once an order has been placed by a customer on the Net, supplying the product to that area can be cumbersome. What is the best way to tackle this problem?

An efficient distribution system could be a potential roadblock for Internet-based businesses as the delivery system to such areas could be inadequate in some countries. However, as the usage of the Internet increases for product and service purchases, the allied industries too would have to look at modernisation and new models of distribution in order to ensure superior and timely delivery.

What are the challenges surrounding this platform?

While the Internet could prove to be an effective means for marketing and business activities, the training required to equip the illiterate rural folks to operate on this platform could prove to be a challenge as technological understanding might be low. Furthermore, ensuring that the Internet and the company website are always up in such remote areas could be challenging as connectivity in rural pockets of a number of countries continues to be relatively weak.