Mobile Application: Neo-Channel for Effective Product Distribution
Last few years, mobile application becomes one of the important channel to delivery services. Foodpanda, MyGP, bKash, prothomalo app, TallyKhata are few of those.
This is because, smartphone users are increasing. Currently 40% smartphone users in Bangladesh and will be 69% by 2025. High speed internet availability nationwide. 4G, Broadband etc.
Downloads. MyGP 1 crore+. bKash 1crore+. Prothom alo 10-50 lac, TallyKhata 35 lac. This statistics shows that app has proved itself a promising channel.
Three key reasons for the growth of Mobile Application for product distribution.
- Always available to customers
- Very low cost distribution
- Highly interactive
People carry mobile phone with them. Whenever they need they can go access to the app, check the required products, place order and consume. You need to recharge your mother's mobile. No need to go to stores. Open MyGP, choose the plan and buy. You are doing business. No need to carry hisab khata with you. You just open app, check the business status. Done.
This neo-channel is cost-effective, quick, scalable. Besides, it needs fewer middleman. Traditionally edited news are printed on paper, packed, distributed to different centers, then hawkers collected and delivered to readers. Now, edited news are published and we read those instantly. Balancing demand-supply also becomes efficient. Think 50 lac people reads prothom-alo daily in last 30 days. How many newspaper they should print. Decision making is not easy enough. In case of mobile app, you just increase server capacity. That's it.
App enables interaction between customer and provider/seller. Customers can ask, comment, review, rate about the products. On the other hand, provider can analyze exactly which product is purchased; when, how, where. Helps to extend offers horizontally and vertically. For example, based on purchase behavior, if one customer buys t-shirt promote newer t-shirts (keep user within the same vertical), and also offer him other grooming or fashion products (expanding horizontally). Eventually promote other categories. Happy selling.
But no opportunity comes without challenges. It needs to find an appropriate solution. How? Update the application regularly. Manage the whole service meticulously. Escalate the service standard periodically.
My opinion, you can not avoid digital distribution. Now choice to make it or break it.