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Best distribution-based businesses in the post-COVID 19 world

The world is right now facing a huge pandemic, and there is a state of lockdown in many of the countries. Everything right now is at a standstill. While all the countries are not under this situation but majorly this pandemic has affected the economy of both types of countries, the ones facing the lockdown and also the ones not under a complete lockdown. Right now, the major thought running into the mind is how to stabilise the global economy? How to live through the conditions? And also how to survive the losses being incurred due to the situation?

A quick glimpse on Distribution Business

Distribution businesses are basically connectors; they are the ones who make available a certain product or a particular service to the ones who demand the same. The distribution business is a root, or a link to any other business as in you would require a distribution channel for any of the business. In case you are a manufacturer, you would definitely require a distributor to take the process ahead for you. Likewise, if someone is a supplier, he would also require and distributor, which would be a pre-requisite for the business. Hence, this being an entire chain, the distribution channel acts as a huge contributor.

Categories of Distribution Businesses:

Distribution in itself is a big tree with its branches spread out.

  • - Direct: A Direct Distribution refers to a direct selling by the supplier to the customer
  • - Intermediary: Distribution through intermediaries is a common type of distribution. In this type, there is an intermediary in the form of a broker or a middle man who unites the seller and the buyer.
  • - Dual for of distribution: In this form, there is a dual selling by the suppliers to the customers as well as to the intermediaries for further re-sale to the customers.
  • - Reverse mechanism: Usually the flow goes from the customer being the endpoint to the channel, however in this form of distribution, the flow flows from customer to the beneficiary or customer to intermediary to the beneficiary.

Best distribution based businesses in the post-COVID 19 world

As mentioned, distribution is essential in major of the business models, so if an analysis is taken as to different types of businesses and how would the distribution part be impacted post this pandemic situation of COVID-19, it will be convenient to find out the future of distribution business in the post-pandemic world.

Automobile Distributors: Keeping in view the current scenario and analysing the future prospects, it is said that we will have to learn to stay with COVID-19 in future. Even though the magnitude will decrease, it is not going to be gone soon. In such a situation, automobile distribution based businesses may flourish due to the following reasons: -

  • - As things will settle, people will prefer to travel by personal vehicles and will try to avoid public transport.
  • - Those who will not be able to afford may go for second-hand vehicles.
  • - As there will be more safety concerns, people may purchase new four-wheelers, two-wheelers leading to a splurge in the distribution of automobile spare parts and also the distribution of automobiles.

Pharmaceutical Distributors: As the pandemic has already created a threat in the minds of people, they are becoming more and more concerned with regards to health. Due to this, the distribution of raw materials, as well as the distribution of medicines, will definitely rise. Also, since it is said that masks and hand sanitisers are now a part of life for a while, there will be a rise in the distribution of masks and hand sanitisers as well.

Electronics and IT Distributors: Many of the companies could not adopt the work from the home pattern and incurred huge losses due to the lack of proper infrastructure and non-availability of the same in the pandemic period. There are companies who are planning to adopt the culture of work from home in the long run.

  • - The Electronics distributors will benefit in a way that there will be more demand for laptops and computers and also a possibility of bulk demands resulting in a rise in the distribution.
  • - Proper infrastructure is required to run the business; hence IT-related distributors will definitely benefit in future.

Construction-related distributors: Now, since the major construction projects are at a standstill, this is how construction distributors may benefit:

  • - Distribution of Raw Materials: Once the situation bounces back to normal, there will be construction in full swing leading to a rise in the distribution of raw materials for construction.
  • - Distribution of Contract Labourers: Since we have been witnessing a major chunk of labourers migrating to their own cities, town and villages, there will be a great increase in the demand for the same leading to an opportunity for the contract labour distributors.

Liquor Distribution: Liquor Distribution businesses are likely to flourish due to the ever-increasing demand for the same. Even during the state of lockdown, there were long queues due to the opening of liquor shops; however, due to safety reasons, they were shut down again. Hence in future, the demand is likely to spike resulting in a boom for liquor distributors.

These are the few ideas or businesses which will have an added benefit in the post-COVID-19 world. If planning to venture into some business one may consider to kick start any of the above businesses after proper analysis.

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