In 2019, we proudly introduced Exedy Clutch Sets, a renowned Japanese brand, to our product lineup. Despite Exedy's decision not to establish local manufacturing in India, we saw potential in diversifying our portfolio with their internationally acclaimed products. Within just six months of partnering with Exedy, our aggressive pricing strategies and robust stocking capabilities propelled monthly sales to an impressive 3 lakhs and beyond, yielding satisfactory margins of 10%.
However, as time progressed, we encountered many problems. Firstly, Exedy's lack of investment in local manpower hindered market visibility, allowing competitors i.e. ZF Sachs and Valeo, two of the fighter clutch set brands, to swiftly capitalize on any dent that we made to their sales.
Secondly, the reliance on imported products led to significant price fluctuations, making it challenging to establish consistent pricing for our fast-moving items.
Lastly, Exedy's passive approach and reluctance to take decisive action in the market contributed to a decline in sales momentum.
The outcome was clear and predictable: a drastic drop in sales over time, plummeting from 3 lakhs per month to a mere 1 lakh over the entire year.
Reflecting on this experience, it appears that Exedy's strategic decisions, or lack thereof, played a pivotal role in the diminishing returns. Their failure to invest in local resources, coupled with the challenges inherent in importing products, ultimately eroded their market position and our profitability.
What I personally wanted to showcase was that while the allure of renowned brands like Exedy may be enticing for small scale distributors like us, long term success hinges on an approach that addresses both product quality and market dynamics.
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