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Distribution Practices in Nepal

Some Distribution Practices in Nepal are:

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1.) Traditional Distribution System Dominates:

  • Nepal’s market is heavily influenced by retail shops, local wholesalers, and distributors.
    • Small retailers and local wholesalers are the main links between manufacturers and consumers, especially in rural and semi-urban areas.

    2.) Road Transportation is Key:

    • Roadways are the primary mode of transporting goods across the country.
    • However, due to Nepal’s mountainous and hilly terrain, transportation can be slow, costly, and challenging—especially during monsoon seasons.

    3.) Reliance on Personal Selling and Manual Systems:

    • Many businesses, especially traditional and small-scale ones, rely on personal relationships and manual inventory tracking.
    • Personal selling is still a major strategy, particularly for FMCG and pharmaceutical companies.

    4.) Rise of Modern Distribution & E-commerce:

    • In urban areas, online platforms like Daraz, SastoDeal, and Thulo.com are emerging and changing the way products are distributed.
    • Consumers can now browse, order, and receive goods at home, especially in major cities like Kathmandu, Pokhara, and Lalitpur.

    5.) Growing Logistics Support:

    • Logistics and delivery services like Pathao Delivery, eSewa Express, and Foodmandu are improving last-mile delivery in cities.
    • These services support both e-commerce companies and traditional businesses expanding into digital sales.

    6.) Geographical and Infrastructure Challenges:

    • Nepal’s diverse geography creates distribution bottlenecks in remote and mountainous areas.
    • Limited road access, poor infrastructure, and natural calamities often delay the movement of goods.

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