“Zillonlife Works on a 100% Online Ordering and Fulfilment Model”

“Zillonlife Works on a 100% Online Ordering and Fulfilment Model”

The direct selling model is still at the nascent stage in India and it has to go long way.The direct sales operation is very difficult due to so vast geography. Online platform is the key solution to overcome this huge challenge. ZillonLife a young and vibrant e-commerce company has been working to provide good quality premium products at affordable prices. Zillonlife.com caters to the security, surveillance and lifestyle buyers. Zillonlife is having direct sales in home security products. DT spoke with Mr. Mandeep Sharma, Managing Director, Zillonlife Global Pvt. Ltd about their company and business operations. Below are some excerpts:

Q. Tell us something about how ZillonLife came into existence? 

A. After having worked in the Direct Selling Industry for many years, we learnt and realised that Direct Selling in India has tremendous potential. Indian directing selling market still has a long way to go compared to our western counterparts, and the best is yet to come.

Security & Surveillance was another area where we had worked as System Integrators for over 6 years, we always saw challenges in penetrating the retail residential market as it required well-trained manpower which is capital intensive.

We somehow felt that there could be a merger here if we could provide effective after sales installation and service on a Pan- India Level. We first worked on the servicing aspect for over 6 months’ post which things started falling in place and this dream started becoming a reality. 

Q. What is your direct selling working model?

A. Direct selling refers to a business model where sales personnel engage in network marketing, direct selling or referral marketing. Our model involves the marketing of products directly to consumers in a person-to-person manner without retail outlets or wholesalers. The marketing generally happens from home or workplace through explanation and demonstration by Direct Sellers known as Independent Business Consultants (IBCs) of ZillonLife.

The objective of having a Direct Selling Channel is to drive High Sales to meet genuine demand. Being a specialised channel of distribution, which is neither wholesale nor retail, it covers both business-to-business and business-to-consumer aspects. Moreover, it offers genuine business opportunities as it involves sustainable sales plan of goods and hence provides self-employment opportunities to thousands of Indian people looking for a primary or alternate source of income generation.

Instead of a physical servicing model, Zillonlife works on a 100% online ordering and fulfilment model for optimising operating costs and making the business more competitive. Direct sales and e-commerce are complementary and the e-commerce solution is an effective way for ordering or re-ordering the products for retail consumers and distributors. The e-commerce solution allows the IBCs to spend more customer-facing time doing and less time focused on order processing and administration. However, the direct presence of the IBC is crucial, to help customers know what and how to buy.

With this model, we completely rule out the chances of inventory stockpiling by distributors, which has been an area of concern for the industry. It reduces the cost for starting the business to virtually nothing hence making this a low cost – low-risk way of starting the business as an IBC with the company. The geographical reach also increases because of the online system enabling the IBC to reach a larger number of customers.

There is no entry or exit fees, with us. For our Customers, we offer a 30-day refund policy on all products sold. Products are sold with a 12-month warranty period and a dedicated customer service staff on the ground ensures exceptional customer experience.

Q. What is the turnover of ZillonLife? How has the company performed since its inception?

A. Since our inception, we have seen a tremendous response for our products. We have done a turnover INR 15 million over the last month which is very encouraging for a new entrant. Our products have been well appreciated and the positive feedback that we have been receiving is good news for us as well as our IBCs. Over 1000 IBCs have also registered with us since our launch.

Q. Which markets contribute/d significantly to your revenue?

A. Over 50% of the business is from the Southern & Western regions which includes Bangalore, Hyderabad, Chennai, Mumbai and Pune. The Northern region which includes Delhi- NCR, has contributed to one-third of our business.

Q. What are your long term plans/ vision? (3-5 years)

A. At Zillonlife we understand the importance of long-term planning and it is one of the most important priorities for us. We are evaluating innovative product options across new segments in consumer electronics, FMCG and durables that we plan to launch in the next few years. By 2017-18, At present, we plan to have a portfolio of more than 50 products from across various segments.  

Through an established e-commerce support and multiple branch offices, that we plan to open in Tier-II and Tier-III cities in the immediate future, we wish to be able to provide quicker last mile delivery of our products and services. We will start by opening 10-15 branch offices across major business centres this year.

We plan to create robust training and development system to help our IBCs inculcate our value system, vision and guiding principles. Part of that philosophy is that all Zillonlife IBCs should share in the company’s successes both financially and through personal growth and fulfilment.

As part of our corporate social responsibility and our efforts to promote social development, we will collaborate with private organisations and the government to address social causes and provide sustainable solutions.

Q. List 3 challenges ZillonLife that you foresee for yourself as a corporate?

A. Enacting of Direct Selling Guidelines into statutory regulation would give the industry a boost.

The DS industry has great companies which have been in the market for many years and we would love to achieve the same quality and service levels as a benchmark.

Similar to other consumer companies, there are some challenges in setting up Manufacturing facilities, dealing with import duties which of course can be worked out.

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