PHASE: Pilot
CATEGORY: Technology
LOCATION: Pollachi, India
Essmart Global
Asia

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Essmart gives rural retail shop owners access to products that improve their customers' lives. We are a technology distributor working with existing retail shops to reach end users. We deliver the goods.

Standings & Awards

1313 out of 1313 in Asia
206 out of 206 in Technology
573 out of 573 in Pilot
555 out of 555 in For-Profit
4003 out of 4003 Overall
We give rural retail shop owners access to products that improve their customers' lives.

The technology manufacturer d.light, based in Delhi, Northern India, designs high quality solar lights that cost on average US$15 and are sold to low-income customers in rural, off-grid areas. d.light‘s exclusive use of door-to-door salesmen has failed to achieve their desired market penetration and social impact. As most of their human and financial resources are invested in product design and manufacturing instead of distribution, it is difficult for d.light to independently overcome the fragmented distribution lines that snake across the nation. Similar to d.light, there are hundreds of organizations that make essential life-improving technologies but struggle to ratchet up their scale and grow their customer base.

Meanwhile, 1,500 miles away in Pollachi, Tamil Nadu, Southern India, Javed owns a 400 square meter shop on a main road with 10 other local retail shops. His shelves are crammed full with Coke bottles, toiletries and other consumable goods. Javed’s store gives him a yearly profit of US$2,500, and every week he spends minimum US$5 and nearly a full day traveling to Coimbatore to restock his shelves. His customers are local farming households that spend US$1,000 on retail per year. Javed is looking for ways to distinguish his business from local competition and increase his income. There are 14 million shop owners like Javed in India, and for 90% of India’s population, these local retail shops are their lifeline to consumer products.

There is a gap between d.light and Javed- a rift between the suppliers of essential technologies and local retail shops that could sell their products. Javed does not know about these essential technologies, where to find them, or how to service them.

Essmart offers a solution. Essmart delivers the goods.

Essmart is an essential technology distributor with an embedded retail presence in India’s rural shops, beginning in Pollachi, Tamil Nadu. Our model focuses on the distribution gap by combining process innovations in sourcing high-quality technologies and distributing to rural areas. We reach end users through the extensive retail shop network that services local communities.

FIVE PROJECT QUESTIONS Required (60 - 90 minutes)

1. What is your innovation? 
Essmart is an essential technology distributor with an embedded retail presence. Our model combines sourcing high-quality technologies, distributing into rural areas, marketing to end users and retail shop owners, and providing after sales service. In contrast with single-brand technology providers, our awareness-creating catalogue offers a diverse selection of technologies. Through Essmart, rural end users can access essential technologies at rural retail stores they are accustomed to using.
2. Who gains the most? 
Essmart creates a tangible value proposition for rural end consumers, retail shop owners, and essential technology suppliers. From access to products designed and priced to serve the bottom of the pyramid, India's 192 million household rural population reaps health and economic benefits. Further, 10 million mom-and-pop retail shop owners gain knowledge about new technologies and an additional, higher-margin revenue stream. Finally, suppliers open up the intended markets for their products.
3. Who pays? 
As a distributor, Essmart sources essential technologies from suppliers at bulk discounts. Essmart's customer, the rural retail shop owner, pays for the technologies from Essmart at a slight mark-up. The shop owner profits when he sells the essential technologies to end users. Technology suppliers pay Essmart to be included in the catalogue. They and other organizations pay Essmart for data about rural markets, consumer preferences, and problem analysis for failed products.
4. What is your success? 
Essmart's primary measure of success is the number essential technologies sold through distribution of essential technologies. Important metrics to track in order to measure this and growth potential include the number of products distributed, relationships forged with rural retail shop owners, and potential end users we can reach through our distribution network. Essmart's secondary measures of success are the economic improvement of our retailers and suppliers.
5. How will you do it? 
Essmart will implement a hub-and-spoke distribution model with warehouses based in tier three cities that will distribute products to nearby villages. We have run a successful proof of concept, providing two rural shop owners with a catalogue of essential technologies and selling out of 17 products in one week. This summer, Essmart will begin operations in Tamil Nadu, India, and will sign up 65 retail shops by year end. Next January, Essmart will begin to scale its reach to additional cities.