Micro distribution in emerging markets– key issues to consider

There is increased interest in micro distributors and the potential they hold within an inclusive business model. Well documented micro distribution models include the Coca-Cola MDC (Micro-distribution centre) in Africa and Unilever’s Shakti model in India. Micro distributors can be found in emerging markets where markets are fragmented and modern trade (e.g. Walmart, Tesco) is [...]

Reasons distributors in emerging markets fail

Implementing a 3rd party distribution system in emerging markets can be a challenging undertaking.  Below are a number reasons why distributors in emerging markets fail, and warning sign to look for. Financial management – A few years back we ran a project in for a consumer packaged goods company in Sri Lanka. During our assessments [...]

Feeder towns in Africa

For centuries feeder towns and markets (e.g. silk route) have played an important part in trade. Even today, understanding how these markets and towns function is important to any business wishing to make an impact. What are feeder towns? – Feeder towns are hubs for product distribution, e.g. Mercato in Addis Ababa. Customers and retailers [...]

Key distribution issues in emerging markets – Updated

Channel strategy – companies must map out a clear channel strategy and identify which channel the selected distributor will service. A poorly defined channel strategy can severely damage any distributor roll-out. It is critical that companies understand how channels function and operate. One size does not fit all. Selection criteria – companies need to understand [...]

Two-tier distribution in emerging markets – telecom and electronics

What is a two-tier distributor? They buy from manufacturers and sell to resellers. What are their competitive advantages? Two-tier distributors can expand the retail footprint in emerging markets. They normally sell a diverse range of brands and control a large percentage of the local distribution in the telecom and the computer industry. Two-tier distributors understand [...]

Inclusive Business Models – Mi Tienda

Mi Tienda (private-held company) is engaged in the rural distribution of non-perishable food and personal care products in Mexico. The Company distributes products to stores located in rural areas in Central and Southern Mexico. Mi Tienda has recently been included in an IFC report, analysing 14 inclusive business models deemed to be commercially viable and [...]

Video: Growing up- Vietnam Consumers

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Update – Coca-Cola’s Micro Distribution Model

There is increased interest in the Coca-Cola Micro (or manual) distribution model, first launched in Ethiopia in 1999. The model has recently been selected by the IFC as one of “Inclusive Business Solutions” focused on distribution. On the 7th and 8th of October I will speak at the IFC conference titled “Inclusive Business Solutions: Expanding [...]

Telecommunication – distributor learnings

I am currently in Ghana and evaluating a distributor network for a company in the telecommunication industry. Some key learnings from my trip to date:     Be aware of the distributor powerbase – competent distributors are key to most supply chains and collaboration is critical in expanding your footprint. However, distributors should not hold [...]

Slums – Beyond the perception

Personally, I am not very fond of the term, slums. I think it is loosely defined term for a type of informal market. However, with all their problems and challenges there is a lot to learn from slums from a business perspective. Entrepreneurism – slum areas are highly entrepreneurial, with a high degree of business [...]

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