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Thursday, June 29, 2017

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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 scalable by the IFC.

Segmented Focus– Mi Tienda focuses on towns with less than 5,000 inhabitants. Outlets are small (between 20 and 65 m2) and mainly owned by women.

Exclusivity– Most of the stores are not exclusive distributors of Mi Tienda.

Capability Development and Account Development – The concept educates shop owners about product inventory and ordering, especially for women.  A large percentage of women are entrepreneurs. Mi Tienda helps with the redesign of the store’s layout. Traditional shops are transformed into self-service outlets. The redesign has resulted in an on average 35 percent increase in sales.

Delivery & Warehouse– Mi Tienda provides direct distribution (48 hours) of basic food, hygiene, and health products. Mi Tienda makes use of regional distribution centers (DCs).

Inventory and working capital – It is expected to increased product availability and also reduce the need for excessive working capital as frequent deliveries are provided to the network.

Platform for additional services – Mi Tienda’s distribution system and footprint will also provide a platform for additional services, such as insurance, payment of utility bills, branch-less banking, and micro-credit.

Human and business development – The project is expected to have a big impact on micro and small outlets in the rural parts of Mexico. Mi Tienda has the potential to improve dealer margins and increase product affordability to rural communities.

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