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 [...]

Social Products Route-to-Market Framework

I recently designed a framework for developing a Route-to-Market strategy for Social Products. The framework is based on some of work we have done in emerging markets .  See the outline and download the document (PDF) below. What are social products? A Social Product is not necessarily a physical offering and can also include services [...]

The Last Mile of Logistics

I recently spent some time in Tanzania looking at the “last mile” of logistics of medical supplies in the country. The project focused on assessing the challenges with reaching health clinics and dispensaries, particular in rural areas.  Below are some issues to consider when drafting your “last mile” strategy: Territory and road infrastructure – Gain [...]

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 [...]

Nestlé’s Amazon distribution model

Photo: Marcia Zoet Bloomberg Nestlé is planning to sail a supermarket barge down two Amazon River tributaries, namely Pará and Xingu rivers in Brazil. Nestlé wants to compete with Unilever in Brazil and aims to reach customers isolated from branded goods. Consumer goods companies are increasingly focusing on the one billion people in emerging markets [...]

Manual Distribution Centers – MDC

Created with flickr slideshow. The Manual Distribution Center (MDC) model in Africa and Asia See Flikr link Photos set from our project work in Africa and Asia. Also see the MDC video

The informal market

Robert Neuwirth writes about the informal economy in Lagos, Nigeria, and its importance to the local economy. Local governments mostly view these informal markets in a negative way, even though they contribute significantly to the economy. Some interesting points: The demand for economic activities takes over everything as bridges are transformed into informal markets. The [...]

Next Page »