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Mar15
Distribution Revolution
We have talked about the democratization of media often and the opportunity that technology affords anyone to contribute a voice, an opinion or viewpoint. We believe this is a fundamental change in how companies can engage customers and potential customers in conversation and therefore sense and respond to markets. Much of the change in media is occurring in the “distribution” of media. Media can now be delivered via download, mobile phones, PDAa, iPods, etc. versus in traditional format (newspapers, movies, CDs) and in traditional outlets (retail stores, theaters, newsstands).

I read an interesting story about another “distribution” revolution for consumer products. Anyone remember the Fuller Brush man or egg and milk delivery?

That is right. While many of us in the western world order groceries, electronics and household items online, the distribution of household goods is occurring door-to-door in parts of the third world.

How do you deliver your products to 1.1 billion people in rural India? Take note of this interesting article in the Washington Post that explains how the Indian subsidiary of consumer products giant, Unileverindia women.jpg

“enlists about 20,000 poor and mostly illiterate women to peddle such products as Lifebuoy soap and Pepsodent toothpaste in villages once considered too small, too destitute and too far from normal distribution channels to warrant attention.”


Unless you have read the article it may sound like another case of big business exploiting the third world for filthy lucre. Not hardly so. Unilever has borrowed on the tried and true principle of microcredit that is commonly used by organizations like Unitus that provide poor women with tiny loans, which can be used for income-generating activities such as milk and egg production or weaving.

“These programs have lent credence to the idea that small-scale entrepreneurship can play an important role in alleviating poverty, as well as create opportunities for big business.”

We understand this concept and support it. This is clearly not a zero sum game and the benefits accrue to all involved. Let me count the ways:
  • Better products to consumers – improved hygiene and health to the rural areas of the third world
  • an opportunity for thousands of families to run a small business which leads to money to educate their children and an end to personal poverty
  • Consumer products companies reach new markets
A key to microcredit and this program is the use of women in the program.

“Women are considered a better bet than men, he added, because ‘they are far more honest.’ The company plans to employ about 100,000 women by 2010, enough to sell its products in about 500,000 Indian villages.”

Women taking it to the streets. Distribution turned upside down. The poor empowered to help themselves. It sounds like a revolution to me.

2 Comments


» Women Leading Out of Poverty from LeaderNotes
There is increasing press on how women are leading the third world out of poverty. I have mentioned micro-credit before and the power it has to alleviate poverty through education, business training and small loans to women entrepreneurs in India,... [Read More]

I have been to several of those very back woods cities in India and if the women or someone else didn't deliver the goods, then the good would never get there. But then, it's one thing to peddle goods and another to get money out of people who just don't have any.

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