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Facility Brochure |
| Who we are, where we work, who's who... |
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IAP Factsheet |
| What is IAP, where we work, how to apply... |
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Despite its promise of growth and development, this market also conventionally called 'hard-to-reach.' Whether the product is lighting, healthcare, stoves, food or consumer goods, it's not enough to have the right product. The right distribution channel is essential too.
Distribution in hard-to-reach markets presents huge challenges: low purchasing power means margins are often small so high volume transactions are needed. But poor infrastructure, dispersed consumers, and low product awareness push costs up. Established marketing networks - whether shops, trucks or dealers – are often not suited to get the product across that 'last mile' to millions of potential consumers.
There is no tried and tested method to drive your product down the last mile, but several useful approaches are emerging from the Facility and IAP Portfolios:
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Working with local micro-entrepreneurs and franchisees embedded in local communities.
A growing number of ventures are using or exploring this approach, including Healthstores' network of clinics in Zambia, MAKIT's sanitary product distribution in Kenya, Jita's consumer goods venture in Bangladesh, Calimera Solokraft's drinking water initiative in Tanzania and Sunny People's mobile charging project in Kenya. |
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Establishing partnerships with existing networks that penetrate low income markets.
Governmental and non-governmental networks may reach further than traditional commerce. In India, MCX reaches farmers via the Indian postal network, while Hindustan Unilever has partnered with micro-finance networks for distributing of water filters. |
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Partnering with finance providers
to facilitate consumer finance. In Nigeria, Oando Plc. teamed up with advisory firm Althea Capital to provide low-income households with accessible LPG cooking fuels. |
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