Essmart is already operating in southern India. We currently operate six Distribution Centers in Tamil Nadu. These Distribution Centers have built a combined network of over 1,100 retail shops that have sold over 15,000 products. Each product typically impacts an entire family or business, and so we estimate we have impacted over 60,000 individuals (based on the average Tamil Nadu household size of four). Essmart has 43 employees, most of whom are employed out of the villages in which we work, thus providing employment in rural areas. Prior to launching operations, Essmart’s co-founders had been researching the technology dissemination challenge for four years, and we began testing, validating, and refining Essmart’s model in January 2012. Most recently, Essmart has built an inventory management system that 1) works offline, in the world’s remotest settings, and 2) allows for the flexible movement of products up and down the supply chain, to facilitate the distribution and adoption of durable products. This system is uniquely integrated with our operations and will enable us be data-driven as we scale.
Overall, Essmart has three types of users/testers who are impacted by the innovation: 1. Customers of Essmart’s life-improving products. So far, Essmart has reached over 60,000 rural customers through the commercialization of life-changing technologies. By visiting a local village retail shop, rural households learn about new products that address many of their needs. By purchasing one of these products, they are able to reap that product’s benefits. For example, customers that purchase a solar lantern are able to generate significant cost savings on kerosene, which often account for up to 30% of their monthly income. Customers that purchase a water filter are able to reduce their chances of waterborne illnesses, therefore improving their health and reducing the cost of medical care. Customers that purchase an improved biomass cookstove are able to reduce their fuel consumption and breath easier when cooking. These products all contribute to a healthier, enriched, and aspirational lifestyle for rural Indian consumers. 2. Mom-and-pop rural retail shop owners. Essmart has worked with over 1,100 rural retail stores to commercialize life-changing technologies. Essmart improves these small businesses by increasing their revenues through Essmart’s higher-value products. A shop owner earns $2 profit per average product sold and can increase his annual earnings by nearly 10% in his first year working with us. Additionally, Essmart’s reputation, differentiated product offerings, prompt after-sales service, and product margins incentivize shop owners to continue working with Essmart. Finally, many shop owners purchase Essmart’s products themselves to increase their productivity. For example, many shop owners use Essmart-distributed solar lanterns to keep their businesses open at night or during power cuts. 3. Essmart’s field staff. Each Distribution Center creates employment opportunities for at least six individuals, all of whom are from the areas surrounding the Distribution Center. Distribution Centers are established in Tier 3 or 4 cities/towns, and our employees are from thesecities/towns or nearby villages. Many of our Sales Executives have only a 10th grade education. By working with Essmart, they are not only able to secure a stable income and bonuses to support themselves and their families, but they are also able to continue living in their rural homes as opposed to migrating to the city. We rely on Essmart’s field staffs to provide immediate feedback on what pieces of our operations work and which pieces do not.
Since August 2012, Essmart has worked with over 1,100 to sell over 15,000 life-changing technologies that have impacted over 60,000 people. We have witnessed customers’ willingness to pay and subsequent improvements in lifestyle and business growth as we have continued to grow our model. For example, Sundar, a shop owner in Negamam, a small village outside of Pollachi, Tamil Nadu, has sold over 90 Essmart-distributed products, and has increased his earnings by US$440 (which equates to 15% of an average annual income of a shop owner). He continues to purchase Essmart’s products because he sees a direct contribution to his increase in revenues and appreciates Essmart’s high-quality products and after-sales service. Other stores have even created and financed their own marketing collateral with Essmart’s name and logo, which demonstrates that our brand carries value where we work. Similarly, customers are willing to purchase Essmart-distributed products from Sundar because they see value in the goods for their own lives. For example, an Essmart-distributed solar lantern was used by one customer to replace kerosene in her house at night, and by another customer to keep his roadside restaurant open during power cuts. An Essmart-distributed fuel-efficient cook stove was used by one customer in his tea stall to save on the cost of fuel. These few anecdotes are representative of thousands of other similar stories of those who have benefited from Essmart products.