indian-rice

Food distribution

The retail sector in India is highly fragmented, thus creating scale diseconomies that result in higher prices and poor quality products. In order to avoid these risks, femS3 has supported the creation of 21 shops, connected to the branches of a micro-finance organization, that provides priority access to low-income customers who can buy staple food, purchased centrally, at a better price and guaranteed quality control. Furthermore, a system of personal cards allows the accumulation of sums to be used in case of financial shocks.

femS3 is closely working with Nirantara Livelihood Resources Private Limited in Bangalore and with Equitas Dhanyakosha in Chennai to establish a chain of high discount food retail stores. The partnerships supported the creation of shops that provide priority access to low-income customers who can buy staple food, purchased centrally, at a better price and guaranteed quality control. Furthermore, a system of personal cards allows the accumulation of sums to be used in case of financial shocks.

The key futures of these stores are:
• sell top 15 food items such as rice, wheat, ragi, sugar, vegetable oils and spices
• 600-800ft store looks like a super-market and sells 40-50 SKU’s
• provide significant discount to customers
• professional supply chain management system
• use point of sale MIS for transparency and pilferage
• provide cobranded magnetic barcode loyalty cards to customers
• support local micro-economy by assigning income generation works (such cleaning, processing, packaging and labelling) to local SHGs
• engages local women as store staff and door delivery employees