“Retail-on-wheels” - IIM guy’s veggie cart move !

IIM-A topper turns vegetable vendor

A topper from one of India’s finest B-school has turned into a vegetable vendor, but of course there is more here than that meets the eye. After being at the top of his management class at IIM - Ahmedabad, Kaushlendra should have been sitting in an air conditioned cabin pulling a hefty salary at a multi-national company. Instead, he stands in the sweltering heat of Patna - selling vegetables.

Kaushlendra reacts to his profession says, “Every one seems to be migrating from here, I wanted to do something for my people.”

It may seem like a unconventional career move but an innovative one that helps bring the business back from the fresh produce retail giants — back to the single vendor, something that even the consumer appreciates.

Armed with his air-conditioned pushcart with fresh veggies and digital weigh machine, the 27-year-old might make more of a difference than one would have though as 250 farmers have already tied up with him goes to show it takes only one to turns things around.

So it’s back to basics. The news wouldn’t have gained much of importance, if not for the IIM tag. Well, if that was your initial opinion take a second look. This guy is bringing the air conditioned vegetable showcases of Reliance fresh or Spencer’s outlets to a street nearby you.

Mobile vegetable vendors are a part of the great Indian middle class society. Over a period of time, when the “subtle” value addition of cleaned water sprinkled fresh looking vegetables, neatly wrapped in absorbable sizes/packages , became an instant attraction; our very own mobile veggie vendor became the “unwanted”.

“He is charging more”. It’s 2 Rupees more than the market. Not fresh,. Not clean. – We searched for a number of comments to justify our shopping trip to the sleek looking Reliance Fresh stalls.

Retail surge in India was on a high with “CK Prahlad’s Fortune at the Bottom of the Pyramid” principles being implemented for the “middle” portion of India’s class society. Indian middle class – were termed as a fast rising consumer category with a steadily increasing spending power. The industrial biggies — be the mobile moguls or oil/refining baadshahs of the Indian empire took notice of an untapped market and began to compete with a whole new set of mom & pop shops; mobile vendors; street corner shops – all that belonged to the either economically weaker or “on the boundary” economic sections of the society.

With an investment of little over Rs 400 (~ USD 10) and in some cases wooden carts for rent (Rs 20) (~USD 50 cents)/day, a Chennai based vegetable cart vendor, will manage to make a top line of nearly Rs 80-Rs 100 (~USD 2-3)/day. This calculation works if he “owns” a street of dedicated household customers – hits in the morning 7ish range and again hawks back at evenings around 6ish.

Again this math works provided the logistics, procurement part and other incidental expenses are taken care by the cart vendors. With the advent of street corner spencers, ITC’s More, Reliance Fresh, etc the familiar faces who once honked or called u while you were busy preparing tea started disappearing…

Seems like our IIM friend is fighting it back with a bit of novelty. Air-conditioned cases will be a welcome move to keep the veggies fresh. It’s like the “kwality” or Arun ice cream tricycle carts that come by your neighbourhood each night to sell their wares.

Its also interesting to see the 250 farmers backing him up to ensure supply – an interesting move and open defiance to the growing clout of “corporate” biggies fighting for the “piggy banks of the “bottom of pyramids””.

While I’m a big fan of innovation, improvisation and audacious games, IIM – Ahmedabad’s, Kaushlendra can think a bit further to mobilize this into something big.

How? Here it goes:

Recipe for the mobile fresh vegetable vendor opportunity

• Microfinance Partners: Emerging one’s like Equitus, Intellicap, ANYONE HEARING?
• A small network of “aspiring lower income group entrepreneurs or existing roadside veggie vendors”
• A nodal negotiator with local farmers to negotiate pricing as well as Self Help Groups networks to take care of cleaning/packing vegetables
• Deal is done, we have the sourcing, we have the “mobile cart” vendors, we have the funding, besides we have the AIR CONDITIONED CARTS.
• Mark up –house-holds and lets hit the ground.

The key is however – reliability of showing up daily at the appointed time with fresh vegetables. If this “MEDIUM” works, then probably you will see AMUL checking out “shelf space” and so followed by Lijjat Papaps and Sakthi Masalas of the world – maybe IIM – Ahmedabad’s, Kaushlendra has silently set the ball rolling for India’s next wave of mobile retail…

·  I only wish Ambani’s, Sunil Mittal or the Walmarts – not to take my blog seriously, lest you will see Reliance fresh evening Carts moving around your household!

cheers
b