Retail Dude

Dear Readers,

Let me wish you on behalf of the Retail Dude Team a very prosperous year ahead. Let it be a year of change.

With the advent of new modern technology and business methods, one thing that most organization does is to create wealth for themselves. In primitive a few companies did go public and created wealth for its shareholders and gave a handsome to employees as esops which of course strengthened our national economy. But today a new economy has emerged the one of Social Economy where entrepreneurs make a far greater impact to a societal section primarily the disadvantaged ones. Slowly but steadily Social Entrepreneurs are the new wealth creators and I believe they are far more innovative in approach that can be a lesson to the government and companies alike.

But do not make a mistake of realizing that they are just mere charities for they use all modern methods and technologies and yet are not greedy but have a drive of creating a social impact. Some may quote that bigger companies do their bit by funding and resolving issues of the communities so called as CSR, but the prime difference is that a handful actually are sustainable!  I am yet to quote a few notable existences of people who have transformed this picture and yet can find that they have managed to evolve themselves even in the shades of the bigger corporate giants. Almost like a phoenix have created values and wealth from dust.

“DesiCrew” is one of the efforts of Saloni Malhotra who started this venture of a rural BPO in the villages of Tamil Nadu in 2007 and managed a turnover of over 2 crores last year. Not to mention Satyams Gram IT was already in place by then, but today the winds of change have hit Kollunmangudi and created a big social and commercial impact. “Bamboo House India” of Prashant and Aruna Kappagantula realized that bamboo art comes naturally to the tribes residing in Tripura and the fact that most bamboo furniture sold in the country was made in China! After they setup their company, the earning potential through a cultural art has thrived in the region and has a potential to bail almost 5 million people above the poverty line. The bamboo ecosystem also revitalizes the environment, a classic triple bottom line result.

“Industree Crafts” created by Gita Ram and Neelam Chibber (NID) set up in 1994 is another tale of how the modern economics can fortify the rural talent. The chain of Mother Earth stores which stands proud today is no more than a market linkage of the urban demand to the rural artisans. In fact they also managed to bag orders from global brands like Ikea, Crate&Barrel and Interface boosting the lives of more than 350 artisans groups.

Talking of crafts and hand work none can challenge Fab India’s niche and its vast network of over 100 retail outlets.  Set up by John Bissell, today Fab India supports more than 30000 artisans and over 17 small producer / community companies. Through their sourcing of materials, has also boosted cottages industries spread across geographies. It actually recorded over 300cr as revenues for FY09, truly FAB!

The focus is not only on delivery but also on affordable innovation as “D.Light Design”  and “Selco” have done to bring in cheap solar powered led lamps that run up to 12hrs a day with a minimal charge. The innovation also was a hit with poorly electrified states with items like mobile chargers, cookers etc using all but using solar cells. The dilemma and the question that lies unanswered now is that if such technological advances can take place to help the poor, why isn’t it being used as an alternative power/ fuel solution to the urban?

To talk of young entrepreneurs, none match Dr Vikram Akula creating “SKS Microfinance”, which today has disbursed over 3000 Cr as loans to 3.95 million lives. SKS single handedly changed the face of microfinance which even the state owned banks couldn’t do.  Nearly 4 lakh Sangam members of the Company own Kirana or small grocery stores. The Company has launched this project to provide working capital finance to help these Sangam members to buy Fast Moving Consumer Goods (FMCG) and groceries through a dedicated vendor. The Company has partnered with METRO Cash & Carry India Private Limited, one of the world’s most-reputed wholesalers, who deliver 13,000 SKU (Stock Keeping Unit) at competitive prices and standard quality at their doorstep. Insurance is yet another feather which SKS has added. No matter how significant the business idea may be, it is SKS that did lay out the very foundation to carry it out, by economic empowerment through small credits. No wonder that they still have a 99% credit recovery record.

And who can forget the firebrand Ela Bhatt’s “SEWA” which had helped millions break the bonds of poverty in Gujrat setup in 1972 and now into more than 8 states. From financing small rural entrepreneurs helping them earn a livelihood to healthcare, insurance, schooling, eco tourism SEWA has done it all. In fact it also set up Rudi multi trading company a marketing channel for the rural by the rural. Bajaj Electricals uses packaging made by Rudibens. SEWA also broke the national barrier with it importing 10Tonnes of dry fruits from Afghanistan creating a market for them whilst a market for us. Guess where her next stop is? Africa!

Social entrepreneurship describes a set of behaviors that are exceptional. These behaviors should be encouraged and rewarded in those who have the capabilities and temperament for this kind of work. We could use many more of them. We need social entrepreneurs to help us find new avenues toward social improvement as we enter the next century.

Cheers!

Sudip

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