We are Goodget, a social enterprise dedicated to establishing a microfranchise distribution chain in developing countries for sustainable, cost-effective and innovative products: not gadgets, but goodgets.
In a nutshell, we provide local entrepreneurs with the training and tools necessary to sell products such as solar lamps, solar mobile phone chargers, water purification devices, adjustable eyeglasses, and irrigation pumps to the 90% of the world's population who live in poverty.
The pilot of Goodget started in Ghana on 1. July 2012. This pilot is about adding market value to goodgets: trade, not aid! Although there is a huge latent demand, distribution of these products is often limited. Today, goodgets are mostly donated, which hinders the development of markets in developing countries. The rise of the mobile phone in developing countries, and the worldwide distribution of cheap Chinese products is proof that the biggest growth market in the world can be opened up.
But can the poor themselves also profit from these developments? Goodget wants to prove that inclusive, sustainable capitalism is possible on a big scale, as CK Prahalad predicted in his groundbreaking book “The Fortune at the Bottom of the Pyramid”.
Scaling up fast will be possible as soon as an effective microfranchise model is in place. After a successful pilot (year 1), Goodget will expand in Ghana in the second year, and to two more countries in West Africa in the third year.
Problem
Since the 1960’s many efficient, innovative, low-cost and sustainable products have been invented that can help to solve problems of the poor like power cuts (solar energy), polution (recycling, zero-waste production, and alternatives for fossil fuels), insufficient shelter and sanitation (development of cheap and sustainable housing), drought (simple water pumps, and irrigation systems), faulty management of natural resources (cheaper and more sustainable alternatives for the use of wood, water; innovative re-use of materials) etc.
Our own experience in developing countries, combined with research among producers shows that often distribution of these products is limited. But the potential demand is huge: 90% of the world’s population is poor and struggles on a daily basis with the problems mentioned above. This means they could benefit greatly from using goodgets, but most individual designers and producers do not focus on marketing and distributing of their products via the market, but on distribution via traditional development agencies - often resulting in donation, not trade. Also, they are often too small to start a broad marketing campaign on their own.
The biggest problem for the producers is that the 90% of the world’s population who live in poverty are difficult to reach. Besides lacking access to electricity, running water and sufficient housing, they often cannot read or write, and do not have a bank account, home address, or access to the internet (yet).
Solution
Above, we have identified many problems, but also many opportunities: there is a huge latent demand for goodgets, producers are very interested to enter this enormous growth market, most goodgets are already tested individually in pilot settings, and – last but not least - goodgets help to reduce poverty and speed up the transition to a sustainable society.
After identifying these opportunities, Goodget.org started to look for an effective business model for distributing goodgets amongst the BoP that would not only focus on Profit, but also on Planet and People.
Our vision is that goodgets are spread to those who need and can use them most at the lowest negotiable price. The initiative’s goal is not simply to achieve growth and prosperity, but rather to achieve sustainable economic growth and increase in prosperity. The challenge is to achieve growth without depleting the natural resources and damaging of the environment, and therefore create a pleasant and stable environment between peoples.
We found that local entrepreneurs are the key factor in reaching the BoP.
As an innovative business model, microfranchising reduces risk and makes it profitable for local entrepreneurs to distribute a broad collection of goodgets amongst the BoP.
Example
Local entrepreneurs can benefit from the many advantages microfranchising has to offer: training, financial templates, pricing guidelines, a franchise manual, joint marketing efforts, individual savings plans for microfranchisees etc. Together with the local entrepreneurs, Goodget.org will develop a standard, effective microfranchise model to offer the entrepreneurs all these benefits.
Microfranchising makes marketing and distribution of goodgets in developing countries a joint effort; this way individual goodgets can reach a much bigger market. As sales increase, production prices can drop, and more people can buy goodgets which can improve their wellbeing and living environment. For a clear explanation of microfranchising, see the TEDx-Talk of social entrepreneur Jason Fairbourne: http://tedxtalks.ted.com/video/TEDxSaltLakeCity-Jason-Fairbour;Recent
Fairbourne’s positive experiences with microfranchising in Africa are very important factors in choosing this business model for Goodget.org. Also, parts of our strategy are already proven by other social enterprises, and similar business models are in use for the distribution of an individual goodget. See www.solarsister.org, www.barefootpower.com, www.toughstuffonline.com
Marketplace
The rise of the mobile phone in developing countries, and the worldwide distribution of cheap Chinese products is proof that the biggest growth market in the world can be opened up. But can the poor themselves also profit from these developments? Goodget.org wants to prove that inclusive, sustainable capitalism is possible on a big scale, as CK Prahalad predicted in his book “The Fortune at the Bottom of the Pyramid”.
Our market research shows that although there are already some products on sale in developing countries, the market is so big it can still be referred to as a 'blue ocean'. But this blue ocean is still too deep for regular traders. Since our aim is to make the lives of the BoP better, we co-operate with social enterprises such as Toughstuff and The Kopernik, rather than compete.
Comments
Hello Innovators @Ashoka!
We are Goodget.org, and we are always looking for new volunteers to start up our social enterprise. We are currently starting up our pilot in Ghana, and we will start looking for additional funding in the coming months. All help in this field is more than welcome, also strong marketing experts (preferably with knowledge of the BoP market) and people with a more than normal interest in design for the other 90% (volunteers) are explicitly invited to contact us!
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