The average Mozambican earns $2/day, rendering them unable to purchase simple daily needs. The majority of jobs consist of collecting or growing, and selling product daily in markets. As such, incomes are limited by strength (carry capacity), speed (product spoils) and health (long commutes in the hot sun). Over 60% of people are illiterate due to lack of schools, and thousands die from HIV and malaria each year from inability to reach clinics. These devastating statistics can be drastically changed with an efficient bicycle market. People will be able to reach new employment opportunities, or their current one without a tiresome commute. Mozambikes makes bicycles affordable to all people of Mozambique regardless of distance from an urban center.

Problem

The average Mozambican earns <$2/day, rendering them unable to purchase simple daily needs. The majority of jobs consist of collecting or growing, and selling product daily in markets. As such, incomes are limited by strength (carry capacity), speed (product spoils) and health (long commutes in the hot sun). Over 60% of people are illiterate due to lack of schools, and thousands die from HIV and malaria each year from inability to reach clinics. These devastating statistics can be drastically changed with an efficient bicycle market. People will be able to reach new employment opportunities, or their current one without a tiresome commute. Mozambikes makes bicycles affordable to all people of Mozambique regardless of distance from an urban center.

Solution

Mozambikes benefits from an innovative business model designed to unlock a new market segment for a product with developmental benefits. Mozambikes breaks from status quo in its development of a bicycle industry and application of advertising. Bikes today are brought in by Eastern traders who dump bicycles cheaply in price and quality. They do not provide customer service, nor do they create jobs or teach skills. They care not about cost to the consumer, but rather their margin and so they permit the retailers to inflate the prices widely. Mozambikes is a local business with Mozambican employees and a plan to develop a network of local, affiliated technicians. Mozambikes offers fixed, yet attractive margins for retailers to ensure the same market price regardless of distance from an urban hub. Our advertising solution is also unique in providing an effective channel to advertise to low income clients. Moving advertisements have proven to be a powerful form of advertising, as currently used by busses and taxis, but the lack of full supply chain bicycle producers has prevented any advertising on bicycles to date. Lastly, Mozambikes is innovative because it is a social venture. We have a triple bottom line mission, meaning that we seek to maximize economic, social and environmental impact equally with the premise that the business can grow best financially if all three are maximized. As an example, we are selling bicycles at a slimmer margin than competitors, and thus this will enable us to sell more product.

Example

Mozambikes offers two low-cost solutions: bicycles and advertising. Our bicycles are higher quality than similar bicycles on the market, as they feature a reinforced and thicker tire, alloy frame (vs. steel), rear carrier, reflectors and a front light. The bicycles are branded with the colors and logos of prominent local advertisers for a flat fee, creating moving advertisements and earning a second revenue stream per bicycle. These ads enable the lower consumer price while offering an innovative solution to marketers who have difficulty reaching low income communities, as these consumers do not read newspapers, own televisions or drive along main highways. Thus, this market segment is still highly attractive to a variety of alimentary, construction and other industries that desire to have marketing campaigns throughout the country. While the main mission is to offer low cost bikes to consumers, we will also target businesses that would benefit from an internal fleet of customized bicycles. These businesses could use the bicycles for delivery of product, transport around large facilities or employee bonuses. Companies have also indicated a desire to give the bicycles to the communities in which they operate to better community relations.

Marketplace

Mozambique offers friendly and curious people, gorgeous coastlines and a unique European culture from its Portuguese influence. However, the poverty causes many hardships for its residents, most visibly long walks in the hot sun, often carrying heavy loads on their heads. In the country of 22.4 people, over 50% live on under $2 per day. The budget is generated 55% by foreign aid, and typical lending rates average 25%. However, the economy grew 6.5% in 2010, above the Southern African average of 5.3%, and foreign direct investment is booming with over 600 million in the first half of 2010 (400% over the previous year). The market is expected to grow at least as rapidly as GDP growth of the country, which is predicted at 7.5% for 2011. Mozambique has a stable democracy with a ruling party that has been in power since colonialism ended in 1975. Over a decade of civil war decimated the infrastructure of the country, but the last 15 years have seen a burst in rebuilding and enterprise. While many attempt t use their poverty to generate income (begging), the President has issued a statement that only work can lead to increased opportunities, and the skills of Mozambicans are expanding. A substantial part of the economy is still informal, as 81% of the labor force work in agriculture. There are over thousands of NGOs in Mozambique, but the world crisis and growing middle class are leading to the entry of more for-profit businesses. With unemployment at 21%, the local population welcomes the new businesses. Knowledge of the market is crucial to understand how people will use the bicycles, how to build our aftermarket network, as well as the value for local advertisers.