February 03, 2009

Working with local people

In this report - prepared by the World Economic Forum in collaboration with The Boston Consulting Group - focusing on business strategies to enhance food value chains and empower the poor, I read the following on page 26:
"In Brazil, Nestlé engages rural women to operate as distributors. They travel door-to-door demonstrating product benefits and selling directly to consumers. By creating incentives for local retail entrepreneurs rather than hiring salaried employees or franchise holders, the company reduces its need to monitor individual sales performance."

"Organized retail is one of the fastest growing sectors in developing countries. For example, in Thailand, the US$ 56 billion retail market has grown annually by 12% since 2002. While they are sometimes seen as a threat, large-scale retailers can also provide commercial opportunities for small-scale entrepreneurs. Instead of thriving to replace micro-retailers, some of these large players are partnering with them to extend their own footprint."
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