Sustainable Innovations at Emerging Markets
Base-of-the-Pyramid Strategy to serve Underserved
Vertical Coordination and strong wholesale benchmarks?
I work currently in Azerbaijan. Farms here were decollectivised just over some ten years ago. Now the ‘petty’ farmers enjoy relative freedom but that’s about everything. They lack skills, inputs, packaging, services, storage and finance. At the peak season they come to the roadside to sell whatever the field has granted them; the market forces will then show up their supremacy by the end of the afternoon.
Vertical coordination and support to the value chain (from the field to the supermarket, hotel or port ) is required to improve farmgate prices and quality and if possible, to certify the products. The advisors call for strengthened wholesale markets and urge supermarkets (that characteristically are international firms, prone to import) to increase local purchase .
We have in Finland strong institutionalised wholesale market, owned either cooperatively or by the retailers. They both purchase from the local market and have branded retail outlets that match with the local market size. Now, given the fact that in Azerbaijan, here are retailers ‘at every basement’, I would like to learn about success stories anywhere in the world: has strong wholesale - the Finnish model or another type - been successfully introduced as a market remedy? Successful introduction implies that the small retailers not only sustained in parallel with the ‘Citymarkets’ but also keep on benefiting from the marketing services.
Vertical coordination and support to the value chain (from the field to the supermarket, hotel or port ) is required to improve farmgate prices and quality and if possible, to certify the products. The advisors call for strengthened wholesale markets and urge supermarkets (that characteristically are international firms, prone to import) to increase local purchase .
We have in Finland strong institutionalised wholesale market, owned either cooperatively or by the retailers. They both purchase from the local market and have branded retail outlets that match with the local market size. Now, given the fact that in Azerbaijan, here are retailers ‘at every basement’, I would like to learn about success stories anywhere in the world: has strong wholesale - the Finnish model or another type - been successfully introduced as a market remedy? Successful introduction implies that the small retailers not only sustained in parallel with the ‘Citymarkets’ but also keep on benefiting from the marketing services.
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