Saturday, October 17, 2009

Bottom Of Pyramid

India is one of the biggest and growing economies in the world. This country has shown several trends of trade and also has a huge experience in various domains of business. From the very early times till now, India has moved from the business of craft, sculpture, designing, painting, textile, spices to the business of automobiles, IT, BPO, KM, consulting and what not which constitutes the modern business arena.
This country has moved from one step to another, and then even this young economy has never ended the old values and system of business ever. This country has always made incremental innovations and renovations in their ancient way of doing business. And now the state of such businesses has become the Bottom of Pyramid as very well said by Prof C.K. Prahlad.
Yesterday, I was passing through the road of my colony and I saw a shopkeeper who was selling vegetables loaded on this bicycle cart (Pic). I asked him certain questions and his answers were showing the shift in his own business that how he adapted and made the incremental innovation/renovation to run his business more profitably.
The questions asked by me and the answers he has given are as under-
Q- Chacha sabji bahut mahagi de rahe hain aap?
A- kya Karen babuji, mahangai badh gayi hai, aur abhi age bhi na jane kya hoga.
Q- accha chacha aap kahan se sabji late hain?
A- babuji mandi se, yahan se 7 km door hai.
Q- kitne baje se lagate hain ye thela?
A- dopahar 2-3 se lagate hain.
Q- Accha to aap ye bataiye ki aap kahin dukan kyun nahi laga lete hain?
A- Babuji lagaye the, pehle dukan se hi bechte the road k kinare, par sarkar ka niyam ban
gaya hai ki road k kinare koi dukan nahi lagana hai, sarkari zameen na hai babuji!
Q- Accha to kahin sthir thela laga liye hote, kam se kam ek jagah to rehte?
A- vo bhi kiye rahe babu, police wale mina karat hawan na, road par mana karat hain.
Q- To isiliye aap ye cycle wala thela liye hain?
A- Han, isiliye liye hain, ka Karen majburi hai na. Dhandha to kare bina paisa nahi
Milega aur parivar bhi to hai.
Q- Accha to ye bataiye ki ye cycle wala thela kharide, to mahaga pada hoga.
A- Nahi, hum purana wala thela bench diye aur 750 rupya lagay ke banwaye hain ye.
Q- To aap idhar udhar ja ke benchte hain, to roj wale grahak ko kaise milte hain? Isme to
nuksan hota hoga?
A- Nahi hum ehh se 5-6 colony me pas hi pas benchte hain, aur sab colony ka ek nischit
samay bandh diye hain.
Q- Accha, iska matlab ki aapke grahak roj wale nahi behakte?
A- Nahi, yehse faiyda hi hai, hum grahak ke ghar ke samne se jate hain aur ek nischit
samay par. Aur nahi to 5-6 colony me bhi ho jata hai.
Q- to mahine me kitna bacha lete hain?
A- Wahi 10,000-11,000 rupya bach jata hai babu.
Bahut badhiya hai chacha. Dhanyavad.
So from this small happening one can see that how a small vendor can change his way of doing business by improving the medium( Cart). Moreover one can very well analyze that he has done changes not by his own desire but by the compulsion of law.
*This is not always true, but in this case. There are number of examples in which people adapt by desire.
So the phases, this shopkeeper has seen are-
Shop Model Business ----Moving Cart Model Business ---- Bicycle Cart Model Business
In all the cases he is selling the same product.
In the very initial stage, i.e. Shop model Business, he was having customers who use to go at his shop and buy vegetables. In the second phase, he has got mobility, but to a limited area and also he has increased the daily fixed customers. But in the third stage, he has got mobility to 5-6 colonies situated at very nearby places, and he has got the access of bigger market than both the prior phases.
So, as he has got more access of market, he has got more of the daily customers and hence there happened an increase in the profit.
So he has not only changes the medium of business but also the process of doing business.
There are ‘N’ number of such small vendors and models in India, which are changing day by day and increasing the value in their own business as well as for the economy.
These are the people who sell vegetables like products which are purchased daily by huge population, who belong to lower, middle and high income class. These people are the Bottom of the Pyramid.