SELF EXCHANGE ECOSYSTEM can facilitate individual consumers to form a “Digital Consumers Community”. Community buying aggregate demand and give negotiation power. To start with, this negotiated discount could be to the tune of 5%-10% but as we move ahead and the community of consumers gets bigger negotiating power. It may reach 15% -20% and even more for certain products.
The beauty of this program is that as Consumer buys via the SELF-ecosystem, there is some portion of discount credited to the wallet and it can be enjoyed in the next cycle of purchase, exactly like matured Loyalty points.
SEE allows building a Community and leveraging a Community Buying discount too. Example – I stay in a Society of 200 Tenements/families, and Procure an average of 5Kg of Sugar every month, amounts to a monthly buying of 1000Kgs and half-yearly buying of approx. 6 Ton. Good enough to get a sizable discount from Bulk supplier / Producer asking for delivery in individual 5kg packets.
One can even approach farmers / digital farmer community proposed under SEE directly to buy the commodity which they produce. Buying vegetables and fruits under such community program arrangements will save cost and wastage by benefitting both Farmers and Consumers!
As a Consumer can see my Buying pattern, the entire ledger showing me from where, when, and how much I am spending, my nearest Merchants, and the best-running discount offer in the periphery of 5Km. I can completely be digital and manage my Wallet, credit points, and accordingly plan my purchases.
Challenges: Last 11 months have been very challenging for the Merchants. Due to adverse Pandemic situation, on one side Merchants are encouraged to keep shops open for a limited period, on another side individuals are discouraged to go out and do buying. The counter business is completely dropped and the majority of merchants are struggling to meet their break-even.
The market is dominated by large online portals and shopping malls, which could invest in IT infrastructure for E-commerce and Logistics of delivery. Local merchants surviving on only off-the-counter sales are just struggling to sustain. They do not have adequate resources to go digital.
SEE offers a unique helping hand for such local Merchants and unorganized retailers to establish e-commerce options for their customers while continuing counter sales. They can go absolute cashless and be complete digital with every payment option made available to their customers while getting registered with the SEE. The digitization can allow them to visualize trade trends and manage their stocks better; they can offer discounts and customize their offers on slow-moving products to their customers. Besides, they can send push notification about flash offers, which are situational / occasion specific.
SEE additionally offers benefits to merchants to even keep in touch with the bulk suppliers of the region and buy from them; even get discounted and timely logical support via the platform. Most interesting as a Merchant I can enjoy referral commissions if my customers (to whom I have registered on SEE) buys from me and also if he buys from anywhere within the SELF Exchange Ecosystem community.
An Entrepreneur Community wanting to establish something at each postal PIN can become Partners to SEE. Their task is to establish Merchants, Card sellers, and Consumers boarding on the SEE.
Like a LIC agent, PIN Partner enjoys earning by sharing commission left with SEE. Getting Small drops of water from every transaction will help to build a sustainable cash reservoir for a PIN Partner.
Transactions and Earnings are complete digital for PIN Partner. It builds income traceability and a future business foundation. One successful entrepreneur is created at every Postal PIN across the entire Nation! If interested PIN Partner can also build himself as a Bulk Supplier and get benefitted more.
Farmers are the most economically deprived community. Due to the tendency to deal in Cash both in selling as well as buying they do not have credit & transactional traceability on paper; this deprives them to take timely and adequate credits from Bank / financial institutes to meet needs.
Any agri Commodity, by the time it reaches the End Customer, due to a long chain of facilitators and intermediaries- it is almost 2-3 times costlier than the price at which the farmer sells. As far as the benefits of agri produce are concerned, the most deprived are Farmers, who produce and the End-customers who buy it.
A classic example is a very common household item – SALT. Salt farming is a very painful and hazardous occupation. The unprocessed salt is sold at INR.0.30 per kg but by that time it reaches consumers, we buy it at INR18 per KG; Does Processing, Cleaning, Packing, Branding, and logistics cost that much? The irony is the Farmers and farm workers who produce salt have remained poor for ages, and Consumers are also deprived of the right to consume salt at reasonably low rates.
At the same time, MRP has become a joke, it is just Manufacturers’ Whim & Fancy printed amount. Consumers do not have the right tool to check and evaluate product MRP. Everything is driven by the producer or supply chain operator and not by the end consumer; the so-called “KING”!
Farmers largely tend to deal in Cash while selling or buying. They do not have absolute Credit and transaction traceability, this deprives them to take in-time adequate credit from Banks as and when it is genuinely required.
Challenges – Farmers are completely dependent on brokers (traditional Aadat system) and thus get a very feeble rate, making the entire crop business unsustainable economically and loss-making.
Example of Toor Dal, The Government rate –MSP for Toor is approximately INR 48 per kg; but a farmer may get paid somewhere in between 2 to 6 months if sold to Government agencies; farmer hardly has such capacities to hold their payments so they end up going to Private Traders who leverage bulk discount and offer INR.36-38 per kg; consumer pays for INR 100-105 per kg at the retail counter! The entire value chain appears inefficient or wasteful; it is neither benefitting producer (farmer) nor consumer in the value chain.
SELF EXCHANGE ECOSYSTEM Program promotes many vital benefits to Farmers directly-
Banks have been struggling to establish ” secured” lending formulae for a Farmer and Bottom-of-pyramid Community. In absence of transactional traceability, it is difficult to rate their creditworthiness and repayment capacities. It becomes very difficult to comply with documentation and follow prudential banking norms, hence mostly it is difficult for farmers to take loans from nationalized and private banks. In the end, they are compelled to borrow from Private money lander-Sahukars / Aadatya (broker) at a very high-interest rate by giving their farmland as collateral.
SEE encourages FARMERS and BULK Commodities Merchants to GO DIGITAL. Also to keep transaction details even if it is an Off-the-Counter trade transaction. Create and maintain a ledger for them on the cloud and thus keep evidence, traceability, valuable data, and build credit scores. It also helps them to maintain stock on the Inventory Management software provided along with our business enterprise solutions giving an insight into holding capacity and creditability.
Bank can go multi-fold – Farmers & Farming Funding in a secured way. Based on Ledger and transaction traceability they can build a credit score, Check eligibility for their consumer loan for day to day goods. They can check how and where funding is used and the outcome of farming projects. Bank can check persistence credibility of Bulk Commodities Merchants placed in the local producer market at the same time.
SEE uses Banking Channel to make every mode of payment acceptable digitally via Payment gateway, Credit cards, debit cards, Google Pay, PayTM, UPI, Prepaid open-loop cards, and close loop Wallet acceptable at registered merchant counter. Also provision of a MicroATM to get instant cash withdrawal/deposits and other banking facilities without traveling up to the local bank branch is another unique facility for our rural customers at our Local facilitation center located at the village level.
SELF believes in promoting and creating Entrepreneurs.
SELF a single holistic platform providing direct access and availability of FARMERS, CONSUMERS under one umbrella. Ability get Analytics on Consumption pattern, Time graph to know movement and demand, Seasons and Agree needs etc..
SELF does not allow direct calling or emailing due to GDPR compliance but It become inevitably easy to send Push notification and regionally send offerings and schemes on related products.
As an Enterprise, one can do bulk buying as well as Bulk selling via SELF-platform. SELF makes Banking channel available giving insight on both market potential and Digital Ledger of member.
There are many Products and Brands in this segment that are too good in quality and give value for money to the customer but are not popular as they do not have enough budget to spend on Branding / TV advertising. People go for Unpaid Social media marketing but then it is like shooting an arrow in the Dark. Again, if you go for Paid Social media marketing it bleeds through nose.
SEE has PIN area-wise bulk suppliers, merchants, distributors, and consumers. Also, PIN partners will be digitally and logistically connected to make it easy for any FMCG brand to establish a parallel distribution arrangement under the SEE umbrella as an alternative to the present three-tier distribution system followed traditionally.
FMCG could associate and put push notifications like social media and TV advertisements for promoting products; they could swipe around digitally on SEE decentralized marketplace to meet merchants, retailers, distributors, and bulk suppliers to offer schemes and close deals. Offering a bank of demographic consumers at one place on the SEE will make Customer Acquisition cost reasonably lower for brands.