Innovation: E-commerce for rural economic development

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Sibyl Sharp
5 years ago
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Idea: Amar Desh Amar Gram (My Country My Village) is the first project of its kind that takes computers and web access to the lowest income group and empowers them with a possibility that was not

1 Idea: Amar Desh Amar Gram (My Country My Village) is the first project of its kind that takes computers and web access to the lowest income group and empowers them with a possibility that was not ever previously available to them before. This project takes digital technology out to the furthest corners of our country bringing change to countless lives. The project is itself an innovative model in the sense that it is dedicated to minimize the digital gap of rural and city life by creating market linkage for rural communities, providing demand based technical education for youths followed by several income opportunities and developing portfolios of local resources in the individual district websites. In addition it is creating a platform for rural entrepreneurs, producers and youths to translate their innovative ideas and plans into reality. The project creates a virtual marketplace named as Amar Desh eshop for better economic opportunities for the farm producers, SME entrepreneurs, underprivileged women and rural communities of Bangladesh. The system plays a crucial role in protecting interests of indigenous industries in rural areas by creating income opportunities of rural marginal people, small and handicraft industries and agro-based industry are encouraged in this system by ensuring utmost cooperation in the expansion of markets at home and abroad. A solution for reduction in rural-urban migration. If the victims are under the effect of climate change, it would not affect their livelihood as they have their own identity and virtual mall from where she can earn again even if she has lost everything. She can start earning again through her establishment in the virtual world which is recognized nationally and internationally.

2 Innovation: E-commerce for rural economic development E-commerce has been implemented so many times, so many countries but it is very rare and in our country we are the pioneer to take e- commerce to mass rural people. Amazon, ebay the renewed e-commerce which exists itself is a warehouse but our project is the only e- commerce which actually don t have a warehouse rather it connects the rural producers to the consumers. In a country like Bangladesh, just introducing e-trade or popularizing the concept is innovative on its own is the only website with physical e centre which other don t have. On top of this we are taking the technology to the masses of people in the rural areas to enable them to do e trade. It never happened in Bangladesh retailer Customers buying directly from the producers 1000 miles away. Amar Desh Amar Gram is itself an innovative model in the sense that it is dedicated to minimize the digital gap of rural and city life by creating market linkage for rural communities, providing demand based technical education for youths followed by several income opportunities and developing portfolios of local resources in the individual district websites. In addition it is creating a platform for rural entrepreneurs, producers and youths to translate their innovative ideas and plans into reality. We have been recognized worldwide for our innovation and have been awarded by National Digital Innovation Award 2011 by Bangladesh Government on e-commerce in Business and Finance, Our project being worldwide recognize by United Nation MDGs WSYA 2011, the Manthan Award South Asia 2011 on e-business and enterprise, E-Asia Award 2011on the category of best business model and localized application.

3 Expression (operational model):

5 THE ONLINE RURAL MARKET AMAR DESH e-shop E-COMMERCE FOR POVERTY ALLEVIATION and ECONOMIC DEVELOPMENT Website link: The idea The idea behind e-shop was to establish a network system that directly links the rural producers to their customers transparently so that on one hand the rural producers get exactly what they ask for and the customers buying those products from anywhere in Bangladesh and anywhere in the world get directly from them at a much reasonable price. THE METHOD Villagers come with their products anything they produce even if it is just a gourd and catalogue it on e-shop. Buyers from hundreds of miles away glances through the catalogue Places an order with an electronic card. Customer receives the product which he usually buys at a higher price from city markets. Producers receive a fair price as the money gets electronically transferred through a highly secured e-commerce payment gateway to their bank account upon delivery. The entire process is conducted by the local youths working at the e-centre

8 Client Transaction confirmed by BRAC Bank and prepared to ship to Client Giving purchase Order com Goods Delivered by Sundarban courier E-center Processed & Directed to FSB Farmers/ Producers supply as per order Monitoring the whole Process

9 How it works: 1. Establishment of a rural e-center 2. Training the local rural youth (E-commerce Module) *intellectual property 3. Development of the rural base e-commerce site *intellectual property 4. Head office management and the process it works. Establishment plans: 1. Head office 2. 7 divisional head office districts office union levels e-centers Business Model The e-centre s business depends on many income generating activities; such as working as a hub for the rural producers to sell their produces (through online & other modes), ICT training, enlistment fees, internet browsing, selling software s (administrative, informational & monitoring) to educational institutions and others. These varied ranges of activities are useful for the e-centre to run by its own. On the demand side, price of daily essentials skyrocketed in last few years in big cities especially in Dhaka. In a recent value chain study it was found that there are about 7 to 9 steps involved in delivering the goods from the producers to the customers, of which few of them do not add any value. The project sets a sustainable business plan in collaboration with the support services like the courier service, banks; it is expected to do good business in the long run ensuring the farmers receiving the crème of the benefit. The key revenue stream discussed below in brief: 1. In each e-centre transaction via e-commerce price will be charged in the following manner: - Farmers or producers decide the selling price X BDT for their product - An additional 20% fixed cost will add up to the selling price X BDT - Of the 20%, 5% will go to the bank as e-commerce transaction fees - 5% will be received by the e-centre - Rest 5% will be received by FSB - 5% for others technical fees - Based on the distance and volume, delivery cost will be charged. This is a variable cost.

10 2. ICT training will be provided in the e-centers. This will also generate significant revenue for the e-centres. 3. Providing e-services to the local community will also generate income 4. There is opportunity for cross trading among e-centers

Creating Sustainable Businesses in the Knowledge Economy

Creating Sustainable Businesses in the Knowledge Economy May, 2010 Knowledge Economy Forum, Germany www.infodev.org Creating Sustainable Businesses in the Knowledge Economy A public-private partnership,