Questions

Below are the details of our business model. Backend. We have successfully created a strong supply chain of farmers in the backend and now are looking to create the front end. Front end. We operate in a tier 2 city like Cochin and below are the challenges and advantages that we have. Challenges 1. Consumers are used buying vegetables and groceries offline. The internet penetration is there but there is no big player who delivers online. 2. Consumers have developed a long relationship with the offline stores. Advantages. 1. We are able to offer the freshest produces within 2-3 hours of plucking from the plant to the consumer table. 2. There is a strong grassroot movement in the entire state for organic vegetables where media, government and consumer sentiment are at a high. We are trying to decide of whether we should work on a model of b2c or b2b model. In B2C we have a customer acquisition cost and an entry barrier. However there is a greater margin of profit. In B2B we are planning to sell the organic food products to the offline stores where they don't have a supply chain for this. Getting to work on a b2c model would take a long time including the logistics cost. In contrast a b2b model offers more stable revenues and lesser logistical headaches.

B2B is much easier and more profitable.
The pitch to help a business grow at an affordable price is much easier than having to spend on gaining customers trust/loyalty.


Answered 4 years ago

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