FM targets the access challenge faced by rural household for quality products. Over half the worlds population uses deadly cooking and lighting practices that kill over 2 million people annually, where half of these deaths are children under the age of 5 (WHO). Product solutions exist to fix this staggering issue, but the problem still lies in the education and distribution channel for these products that does not exist at scale
Frontier Markets responds to the market failure to provide rural BOP villagers in India with access, training, and servicing for clean-energy products. Despite a clear demand, rural villagers are reluctant to purchase clean energy solutions either because they are not educated on how they work, have skewed quality perceptions of solar due to government subsidies and cheap products that flooded the market, and a lack of trust in solar based on an inferior product purchased in the past. Product companies exist that design products with this target customer group in mind, but they lack on-the-ground infrastructure to deliver these to last-mile locations, do not understand the rural customer, and do not have the capability to provide education and servicing after a sale is made.
Solar lights offer safety from kerosene fumes and fires. They are a cheap, sustainable way to use free energy from the sun to light a home.
Frontier Markets offers a unique distribution model as part of its inclusive business commitment, partnering with local entrepreneurs who sell clean-energy products under the brand name ‘Saral Jeevan.’ They have set up brick-and-mortar service facilities to fix any technical issues, as well as educate customers. They periodically meet with consumers to better understand their product and design needs, so that by working with technical partners they are able to provide them with high-quality and relevant products. Their 18+ years of experience in rural marketing and market-based solutions have given us a better understanding of how to reach the right customers, and provide applicable products to different segments of the market. Their 3 years of experience with product companies give us an advantage in negotiating price points which are affordable for their target customers. Because of their high-touch approach and emphasis on quick and simple servicing, customers have begun to trust their brand and regain confidence in clean-energy solutions as a way to improve household health, wealth and productivity.
At FM, they believe that each and every household deserves access to goods and services that will enhance their health, wealth, and productivity. They are a for-profit business with a social mission: to eradicate deadly killers like kerosene and ensure a more energy-equitable future for millions of BOP households. Their brand is based on customer trust—unless rural households can rely on us for dedicated service, education, and continued local presence, they will go back to using dangerous forms of energy.
They promise to provide high quality products, educate the masses about solar, create local access to these solutions, provide on the spot after-sales service, and stay in constant touch with their end customers. They believe that true customer service is the key to satisfaction, and FM will always put the customer first.
To date, FM has sold over 20,000 clean energy products in Rajasthan and Andhra Pradesh. They are present in 16 districts of each state. FM is targeting 50 million households in next in 5 years.
