HOW WE WORK

HOW WE WORK

Mwingi introduces standardized and digitally managed sales and procurement processes, provides financing for sufficient stock and is managing the overall logistics, so that the franchisee can fully concentrate on serving his customers.

THE PROBLEM

There are 250,000 retailers like Nduku just in Kenya alone which hold 70% of the retail market and are frequented by 95% of Kenyans for subsistence purchases. These retail entrepreneurs are a key employer in rural areas, especially among the youth and women.

To buy their products they have to spend a lot of money on transportation and as they often use motorbikes they suffer from damaged goods. The margins they make are very low because with the volume they buy they cannot negotiate good prices.
In addition they don’t have sufficient working capital to stock their shops properly and often get sold out. This leads to the situation that also their customers are suffering as they don’t get the essential products they need for their daily life and especially in rural areas they often have to walk long distances to find a shop that still has the products they need.

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OUR SOLUTION

Mwingi replenish the goods of each shop frequently on a weekly basis. If a franchisee needs special products, then Mwingi can procure them in Nairobi or elsewhere and will deliver them with the next transport. The prices are low, because Mwingi buys directly from the suppliers or in large quantities from handpicked distributors.

And because Mwingi delivers to many franchisees as well as to other rural retail shops, Mwingis transportation costs are also lower as if each of the shops is organizing its own transport. Because Mwingi allows the franchisees to sell on consignment, they don’t need to worry about working capital which otherwise would hinder them to order sufficient amount of products.

In addition, because Mwingi uses a smart digital POS system, Mwingi knows at all times what was sold in each shop and how much stock need to be delivered the next time. This guarantees that Mwingis shops never run out of stock and customers in the area can trust that they always will be served with the essential products they need for their daily life.

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OUR BUSINESS MODEL

Mwingis business is built on a profit sharing model. Each franchisee gets detailed sales reports on a daily basis and knows exactly how much profit he or she made on this day. Mwingi manages all processes for the franchisees like purchasing and transportation of goods and also provides the franchisees with a state-of-the-art POS system to manage the sales process.

Customers can also get a printed receipt which increase the trust, that they always are charged the right amount, which usually never happens in rural Africa. As all data from the POS are centrally stored, Mwingi automatically calculates how much stock needs to be delivered to the shops. With the concept to allow the franchisees to sell on consignment and by knowing the exact quantity of products needed, Mwingi ensures that all shops are well stocked. The customers have a great experience at Mwingis franchise shops because their most needed products are always available for good prices and they can also buy special products, like solar lamps.

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