"Vision entrepreneurs" solve blurry vision, while making a living in India

The four billion people in the world who live on less than US $2 a day have been described as the bottom of the economic pyramid, or BOP for short. One of the tools business is turning to reach them is known as social franchising.

The Scojo Foundation in India was established to tackle the common problem of blurry vision as people age (presbyopia). Blurry vision is a serious disability for weavers, mechanics, goldsmiths and others whose livelihoods depend on near vision, yet it is easily treatable with a pair of eyeglasses.

Since, 2002, Scojo Foundation (the social franchising wing of eyeglasses manufacturer Scojo New York) has launched operations in Bangladesh, Mexico, Guatemala, El Salvador and Ghana. Its fastest growing operation is in India, where it employs more than 560 entrepreneurs and has sold more than 50,000 pairs of glasses since 2001.

Its network of “vision entrepreneurs” - low-income men and women who sell reading glasses directly to rural villagers throughout India -work on average 20-30 hours and earn US $15 to US $20 per month. Considering most franchisees were living on US $1 a day, the extra income is welcome, says Nico Clemminck, co-author of a case study on Scojo.

According to Clemminck, Scojo has been able to quickly and successfully expand to other countries by forming partnerships with existing networks that reach into villages. The profit hierarchy works like this: the manufacturer charges US $1 for the reading glasses, Scojo charges another US $1, the franchisee a further US $1, and the customer pays US $3 for the glasses. By creating profit at each stage, the model ensures the financial incentives that keep the distribution network active.

Scojo found it was possible to succeed with this model, by focusing on profitability and sustainability right from the start, pursuing aggressive growth through partnerships to build economies of scale, blocking competitors by having a strong brand and first-mover advantage, constantly refining the model across regions, and delivering a tangible social benefit, both economic and health.

“This project gave me insight into the large, untapped market opportunity that exists," says case study co-author Sachin Kadakia, "and how the concept of 'Bottom of the Pyramid' provides a tangible and significant improvement to the quality of life of people in these communities."

This story is adapted from an article in Development Challenges, South-South Solutions, the August 2007 e-newsletter of the Special Unit for South-South Cooperation in UNDP.

 

For more stories related to eyesight and blindness, see:

Benin is an ongoing success story in eliminating endemic river blindness

First adjustable prescription eyeglasses offer hope for developing world

Indian eye care centre crusades against unnecessary blindness in the developing world

One man's vision brings affordable cataract surgery to the developing world

Successful Tanzanian trachoma treatment offers hope for nomadic communities

Unite for Sight - volunteer-driven eye care in North America and four continents


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