Mi Tienda’s Inclusive Business Model in Mexico

Mi Tienda was founded to improve the supply of consumer goods in rural Mexico. It distributes products to stores in Central and Southern Mexico and focuses on towns with less than 5,000 inhabitants. Outlets are small (between 20 sqm and 65 sqm) and mainly owned by women. Most of the stores are not exclusive distributors of Mi Tienda.

Supply Chain: It provides direct distribution (48 hours) of basic food, hygiene, and health products, and make use of regional distribution centres (DCs). The improved supply chain increases product availability and also reduce the need for excessive working capital.

Design: Mi Tienda helps with the redesign of the store’s layout. Traditional shops are transformed into self-service outlets with improved merchandising and product displays. The redesign has resulted in an on average 35 percent increase in sales.

Development: It conducts basic business skills, on-the-job and classroom training, and educates shop owners on merchandising, inventory control and management.

Finance: It provides credit to its customers, and plans to identify and develop financial products that will allow outlets to invest in working capital and inventory purchases.

Additional services: Mi Tienda’s distribution system and footprint will  provide a platform for additional services, such as insurance, payment of utility bills, and branch-less banking.

Sources of Funding: IFC’s $2.5 million equity investment has helped Mi Tienda expand. IFC’s investment has also played an anchor role, enabling the company to attract additional investors.

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