Promotion of Commercial Products
We have undertaken the following steps:
- Through our market research and acquired knowledge, we have identified possible interested energy service providers (entrepreneurs and businesses) who have direct access to our target market, namely the BoP whom utilize biomass to meet their thermal needs.
- Given the understanding that Aprovecho (China Stove designers) are able to mass produce a quality efficient stove, we (GTZ/ BECCAP) imported ~2600 stoves. (Many of these have been shipped to ProBEC countries while the remainder will assist with market development in South Africa.)
- As part of our market development process we have undertaken some limited market testing, through these above mentioned energy service providers, by providing them with ~30 stoves for market testing. This process allowed them to determine the level interest for the stove in their respective markets.
- Our next step is to provide them with ~100 stoves on consignment - these stoves are to be made available at cost to the service provider, to be sold through their retail outlets. The energy service providers will be able to retail the stoves through their outlets and after the trial sales period (three months) they will refund the cost of the stoves. This approach allows the service provider to further test the market without having to invest their own capital by having to purchase a high number of stoves. This process also allows GTZ to absorb some of the risk associated with entering a new market with a new product.
- Making the assumption that all the consignment stoves will be sold and are well accepted by the communities, thereby demonstrating the commercial business opportunity to the service provider, it is our intension that the service provider will undertake to invest in the stoves by purchasing a container of stoves themselves (~Euro 14,000) (We are also investigating alternative methods of reducing that initial capital requirement). In the event that the service providers are interested but unable to purchase their own stock, we are approaching other businesses/entrepreneurs who are willing to import containers of their own and supply the service providers with smaller quantities.
- The services we (GTZ) provided included initial market testing, absorbing the initial market entry risks by providing the initial stock on consignment, facilitating the import process, providing product training and marketing material, investigating and undertaking the carbon revenue application, supplier network development, and any municipal and government interaction.
