Innovative VLE model for last-mile service delivery in rural India

Abstract

The paper examines the emerging trend of VLEs (Village Level Entrepreneurs), developed by organisations/corporations in various sectors, for last-mile service delivery in remote rural areas of India. Involving rural consumers, especially women, as partners in the marketing channel, and by appointing them as micro-entrepreneurs (equivalent to a VLE), is a promising marketing channel innovation which has multiple benefits for all stakeholders. The extant literature is reviewed and VLE models adopted by eight pioneering organisations in Indian rural markets are examined after collecting data from websites and secondary sources. The common and innovative elements in each model have been identified to arrive at a conceptual model of VLE adoption which can help organisations undertake inclusive rural marketing. They can achieve the double bottom line by ensuring market penetration (economic) and empowerment of young people and women in rural communities (social) by enabling them to own micro-enterprises. Corporations can thus play a developmental role in remote rural markets, which are mostly under-served and neglected today, and thereby create shared value. The paper also introduces the concept of 'partsumer', which is closely linked to VLEs.