A well proverbial aroma compelled us to stop the car while travelling from Ratlam to Rajpura. On roadside, a small orchard and petite owner with few guava fruits displayed on a small coat created a different scene of value chain mechanism. We got some guava to consume on spot being sold at a rate of Rs 10 per Kg from the typical and only factory outlet of Mr Nanu Ram Singhad’s guava factory (orchard). Obliviously, the fruits (product) were as per our choice got directly from the trees (Machines), gave immense satisfaction. I could comprehend, why people always rush to factory outlets for purchasing branded goods on comparatively cheaper rates and also to ensure quality of the goods?
A Factory Outlet is a manufacturer-owned store selling that firm's closeouts, discontinued merchandise, irregulars, cancelled orders, and, sometimes, in-season, first-quality merchandise. Mr Nanu’s green factory outlet was not due to cancelled orders and discontinued merchandise but for fresh, first quality merchandise.
Such unorganised factory outlets can be observed at many roadside fruit orchards while journey by road. Some of the outlets are mobile as the produces are being sold by indigenous rural sales boys/girls by chasing the vehicles passes through the roads. But the mobility of these sale boys/girls is confined in the vicinity of the factory (orchard). These sale boys/girls are not salaried but they are the partners (children of the owner family) of the factory. Sometimes, these are supposed not to disclose their sales account to the Managing Director (Head of the family) of the factory but sometimes they are bound to handover all the sales proceeds to the Managing Director.
Sporadically in season or late-season, we may observe the outlets full of products while the machines are not producing but buyers used to purchase with imagination of “machines-full of fresh produces”.
The Managing Director (farmer) Mr Nanu own total 10 bigha (2 ha ) cultivated land with a tubewell for irrigating 1 ha land. In the year 2004, he was provided with 80 guava saplings by Indian Farm Forestry Development Cooperative Limited (IFFDC) under its “Western India Rainfed Farming Project” on subsidised cost alongwith technical training of fruit plantation and management. With these saplings, Mr Nanu developed a small orchard on half acre land with survival of 60 plants now able to earn about Rs 30 thousand / year. It helps in meeting substantial needs of the family and secures their livelihood. But there are some issues: -
1) Can such interventions alongwith the peculiar factory outlets can be up-scaled replicated for sustainable rural livelihoods??
2) Can these factory outlets can be crafted for the high street or special buys and typically sold through stores run by the brands themselves as in case of Merchandise includes fashion, home wares, electrical goods, cosmetics, toys, books, CDs and videos??
3) Can this concept allow an opportunity to sell fresh stock direct to the public via branded shops like Nanu’s ?? Because, Brand equity is safeguarded, while market share and brand awareness increase.