Abhay Clinics in India reaches BOP markets through a business model not yet discussed on NextBillion--product franchising. Whereas business franchisors provide franchisees with a complete business format--from administrative processes to branding and products--manufacturers that run product franchises license existing retailers to sell products under a franchise brand.

Since product franchising is a way for manufacturers to distribute their products through existing channels, it's of course most appropriate in markets with existing retailers able to incorporate a given product into their offerings. Product franchising is compelling as a less intensive undertaking than business franchising, but may not work as a strategy for reaching rural communities that don't have sufficient commercial infrastructure. That said, there is plenty of demand among existing retailers for new products to offer their customers.

The following is a brief profile of Abhay Clinics, unique among the franchises we've discussed on NextBillion as having been able to reach profitability in only 3 years of operation.

 

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