Living Goods

Objectives

Living Goods focuses on three prevailing problems with health systems in the developing world: 1) the shortage of front-line health workers, 2) the inadequate distribution of basic health products in both the public and private sectors, and 3) the failure of innovations like clean cook stoves and solar lamps to reach scale. It is largely recognized that each of these problems increases in severity at the “last mile” where the need is greatest.

Using a double bottom line business approach, Living Goods aims to:

Direct Selling System

Living Goods franchises its brand and business model to women who work as independent, self-employed ‘Avon-like’ agents. The women receive training, a below-market inventory loan, and a ‘Business in a Bag’ including branded uniforms, signs, and basic health and business tools--including a smartphone loaded with Living Goods apps . Living Goods supports agents through networks of branch-warehouses. Agents serve their clients via door-to-door visits, home-based stores, mobile technology and community meetings. Each agent serves approximately 700 people.

Products

The organization focuses on a short list of diseases that account for over two-thirds of child mortality but can be prevented and/or treated at very low cost, including malaria, diarrhea, respiratory infection and neo-natal sepsis. Living Goods also acts as a distribution platform for new pro-poor products designed by smaller companies who face challenges distributing in these markets on their own. Listed below is a sample of the items in Living Goods’ product mix:

Pro-Poor Innovations: Solar lanterns, clean cook stoves, slow burning briquettes.
Prevention/ Nutrition: Water filters, fortified foods, bed nets, condoms, vitamins, iron, safe delivery kits, family planning.
Treatment: Malaria treatments, de-worming pills, diarrhea treatments, basic antibiotics.
Fast-Moving Consumer Goods: Diapers, sanitary pads.

Distribution

Living Goods uses their buying power to create a streamlined supply chain. Avoiding fragmented and inefficient supply chains keeps product costs down for customers. Some Living Goods prices are 50% below the prevailing market price. By controlling distribution the organization is able to keep stock levels consistent and avoid the circulation of counterfeit drugs.

Mobile communications

Every Living Goods agent uses a smartphone. Living Goods uses mobile communications to monitor, increase sales, provide health information, and drive prompt treatment. SMS is used to broadcast product promotions. Agents also send SMS messages to report on treatments in their community. After clients are registered they receive a free sequence of personalized, automated treatment adherence reminders. Clients call or text their agent for help, if they want a visit, or if they need advice.

Replication

Living Goods is attempting to build the field of micro-franchising and direct-selling to the poor. The organization works with NGOs, consumer businesses, governments and other social enterprises to adapt and replicate its open source model. Living Goods states that it takes inspiration from Mohamed Yunus, the creator of Grameen Bank, whose ideas were used to create thousands of microfinance institutions around the world outside of Grameen itself. Living Goods has a dedicated advisory services team for organizations that need technical assistance rolling out the model. Partners include PSI, Brac, and Marie Stopes International.

Supporters

Living Goods has received funding from the Children's Investment Fund Foundation, Omidyar Network, the Mulago Foundation, Jasmine Social Investments, the Peery Foundation, and many other foundations.

Media coverage

Living Goods has been covered in The New York Times, NBC, The Guardian, The Economist, National Public Radio, and other news and opinion sources.