Using E-Commerce to Fuel Rural Growth in India

- by Meenal Nigam & Vivek Patni *

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Infomediary Model

Women organizations like "Mahila Griha Udyog" and welfare organizations besides SHG and NGOs can serve as infomediary with greater access to market information through the e-commerce channel. The infomediary is defined as an entity that brokers content, information, knowledge or experiences that add value to a particular E-business transaction. It can also be termed a content aggregator that brings together buyers and sellers. In villages where women are forbidden to work outside or go to market for selling, e-commerce through infomediaries can come as a powerful medium

Figure: Hartman & Sifonis Infomediary Model for Women Empowerment

Source: Informing Science Journal, Vol. 6, 2003

The infomediary model can support the marketing function in its capacity to provide extensive processing and communication power, thereby increasing transactional efficiency by reducing the total number of transactions required to meet a given volume of exchange. It is often the case that rural producers spend unproductive time trying to (often unsuccessfully) create markets for their produce and the time taken to market has to be taken from the time available to produce. In this model, local producers would need only to communicate with a central infomediary in place of decentral marketing.

The advantage for the infomediary is the opportunity to generate revenues for marketing activities and make a profit for the organization, its members, local entrepreneurs and the telecentre through commissions from sales, subscriptions and membership fees and advertising.

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* Contributed by -
Meenal Nigam & Vivek Patni,
NITIE, Mumbai.

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