Frontier Markets: The Expansion Dilemma

Established in August 2011 in India, Frontier Markets (FM) was one of the largest social commerce platforms working with women influencers and with a strong following of rural customers. Starting out as a clean-energy product company, FM adopted a gender-smart strategy to bring rural-based women entrepreneurs on board as the company’s representatives in rural villages. The company leveraged an extensive network of women entrepreneurs, known as Sahelis, through the Meri Saheli e-commerce app. Using the app, the company delivered products and services in finance, agriculture, health care, climate, digital, and essential services. In 2022, FM had over 20,000 Sahelis working with 432,000 rural families, implementing over 25 million solutions through direct sales and doorstep delivery. The firm’s founders considered expanding geographically to become India’s largest women-led commerce platform. They wondered how they could add 10 million new customers and generate over US$54.16 million in revenue in the next two years. What was the best option for achieving this ambitious growth: expanding in new markets; adding new product categories; or adding new strategic partners?

This case is suitable for postgraduate courses in strategic management, strategic marketing, and rural marketing management. The case can be also used for courses on distribution channel management. Following analysis of the case, students will be able to<ul><li>understand the complexities involved in the distribution of high-quality, high-value products using mobile commerce in rural India;</li><li>understand the role of mobile commerce in rural market distribution;</li><li>comprehend the unique challenges of mobile commerce in relation to distribution in rural India;</li><li>critically evaluate the efficacy of the company’s rural-based women’s sales force in its distribution efforts;</li><li>evaluate the future growth options for FM in rural markets using the CAGE (culture, administration, geography, economy) Distance Framework.</li></ul>

• mobile commerce
• rural market
• rural distribution
• women influencers
• market expansion