Christian Science Monitor: How focusing on profit can help the poor
Water technology company Xylem makes a profit on its foot-operated irrigation pumps for poor farmers. But those profits allow it to stay around to service its products and develop new ones.
When leading water technology company Xylem started manufacturing simple pumps for smallholder farmers, it wasn't for charity: The company expected to profit.
The new Essence of Life line caters to the everyday water needs of farmers with small plots of land, among some of the world’s poorest customers. Like any of its customers, Xylem expects these farmers to pay for the right product at the right price.
“Many of us in the water business – Xylem and its peers – are engaging in a lot of the same strategies: premium products in premium markets,” said Keith Teichmann, vice president and director of innovative networks and marketing at Xylem in an interview with Global Envision.
The new Essence of Life line caters to the everyday water needs of farmers with small plots of land, among some of the world’s poorest customers. Like any of its customers, Xylem expects these farmers to pay for the right product at the right price.
“Many of us in the water business – Xylem and its peers – are engaging in a lot of the same strategies: premium products in premium markets,” said Keith Teichmann, vice president and director of innovative networks and marketing at Xylem in an interview with Global Envision.
So Xylem developed the Essence of Life program to focus on the water needs of the 1.5 billion smallholder farmers who live on less than $2.50 per day, said Teichmann.
By doing so, Xylem became one of the few original equipment manufacturers making water management products directly for the individual smallholder farmer. ...
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