Building Markets for Sanitation

iDE’s Global WASH Initiative

No two markets are alike.

A quiet rickshaw pulled by a bicycle is the norm for getting where you
need to go in Bangladesh. But in fast-paced Vietnam, the roar of motorbikes is everywhere. In these two diverse countries, the way toilets are bought
and sold differs as much as their transportation styles.

iDE is building markets for toilets in seven countries that span two continents. No matter how different these environments are, our approach is our rock. We use human-centered design to identify market failures, understand all users, and develop products and business models that enable sanitation markets to thrive. Our approach provides a standardized but flexible set of tools that guide us through phases of discovery, design,
and iteration.

Private sector-driven Bangladesh

Bangladesh has a well-developed manufacturing sector. Accordingly, iDE’s Global WASH Initiative convinced a national plastics company that sanitation for low-income households is a profitable market.

Our local partner, RFL, is a plastics manufacturer. They have thousands of retail outlets across the country and the brand holds an enviable position in the hearts of their customers. In the coming months, RFL will be mass producing the SanBox, a low-cost hygienic toilet that’s easy
to install.

“RFL is becoming the brand owners on improved sanitation. ”
— Conor Riggs,
Technical Director-Programs,
iDE Bangladesh

In Vietnam, Women’s Union representatives meet with rural villagers. They raise awareness and increase sales for rural latrine businesses.

Government-driven Vietnam

On the other end of the spectrum, we have Vietnam, where our program is designed to train the government how to implement a successful sanitation marketing program, enabling the government to then catalyze local supply and demand for hygienic latrines among rural households.

This extra layer between us and the end consumer means we have less control over what happens on the ground. But progress in Vietnam is impossible without government involvement.

Succeeding for different reasons

In Vietnam, our approach is one of three government-approved approaches. We are happy to see that market-based ideas are influencing their sanitation strategy going forward. In Bangladesh, our private sector partner not only sees the economic potential of the sanitation market, but is willing to take on the financial investment required to capitalize on it.

The essential ingredient

The essential ingredient is business. Each country has businesses that need customers — businesses that want to grow their reputation and their income. And each has customers who have aspirations to improve their lives — a toilet for the family is part of their dreams.

“We had been dreaming of a latrine for a while. Our new latrine is safer for my mother and for my children. My next dream is to raise our children with good education and food.” — Latrine Customer, a widow with 4 children and 2 mothers

Building markets is a flexible approach that allows room for creative problem solving and local adaptation. It requires a willingness on the part of NGO management to pivot as needed throughout the life of a program, and a commitment to design the program based on local insights. The diagram below illustrates how we analyze key criteria of markets as a backdrop for designing an appropriate business model.

In this chart, you can see how we analyze each country on key criteria that have an impact on the market overall. This diversity shows why we replicate an approach, but we don’t replicate a specific business model.

Our success is due to the fact that we never go into a country with
a plan to replicate a specific product or business model. First, we seek to understand what people really want and need. Unsurprisingly, the barriers and opportunities to selling toilets in Bangladesh are different than
those in Vietnam.

Download to learn more. “The Dynamics of Market Development. No two markets are alike.”

Learn more about how iDE’s Global WASH Initiative is outsmarting diarrheal disease on twitter: @ideorg.

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iDE
iDE Global

iDE leverages the power of entrepreneurship to lift people out of poverty. Learn about us at ideglobal.org.