The Bazaar is an organic food retailer and a cooperative of farmers around the city of Pokhara. With their sustainable food network, Tulsi Giri (1985) and his partner want to contribute to a sustainable economy and engage youth in the Nepali agricultural sector.
Hélène Smits & Sanne Snieder
Tulsi had tried different concepts in organic food before he founded The Bazaar. Learning by doing has been his strategy since 2008. Although the concept of The Bazaar seems complete, the business model is financially not sustainable yet. There is a need for efficient logistics and a profitable warehouse, as well as better planning by the farmers.
Tulsi gave us insights in the company and showed us around different shops and one organic farm. During day two, we took a deep dive into the numbers. We found that the current governance structure was part of the negative business case and advised Tulsi to separate the educational part and the model farm to a separate entity. Sales should be the first focus! We introduced ‘selling before buying’: make accurate stocktaking at restaurants and the B2C shops before purchasing the goods from the farmers, and adjust the logistical planning to this demand. This also makes the necessity for storage (and investment into a warehouse) not really necessary on the short term.
We started “selling before buying” and it actually works!
It is amazing to see how persistent these young guys are to make The Bazaar a real sustainable enterprise. Although having failed in the past, they are positive about the future. If they prove they can achieve acceptable margins, they are worthy an investment.