際際滷shows by User: DarinBellisario / http://www.slideshare.net/images/logo.gif 際際滷shows by User: DarinBellisario / Mon, 20 Apr 2015 12:03:51 GMT 際際滷Share feed for 際際滷shows by User: DarinBellisario Layaway business model /slideshow/layaway-business-model/47204736 layawaybusinessmodel-150420120351-conversion-gate01
For a class I recently posited the idea of using a layaway retail model to meet the savings needs of the world's poor (the ~3 billion living on less than $2.50 per day). Savings, and credit, have been shown in a few studies to shift consumption towards durable goods, raising the consumers' quality of life and potentially spurring growh by increasing domestic demand for higher-value-added goods. Financial inclusion however has proven two-fold difficult as the poor face both institutional and psychological impediments to saving. In the former case, account management costs don't scale well with the amount saved, making microsavings a losing proposition (a 2012 McKinsey study estimated that even mobile savings accounts cost $40 per year to manage, making the minimum account size to turn a profit at a typical ROA of $4k). In the latter case, as Duflo, Banerjee, Karlan, and Appel have highlighted in their books Poor Economics and More Than Good Intentions, the lower your income is the harder it is to resist spending your savings, either on the few small pleasures in life or more serious but survivable demands such as family illness or home repair. As a result, over 70% of the populations in the World Bank's categories of low and low-middle income countries are unbanked. Layaway - where the consumer puts money towards a product and receives the product when it's paid off - is a potential solution to this conundrum, providing de facto savings at negative management costs (because the 'invested' money can be reinvested as negative working capital, as in insurance models). The lack of flexibility (can't withdraw money) may eliminate the cost while also potentially adding value to customers who are looking for ways to enforce savings (cf. the famous Cemex example).]]>
For a class I recently posited the idea of using a layaway retail model to meet the savings needs of the world's poor (the ~3 billion living on less than $2.50 per day). Savings, and credit, have been shown in a few studies to shift consumption towards durable goods, raising the consumers' quality of life and potentially spurring growh by increasing domestic demand for higher-value-added goods. Financial inclusion however has proven two-fold difficult as the poor face both institutional and psychological impediments to saving. In the former case, account management costs don't scale well with the amount saved, making microsavings a losing proposition (a 2012 McKinsey study estimated that even mobile savings accounts cost $40 per year to manage, making the minimum account size to turn a profit at a typical ROA of $4k). In the latter case, as Duflo, Banerjee, Karlan, and Appel have highlighted in their books Poor Economics and More Than Good Intentions, the lower your income is the harder it is to resist spending your savings, either on the few small pleasures in life or more serious but survivable demands such as family illness or home repair. As a result, over 70% of the populations in the World Bank's categories of low and low-middle income countries are unbanked. Layaway - where the consumer puts money towards a product and receives the product when it's paid off - is a potential solution to this conundrum, providing de facto savings at negative management costs (because the 'invested' money can be reinvested as negative working capital, as in insurance models). The lack of flexibility (can't withdraw money) may eliminate the cost while also potentially adding value to customers who are looking for ways to enforce savings (cf. the famous Cemex example).]]> Mon, 20 Apr 2015 12:03:51 GMT /slideshow/layaway-business-model/47204736 DarinBellisario@slideshare.net(DarinBellisario) Layaway business model DarinBellisario For a class I recently posited the idea of using a layaway retail model to meet the savings needs of the world's poor (the ~3 billion living on less than $2.50 per day). Savings, and credit, have been shown in a few studies to shift consumption towards durable goods, raising the consumers' quality of life and potentially spurring growh by increasing domestic demand for higher-value-added goods. Financial inclusion however has proven two-fold difficult as the poor face both institutional and psychological impediments to saving. In the former case, account management costs don't scale well with the amount saved, making microsavings a losing proposition (a 2012 McKinsey study estimated that even mobile savings accounts cost $40 per year to manage, making the minimum account size to turn a profit at a typical ROA of $4k). In the latter case, as Duflo, Banerjee, Karlan, and Appel have highlighted in their books Poor Economics and More Than Good Intentions, the lower your income is the harder it is to resist spending your savings, either on the few small pleasures in life or more serious but survivable demands such as family illness or home repair. As a result, over 70% of the populations in the World Bank's categories of low and low-middle income countries are unbanked. Layaway - where the consumer puts money towards a product and receives the product when it's paid off - is a potential solution to this conundrum, providing de facto savings at negative management costs (because the 'invested' money can be reinvested as negative working capital, as in insurance models). The lack of flexibility (can't withdraw money) may eliminate the cost while also potentially adding value to customers who are looking for ways to enforce savings (cf. the famous Cemex example). <img style="border:1px solid #C3E6D8;float:right;" alt="" src="https://cdn.slidesharecdn.com/ss_thumbnails/layawaybusinessmodel-150420120351-conversion-gate01-thumbnail.jpg?width=120&amp;height=120&amp;fit=bounds" /><br> For a class I recently posited the idea of using a layaway retail model to meet the savings needs of the world&#39;s poor (the ~3 billion living on less than $2.50 per day). Savings, and credit, have been shown in a few studies to shift consumption towards durable goods, raising the consumers&#39; quality of life and potentially spurring growh by increasing domestic demand for higher-value-added goods. Financial inclusion however has proven two-fold difficult as the poor face both institutional and psychological impediments to saving. In the former case, account management costs don&#39;t scale well with the amount saved, making microsavings a losing proposition (a 2012 McKinsey study estimated that even mobile savings accounts cost $40 per year to manage, making the minimum account size to turn a profit at a typical ROA of $4k). In the latter case, as Duflo, Banerjee, Karlan, and Appel have highlighted in their books Poor Economics and More Than Good Intentions, the lower your income is the harder it is to resist spending your savings, either on the few small pleasures in life or more serious but survivable demands such as family illness or home repair. As a result, over 70% of the populations in the World Bank&#39;s categories of low and low-middle income countries are unbanked. Layaway - where the consumer puts money towards a product and receives the product when it&#39;s paid off - is a potential solution to this conundrum, providing de facto savings at negative management costs (because the &#39;invested&#39; money can be reinvested as negative working capital, as in insurance models). The lack of flexibility (can&#39;t withdraw money) may eliminate the cost while also potentially adding value to customers who are looking for ways to enforce savings (cf. the famous Cemex example).
Layaway business model from Darin O. Bellisario
]]> 931 9 https://cdn.slidesharecdn.com/ss_thumbnails/layawaybusinessmodel-150420120351-conversion-gate01-thumbnail.jpg?width=120&height=120&fit=bounds document Black http://activitystrea.ms/schema/1.0/post http://activitystrea.ms/schema/1.0/posted 0 https://cdn.slidesharecdn.com/profile-photo-DarinBellisario-48x48.jpg?cb=1429531431 Department of Defense NDSEG Fellow, MIT Presidential Fellow Pursuing a Ph.D. in Physical Chemistry in the lab of Prof. Michael Strano (web.mit.edu/stranogroup), with research in the areas of carbon nanotube photovoltaic development, nanopore physics, single-molecule tunneling spectroscopy, and metal electromigration. Alongside Ph.D. research, taking core and applied courses at the MIT Sloan Business School including microeconomics, marketing management, and competitive strategy. I have applied that exploration to independent consulting projects for global enterprises and ventures in a diversity of industries spanning retail, manufacturing, and advanced technology.