Use vending machines to dispense products
Algramõ sells food and hygiene products through vending machines that dispense goods into reusable containers.
How does it work?
Customers first purchase the reusable container and use it to buy products from vending machines. Goods include lentils, rice, and cleaning supplies. Once reusable boxes have reached their end-of-life, users can trade them in for a discount on a new container, and the company recycles the old one. Often the packaging can represent more than 50% of the total cost of the product. The company passes on the savings from reducing the amount of packaging to the consumer. The savings from reducing packaging allows goods to be between 30% and 40% cheaper than the competitors.
Although Algramõ started with vending machines, its second iteration of technology brings refill machines through electrical tricycles to customers’ doorsteps. The packaging containers use RFID technology, which allows the consumer to use them as virtual wallets.
Who is doing it?
Algramõ has partnered with FMCG companies, Unilever and Nestle Purina, to bring household products to consumers at a much lower price. Algramõ translates into ‘by the gram’ - elimination of packaging provides much more flexibility in terms of quantity of goods purchased.
Where to start?
Companies and brands can replicate Algramõ’s model by creating vending machines and reusable containers. The use of RFID tags creates additional convenience for the consumer.
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