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Why La Ruche qui dit Oui's Business Model is so successful?

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La Ruche qui dit Oui’s Company Overview


La Ruche qui dit Oui, also known as The Food Assembly in English, is a groundbreaking French company that connects local farmers and food producers directly with consumers. Established in 2011, the company's primary objective is to promote sustainable agriculture by providing a platform where consumers can buy high-quality, locally sourced products. It operates on a network of independent local assemblies, each managed by a local host. These assemblies function as mini-marketplaces, where consumers can meet producers, fostering a sense of community and transparency. The company operates in several European countries, including France, Belgium, the UK, Germany, Spain, Italy, and Switzerland. La Ruche qui dit Oui's business model is primarily based on the concept of the sharing economy. It provides a digital platform where local food producers can list their products, and consumers can choose what they want to buy. Orders are placed and paid for online, then collected at a local assembly. The company doesn't require any commitment or subscription from its members, thus offering flexibility. The revenue model of La Ruche qui dit Oui is commission-based. The company takes a percentage of each transaction made through its platform. Specifically, it charges a 20% commission on sales, which is split between the local host (8.35%) and the company itself (11.65%). This revenue helps cover the costs of running the platform, including website maintenance, marketing, and staff salaries. The rest of the money goes directly to the producers, ensuring they receive a fair price for their products. This model not only generates revenue for La Ruche qui dit Oui but also supports local economies and promotes sustainable farming practices.

https://laruchequiditoui.fr/fr

Country: France

Foundations date: 2010

Type: Co-operative

Sector: Consumer Services

Categories: Agriculture


La Ruche qui dit Oui’s Customer Needs


Social impact:

Life changing: heirloom, affiliation/belonging

Emotional: provides access, wellness

Functional: connects, organizes, informs, quality, variety


La Ruche qui dit Oui’s Related Competitors



La Ruche qui dit Oui’s Business Operations


Collaborative consumption:

Collaborative Consumption (CC) may be described as a collection of resource circulation systems that allow consumers to both get and supply valued resources or services, either temporarily or permanently, via direct contact with other customers or through the use of a mediator.

Agribusiness:

Agribusiness is the manufacturing of agricultural products. Agrichemicals, breeding, crop production (and contract farming), distribution, farm equipment, processing, seed supply, and marketing and retail sales. Thus, the agribusiness system includes all food and fiber value chain agents and the institutions that affect it. The term agribusiness is simply a combination of agriculture and business within the agricultural sector, alluding to the wide variety of activities and disciplines that contemporary food production encompasses.

Community-funded:

The critical resource in this business strategy is a community's intellect. Three distinct consumer groups comprise this multifaceted business model: believers, suppliers, and purchasers. First, believers join the online community platform and contribute to the production of goods by vendors. Second, buyers purchase these goods, which may be visual, aural, or literary in nature. Finally, believers may be purchasers or providers, and vice versa.

Direct selling:

Direct selling refers to a situation in which a company's goods are immediately accessible from the manufacturer or service provider rather than via intermediate channels. The business avoids the retail margin and any extra expenses connected with the intermediaries in this manner. These savings may be passed on to the client, establishing a consistent sales experience. Furthermore, such intimate touch may help to strengthen client connections. Finally, direct selling benefits consumers by providing convenience and service, such as personal demonstrations and explanations of goods, home delivery, and substantial satisfaction guarantees.

Revenue sharing:

Revenue sharing occurs in various forms, but each iteration includes the sharing of operational gains or losses amongst connected financial players. Occasionally, revenue sharing is utilized as an incentive program ? for example, a small company owner may pay partners or colleagues a percentage-based commission for recommending new clients. Occasionally, revenue sharing is utilized to share the earnings generated by a corporate partnership.

Sharing economy:

The sharing economy eliminates the necessity for individual asset ownership. The phrase sharing economy is an umbrella word that encompasses various definitions and is often used to refer to economic and social activity that involves online transactions. Originally coined by the open-source community to refer to peer-to-peer sharing of access to goods and services, the term is now occasionally used more broadly to refer to any sales transaction conducted via online marketplaces, including those that are business to consumer (B2C) than peer-to-peer.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Sustainability-focused:

Companies that manufacture fast-moving consumer goods and services and are committed to sustainability do ecological impact assessments on their products and services. While research-based green marketing needs facts, green storytelling requires imagination and location. Employees responsible for the brand definition and green marketers collaborate with product and service designers, environmental groups, and government agencies.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Consumers' cooperative:

Consumer cooperatives are businesses owned and controlled by customers to meet their members' needs and goals. They function inside the market system, irrespective of the state, as a kind of mutual assistance, with a service orientation rather than a profit orientation. Consumer cooperatives often take the form of consumer-owned and -operated retail establishments, such as food co-ops.

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