Pull The Rug Out (From Under Middlemen)

This is the story of how a corporation changed the dynamics of a whole industry in India by eliminating middlemen in order to serve the poor - the story of Jaipur Rugs.

Taking Jaipur Rugs as an example of this week's theme, I would like to present it as a classic case that managed to help the rural poor with high success while still being a corporation. The company, having been in business for more than 40 years now, has not only helped the poor but also relieved them from exploitation. Social solutions couldn't have been better. The below short film from Jaipur's own YouTube channel sums it all up more than succinctly:

What's interesting here is: before Jaipur organized the industry, the skilled carpet-makers were being paid peanuts for their hard and skilled labor which adorned the homes of wealthy consumers worldwide. And the reason? Middlemen. Jaipur simply eliminated this layer by reaching out directly to the labor layer, thereby enabling the weavers to earn what they truly deserve. By doing so, Jaipur has changed the lives of the entire weaver class who were previously impoverished. This change has given the weavers access to better food, shelter, and most importantly education. And Jaipur achieved all this not by investing millions for market research on new whos, new whats or new hows, but with the good intention of helping people.

The significance of Jaipur's business model is not just India-based. The company has operations in more than 30 countries, and is currently based out of Atlanta, Georgia. It is no surprise that a noble and successful business such as Jaipur has won numerous accolades, while the impact it created resonate more solidly - 800 villages and 9000 families for whom weaving has been part of their culture for centuries. The poor yet skilled rural mass of India couldn't ask for more.

The next time you walk into a room with a carpet, there are chances (however slim) that it came from Jaipur and that some family is getting a better standard of living. A 44-year-old company has shown success and profitability by helping the rural poor, and I certainly believe it is much easier in 2012, don't you?