Seven fruits and value creation in the last link of the fruit distribution chain

Agriculture is one of the potential fields for expanding entrepreneurial activities. Of course, like any other field, it has its own problems and challenges, and entering it should happen with the knowledge and awareness of these limitations.

In order to gain a better understanding of this field, we decided to have a series of conversations with Agricultural startups to have In the first step, we had an interview with Seyyed Mohammad Siyarpour to give us his opinions about the state of agriculture and the priorities of entry. Startup inform it. We invite you to read this interview.

Seyed Mohammad Siarpour is a civil engineering graduate from Sharif University of Technology. He completed an MBA course at Tehran University and entered the startup space since 1991. In the same year, he started doing things like holding an event to promote startup culture and then decided to establish a “company” himself. From his point of view, the company is an institution that attracts capital into the business, and he decides to solve the existing problems of the country by using the company’s capacities.

What made you decide to start a business related to agriculture?

According to the investigations we had regarding the country’s challenges, we came to the conclusion that water is one of the biggest challenges and to solve this problem (according to the investigation of the trustees of this field) there is no other way than to reduce at least 40% of the water used in agriculture because in this field Water is being consumed more than needed. First, to solve this problem, the “planting” plan was launched, during which farmers were paid money for not planting crops, which eventually led to crises such as the loss of job positions and people’s resistance.

To solve this challenge, it is necessary to carry out “planting” in such a way as to improve its efficiency and effectiveness, and this requires raising the quality of sub-programs, such as changing the program of the cultivation pattern, alternative livelihoods, industrial cultivation, etc., which is our problem, executive It is the failure of these programs. This issue requires a change of perspective in the way of solving problems and focusing on the critical point, which is currently on the side of the consumer market, and if there is an impact at that point, the chain of problems will also be solved; Therefore, we took a step in this direction to increase the efficiency of the chain between production and consumer in agricultural products.

You chose the last link of the fruit distribution chain in Seven Fruits, why?

There are inefficiencies in the value chain of all products related to the agricultural sector, but in the field of fruit with the least energy, the most change takes place. In fields like dairy, because capital has been invested in them, the increase in productivity will not happen at a high level, but in the field of fruit, due to the lack of capital, the injection of capital will increase the productivity in it, and considering the ability that we have in this regard We have predicted a significant effect in it.

Of course, we have not limited the influence in the last link of the supply chain to fruit, and other products such as: protein products, legumes, spirits and other agricultural products are also offered in Haft Meoweh service.

Seven Fruits is a store, why didn’t you go to other models like Market Place?

First Ideas We had a platform that connected fruit sellers to people, but according to our investigations, we came to the conclusion that there is not much price difference in this chain, but in the part where the shopkeeper delivers the product to the customer, the price suddenly multiplies.

That’s why we started working from this point and instead of choosing a platform, we decided to be an online fruit shop and increase efficiency in this circle.

What is the difference between Seven Fruits as an online business and traditional businesses?

The fruit seller buys fruit at a high price due to his low purchasing power (buying the product as much as a store) and on the other hand, he has to process lower grade products; If he cannot introduce low-quality products into the chain to compensate for the cost, he will raise the price of the product, but we buy the product cheaper due to our high purchasing power, and we also connected the product to the value chain so that we don’t have to because of its loss. Increase the price of 2nd and 3rd grade products, for this reason, we deliver the products to people cheaper.

How did you start Seven Fruits?

At the end of 1995, among friends, we gathered those who were active in the field of selling agricultural products and fruit products, and at the beginning of 1996, Seven Fruits was formed. Except for the main core, more than 20 people are currently working in Haft Mu’aw.

From the very beginning, we assembled the team in such a way that all the required capabilities were in the core of the team and technical people were present in the core of the team, and for this reason, we did not incur any costs during the launch of the MVP, and in a short period of time, we attracted a large number of customers. After 6 months, the product became profitable, and of course, by attracting customers, capital was also attracted, and we had 3 periods of capital attraction.

What are your plans for product development?

We are currently starting from the first and second stage, which is the stage of meeting people’s needs and then Sticking to the customer We have passed and we are on the verge of entering the growth phase.

Currently, we provide service to all parts of Tehran, but due to attracting more customers, we focus on some areas such as West Tehran, and we have considered additional services for this area. We also have a plan to enter 18 cities and metropolises, which of course will take about 3-4 years.

Who are your competitors? How do you evaluate the entry of digital goods?

It is difficult to enter the field of fresh products such as meat and fruit, both in the world and in our country, and many enter and leave these markets quickly. Many names have been mentioned in this field, but currently we and the “Fruit City” collection are active in this market.

The entry of digital goods into this field is not only a threat; Rather, it is an opportunity. For reasons such as influencing the minds of non-professional investors and introducing the existence of this type of business. Digikala introduces people to this market and paves the way for the development of our market.

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