Driving E-Cooking Adoption in Nepal: A Detailed Report on the Impact of Gender and Microfinance

The transition to e-cooking devices, such as induction cooktops, is a key component of Nepal's sustainable energy initiatives. However, the successful widespread adoption of these technologies within diverse communities depends heavily on effective distribution strategies and deep community engagement. This report delves into critical observations from Nepalese communities, highlighting how the gender of Last Mile Distributors (LMDs) and the strategic use of microfinance as a distribution channel significantly influence the rate and depth of e-cooking device adoption.

The Pivotal Role of Last Mile Distributors (LMDs) and the Influence of Gender

Last Mile Distributors (LMDs) are crucial intermediaries responsible for disseminating e-cooking devices and raising awareness in rural areas. They represent the direct link between the technology and potential users. However, their effectiveness is not uniform and is profoundly impacted by their proactive engagement strategies and, notably, their gender.

Case Study I: Gendered Performance in E-Cooking Device Distribution

A comparative study of two LMDs operating in the same area reveals a stark difference in performance based on gender. One LMD was a male-owned shop, established for 20-25 years, while the other was a female-owned shop, relatively new with only 2-3 years of establishment. Both were tasked with distributing and raising awareness about e-cooking devices in the same rural communities, starting at the same time.

• Superior Performance of Female-Led LMDs: The female-owned shop demonstrated significantly higher sales, selling approximately 750 e-cooking units compared to the male-owned shop's 300 units. Furthermore, the female LMD set an ambitious target to sell over 1000 sets, while the male LMD had no specific sales target, relying instead on customer flow and inquiries. This success is attributed to the female LMD's highly proactive and community-centric approach. She was "quite active in communicating and aware about the e-cooking devices, its benefits, available subsidy and easy assessable for buying at her location". Her and her team's strategies included:
• Direct Community Outreach: Actively participating in various programs organized by local "ward" (the smallest administrative unit of a municipality) to reach communities directly.
• Targeted Engagement with Key Decision-Makers: Crucially, she communicated information and provided pamphlets or brochures to people visiting her shop, irrespective of their initial purchase intent. More significantly, her association with local women's groups facilitated "direct communication with the main cook of the family or Household" – often the primary decision-maker for cooking appliances. This direct engagement with household cooks, coupled with "word-of-mouth awareness" and "peer recommendation," proved highly effective in boosting awareness and sales.
• Holistic Advocacy: She conducted advocacy, awareness sessions, and demonstrations for all customers, which helped boost sales and adoption.

• Passive Approach of Male-Led LMDs: In contrast, the male-led LMD exhibited a more passive sales strategy. He "was not doing anything besides saying to its customer about the e-cooking devices and its benefits when asked by the customer". His approach "completely relied solely on their previous customer base and didn’t try to communicate about the project or subsidy available". This lack of proactive communication directly contributed to lower sales of e-cooking devices.

Case Study II: Confirming Gender-Based Efficacy in Distribution 

Another location promoting e-cooking devices through LMDs further corroborated the impact of gender. Here, three LMDs were involved: two male-owned/led shops and one female-owned/led shop. All were given the same target of selling 1000 e-cooking devices each.

• Female LMD's Unmatched Success: The female-led LMD not only met her target but "surpassed the targeted number by 100," with bookings and demand still increasing. Her success stemmed from similar proactive strategies observed in Case Study I: "She has used, he local connections like the women’s group, who are the main cook of the family or households (HH), for the advocacy, awareness and demonstrated how to use the e-cooking devices and its benefits". She also consistently performed advocacy, awareness, and demonstrations for all customers visiting her shop, leading to increased awareness and knowledge of benefits through "demonstration, word to mouth awareness, peer recommendation and marketing".

• Male LMD's Ineffectiveness: While the male-led LMDs also engaged in marketing, their efforts were "not quite able to reach and penetrate or were ineffective in comparison to the activities done by the Female lead". This ineffectiveness was due to their inability to "effectively connect and deliver the awareness and have not demonstrated properly the use of e-cooking devices, to the main cook of the family who is also one of the decision makers in the house". Despite all LMDs providing similar after-sales services and using comparable advertisement materials at the same level, the outcomes differed significantly. The female LMD's ability to directly reach the "main cook of the family or HH" to "discuss the problem and offer the solutions" made it easier for customers to purchase and adopt the devices. Additionally, in-shop demonstrations and the sharing of observed benefits and experiences within the community were crucial factors for quick adaptation and purchases.

Microfinance: A Powerful Catalyst for Adoption

Beyond the direct sales channels of LMDs, the microfinance sector has emerged as another highly successful distribution channel for e-cooking devices. It effectively addresses two primary barriers: financial accessibility and community engagement.

• Overcoming Financial Barriers: One of the significant challenges for e-cooking device adoption through traditional LMDs is the high upfront cost, typically ranging from NPR 5,000 to 7,000 for an induction set. The microfinance approach directly tackles this by introducing e-cooking devices as a loan product. This allows rural communities, particularly those with lower income levels, to acquire these devices through affordable monthly Equated Monthly Installments (EMIs), with a maximum of NPR 550. This financial model makes the product appear "cheaper" and "easier to buy" for low-income communities, directly leading to "higher purchase and adoptation rate".

• Fostering Community Engagement and Peer Support: Microfinance teams or representatives actively engage with women at the household level, facilitating the formation of women's groups. This direct interaction provides a crucial platform for them to:
• Understand Challenges: Identify and understand problems like "barriers for buying the induction cooktop".
• Gather Motivation: Collect insights into what motivates adoption of the devices.
• Provide Solutions and Support: Offer e-cooking devices as a direct solution and provide post-sales troubleshooting support.

The formation of these women's groups also cultivates a strong system of "peer recommendation and review". Women within these groups can share their experiences and learnings with each other and other communities, functioning as "peer recommendation" that further increases "peer review and recommendation," ultimately resulting in "increase in purchase and adaptation" of e-cooking devices.

Conclusion

The successful scaling of e-cooking device adoption in Nepal is contingent upon well-designed, community-centric strategies. The evidence compellingly demonstrates that a proactive, gender-sensitive distribution approach is paramount. Female-led Last Mile Distributors consistently outperform their male counterparts due to their active communication, targeted outreach to key household decision-makers (the "main cook"), and effective demonstration techniques. Simultaneously, the microfinance sector proves to be an invaluable channel, not only by democratizing access through affordable loan products but also by leveraging established community networks to foster peer-to-peer learning and support, thereby overcoming financial and informational barriers to adoption. By integrating these insights, future initiatives can develop more impactful and equitable strategies to accelerate the clean energy transition within Nepalese households.