The uphill battle for startups to win over Filipino neighbourhood stores

Filipino mom-and-pop stores control the lion’s share of all retail transactions. B2B players are eager for a slice of the pie, but the real prize may be the micro-merchants’ communities

Sari-sari stores are the Philippines’ smallest business unit, but they have a gigantic footprint, comprising 13% of GDP and 37% of consumer goods transactions

Despite their collective economic influence, sari-saris only reap razor-thin margins, and struggle to solve procurement and bookkeeping problems

Though the stores shy away from using B2B tools, three companies were able to find a way in: e-wallets GCash and Maya, and procurement service Growsari

Sari-saris are determined to avoid shouldering new expenses, so the three players must find new ways to draw revenue through sari-saris rather than from them

Most people dread the daily commute, but not Nestor de la Paz. To get to work, he exits his home’s front door, then takes exactly six steps.

De la Paz is one of the 1.1 million sari-sari store owners in the Philippines. Meaning “variety” in Tagalog, the term “sari-sari” accurately describes what the stores sell: sachets of shampoo, eggs, soda, face masks, candy, and other daily items, most for under one US dollar, packed in a store that is no larger than a small shed.

Like India’s kiranas and Indonesia’s warungs, sari-saris are neighbourhood retailers. The proprietors run their stores close to their homes or on their own housefronts.

AUTHOR

Isabel Martinez

Isa is based in Manila. She covers Southeast Asia's and the Philippines' media, employment and work, policy and investments, and other sectors reshaping consumer life.

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