Sari-sari stores will become smarter and more sophisticated with the latest partnership between Packworks and the Department of Science and Technology (DOST).
Packworks, a Filipino startup offering business-to-business (B2B) fast-moving consumer goods (FMCG) marketplace for sari-sari stores, was recently funded by DOST to make use of AI for empowering over 1.3 million Philippine sari-sari stores with data-driven inventory management tools.
This PHP 3.5 million research funding from the DOST- Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) Startup Grant Fund (SGF) Program will support Packworks’ PHP 1.5 million allocation to develop a machine-learning-powered precision marketing model, offering sari-sari stores customized recommendations on sellable items and promotions from Packworks’ FMCG partners.
The SGF Program supports technology startups by transforming early-stage technologies into market-ready products. Now in its second cycle, it fosters innovation in sustainable industries, education, creative industries, data-driven technologies, climate change, and productivity tools. Since July 2022, DOST has supported 123 startups through the program.
“Our mission at DOST is to build an integrated, inclusive and sustainable startup ecosystem. We hope to support startups at every stage of development, from formation to validation, until growth,” shared DOST Secretary Renato U. Solidum, Jr.
Although the primary source of daily essentials for around 94% of Filipinos, sari-sari stores still faced difficulties, ranging from inadequate financial management to ineffective promotional campaigns. Sari-sari stores also lack a streamlined approach to receiving high-quality promotions, such as discounts or personalized item packages from FMCG manufacturers, which restricts store owners from appealing to and retaining customers effectively.
Sari-sari stores are part of micro, small, and medium-sized enterprises (MSMEs) in the Philippines, which account for an overwhelming 99.5% of all business establishments. Of those, around 500,000 are in the wholesale and retail industry.
The AI-powered capability will be launched as an in-app service on Packworks’ Sari.PH Pro app. It is expected to benefit its network of over 270,000 sari-sari stores nationwide.
“We look forward to witnessing the transformative impact of this partnership on the grassroots retail industry towards driving inclusive growth and innovation across the Philippines,” said DOST-PCIEERD Executive Director Dr. Enrico Paringit.
For more information about Packworks, visit http://packworks.io/.
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