90% growth for registered SME app users in the Philippines

For small store owner Carmela, keeping the shelves of her store in the Philippines stocked with quality products used to depend on either a visit from a sales rep or a time-consuming trip to the wholesalers.

Now it takes just a few minutes, thanks to Tindahan Club, a business-to-business app which allows her to order Unilever products whenever and wherever she wants – 24 hours a day, 7 days a week.

As one of the hundreds of thousands of retailers registered to use this Unilever sales platform in the Philippines, Carmela says the app has been invaluable. It has boosted her profits, streamlined inventory tracking and simplified restocking, all leading to enhanced consumer satisfaction.

Insights from research conducted by 60 Decibels showed that in 2023, over 90% of retailers surveyed saw their business grow and earned more money as a result, reporting an increase in customers, a higher volume of products sold and improved profit margins. Also, 73% of retailers reported reduced time spent worrying about finances.

Unlocking growth with B2B apps

And their success is boosting sales for Unilever too.

“By unlocking more growth potential for our customers in our value chain, we are effectively unlocking Unilever growth,” says Dakki Alcantara, Unilever’s Controlled Reach Manager, explaining how the app aligns with Unilever’s long-term goal to help 2.5 million small and medium-sized enterprises (SMEs) in our retail value chain grow their business.

“Removing dependency on the sales rep when it comes to ordering products improves operational efficiency, as it allows customers to replenish their stocks as and when needed,” he says.

“This helps reduce loss of sales due to stock shortages. By giving them access to a wider range of up-to-date products and promotions through the app, we can reduce the chances of them outsourcing to other businesses.”

Thanks to its direct contact with the retailer, the app also provides sharper insights into customers’ buying habits.

“These insights allow us to run more effective promotions, tailored to the personalised needs of our customers,” says Dakki.

Delivering a digital lifeline for SMEs

The Tindahan Club app demonstrates how distributive trade digitisation (DTD) can provide a lifeline for small businesses.

SMEs make up a $900+ billion global industry and in many countries, they represent a high share of grocery sales. Usually family-owned or independent retailers, they often struggle to navigate challenges such as increasing competition from supermarkets and online retailers due to a lack of capital or formal management.

“Improving and simplifying operational processes often results in these businesses selling more, thereby improving business success, and in time raising livelihoods and living standards,” says Dakki.

Supporting SMEs with digital tools

Launched in 2019, Tindahan was developed at a time when increased online access powered a shift to online shopping in the Philippines.

“The onset of the pandemic accelerated the pivot to online, increasing the relevance and strategic importance of having an online platform for capturing orders,” says Dakki, adding that this is just one of a number of successful models which is enabling Unilever to support growth for SMEs in their retail chain, alongside provision of access to skills development and finance, such as through Kabisig Summits.

Similar systems are successfully being run in different parts of the world, including Shikhar in India which currently has over 1 million users.

“Unilever is digitising not only order capture but also other key processes such as demand generation, order fulfilment and e-payments,” says Dakki.