Reckitt Can Expand Market Penetration to Stalls with Warung Pintar
Warung Pintar Group has announced a partnership with a global FMCG company Reckitt which is known for several hygienes and health products, such as Dettol, Vanish, and Harpic.
With this collaboration, Reckitt gained access through a digital approach to strengthen its penetration to 500 thousand shops throughout Indonesia. This collaboration is a continuation of Reckitt’s work with Bizzy, who is now part of the Warung Pintar Group.
For information, initially, Reckitt and Bizzy partnered to increase the penetration of Reckitt products to nearly 50 thousand retail stores. Then in early 2021, Bizzy was acquired by Warung Pintar Group and the cooperation is now being expanded to a national scale.
“Seeing the role and potential of stalls as a place to distribute 74% of goods in Indonesia, we strongly support the digital transformation presented by Warung Pintar to develop the warung business ecosystem,” said E-Commerce Sales Director Reckitt, Rudy Adrian, in a release received on Wednesday (5/5/2021).
Reckitt will be Able to Connect Directly with Shop Owners
Through this collaboration, Reckitt will be able to connect directly with shop owners using the integrated distribution services provided by the Warung Pintar Group.
Not only that, but they can also access data throughout the supply chain, marketing, and product demand in the field for business development.
The presence of this integrated distribution service is Warung Pintar Group’s effort to provide convenience to all parties in the retail ecosystem, including an approach that focuses on brands.
So, brands can gain visibility on the supply chain from upstream to downstream, namely warungs. Moreover, the sales figures for the health and hygiene category have increased by an average of 24 percent every month since the pandemic.
Therefore, this cooperation can be beneficial for shop owners and brands, including distributors, considering that there is an increase in turnover due to the more variety of Reckitt products being marketed.
Warung Pintar Acquires Bizzy Digital
Previously, the micro-retail startup Warung Pintar announced the acquisition of Bizzy Digital, an integrated B2B (Business to Business) supply chain logistics, and distribution platform.
This corporate action combines two companies that have collaborated with 600 brands, serving 230,000 retailers in 65 cities throughout Indonesia, with a national scale distribution network.
Warung Pintar and Bizzy Digital have a similar mission, namely to transform traditional retail and improve supply chain efficiency in Indonesia. However, the two companies have different approaches to achieving this mission.
Established in 2017, Warung Pintar focuses on implementing technology to help solve various problems of stall owners. Stalls are a large part of the Indonesian economy as they contribute 70 percent of national retail transactions.
By the end of 2020, Warung Pintar claims to have served more than 100,000 shop owners in 35 cities and regencies across Indonesia, with user growth reaching 30 times.
They also said that they had increased the number of distribution facilities from 5 warehouses to 11 warehouses, and helped stall owners to increase daily income by 20-34 percent.
The Role of Bizzy Digital in the Warung Pintar Ecosystem
The presence of Bizzy Digital in the Warung Pintar ecosystem enables the company to guarantee distribution reliability, product availability, and fair prices by working side by side with brand distributors.
“This also supports our plan to build deeper relationships with shop owners through payment and financial services. With this foundation, in the next few months we will expand to all tier 2 and tier 3 cities across the country,” said Agung.
Post-acquisition, Bizzy Digital will continue to maintain its own brand and organizational structure. Bizzy Digital will focus on building deeper collaborations with brands and distributors, giving them access to the fast-growing retail ecosystem on digital platforms.
This approach is expected to be a solution to various problems that are often encountered in the field, between eCommerce startups in the B2B field and FMCG companies and their distributors.