Innovation

TOWAKI = Toko Warung dan kios = small / micro traders

A new concept named TOWAKI, helps small traders flourish in their existing small stores to run business and more easily fulfill supply and demand.

Starting 6 years ago, with the spirit of growth and community development, PT Matahari Putra Prima Tbk created a competitive edge with a value-based approach through Responsibility Management. Awang Atmanto of Enterprise Technology, said, “We cannot grow big alone, we must support the local communities”.

TOWAKI is a win-win approach for PT Matahari Putra Prima Tbk and small traders. PT Matahari Putra Prima can increase sales as small traders together buy more wholesale. In turn, small traders can buy goods with lower prices and more profit margin flexibility.

PT Matahari Putra Prima Tbk attracts new low-level customers to open and maintain small retail store with less investment and operation expense. Small traders also have knowledge about how to manage small stores. For example, one small trader bought products from Hypermart and saved customer behaviour information in a database. Now, that information will be shared to other small traders to maintain stock or inventory in their own small stores.

Inspiration

TOWAKI can be a potential business model for giant or superstores to partner with local small retailers by giving special discounts for retail owners. This way, end customers can purchase goods at similar prices as they would get at the superstore, while the superstore can benefit by having the equivalent of a new store branch without the capital investment required to build a new store.

Overall impact

• Decreasing social damage surrounding superstore.
• Small traders are embraced by superstore, creating opportunities of knowledge on how to manage the product or inventory in their small store.
• Alternative store for the customers to buy products or daily needs with the same price as in the superstore.

Business benefit

This new concept of marketing by PT Matahari Putra Prima or Hypermart creates new markets in remote areas by targeting the bottom of the pyramid. MPPA serves those stores with targeted market segmentation and the customized treatment.

TOWAKI will be sustainable in the long term. Customers can buy products or daily needs at the same or cheaper prices as the superstores while maintaining the shopping experience of a local, more traditional store.

Social and environmental benefit

• Social benefit: TOWAKI is strenghtening small traders to increase the quality of their daily life, because they earn more income. In turn, these stores will benefit Hypermart with the ability to buy more products.

Interview

Awang Atmanto, Enterprise Technology