Cover Sari-sari stores are deeply ingrained in Filipino culture—Packworks, a government-funded startup preserves this by the help of technology. Its co-founder Bing Tan tells us how in this exclusive interview (Photo: Packworks)
Sari-sari stores are deeply ingrained in Filipino culture—Packworks, a government-funded startup preserves this by the help of technology. Its co-founder Bing Tan tells us how in this exclusive interview (Photo: Packworks)
1 / 1
Sari-sari stores are deeply ingrained in Filipino culture—Packworks, a government-funded startup preserves this by the help of technology. Its co-founder Bing Tan tells us how in this exclusive interview
Walk anywhere in the Philippines and it is guaranteed that wherever you turn, there is always one shabby yet very reliable sari-sari store ready to supply “tingi” or relatively smaller portions of your daily needs.
The idea of tingi is not new, especially in a country where lower sectors of society combat the soaring prices of goods. It can be recalled that on April 24, 2024, a Social Weather Stations (SWS) survey revealed that at least 12.9 million families in the Philippines experience poverty.
Sari-sari stores aid Filipinos who cannot afford to purchase a large amount of what they need to consume by repacking goods in smaller quantities and selling them per piece.
In case you missed it: Passion and perseverance: Go Negosyo champions Filipinas on the MSME scene
Above Sari-sari stores are deeply ingrained in Filipino culture—Packworks, a government-funded startup preserves this by the help of technology. Its co-founder Bing Tan tells us how in this exclusive interview
Sari-sari stores are deeply ingrained in Filipino culture—Packworks, a government-funded startup preserves this by the help of technology. Its co-founder Bing Tan tells us how in this exclusive interview
1 / 1
“Every successful economy in the world was built upon the strength of its middle class sector. Not one enterprise can do this alone (except perhaps if you’re in the Organization of Petroleum Exporting Countries),” Packworks co-founder Bing Tan says in an interview with Tatler. “Without a map or a guidebook, we have to start somewhere. What better way is there when we can help empower 1.3 million entrepreneurs to start this journey? Like the saying goes, ‘if you want to go fast, go alone. If you want to go far, go together.’”
Packworks is a tech startup that seeks to digitise store operations. The B2B app uses AI to support the sari-sari store industry by giving owners free access to cheaper goods and capital by directly connecting them to brands and relevant financial institutions.
As of this post, Packworks currently serves at least 270,000 stores in its network. Stores that have used the app since its launch in 2018 have been able to increase their sales by as much as 50 per cent and product variety by 30 per cent.
Every successful economy in the world was built upon the strength of its middle class sector
Above Bing Tan, co-founder of Packworks
Bing Tan, co-founder of Packworks
1 / 1
“The hardest piece of the puzzle for manufacturers is knowing where the stores are. How can you sell your goods if you don’t know where your customers are? At 270,000 stores in our network, we give you a baseline—they say there are 1.3 million stores in the country,” Tan explains.
“Additionally, manufacturers all know where their goods sell (through their distribution network). Packworks gives them something that they want more—to know where their competitors are strong. This visibility and understanding of the sari-sari store basket is what we excel at,” he adds.
For financial institutions, Packworks can provide information not only about basket size but also about purchase frequency and basket amount. This data allows them to use their own scoring mechanism to provide loans at the lowest lending rate. “We are truly inspired by the words of Bill Gates back in the 1990s: that people don’t need banks. They need banking. It is 30 years later, through Packworks, that we can do this in the Philippines.”
Related: Check out these 7 small businesses that offer items perfect for your next beach getaway
Above Packworks is a tech startup that seeks to digitise store operations. The B2B app uses AI to support the sari-sari store industry by giving owners free access to cheaper goods and capital through directly connecting them to brands and financial institutions relevant to the business.
Packworks is a tech startup that seeks to digitise store operations. The B2B app uses AI to support the sari-sari store industry by giving owners free access to cheaper goods and capital through directly connecting them to brands and financial institutions relevant to the business.
1 / 1
In the previous year, Packworks made international waves after being included in Forbes Asia’s 100 to Watch List 2023. The list, which aims to spotlight companies that target underserved markets, featured companies from 13 other countries.
“The news was actually first picked up by one of my co-founders and CMO, Ibba Bernardo, through an email on the day that it was announced. Then it spread like wildfire in our internal Telegram group chats throughout the whole day!” Tan shares.
“Everyone was really, really happy to hear the news. We’ve all been working from different parts of the country, but at that moment when we celebrated the good news, we felt like we were just in one big room—sharing the fruits of everyone’s hard work and efforts in the past years. For Packworks, it’s a validation of what we’re doing. That we’re on the right track and making an impact on the lives of our saripreneuers—which is the very heart of our mission.”
Above The founders of Packworks: Bing Tan, Hubert Yap, and Ibba Bernardo
The founders of Packworks: Bing Tan, Hubert Yap, and Ibba Bernardo
1 / 1
Packworks received a PHP3.5 million research grant last July 15 from the Department of Science and Technology–Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD) Startup Grant Fund (SGF).
“We are very grateful for the support of DOST. This grant aims to use our data and provide tools that will increase the sell-out of goods. With rich sari-sari store data, we aim to share bundling of goods across different categories and different behaviours throughout the day. Here’s a tidbit: ‘Did you know that diapers are usually bought together with beer in rural areas, but diapers go with coffee in urban areas?’ These are the kinds of information that we will be presenting after the program is done,” Tan discloses.
The co-founder adds that in the world of startups, Packworks is a ‘fledging company’ whose mission is to empower even the last-mile stores in the Philippines. He stresses that the government should continue supporting businesses that elevate the working conditions of small business owners.
“Packworks is never proud of its achievements, but there is pride in doing work that elevates the working environment of the micro-entrepreneur. We need and want more of these programs because, in the end, the country wins.”
For a startup company that offers its services through AI technology, Packworks braves a bigger problem: internet connectivity. As of April 2024, the Philippines reported an average mobile internet speed of only 32.37 Mbps, compared to that of Thailand’s 24.05 Mbps, Vietnam’s 50.99 Mbps, Malaysia’s 91.69 Mbps, Singapore’s 101.43 Mbps, and Brunei’s 102.41 Mbps.
But its founders believe there is no more time to waste—the perfect time to resolve the problem of sari-sari store owners is now.“It is always easy to see the glass half empty. The Philippines’ connectivity problem is not the sole problem of the country. We can’t wait for everything to be perfect because we will die doing nothing,” says Tan.
See also: Filipino inventions recognised internationally in 2024 you need to know about
Above Sari-sari stores are deeply ingrained in Filipino culture—Packworks, a government-funded startup preserves this by the help of technology. Its co-founder Bing Tan tells us how in this exclusive interview (Photo: Michelle Grocke, Timothy Light, Elijah Karl Collado/Research Gate)
Sari-sari stores are deeply ingrained in Filipino culture—Packworks, a government-funded startup preserves this by the help of technology. Its co-founder Bing Tan tells us how in this exclusive interview (Photo: Michelle Grocke, Timothy Light, Elijah Karl Collado/Research Gate)
1 / 1
For Tan, it is very rare to find a business model that genuinely seeks to provide profit first. When asked why he chose to help sari-sari store owners in particular, he replies, “There are many reasons I can think of to answer the whys, but I can’t think of a single reason for why not.”
NOW READ
Would Leonardo da Vinci have used AI?
How generative AI will impact media, entertainment and the gig economy
The advocacies social entrepreneur Jaime Ayala champions for
Jove holds a degree in Journalism and is currently pursuing graduate studies in Philosophy at the University of the Philippines–Diliman. She has flair for in-depth, interview-driven stories that explore politics and culture, shaped by her background in national broadsheets.
When she’s not on assignment, Jove spends her days painting, sipping lemonade, and walking her dog, Jupiter. She can often be seen in Escolta with a film camera in hand, browsing novelty shops in search of rare memorabilia. For leads, reach her at Jove@tatlerphilippines.com.
