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| Written by Lou Janssen Dangzalan | |
| Friday, 21 September 2007 | |
 A chain of sari-sari stories linked to micro-finance institutions gains access to cheaper goods and management training It all started with conversation, over coffee, among friends last January. Their ideas have since snowballed into a program that fuses microfinance, sustainable entrepreneurship, and corporate social responsibility. The project, dubbed as “Hapinoy,” aims to transform the sari-sari stores supported by microfinance institutions (MFI) into a network or chain of retail stores which have access to inexpensive goods and management training. Speaking before the launch of the project in July, Microventures’ Paolo Benigno Aquino said that Hapinoy aims to optimize the operations of partner micro-financed sari-sari stores. Led by Microventures Incorporated, a for-profit corporation that aims to uplift the poor through sustainable entrepreneurship, the group has since tapped the Center for Agriculture and Rural Development (CARD), an MFI, which has thousands of members. Through CARD, Hapinoy has been able to expand its network to 1100 stores in the Southern Luzon area. What Microventures does is to encourage the MFI affiliated sari-sari store owners to sign up with Hapinoy for a token fee. In return they gain access to cheaper goods allowing them to optimize their profit margins. The cheap manufactured goods are in turn delivered by partner manufacturing companies—such as Smart, Rebisco, Century Tuna, and Oishi—to the assigned lead stores in the region. These lead stores serve as the hub for each area’s distribution.
Aquino quickly dispelled worries about the possibility that non-partner companies and their competing products will not be able to join the network. He argued that while they may have partnered with these groups, Hapinoy is open to other products. Apart from the benefits that an efficient supply line delivers, the micro-entrepreneurs are trained through the network. The sari-sari store owners meet regularly where they also settle their accounts with the MFIs. Through the sariskwela, a makeshift training center, they are honed in basic management skills, optimization of their inventories, and the like. According to Aquino, they project to reach 100,000 stores by the end of 2009. By then, their network will have reached its optimal size. Source: http://www.newsbreak.com.ph/index.php?option=com_content&task=view&id=3738&Itemid=88889053 |
The companies deliver the goods to the assigned lead stores in the different areas, enabling them to target the bottom of the pyramid at the same time being cost effective. This is one of the main selling points of the partnership with companies, according to Aquino. While the companies’ market is broadened and deepened, they are able to engage in socially responsible programs.
14 comments:
I think that this is a worthy project of Hapinoy because it does not only allow the different manufacturers distribute their products/goods but it also engages them to be part of corporate responsibility programs. Also, it's a good project because Hapinoy is not only focused on gaining profit but is also engaging in a kind of project that will uplift the lives of those who belong to the lower class. Furthemore, I think that their sariskwela will not only help the people develop management skills but also apply these skills in their future plans of putting up their own businesses.
its a good thing that sari-sari stores are now linked to institutions that will help them become more efficient in terms of store-handling and having access to cheaper suppliers. also i think that infusion of corporate social responsibility into this program will greatly benefit the community. this could be considered as a step towards industrialization and social responsibilities of microbusinesses. in the end, not only will the owner benefit much profit from this ordeal but also the whole country as well, because of social awareness and improvement of the cycling of peso in our community.
Sounds all well and good when you think of all of the positive points that are discussed by the article, that however does in fact lack some objectivity. From the vague sound of it, this program aims to consolidate all of the sari stores into one corporate retail unit, all of these stores selling all of the same things and being of the same brand and eventually if a monopoly of sari stores is achieved, which I can only imagine is the aim of the founders of Hapinoy, competition that makes the current sari stores offer competitive prices might dissappear. In this lowly ousiders opinion, hapinoy is the coporatizing of the sari store and that is not nessecarily a bad thing, but, it can be if certain powers are given to certain people. "Power corrupts, absolute power corrupts absolutely."
I think that the Hapinoy project would atleast lessen competition in domestic marketing. But,it also lessens the freedom of buyers to choose whether where they want to buy, i mean in a simpler term, as a native Filipino we have our own tendencies to buy goods in stores wherein we are comfortable to or where we are fond of. Varieties of local stores offer different prices for different products, some would offer lower price for an specific product then offer a higher price on another product. If you are a typical Filipino you'd be buying neccesities from different stores who offers much cheaper price. The competitive spirit of Pinoys would decrease if ever Hapinoy would push through. Honestly, while reading this article all i felt was negative sentiments. Looking at the long run this would be good, but why focus in the long run if living life in our country shortens our life span.We should instead focus in the short run.
hapinoy is a very good program because it looks after both the suppliers and the retailers, suppliers because they are able to directly reach small scale retailers, and at the same time do their corporate responsibility, and retailers because they can have higher profit margins because of cheaper costs. this project is a way of helping our community, because of the opportunities given to the people. I hope that in the near future there will be more projects like this. :)
I think that this project is timing with the on-going inflation in our economy. These sari-sari stores offer reliable services and goods with reasonable prices. the service and quality of products are not compromised just because the prices are not as high as other local retailers. its a good project and should be continued. Hapinoy focuses more on their consumers are than gaining money for themselves. plus the training and development of management skills will be helpful to all future entrepreneurs.
The Hapinoy project, in my opinion, is a perfect example of Corporate Social Responsibility. By incorporating the sarisari stores into a chain of businesses, this creates a network that would involve the different sarisari stores into a spirit of cooporation, expanding the Filipino's community mentality to a wider network of business associates. With the incorporation, follows higher profits for the sarisari store owners, at the same time, offering a consistent improvement in quality accross all the participating sarisari stores through inexpensive goods and management training. As such, the well being of the sari sari store owners increase as their profits increase. And as their profits increase, the suppliers profits increase. And in the end, everyone is happy with more profit!
I am deeply impressed by the actualization of this project. The project provides help and great opportunities for other individuals in the society to develop. It creates a community of solidarity, friendship, justice, etc. As what Tony Blair once said that "at the heart of my politics has always been the value of community, the belief that we are not merely individuals struggling in isolation from each other, but members of a community who depend on each other, who benefit from each other's help, who owe obligations to each other. From that everything stems: solidarity, social justice, equality, freedom." What Hapinoy is doing right now is exactly what Former Prime Minister Tony Blair said. The said project adheres to the principles of Subsidiarity and Solidarity which aimed to attain or achieve the common good of the society. Large companies like Rebisco, Oishi, Century Tuna, Smart, etc. is doing their roles in helping the retail store owners to develop by themselves giving cheap prices for the goods. Inflation as of July to August 2008 is pegged at 11-12% which is the highest rate recorded since the Asian Crisis of 1997. This shows that the prices for goods and services were drastically seen to increase. As a result, retail store owners especially to far-flung areas of the Philippines could not be able to invest more in buying products for their stores. Moreover, According to Aquino "What Microventures does is to encourage the MFI affiliated sari-sari store owners to sign up with Hapinoy for a token fee. In return they gain access to cheaper goods allowing them to optimize their profit margins. The cheap manufactured goods are in turn delivered by partner manufacturing companies. These lead stores serve as the hub for each area’s distribution. The companies deliver the goods to the assigned lead stores in the different areas, enabling them to target the bottom of the pyramid at the same time being cost effective. This is one of the main selling points of the partnership with companies." This project will not only benefit the large companies but also the retail store owners; reciprocity now plays a part in the process. I believed this social responsibility action that individuals who formed this project are doing their roles for the betterment of the Philippines. ¡Estupendo!
(Tony Blair’s quote: http://www.woopidoo.com/business_quotes/responsibility-quotes.htm and Aquino's quote from this blogspot site itself.)
by:Kritzman G. Caballero
i think that it is a good idea! it is a win win situation between the suppliers and these small retailers. The suppliers are able to sell which enables them to profit and at the same time they are able to participate to csr programs. small retailers, on the other hand, are being honed with managerial skills and also profit more. Very good job hapinoy!!!!!!! More power!
Hapinoy started with just a few peple who decided to start something new and simple yet effective in helping the micro-industries, in this case, the sari-sari store owners. They achieved this through partnering with other corporations who are also willing to help their smaller counterparts. They also focused on two major areas, management and cheaper acquisition of goods to be sold. I believe this will be an effective project in helping the sari-sari store owners to broaden their knowledge and skills in business contributing to better services to their clients and more profit for them.It shows that even small and simple ideas when pursued can actually turn to something great for others.
This project will greatly help the people who are financially challenged. Furthermore, these poor people would be able to learn something while earning. The Hapinoy project is a really great project it helps a lot of people, plus it engages the companies to have social responsibility.
Hapinoy is a pretty good idea. Aside from the fact that it would increase the margin progfit of sari sari stores, this would also help in get people involved and form a certain community. This project is definetly helpful both financially and socially
-samuel chan
I hope this project really work for the Filipino society and also in the context of developing the mindset of the society into higher level.
Economically this is great and socially.
I don't have news or update about this, and what is the status of this project.
Ernesto B. Baluyot Jr.
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