PriyoShop simplifies business and operational landscape for MSMEs in Bangladesh

In Bangladesh, the retail sector, powered by over 5 million mom-and-pop shops, is the driving force behind 97% of retail transactions and contributes significantly to the GDP, forming a $200 billion market that is set to hit $850 billion by 2030. 

PriyoShop, a B2B e-commerce startup, has been pivotal in transforming this landscape. By digitally connecting small retailers with wholesalers and manufacturers, it streamlines the supply chain, benefiting everyone involved.

For small retailers, PriyoShop offers competitive prices, timely inventory restocking, and removes logistical headaches. This accessibility and cost-effectiveness are a game-changer. On the other side, it enables wholesalers and brands to predict demand better and reach more customers. With 5 million retailers in its network, PriyoShop has impacted 45,000 micro-merchants, uplifting their businesses.

Currently, the retail supply chain in Bangladesh faces challenges. Mom-and-pop shops struggle with sourcing supplies at the right price due to limited orders, impacting their bargaining power. Additionally, the existing distribution model, where suppliers dictate delivery schedules, often leads to stockouts, dissatisfying customers and affecting brands' sales.

PriyoShop's intervention addresses these issues by enabling direct connections between retailers and suppliers, overcoming inefficiencies and timing constraints. This innovation has the potential to redefine the retail landscape in Bangladesh, empowering small retailers and driving the economy towards becoming Asia's economic powerhouse.

PriyoShop's Founder and CEO Asikul Alam Khan states, "For instance, a customer comes to a corner shop and asks for Maggi noodles. But the shop ran out of Maggi. Instead, it has a different noodle brand in stock. So the customer, since he does not have the option, goes for the Mama noodles. It means the brand is losing its loyal customers because it failed to make its products available." 

PriyoShop steps in to tackle the challenges within the current supply chain for mom-and-pop shops and brands. Its focus lies in empowering these small businesses while facilitating better connections for manufacturers and distributors. 

Unlike typical tech startups though, PriyoShop aims to enhance rather than disrupt the retail supply chain. It strategically addresses key challenges, fosters collaboration with existing players, and operates through an asset-light model, emphasising core solutions and opportunities for all involved parties. 

How does PriyoShop do it? 

PriyoShop resolves mom-and-pop shop supply chain challenges by linking them directly to manufacturers and suppliers via its marketplace. 

This innovative approach addresses pricing and connectivity issues in B2B retail, creating a large-scale commerce platform. Moreover, PriyoShop cleverly utilises Bangladesh's existing retail infrastructure instead of competing, ensuring efficient product delivery to these shops without building new systems.

"We realised that there are lots of traditional suppliers and distributors in Bangladesh who have solid infrastructures," Khan said. "They have large warehouses and vehicles and have trained people who know how to manage inventory and distributions. But they are blocked due to the inefficiency in the supply chain, inefficiency in distribution, and the missing dot which is the connectivity and data." 

PriyoShop makes it easier for these suppliers. 

Mom-and-pop shops download the PriyoShop app from the Google Play Store. The app is in Bangla and designed so that these mom-and-pop shop owners can easily navigate. They can browse SKUs by category, by brand, and order products simply by clicking on them. 

Priyoshops 'asset-light' model 

When a mom-and-pop shop places an order, distributors and brands on the platform get notified that there is an order placed. Brands then confirm the availability of the products, after which the PriyoShop team collects the products from distributors and delivers them to the shops. 

In this process, PriyoShop usually takes advantage of the infrastructure of the suppliers and manufacturers such as using their logistics strength in places where applicable or renting vehicles from logistics companies for specific delivery arrangements. 

The company calls this the asset-light model. 

It solves the critical supply chain challenges in retail in Bangladesh — streamlines the connection, creates a data infrastructure, addresses supply availability challenges of mom-and-pop shops, and timely supply for brands, empowers the traditional suppliers without making them irrelevant, and allows PriyoShop to operate efficiently without investing heavily on infrastructure. 

But merely building a B2B retail supply chain model, an app for mom-and-pop shops, and putting together a nice strategy is unlikely to create any meaningful dent in the real retail ecosystem in Bangladesh. 

Most mom-and-pop shop owners are not tech-savvy, which is also true for many suppliers and manufacturers. So, instead of taking an 'if you build it they will come,' it has invested heavily into making the product accessible and approachable to its target user base. 

Along with its easy-to-use app, users can also access the PriyoShop service via WhatsApp. The company connected WhatsApp API and its entire catalogue is available through the WhatsApp channel. In one brilliant stroke this makes PriyoShop available to a large number of users, approachable to them, and more importantly, conversational. 

The company says the move, launching WhatsApp API, led to immediate huge growth for the company. 

PriyoShop has brought other more impactful features for mom-and-pop shops, helping these companies streamline their inventories. By offering integrated solutions, PriyoShop helps these businesses track and manage inventory better. If they run out of inventory, they can order online in real time and get their inventory replenished within 24 hours.  This not only reduces operational inefficiencies but also enhances the overall business agility of MSMEs, enabling them to adapt quickly to changing market conditions.

Making life easier for MSMEs

Financial inclusion is a significant challenge for many MSMEs in Bangladesh. But since these companies work with PriyoShop and PriyoShop keeps records of their orders, the data work as an excellent credit score for these MSMEs allowing them to access financing from the formal channels. 

PriyoShop has come a long way since the company decided to pivot to B2B to serve the MSMEs. It started working with small retail shops in Dhaka right after the pandemic and the company has since expanded to several regions outside Dhaka. 

It currently covers the entire Dhaka city and adjacent areas such as Tongi, Gazipur, and Savar. 

It has a strong presence in Chattogram, Feni, Chandpur, Cox's Bazar and is currently working to expand to several new locations. 

The company has also launched a low-cost logistics option where it will use low-cost rikshaw-style paddle vans to deliver products over short distances. This will reduce logistics costs for the company, allow it to cover short-distance deliveries more efficiently, and also reach deeper into remote locations where large vehicles cannot reach. 

PriyoShop's role in simplifying MSMEs' business in Bangladesh will get even more prominent as the company expands in the coming years.  

As MSMEs continue to play a vital role in Bangladesh's economic development, platforms like PriyoShop are instrumental in ensuring their success in an increasingly digital and competitive business landscape.