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Two women choose Knorr products from a Nigerian market stall

This issue relates to the following Sustainable Development Goals

  • No poverty
  • Decent work and economic growth

Helping SME retailers grow

Average read time: 9 minutes

We're creating income opportunities, providing skills training and empowering our network of millions of retailers through financial inclusion – all while they're helping us reach consumers with our brands.

A small shop in the UK with fruit and vegetables displayed under a red Wall’s ice cream awning

Selling with purpose, unlocking potential

Our business relies on a thriving distribution network.

Small and medium-sized enterprises (SMEs) are seen as one of the world’s engines of growth, accounting for two-thirds of all employment. Around 180 million small stores interact with 4.5 billion customers daily all across the world.

Person sitting at computer icon

2/3 Of all the world’s employment comes from small and medium-sized enterprises

And every day, millions of consumers buy our products from independent stores, outlets and kiosks, or micro-entrepreneurs making sales in the streets or house-to-house. Worldwide, there are 25 million retail sales outlets in our distribution chain. The success of these SMEs is directly linked to our own.

We’ve set ourselves a goal to help 5 million SMEs in our retail value chain grow their business through access to skills, finance and technology by 2025. We want to support those who distribute or sell our products, such as the people who run independent grocery or convenience stores or who sell our ice creams on the beach. We need to make sure that being part of our network is a source of growth and empowerment for the millions of people who contribute to it. And we believe that by helping SMEs grow, we can have a positive social impact that ripples out beyond our value chain, making whole communities fairer, more prosperous and more resilient.

SMEs, though, are too often held back by barriers such as limited market information, poor access to credit, or lack of financial management skills.

Why is financial inclusion so important?

Providing access to financial services is a critical step in achieving progress on many of the UN Sustainable Development Goals. Financial inclusion removes the barriers that exclude people from participating in the financial sector. By equipping people to use appropriate financial services, they can improve their livelihoods.

A simple bank account that allows people to store money and handle payments opens a gateway to more sophisticated services such as credit or insurance. But according to the World Bank (Opens in a new window), around a third of adults are still unbanked.

We aim to take down those barriers and improve financial access and literacy – to create the conditions for more equitable growth. We’ve learned from our previous initiatives, where our small-scale retailers told us that what they needed most was access to finance and better skills for an increasingly digital world. So from 2021 onwards, we’re focusing on helping them get fit for the future. But it’s not only these specific skills we’re setting out to deliver. Over time, we’re aiming to assess how inclusive our programmes are by looking at livelihoods, personal resilience and wider social benefits.

Future-fit: sharing the benefits of digital

Helping retailers access the benefits of the digital economy can boost their growth – and ours.

At the heart of our ambition is the drive to bring more and more retailers onto what are called 'e-B2B' platforms, so they can unlock the potential of their businesses and engage better with us, and with distributors.

Accelerating digital financial inclusion across Unilever’s value chain is the right thing to do and it makes perfect business sense. We can use our scale for good across our extended distribution network and help to increase people’s income, improve their financial resilience and drive economic and social inclusion.

Rebecca Marmot, our Chief Sustainability Officer

Financial inclusion for financial success

Helping retailers access financial services is a key way to help them increase their income, improve their financial control and build their resilience to withstand shocks and risks.

A young man reviews his accounts on his phone beside his laptop

We're working with partners on a range of initiatives that educate and enable small retailers on financial tools and unlock access to credit and financial services.

In Kenya, for example, we work with retailers through Jaza Duka, which translates as 'fill up your store'. It's a strategic initiative with Mastercard (Opens in a new window) and other partners, with support from the CEO Partnership for Economic Inclusion (Opens in a new window).

Jaza Duka uses a combination of innovative technology, targeted training and the strength of our relationships with our distribution network to help retailers free themselves from the constraints of cash-based business. More than 20,000 retailers are now part of Jaza Duka.

Jaza Duka: driving sales growth in Kenya

Jaza Duka digitises the processes of buying supplies and selling goods, so small-scale retailers can build the credentials they need to access short-term working capital loans. This provides better control of their inventory, so they can keep their shelves full for their consumers.

More than 20,000 retailers have enrolled (of whom 54% are women). They’re seeing average monthly sales of up to 30% more.

Taking financial inclusion to new places, and new levels

We want to build on the success of our partnership work to extend financial inclusion to new places.

In India, for example, we launched Project Kirana. Like Jaza Duka, Project Kirana is a partnership with Mastercard that gives retailers access to data insights and financial flexibility.

We've also joined forces with ten other businesses and organisations in the CEO Partnership for Economic Inclusion, which is committed to developing partnerships and expanding financial access, including among hard-to-reach groups such as women, farmers and small businesses.

And we're working with partners in other ways to give retailers access to financial tools. Our Drachma initiative, for example, focuses on digitising payments – a move which gives retailers in India insights into sales patterns that enable more efficient inventory management and, ultimately, growth.

Drachma: digitally empowering retailers

In many of our markets, the majority of financial transactions are still cash-based.

Project Drachma, in India, aims to digitise the transactions of 2,500 retailers in our network. In partnership with Airtel Payments Bank, Drachma enables stores in the scheme to record their sales to customers as well as payments to suppliers, meaning retailers can accept digital payments.

Working directly with sellers to build skills

As we push forward on our ambition to help our distributors grow, we're building on years of work with small, medium and micro-enterprises around the world.

We've long understood the importance of nurturing the channels through which we reach consumers – and the opportunity they give us to raise living standards for individuals and communities. We'll keep supporting programmes that build business and financial skills among store owners and entrepreneurs, such as Kabisig Summits in the Philippines.

Kabisig, which translates as 'linked arms', runs summits under the banner 'Negosyo Mo, Kinabukasan Mo' (Your Business, Your Future). Training covers cash flow and inventory management, merchandising and customer service.

Kabisig: supporting small store-owners

Our Kabisig programme helps entrepreneurs unlock the potential of their small ‘mom and pop’ style stores. It brings store owners together with our distributors at Kabisig Summits, where they learn skills such as stock control, financial management, sales techniques and customer service.

More than 233,000 owners – around 90% of whom are women – have accessed training and advice at our Kabisig Summits.

Going further to reach consumers

Sales agents help us reach the hundreds of millions of people worldwide who live in small towns and villages, often with restricted access to stores and shops.

By recruiting and training micro-entrepreneurs and supporting them with extended credit, marketing, sales and accounting training, we can help raise living standards – while improving our channels to reach consumers.

Our Shakti programme in India is our best established and most successful model, designed to empower women micro-entrepreneurs through access to training and support, as they in turn help grow our business.

More than 130,000 women from poor rural communities are now part of our Shakti distribution network in India, bringing our brands to hard-to-reach consumers while generating incomes for themselves and their communities.

Smart Shakti

Moving from cash-only to digital payments can bring a wealth of benefits to Shakti entrepreneurs, who typically sell our products door to door.

We've launched a smart payment scheme for our Shakti programme, giving sales agents an app to pay and place orders digitally, reducing costs and boosting transparency.

Two Shakti micro-entrepreneurs standing beside their small shop in India

Building on Shakti's success

Shakti has become our model for reaching out to rural consumers on low incomes in developing and emerging markets – and we’re adapting it at scale around the world.

With our experience in India as a base, we’ve launched related programmes in several countries, including Ethiopia, Sri Lanka, Pakistan, Colombia and Egypt. We adapt the Shakti model to fit local conditions, and to explore new ideas.

Guddi Baji: promoting financial inclusion

In Pakistan, our Shakti programme is known as Guddi Baji. It works with multiple partners to promote financial inclusion for Guddi Baji retailers, as around 50 million women don’t have access to bank accounts.

Through this partnership, we’re aiming to develop a network of JazzCash Guddi Baji retail agents who can offer access to financial services for their customers.

Sharing our insights

Over 20 years of running Shakti and similar programmes, we've faced many challenges, as well as finding ways to address them.

We want to make sure those lessons are learnt by us, and shared with others. That's why we created our ASPIRE tool (PDF 451KB) (Opens in a new window), along with partners from BoP Innovation Center (Opens in a new window). It is a framework that brings together our insights and those of our external partners, which we use as a guide to help us launch and develop initiatives.

ASPIRE provides building blocks and guiding principles that have helped us and the social enterprises we work with to kickstart and progress inclusive distribution models. Among other areas, it provides guidance and insights on successful ways to harness technology, partnerships and investment.

Harnessing bold new ideas: social enterprise partnerships

Woman holding mobile phone to make use of the Kasha mobile e-commerce platform in Rwanda

One of the ways we're increasing the social impact of our work with small-scale retailers is through innovative public–private models that support social entrepreneurship.

Unilever and the UK’s Foreign, Commonwealth & Development Office (formerly DfID) created TRANSFORM (Opens in a new window) to support social enterprises that meet low-income household needs in developing countries. TRANSFORM’s aim is to enable 100 million people in sub-Saharan Africa and South Asia gain access to products and services that have been shown to improve health, livelihoods, the environment or wellbeing by 2025. So far it’s reached around 4 million people.

TRANSFORM is supporting a range of social enterprises and distribution models. These include Kasha, a mobile e-commerce platform in Rwanda, and UJoin, a mobile-friendly online community in Nairobi, Kenya, for owners of 'base of the pyramid' shops.