Seeing the Potential of Traditional Warungs Innovating Using Technology

The #TuesdayStartup session is back and this time it explores the role of technology in improving SME businesses in Indonesia by empowering traditional stall owners. Smart Shop, which was initiated by East Ventures, has a vision to raise the class of traditional warungs to be able to compete with modern retail outlets.

Present as a speaker is the COO of Warung Pintar Harya Putra who further discussed what the current condition of traditional warung ownership is and how technology can help them run their business better.

Condition of traditional stall

Since the first, traditional stalls have been present in various areas, offering food products, beverages to household needs for the general public. The concept is simple, relying on the relationship between the shop owner and the buyer, making the traditional shop routinely visited by buyers.

However, the fact is that currently, of the approximately two million more traditional warungs available in Indonesia, most of them are not equipped with a consistent number of products, an accurate inventory system, efficient financial management, and marketing activities.

Some of these shortcomings make traditional warungs old-fashioned and seem reluctant to change and innovate. Warung Pintar then tries to bridge the needs of the shop owner by beg relevant to improve services.

"We see that warungs will never be able to compete with modern retail outlets if there is no change. For that reason, we began to develop services," said Harya.

The role and application of technology

It is undeniable that technology ultimately becomes very important so that traditional stalls can transform for the better. Harya sees the great interest of the Indonesian people who want to become business owners or entrepreneurs.cater with the application of technology. Traditional stalls can also take advantage of this technology with the implementation of IoT and data analytics. Warung Pintar wants to help shop owners become smarter in running their businesses using technology.

The more accustomed Indonesians are to using smartphones and the increase in internet penetration are considered to help accelerate the innovation process of traditional warungs adopting technology.

"Our concept is certainly simple, namely women empowerment and continue to support traditional stall owners. On the other hand, Warung Pintar is still learning how to provide useful services," said Harya.