Shwapno aims to bring change to retail chain culture

The buying pattern of urbanites has changed radically in the last decade. And this was more so for the emergence of retail super chains in Bangladesh.

Urban people prefer chain-superstores over wet markets for ease of shopping. They can browse through the aisles filled to the brim with everything from fresh tomatoes to household supplies.

The reshaping of the retail business story in Bangladesh did not happen overnight, said Sabbir Hasan Nasir, executive director of ACI Logistics that owns retail chain Shwapno, in an interview with The Daily Star recently.

Retail chains began developing sporadically back in 2000, only targeting the upper and upper-middle class at the time.

In 2008, Shwapno appeared to bring about a change with the “best price with quality and value” motto, Nasir said.

People started coming to Shwapno for its low-price products, displayed in a clean environment, said the official, who graduated from Bangladesh University of Engineering and Technology, and holds an MBA from the Institute of Business Administration.

Moreover, a robust wholesale chain process was developed through a good understanding with suppliers, so that there is always an alternate source of products in case of scarcity, he said.

“We not only offered lower prices to attract consumers, but also focused on point-of-sales factors like good behaviour of our employees, global best practices, and essential product placement.”

But when market followers started a price war, Shwapno changed its strategy, Nasir added.

“We then shifted focus to consumer rights; the use of formalin was the talk of the town at that time.”

Shwapno introduced formalin test kits at all its outlets and customers could check their products by themselves.

“We knew it was not possible to make a paradigm shift in people's purchasing patterns, and so we chose to sell live fish in aquariums. People could see how fresh the fish were.”

Shwapno has now become a brand for all, as people value quality and ambience, said Nasir.

The introduction of Shwapno Life, the lifestyle section of the retail store, was part of its non-food diversification that all global retailers do for their product mix, he said.

The popularity of Shwapno Life surely proves its success, he added.

Shwapno's plan for the future is to increase its purchases more from the source, he said. It currently receives 30 percent of its products directly from the source, while they plan to take it to 100 percent.

Farmers should know who their final consumers are, to help improve the logistics value chain, Nasir said.

Shwapno is also planning to provide franchising opportunities to small and medium enterprises across Bangladesh. 

SMEs that lack working capital, brand understanding and technology can easily fulfil their dreams by being a franchise partner of Shwapno, he said. “We can educate them according to their needs.”

However, ensuring food nutrition will be the most challenging factor in retail business, said Nasir.

People are conscious about what they eat and that is why Shwapno and The Daily Star have taken up the initiative 'Know Your Food', he added.

In future, Shwapno also plans to go digital. “But for that, ensuring a proper e-commerce service blueprint is necessary.”

The interviewer is strategic project planner for business development at The Daily Star and can be reached at roy.tds@outlook.com.