Abstract
This study examined the issue from the perspective of SDGs Issues of “Poverty” and “Women’s Independence”. In the world, more than 700 million people, or 10% of the population, live in extreme poverty, and nearly 60% of women work in the informal economy, which increases the risk of falling into poverty. Therefore, to grasp their actual situation and solve the problems, based on previous studies and the author’s field research, this chapter discusses the consumption activities of the BOP, which represents the base of the economic pyramid that constitutes the income bracket, as well as the sari-sari stores, a generic term for micro-retailers that play a major role in the Philippines. In addition, I took up Nestlé Philippines, San Miguel Brewery, and Yakult Philippines, which are manufacturers of processed beverages and foods, as examples of how manufacturers utilize the sari-sari stores in their business, and examined their channels and marketing strategies through the sari-sari stores. As a result, in order for companies to make profits targeting the poor, they need to devise ways to distribute their products to sari-sari stores, and sari-sari stores enable women to become economically independent, create employment for shopkeepers and vendors, and supply daily necessities.
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Notes
- 1.
United Nations, “Goal 1: End poverty in all its forms everywhere”, https://www.un.org/sustainabledevelopment/poverty/. Accessed January 30, 2021.
- 2.
United Nations, “Goal 5: Achieve gender equality and empower all women and girls”, https://www.un.org/sustainabledevelopment/gender-equality/. Accessed January 30, 2021.
- 3.
Sari-sari means “various” in Tagalog.
- 4.
1998 Prahalad and Hart conceived the term “BOP”. The term “BOP” refers to the bottom of the economic pyramid, which consists of income groups. The word “Pyramid” means “the base of the economic pyramid”. Pyramid means “the economic pyramid that constitutes the income stratum” and represents the distribution of wealth in the world and the ability to generate income.
- 5.
The World Bank, “Philippines Economic Update October 2019”, https://www.worldbank.org/en/country/philippines/publication/philippines-economic-update-october-2019-edition. Accessed January 30, 2021.
- 6.
US dollar, purchasing power parity.
- 7.
US dollar, purchasing power parity.
- 8.
Hammond, et al. (2007), p. 3, p. 9.
- 9.
United Nations, “Total Population-Both Sexes”, https://population.un.org/wpp/Download/Files/1_Indicators%20(Standard)/EXCEL_FILES/1_Population/WPP2019_POP_F01_1_TOTAL_POPULATION_BOTH_SEXES.xlsx. Accessed January 30, 2021.
- 10.
Philippine Statistics Authority, “Table A—Population and Annual Growth Rate for the Philippines and its Regions, Provinces, and Highly Urbanized Cities”, https://psa.gov.ph/sites/default/files/attachments/ird/pressrelease/Table%20A%20-%20Population%20and%20Annual%20Growth%20Rate%20for%20the%20Philippines%20and%20its%20Regions%2C%20Provinces%2C%20and%20Highly%20Urbanized%20Cities_AGBA_0.xlsx. Accessed December 27, 2021.
- 11.
The World Bank, “Population ages 0–14(% of total population)-Philippines”, https://data.worldbank.org/indicator/SP.POP.0014.TO.ZS?locations=PH&name_desc=true. Accessed December 31, 2021.
- 12.
The World Bank, “Population ages 15–64 (% of total population)-Philippines”, https://data.worldbank.org/indicator/SP.POP.1564.TO.ZS?locations=PH&name_desc=true. Accessed December 31, 2021.
- 13.
The World Bank, “Population ages 65 and above (% of total population)-Philippines”, https://data.worldbank.org/indicator/SP.POP.65UP.TO.ZS?locations=PH&name_desc=true. Accessed December 31, 2021.
- 14.
Mitsui Fudosan Residential, Mitsui Fudosan Realty, “Philippines real estate investment guide”, https://www.31sumai.com/concierge/pdf/real_estate_investment_guide_201907.pdf, p. 6. Accessed December 31, 2021.
- 15.
United Nations, “Median Age of Population”, https://population.un.org/wpp/Download/Files/1_Indicators%20(Standard)/EXCEL_FILES/1_Population/WPP2019_POP_F05_MEDIAN_AGE.xlsx. Accessed December 31, 2021.
- 16.
Miki (1993), pp. 147–148.
- 17.
Ibid.
- 18.
World Bank Group, “2015 World Development Indicators”, https://openknowledge.worldbank.org/bitstream/handle/10986/21634/9781464804403.pdf?sequence=3&isAllowed=y, p. 33. Accessed December 31, 2021.
- 19.
The World Bank, “Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population)—Philippines”, https://data.worldbank.org/indicator/SI.POV.DDAY?name_desc=true&locations=PH. Accessed December 31, 2021.
- 20.
A person who earns a living by picking up trash. A scavenger collects recyclable items, such as plastic bottles, copper wire, and gold and silver items, to sell in junk shops.
- 21.
ARC Country Situation Study Group by Country Situation (2018), pp.118–119.
- 22.
Philippine Statistics Authority, “National Accounts of the Philippines 1st Quarter 2017 to4th Quarter 2019(BASE YEAR: 2000),” https://psa.gov.ph/sites/default/files/Q4%202019%20NAP%20Publication-9ch3.pdf, p. 20. Accessed December 31, 2021.
- 23.
Iwanaga (2017), p. 1.
- 24.
Morishita (1970), p. 253.
- 25.
Ibid., p.346.
- 26.
Ibid.
- 27.
- 28.
Chen (1997), pp. 8–9.
- 29.
Philippine Statistics Authority, “2018 gender statistics on labor and employment”, https://psa.gov.ph/sites/default/files/2018%20Gender%20Statistics%20on%20Labor%20and%20Employment.pdf, p.149. Accessed December 30, 2021.
- 30.
Philippine Statistics Authority, “Female-Headed Families Have More Income Than Male-Headed Families”, March 28, 2011, https://psa.gov.ph/content/female-headed-families-have-more-income-male-headed-families-based-final-results-2009-family. Accessed December 30, 2021.
- 31.
Funahashi (2011), p. 51.
- 32.
Funahashi (2017), p. 204.
- 33.
A distribution channel is a distribution route for delivering a product from a producer to a consumer. In this study, I refer to the channels established by each company as “channels”.
- 34.
Anderson and Billou (2007), p. 15.
- 35.
Eyring, et al. (2011), p. 89.
- 36.
Prahalad and Liberthal (1998), p. 77.
- 37.
Karamchandani et al. (2011), p. 89.
- 38.
Nestlé Philippines, Inc., “History,” http://www.nestle.com.ph/aboutus/history. Accessed December 30, 2021. http://www.nestle.com/aboutus/history/nestle-company-history. Accessed December 30, 2021.
- 39.
Kirin Holdings, “Share Acquisition for Investment in the Beer Business of San Miguel”, https://www.kirinholdings.com/en/newsroom/release/2009/0220_01.html Accessed December 30, 2021.
- 40.
NIKKEI ASIA, “Kirin Holdings teams with San Miguel Brewery on soft drinks,” July 3, 2015, https://asia.nikkei.com/Business/Kirin-Holdings-teams-with-San-Miguel-Brewery-on-soft-drinks. Accessed December 30, 2021.
- 41.
Philippine Primer, “17-Nen no Hi Yakuruto hanbai 13-pāsento-zō, 4-nen renzoku futaketa zōka”(Yakult Sales Up 13% in 2017, Fourth Consecutive Year of Double-Digit Growth), https://primer.ph/economy/top_news/2017-philippines-yakult-sell-increase/. Accessed December 30, 2021.
- 42.
Yakult Honsha, “Overview of Yakult”, https://www.yakult.co.jp/company/pdf/gaikyo2020.pdf#page=33, p. 27. Accessed December 30, 2021.
- 43.
Yakult Honsha, “Supplementary Materials for Financial Statements For the Year Ended March 31, 2019”, https://www.yakult.co.jp/english/ir/management/pdf/19_04_hosoku_en.pdf, p. 20. Accessed December 30, 2021.
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Acknowledgements
I appreciate Nestlé Philippines on October 14, 2013 and November 11, 2013, San Miguel Brewery on October 14, 2013 and Yakult Philippines on June 10, 2013 and October 10, 2013 for the many lessons I learned during the interviews. I would like to special thank them.
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Funahashi, T. (2023). Sari-Sari Stores as Sustainable Business by Women in the Philippines. In: Hayashi, T., Hoshino, H., Hori, Y. (eds) Base of the Pyramid and Business Process Outsourcing Strategies. Springer, Singapore. https://doi.org/10.1007/978-981-19-8171-5_4
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