Libera Global AI and Kaya Credit recently announced a strategic partnership to introduce AI-powered retail trade analytics to the Philippines, which may greatly boost the effectiveness of MSME digital tools.
The collaboration will deliver advanced analytical tools to the Philippine retail sector, where MSMEs – locally known as ‘sari-sari stores’ – play a vital role in driving retail activity. These neighborhood stores collectively generate over US$70 billion in annual sales of fast-moving consumer goods (FMCG) and consumer packaged goods (CPG). With the partnership, MSME retailers and brands will be able to access data-driven insights to enhance their business decision making, for instance by optimizing stock availability and stocking products that may potentially increase sales. An MSME retailer, for example, will be provided with data-driven insights that can guide their inventory forecasting decisions to minimize situations where they are out of stock or have overstocked a product.
The approach taken by Libera and Kaya Credit will introduce a blockchain-based reward system, where retailers will receive $LIBE tokens for contributing real-time data on stock levels, product placement, and sales activity. This combines elements of a crowdsourced model of retail data while also incentivizing participation and improving data accuracy at scale. MSME retailers will be empowered to monetize their insights from day-to-day operations while supporting more effective decision making across the value chain.
The partnership will leverage the Display AI and Digital Voucher Distribution (DVD) solutions provided by Libera to assess product availability and improve sales execution. This will include monitoring retail conditions such as product placement, stock levels, and on-shelf availability as well as promoting customer engagement with discounts, offers, and rewards that are aligned with inventory levels. The involvement of Kaya Credit will provide MSMEs with ready access to credit solutions such as inventory financing and business loans to support or expand business operations.
Earlier this year, Libera Global AI also announced a partnership with Malaysia-based Hive marketing which aims to improve retail engagement for small merchants in the Asia Pacific region by utilizing digital solutions that enhance customer loyalty, interaction, and in-store visibility. These new developments and novel approaches in utilizing AI-powered tools will breathe new life into the quest to provide MSMEs in emerging markets with cutting edge digital tools.
By improving the operational efficiency of MSMEs, these digital tools also improve the ability of small merchants in emerging markets to gain access to financial services, such as credit, where approval is granted based on business performance. Thus, MSME digital tools, whether financial or operational, complement each other in practice and are both essential components of a small merchant’s suite of digital solutions.