About the company

SnappRetail is a retail fintech startup, focusing on digitalizing traditional trade in Pakistan. Our Micro ERP empowers retail owners to digitalize Sales, Inventory Management, Credit Management, Stock Ordering, Analytics, Micro-lending, Digital payments, and Ecommerce for both B2B and B2C. Through SnappRetail's systems, traditional retailers can optimize their functions strategically, fostering growth and competitiveness in today's landscape.

Should I be a trader to invest in the stock market?

Today technology is reshaping industries and lives globally. Over the last decade, ground breaking advancements have revolutionized all sectors, enhancing their capabilities. The retail industry also has undergone a technological revolution. Complex retail operations occur continuously, involving thousands of consumers in a given area. Modern trade and e-commerce have utilized technology to enhance efficiency across the value chain. While these players have benefited from better access to technology, capital, and resources, traditional trade remains significant in developing economies like Pakistan, India, Brazil, and Indonesia.

The potentialimpact of SnappRetail  on  the retail sector is huge, creating  value  thatextends to millionsof  lives  across Pakistan. Our goal is toonboard millions of traditional traderetailers, triggering a ripple effect with far-reaching consequences. The user-friendly interfaceof  the  Micro  ERP  streamlines retailers' day-to-day activities, offering a seamless  experience  that  has  garnered positivefeedback  from  our  onboarded retailers.

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Automation out of data darkness – Capability of Snapp Retail:

SnappRetail devices, which include a E-POS, hardware & software device  are  placed across each of the Snapp stores. When a customer walks in-store and makes a purchase, the transaction is recorded in the device. This helps the SnappRetail track customer purchase journey through the SnappRetail system, allowing us to better understand shoppers and  consumer behaviors. Our team of data  analysts and data scientists review this  data to  identify key insights for all categories in stores. We are sharing this information across stakeholders and partnered organizations customized to their needs.

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SnappRetail Presence

SnappRetail has penetrated across every area in the city of Karachi. With a presence of over thousand stores acrossthe city we have data from every kind of traditional retailerincluding general trade and kiryanastores. The highestcontribution of sales of the entire city come from the following localities:

• DHA/Clifton
• Johar
• Gulshan

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SnappRetail Insights

Traditionally, Pakistan's Retail Audit heavily relied on 'claimed' data gathered by field personnel, who depended on retailers' memory recall. This practice persisted due to the absence of a well-structured data collection approach, especially from traditional trade, which contributes approximately 75% to the retail industry. However, SnappRetail's innovative solution strategically places devices within stores, marking a significant advancement in Pakistan's retail audit industry. With SnappRetail,  we embrace Point of Sale (POS) scan data, acknowledged as the gold standard in the Consumer Packaged Goods (CPG) industry. This transformation enables us to analyze trends with unparalleled precision, providing decision-makers critical information  to excel.

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Category wise analysis

Our comprehensive collection of information from traditional retail sales reveals food & beverages has the  highest value share at 70%. What stands out remarkably is the contribution of Tobacco sales as 12% surpassing the sales of Personal Care items. This contrast is particularly   intriguing when viewed in  the national context, where Personal Care products maintain a significantly higher market share than Tobacco.

Our further findings suggests that thissubstantial surge in Tobacco sales, can be primarily attributed to the prevalence of top-up itemsin Kiryana stores,where Tobacco productsare often included alongside grocery purchase. Another reason could be the mounting inflation rate plus a substantial tax increase, resulting in a substantial price increase of up to 40%in 7-month impacting value sales.

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SnappRetail Insights

Category: Food

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Within the Food & Beverage category, food staple essentials  that include rice, sugar, all category flour, pulses, dry fruits, vermicelli, have the highest value sales as these are consumed on a daily basis in every household followed by sales  of edible  oils  and dairy products.

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Food Inflation Analysis: Pakistan (January 2023 - July 2023)

Over the span of 7 months, Pakistan witnessed a notable  trajectory in  food  inflation, reflecting a complex interplay of domestic and global factors. This analysis delves into the key drivers and implications of the observed:

Global Commodity Prices: A primary catalyst behind Pakistan's food inflation during this period was the surge in global commodity prices. Staple food items such as edible oils, grains, flour and pulses are influenced by international market dynamics, and fluctuations in global supply and demand directly impacted local prices due to currency devaluations. Our data shows, that over the 7-month period a 14% rise in the price of 5kg wheat flour was observed as shown by the unit price points and interquartile ranges.  Similarly,  for  1 Litre vegetable oil and ghee, 6% overall  inflation was  observed as  displayed  by the  graphs below. While prices have all seen a surge consistently,  the impact  has  been the  highest  in March dedicated to demand levels in Ramadan.

Energy Costs: Elevated energy costs, including those associated with transportation and food processing, directly influenced food prices. Data from the ministry of finance shows that over the 7-month period from Jan –July ’23 fuel prices have seen a massive surge to 18%. Escalating energy expenses added to the overall production costs of food items, subsequently impacting their retail prices.

Climate Variability: Weather anomalies, such as unseasonal rains,  floodings  and temperature fluctuations, affected agricultural output. Crop losses due to adverse weather conditions leading to  supply  shortages, thereby  amplifying  the inflationary  pressure  on food items.

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Unit price range of 1 litre Vegetable Oil & Ghee

Unit Price Range by month of 5KG Wheat Flour Bag

Category: Tobacco

Our findings reveal a sustained dominance of Local cigarettes, attributed to many factors such as pricing, flavor and nicotine levels. Notably, imported cigarette sales have seen a slight surge in recent months. Our experts believe this is the cause of the recent government taxation and policy regulations.

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Imported VS Local

Cigarette consumption

More than 31 million Pakistani adults (above

15 years) or about 19.7percent of the total adults use some of tobacco  which is  one  of the highest in the world. The interviews with the smokers and  data  collected from  few cities show that they are now  saving  the money by quitting  smoking to  fulfil  other needs like food, education and health of their children, and paying  the  utilities, according to the study released by “Capital Calling”.

Our data (Jan - May)showed that there has been a significant increase in prices of cigarettes' with approximately more than 70% increase in prices of brands such as Parliament & Morven and around 100%price increase  in  prices of brands like Dunhill& Marlboro.

Analyzing demands, in February  2023, the government increased the FED by 200 percent for the current fiscal year, causing  imported cigarette sales to drop considerably and causing a switch to local brands.

 This move however generated an additional 4.4 billion VAT  revenue. However, this also  caused  a  31.7% decline in the declared production of cigarettes in the fiscal year 2022-23compared to the previous year.

 Furthermore the government in the federal budget equalized  taxation of Local and Imported cigarettes  that caused a slight increase in recent months.

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Category: Personal Care

Category; Home Care