SHOPRITE MIGHT BE

SHOPRITE MIGHT BE SHOPRITE MIGHT BE SMART MOVE COME BACK TO BITE THEM. HEAR ME OUT. EVERYONE IS LOOKING AT THIS SHOPRITE REFILL CONCEPT SAYING, WOW, SHOPRITE IS COPYING SKUBU. BUT I THINK BIGGER BUSINESS STORY HERE. SKUBU LOOKED AT THE SOUTH AFRICAN CONSUMER AND IDENTIFIED A PROBLEM. THE LESS MONEY YOU HAVE, THE HARDER IT IS TO BUY IN BULK. YOU MIGHT HAVE 20 RANDS IN YOUR POCKET. YOU DON'T NEED A WHOLE TWO LITRE BOTTLE OF OIL. YOU NEED 10 RANDS WORTH. SO SKUBU BUILT A MODEL AROUND EXACTLY THAT. BUY WHAT YOU NEED, PAY FOR WHAT YOU TAKE, REDUCE PACKAGING, REDUCE THE UPFRONT COSTS AND MAKE EVERYDAY ESSENTIALS MORE ACCESSIBLE. THAT'S POWERFUL. I LOVE IT BECAUSE JUST SELLING GROCERIES, THEY WERE CHANGING THE WAY PEOPLE THINK ABOUT GROCERY SHOPPING. THEN YOU'VE GOT SHOPRITE. SHOPRITE HAS THE STORES, THE SUPPLY CHAIN, THE BRANDS, THE BUYING POWER, THE CUSTOMER BASE. AND NOW THEY'RE PUTTING REFILL DISPENSERS INTO THEIR RETAIL ENVIRONMENT. AND HONESTLY, FROM SHOPRITE PERSPECTIVE, I UNDERSTAND IT. THEY'RE RESPONDING TO A REAL CONSUMER NEED. WHERE THINGS GET VERY INTERESTING. SHOPRITE COULD BE CREATING A NEW MARKET THAT IT DOESN'T FULLY CONTROL. BECAUSE TRADITIONALLY SHOPRI ADVANTAGE IS COME YOUR GROCERIES. OIL, YOU'VE GOT YOUR FLOUR, YOUR SUGAR, YOU'VE GOT YOUR WASHING POWDER, YOUR WHOLE GROCERY LIST. YOU WALK THROUGH THE STORE AND FILL YOUR TROLLEY. BUT NOW YOU'RE TEACHING THE CONSUMER SOMETHING COMPLETELY DIFFERE YOU'RE TEACHING THEM THAT YOU DON'T BUY THE WHOLE PACKAGE. YOU CAN BUY 300ML, YOU CAN BUY 350 G, YOU CAN BUY 5 RAND WORTH. EXACTLY WHAT YOU NEED. AND ONCE YOU TEACH CONSUMERS THAT, YOU CAN'T UNTEACH IT. AND THAT IS WHERE I THINK SHOPRITE NEEDS TO BE CAREFUL BECAUSE SUDDENLY YOU'VE CREATED A CONSUMER WHO'S NO THE PACK SIZE, THEY ARE LOYAL TO THE PRICE AND QUANTITY THEY NEED. AND NOW YOU'VE OPENED AN ENTIRE MARKET FOR REFILL BUSINESSES. TODAY IT'S SHOPRITE. TOMORROW, A SMALL INDEPENDENT REFILL STORE AROUND THE CORNER, SHOP, THEN A TOWNSHIP ENTREPRENEUR WITH THREE MACHINES, THEN ANOTHER SUPERMARKET IT'S A WHOLE CHAIN AND NOW SHOPRITE HAS HELPED EDUCATE THE ENTIRE MARKET ABOUT A COMPLETELY BUYING GROCERIES. THUS THE PARADOX. SHOPRITE HAS THE SCALE TO DOMINATE REFILL RETAIL. BUT BY NORMALISING REFILL RETAIL, THEY COULD ALSO MAKE IT EASIER FOR SMALLER PLAYERS TO COMPETE BECAUSE CONSUMERS WILL ALREADY UNDERSTAND THE CONCEPT. THEY WON'T NEED EDUCATING. AND THAT'S EXACTLY WHAT SKUBU WAS DOING FROM THE BEGINNING, EDUCATING THE MARKET. NOW LET'S TALK ABOUT US, THE CONSUMERS. THIS COULD ACTUALLY BE FANTASTIC. FOR US BECAUSE COMPETITION IS ABOUT TO GET INTERESTING. IF I CAN WALK INTO SHOPRITE AND BUY 10 OIL AND ANOTHER REFILL STORE OFFERS ME 10 RAND WORTH WELL. NOW THESE BUSINESSES HAVE TO COMPETE ON PRICE, ON CONVENIENCE, ON LOCATION, ON QUALITY, ON TECHNOLOGY, AND ULTIMATELY VALUE. THEY HAVE TO COMPETE ON VALUE. AND THAT'S GOOD FOR CONSUMERS. BUT HERE'S WHERE THE SCOOP FOUNDER. IMAGINE BEING THE SMALL ENTREPRENEUR WHO WALKS INTO AN UNDESERVED COMMUNITY AND SAYS THERE'S A BETTER WAY TO BUY GROCERIES. YOU PROVE THAT PEOPLE WANT IT. YOU PROVE THE BEHAVIOUR. YOU BUILD THE TECHNOLOGY, YOU TAKE THE RISK. AND THEN ONE OF THE BIGGEST RETAILERS IN AFRICA STARTS ROLLING OUT SOMETHING REMARKABLY SIMILAR. I'M NOT SAYING SHOPRITE STOLE SCOOBY'S IDEA. THE REFILL TECHNOLOGY PREDATES SCOOBY AND SMART FIELD HAS BEEN DEVELOPING AND DEPLOYING THESE INFORMAL RETAIL. BUT COMMERCIALLY, SCOOBY HELPED MAKE THIS CONVERSATION IMPOSSIBLE TO IGNORE. AND HERE'S MY BIGGEST, BIGGEST QUESTION. WHAT HAPPENS WHEN THE SMALL ENTREPRENEUR PROVES THE FUTURE AND THE GIANT CORPORATION HAS THE RESOURCES TO SCALE IT? MAYBE SKUBU'S VICTORY IS THAT COMPANIES LIKE SHOPRITE ARE NOW TAKING THE PROBLEM SERIOUSLY. BUT THERE'S ANOTHER LESSON HERE FOR ENTREPRENEURS. DON'T JUST BUILD A PRODUCT, BUILD THE CATEGORY, BECAUSE IF YOU CONSUMER BEHAVIOUR, YOU'VE CREATED SOMETHING THE BUSINESS. YOU'VE CREATED A MARKET. AND SHOPRITE MIGHT THE DOOR TO THE QUESTION IS, WHO WALKS THROUGH IT NEXT?