Breaking the Sachet Cycle

How the Wala Usik Economy is Redesigning Small-Scale Retail

In Numbers

 

• 1.3 million sari-sari stores nationwide
• 2,000 sachets sold by a store on average annually
• 19 Wala Usik Sari-Sari Stores

Details

 

In 2015, the fight against ocean pollution was in full swing, with organizations like the Philippine Reef and Rainforest Conservation Foundation, Inc (PRRCFI) holding ocean clean-ups in an effort to keep our oceans free from waste and a healthy habitat for fish. However, despite their best efforts, plastic remained one of the biggest threats to the health of our oceans. In 2017, PRRCFI recognized that no matter what best practices they enforced, one threat they couldn’t stop was plastic waste. In order to truly address the issue, it was necessary to tackle the source of the problem, rather than just continually cleaning up the aftermath. In response, they began working at the point of purchase of these plastics — sari-sari stores — to implement better waste management practices in these stores, as well as promoting marine conservation efforts.

The Philippines is home to 1.3 million sari-sari stores, a ubiquitous business model that provides essential consumer goods to communities at an affordable price. The success of the sari-sari store model is heavily reliant on fast-moving consumer goods such as personal and home care items, household condiments, and processed food, which are sold in small, single-use portions packaged in difficult-to-recycle plastic sachets. Despite the convenience, affordability, and established logistics of this model, it poses a challenge to shift away from the use of single-use plastic packaging. The question arises: is it possible to redesign the sari-sari store so that goods can still be sold in small quantities with competitive pricing, but without relying on single-use plastic sachets?

This has been a difficult task, but PRRCFI has been working on a solution since 2017, termed the "Wala Usik Economy". The adaptation of circular economy principles to the local community is crucial because using terms like “zero-waste” or “circular economy” can alienate the intended audience. To overcome this, principles were communicated in the local language which the community could relate to, such as “Wala Usik” or “nothing is wasted.” In order to successfully implement the model, PRRCFI has employed a range of approaches, including innovative social marketing and collaborations with community leaders, local government units and schools. A design thinking workshop was held a year later, bringing together stakeholders from sari-sari stores (“Wala Usik Sari-Sari Stores”), the DTI, and Fast-Moving Consumer Goods (FMCG) brands. The approach of design thinking enabled all parties to co-create, innovate, and continually improve business models to establish a circular economy model. The workshop was a three-part process conveyed in the community’s native language, making it more inclusive for them to participate in: Intiendehon ‘ta (Let’s understand), Ideyahan ‘ta (Let’s think about it), Implementar ‘ta (Let’s do it).

The Wala Usik model was piloted with 8 existing sari-sari stores, with the most notable change being the introduction of micro-refill stations for certain products that could be sold in small amounts by weight or volume. Several barriers were identified, such as the need for technical and financial support to enable the transition. Sari-sari store owners were especially concerned about the work involved in cleaning and sanitizing the reusable containers to be used for the Wala Usik model. The initial costs for the transformation were funded by partners such as the USAID in the first round of prototyping, and later by EU and GIZ for 11 more microbusinesses. Similar support was also provided to 2 stores in the areas of Samal and San Isidro, Davao Oriental through funding from WWF Philippines' Plastic Smart Cities project.

By using monitoring tools, the Wala Usik Economy team evaluated the financial viability, community acceptance, and most importantly, the reduction of plastic waste of these prototype Wala Usik businesses. The results of this ongoing design process are providing valuable insights and solutions to address the sachet issue in sari-sari stores and other key players in the value chain, including FMCG producers, regulatory bodies, and local suppliers who could adopt more sustainable methods of logistics.

The community response to the project was initially positive due to prior community preparation, which included campaigning and colorful murals, as well as the novelty factor of the stores. Despite the good start, the community response declined when they though they had to take care of the reusable container used. Thus, the model had to depend on adoption of the advocacy rather than the behavior itself, as convenience would always win and when practicality comes into play, people tend to choose more practical, affordable, accessible, and convenient options.

Another key finding is that FMCG brands must be part of the equation to make circularity a reality. Through its pilot projects, the Wala Usik team found that consumers will still have brand preferences, often for products that are distributed by large FMCG companies (e.g. coffee, shampoo, instant noodles). They also found that it is not socially equitable to not offer products in small and affordable quantities, and it is a learning process to design a system that delivers these products without waste.

Thus, there is much room for FMCG brands to participate in the Wala Usik Economy. Executing on their public commitments to reduce public waste, there is significant opportunity for brands to invest in redesigning their systems to allow for circularity, especially in downstream solutions to ensure that no plastic waste is leaked into our ecosystems. This will be crucial for MSMEs looking to participate in the circular economy, as they will be dependent on having an alternative supply chain for circular products. With the recent issuing of the Extended Producer Responsibility (EPR) implementing rules and regulations (IRR), it is prime time for large-scale companies to heed the call and establish a mechanism for the recovery of their plastic packaging.

The Wala Usik model has had a range of positive effects so far. On average, one store can prevent over a thousand sachets in a 6-month period. In addition, it has been successful in terms of media coverage, with many people being reached over the last 5 years. Local communities have become more aware of the environment and the consequences of single-use plastic packaging, which has had a positive effect on the local economy, as well as the general public's attitude towards the environment and waste management. This incentivizes customers to purchase reusable containers and materials, while also providing them with a greater variety of quality and affordable products that are endorsed by the FDA, allowing communities to benefit from a more sustainable lifestyle.

Just recently, the Wala Usik Economy team released its toolkit for MSMEs implementing zero-waste and circular business ideas, sharing insights gathered through its five year journey, aiding in our country’s transition to a circular economy. Going forward, the team continues to innovate and test out ideas that enable circularity while remaining relatable and accessible to local communities. The team calls on MSMEs, local government units, FMCG brands, and consumers to build on these ideas and become a part of this ongoing journey towards building a circular economy.