Shwapno's story is no longer just about stores

For years, the biggest question in Bangladesh's food retail market was whether consumers could find what they needed at a price they could afford. That still matters, but it is no longer the only consideration.

Consumers today are asking where their food comes from, how it was produced and handled, and whether the price reflects its quality. They are also comparing products, looking for convenience and becoming more conscious about food safety.

Much of the change we have seen at Shwapno has been driven by this shift. Our customers deserve much of the credit for pushing us to improve.

We started developing our direct-sourcing model in 2012, working more closely with farmers, including small and marginalised farmers, and trying to remove unnecessary layers between producers and consumers. The objective was never simply to buy cheaper. It was to build a value chain where farmers could have better market access and consumers could get fresher products at competitive prices.

Infograph: TBS

Over time, however, we realised that direct sourcing was only part of the challenge. We also needed to improve how food was grown, handled and traced.

That led to our engagement with GLOBALG.A.P. in 2016 and the introduction of internationally recognised good agricultural practices into our sourcing ecosystem. Since then, more than 1,500 farmers have been trained on GLOBALG.A.P. protocols, with 15 crops and 100 farmers achieving GLOBALG.A.P. certification. Our focus on safe sourcing also extends to products such as chicken and beef, where food safety is particularly important.

As we progressed, we realised that direct sourcing alone was not enough. We also had to work on how food is grown, handled and traced. That led to our engagement with GLOBALG.A.P. in 2016, as we started incorporating internationally recognised good agricultural practices into our sourcing ecosystem. Since then, more than 1,500 farmers have been trained on GLOBALG.A.P. protocols, with 15 crops and 100 farmers achieving GLOBALG.A.P. certification. Our focus on safe sourcing also extends beyond agricultural produce to categories such as chicken and beef, where sourcing and handling standards are particularly important.

There is still a long way to go. Bangladesh's agricultural system is large and fragmented, and changing it requires farmers, government agencies, development organisations, retailers and consumers to work together.

For us, the direction is straightforward: get closer to the farmer, closer to the source and more transparent with the consumer, while ensuring better quality does not make food inaccessible.

Keeping the supply chain local

Bangladesh remains at the centre of our sourcing strategy. Finished imported products account for around 6% of Shwapno's total sales, meaning the overwhelming majority of what we sell is sourced from, produced in or manufactured within Bangladesh.

Our fresh categories tell an even more direct story. Around 60% of our vegetables are sourced directly from farmers across the country. The corresponding figures are approximately 40% for fish, 40% for dry vegetables and 20% for fruits.

These figures are about more than procurement. Direct sourcing gives us greater visibility over the supply chain, helps us build relationships with producers and can reduce unnecessary layers between the farm and the consumer.

Whenever quality, quantity, continuity and competitive pricing can be achieved locally, our preference is to source from Bangladesh. That creates opportunities for farmers, local manufacturers and businesses across the wider supply chain.

At the same time, Bangladesh cannot produce everything consumers need, and some agricultural products cannot be produced locally throughout the year. We therefore continue to rely on imported finished products in areas such as certain fruits, specialised food products and selected non-food categories where suitable domestic alternatives are not sufficiently available.

Infograph: TBS

The objective is not to reduce imports simply for the sake of a number. It is to maximise the economic value that can responsibly remain within Bangladesh while giving consumers the products they want at competitive prices.

A more thoughtful shopper

One of the clearest lessons from our consumer data is that Bangladeshis are becoming more thoughtful shoppers, rather than simply more premium shoppers.

Price remains critical, but consumers are increasingly weighing it against quality, freshness, convenience, pack size, authenticity and hygiene. They want genuine value for money.

The way people shop is changing too. Some households continue to make large monthly grocery purchases, while others are making smaller and more frequent trips closer to home. Convenience matters, but consumers are not necessarily willing to pay an unreasonable premium for it.

Digital behaviour is also changing expectations. Consumers can compare prices and promotions more easily, while online shopping is becoming an increasingly important part of buying everyday essentials.

For us, there is a simple lesson: a brand name alone cannot create loyalty. Trust has to be earned repeatedly, transaction by transaction.

Closing the gaps from farm to shelf

Bangladesh's retail supply chain still has several inefficiencies, but these are not problems a single retailer can solve.

Agricultural products can pass through multiple stages before reaching consumers. Aggregation remains fragmented, grading and standardisation are not always consistent, information does not always move efficiently, and cold-chain and handling infrastructure still have room for improvement.

Every unnecessary loss along the chain ultimately has a cost. It can mean a lower return for the farmer or a higher price for the consumer.

At Shwapno, we try to shorten that chain by sourcing closer to production areas, building longer-term relationships with producers, improving demand forecasting, consolidating transportation and setting clearer standards for handling and quality.

Our strategic partnership with Mitsui can support this effort through global expertise in sourcing, logistics, technology and operational systems as we strengthen and scale our supply chain.

Fresh produce makes the challenge particularly clear. Weather, production, demand and transportation can all affect freshness, so managing the category requires attention to hundreds of decisions across the supply chain.

We start by understanding where a product comes from, how it is grown, when it is harvested and how quickly it can move through the system. Grading, handling, transportation, demand forecasting and store-level replenishment then become critical, with food safety remaining a key consideration.

Wastage matters because the loss goes beyond the value of the food itself. When food is wasted, so are the farmer's effort and the water, land, energy and transportation used to produce and move it.

Private label with a purpose

There is an opportunity to develop more products under Shwapno's own brands, but we do not believe private labels should be created simply because they are popular elsewhere.

There needs to be a reason for the consumer. If we can improve quality, address an unmet need, offer greater transparency or provide meaningfully better value, then a Shwapno-owned product can make sense.

For now, our priority is to strengthen and expand our retail network, which has already grown to more than 1,001 stores. Production and private-label development could become a greater focus in the next phase of our growth.

We also recognise the role played by manufacturers and brands that have built Bangladesh's consumer market over decades. Private labels can, in turn, create opportunities for capable local manufacturers, farmers and smaller entrepreneurs with limited access to a nationwide market.

Our approach is therefore simple: value creation before brand creation.

Making retail growth inclusive

The future of organised retail cannot be viewed separately from the wider retail economy. Traditional retail will remain important. Millions depend on neighbourhood shops for their livelihoods, while these businesses provide convenience and relationships deeply rooted in local communities.

The growth of organised retail should not mean excluding that ecosystem. Modern retail should instead help bring better technology, supply chains, digital payments, food-safety practices and sourcing systems into a wider part of the economy.

Bangladesh still has room to improve its supply-chain infrastructure, cold-chain capacity, food-safety and traceability systems, logistics, digitalisation and access to finance for smaller businesses and farmers.

For Shwapno, becoming bigger simply for the sake of becoming bigger is not particularly inspiring. As a market leader, we also have a responsibility to strengthen professionalism and expand the reach and quality of customer service.

That responsibility becomes particularly visible during periods of inflation or shortages. When essential products such as edible oil or sugar suddenly disappear from the open market, we believe organised retailers have a role to play in protecting consumer interests. Shwapno tries to play that role, guided by its commitment to social responsibility.

Infograph: TBS

Ultimately, our growth should be measured by more than the number of stores we operate. If our expansion helps a farmer earn better, creates employment, gives a small entrepreneur access to a larger market, reduces food wastage or allows a family to buy better-quality products at a competitive price, then that growth has meaning.

Shwapno is only one participant in a much larger ecosystem. The real opportunity is to build a retail system in which consumers, producers and communities can all move forward together.

The author Sabbir Hasan Nasir is a managing director of Shwapno (ACI Logistics Limited).