2022 Global Report

Digitizing the Corner Shop

Indonesia Spotlight

Indonesia’s corner shops—known as warungs—are vital to the local economy
grocery sales chart
We spoke to 200 warung merchants and 200 of their customers. Here’s what we heard.
Indonesian corner shop
The warung is here to stay: 98% of customers plan to shop as much or more
warung consumer usage chart
The local market is still relevant: Most customers shop daily at their local warung, versus only 10% who shop online
warung purchase frequency chart
Indonesian shopper
“I stop by the neighborhood warung every day. It’s nearby, affordable, they sell a wide range of products, and the owner always has a smile for his customers—I have known him for a long time.”
The warung plays a valuable role in the community, providing convenience, customer service, and credit
consumer values and purchases chart
outdoor warung
Shopkeepers are are adopting digital tools and are eager for more
Digital tools usage chart
hands holding phone

Photo courtesy of TaniHub

“I didn’t have many customers when I first opened, but I’ve been able to sell much more because of my online presence. I don’t have to go to wholesalers because I can buy online at a reasonable price. Digital apps have greatly helped me buy and sell goods, so of course I’ll use more of them in the future.”
Most shopkeepers have some comfort with digital tools, but barriers remain
digital tools comfort chart
man holding phone
“I don’t have information about the digital tools that I might actually need. I might use more if there were salespeople who could introduce me to them and help me use them.”
barriers to adoption stats
Man looking at store inventory
“I’m busy taking care of my physical store, and so I don’t have time to build an online store presence.”
35% of customers had no complaints with their corner shop, while others cited a desire for more product variety
complaints and challenges chart
warung storefront
Shopkeepers struggle to finance their stores and face difficulties purchasing and managing inventory
pain points chart
female shopkeeper
“It often takes a full week to receive products, and I have to follow up to make sure that my goods arrive. Purchasing my products online will save time and ensure timely delivery.”
Quote with photo of shopkeeper
Warungs accept a wide range of payments in their stores
non-cash payments stats
cash crunch chart
Embedded finance can unlock opportunities that have eluded traditional financial institutions
digital tools barriers chart
shopkeeper sitting in front of store
Warung shopkeepers have ambitions to grow and improve their stores so they can continue to play a vital role in their communities.
At Flourish, we believe digital platforms have an opportunity to support them in this journey.
shopkeeper aspirations chart
Merchant and Customer Voices: Who We Spoke To

200 Warung Merchants Across 5 Cities

41%  Female
59%  Male

36%  30–39
28%  40–49
14%  50+

Less than 1 year
1–2 years
2–3 years
3–5 years
5+ years

Less than 500
Not sure / prefer not to answer


200 Warung Customers Across 3 Cities

55%  Female
46%  Male

24%  20–29
29%  30–39
27%  40–49
16%  50+

About This Report

Flourish Ventures launched this research to better understand corner shops across the globe and share learnings on how digital firms can serve their needs.

In partnership with research firm 60 Decibels and e-commerce platform TaniHub, we surveyed 200 Indonesian corner shop owners and 200 of their customers to learn firsthand about their business pain points, competitive threats, aspirations, and digital behaviors.

Authors: Smita Aggarwal, Stella Klemperer

flourish logo

Flourish is a global venture firm investing in entrepreneurs whose innovations advance economic opportunity and financial health for individuals and small businesses. We partner with industry leaders in research, policy, and regulation to better understand the underserved and help foster a fair, more inclusive economy.


60 decibels logo

60 Decibels is a tech-enabled social impact measurement and customer insights company working in over 75 countries. They combine deep impact measurement expertise, an integrated technology backbone, and a global network of 900+ researchers to make it easy for companies and organizations to listen to the people who matter most.


tanihub logo

TaniHub is Indonesia’s leading agritech and e-groceries start-up that connects farmers to supermarkets, warungs, hotels and restaurants for supply for fresh produce and food products.