PMI Builds Commerce Engine to Glean Customer Insights

Why It Matters

The engine gives PMI visibility into a high‑risk, illicit‑dominated segment, protecting legal sales and accelerating the shift to reduced‑risk products across underserved regions.

Key Takeaways

• Counterfeit tobacco makes up 75% of South Africa’s market
• USSD platform works on low‑tech feature phones
• Real‑time ordering curbs stockouts and illicit competition
• Data fuels forecasting and smoke‑free product education
• Solution being rolled out across multiple African countries

Pulse Analysis

Illicit tobacco continues to erode legitimate market share in many emerging economies, with South Africa’s informal sector bearing the brunt. Small convenience stores and general‑trade outlets, often operating in rural or low‑income neighborhoods, lack the digital infrastructure and training to engage with traditional B2B platforms. PMI recognized that without granular insight into these micro‑retailers, the company could not accurately gauge demand, combat counterfeit penetration, or guide consumers toward reduced‑risk alternatives. By targeting the hidden market, PMI aims to close the data gap that has historically favored illicit distributors.

The technical heart of PMI’s initiative is a USSD‑based commerce engine that runs on basic feature phones, sidestepping the need for internet connectivity or high digital literacy. Retailers simply dial a short code, select products in their preferred language, and place orders as small as ten cigarettes. To make such micro‑orders viable, PMI contracts local scooter drivers who bundle deliveries, keeping logistics costs low. The platform also embeds educational prompts about smoke‑free products, turning each transaction into a brief public‑health touchpoint. Unstructured supplementary service data (USSD) feeds back real‑time sales signals, enabling the company to predict inventory needs and pre‑empt stockouts that would otherwise be filled by illegal sources.

Early pilots show a measurable lift in wholesaler order volumes and tighter shelf availability, indicating that the engine is improving supply chain efficiency while gathering actionable consumer insights. PMI’s market‑agnostic architecture allows rapid adaptation to differing regulatory environments and infrastructure constraints across Africa, positioning the company to replicate the model in other high‑illicit‑risk markets. For FMCG firms, PMI’s approach illustrates how low‑tech, data‑driven solutions can unlock growth in informal economies while supporting broader public‑health objectives.