Kirana Stores

In the race for dominance in India’s retail market by global and domestic players, India’s Kirana stores (the local neighborhood stores) hold the key as they dominate the grocery and the fashion market. In the USD 700 B Indian retail market, a large +85% spend of the Indian consumers is with the Kirana stores, making them the backbone of the Indian retail industry. The Kirana network, that spans the length and breadth of the country, cannot be ignored or killed. Unlike the western retail markets, the mom-and-pop stores in the eastern markets such as India and China have to be embraced to digitize and revolutionize retail and consumption. The Kirana network of stores across India have stood the test of time by being highly relevant and have resisted the predatory power of eCommerce and Supermarkets. By industry estimate there are about 10 to 15 M Kirana stores in India and so are an enormous estate. These stores remain relevant and thrive based on their value propositions of (1) local access and convenience, (2) having locally relevant goods, (3) the store owner’s amazing pulse on the needs of the local consumers, (4) building personal relationship with customers, (5) providing a relationship based credit facility to known and regular customers, (6) free home delivery by the store staff and, (7) serve as a local community building venue. Exactly what the eCommerce players and Supermarkets have been trying to get to. The deeper knowledge of the local consumer needs helps the stores manage a simpler and relevant SKU assortment, efficient inventory turn over and higher utilization of smaller and premium real estate space. These factors make the Kirana retail model more profitable than the eCommerce Retailers and Supermarkets. The utility of the Kirana store, in the Indian context, embodying glocalism  at its best has been underlined in the present scenario wherein mankind is virtually in the grip of a pandemic and deglobalization has become the buzzword.

Read more at:

https://medium.com/@VaidyRajamani/the-power-of-kirana-stores-transforming-indian-retail-f5ac198f7bbc