Kirana Stores – The Newfound Trust During the Lockdown – Why & How?

Over the past few years, the stories of the local Kirana store have been revealed several times. With several developing channels of eCommerce that provide features like cash on delivery, home delivery, etc. the owners of local kirana stores would have been worried. The local stores are concerned that India is moving towards a western economy and might affect their business. Unlike the concerns, the local kirana stores control the market in India by 85% of the economy. Modern trade only constitutes only 15% of the trade market with e-commerce and other technologies. Although the modern trade system could have taken up the market in India, the services of the kirana stores over the lockdown have extensively increased their chances of being the primary channel of FMGC purchases for the next decade.

Here are some of the main reasons why kirana stores are likely to dominate the channel for the future years:

Unique Benefits of Kirana Stores in India

Local kirana stores provide the local communities with a convenience that other stores cannot provide. India is a country with a large population, narrow lanes, and fewer parking spots. Local kirana stores help reach every community and provide efficient products. Additionally, the benefit of local kirana stores extends to familiarity, trust, and home deliveries that e-commerce stores cannot provide. Categories like fruits, vegetables, and meat require freshness which e-commerce stores cannot always guarantee and customers prefer to get a hands-on approach that only local stores can provide. Moreover, grocery shopping is an experience as residents get to take a stroll and relax while buying a few household requirements.

Unorganized Kirana Stores are the Primary channel for FMGC Products

In countries similar to India, namely Indonesia, Bangladesh, Sri Lanka, etc. unorganized trade is one of the most efficient ways in the region and consists of 60-70% of the market. Given the nature of the roads, population density, and traffic it is unlikely for modern and organized trade to bloom in this country and local kirana sores will dominate the industry and continue to be the choice of purchase for all people. Organized trade requires wide roads, systematic traffic, and low fuel costs, which are difficult to find in developing countries, increasing the chances of local kirana stores dominating the market.

Efficiency and Attractiveness to Local Kirana Stores

Local Kirana stores have been the center of innovation and development for the past few years. It is also expected that the trend will continue for the following years and several organized wholesale platforms will become active participants in the supply chain for the local kirana stores. Moreover, local kirana stores are collaborating with several e-commerce platforms like JioMart, Amazon, and other platforms that provide better services o the customer end enhancing the experience.

Modernization of Local Kirana Drinks

With several technological advancements in the industry, it is interesting to visualize the types of features local kirana stores will provide in the next few years. Over the years, kirana stores were always customer-oriented and focused on providing the best products and experiences for the customers. In recent years, they have started to revamp their infrastructure and changed the stores into self-service formats or small supermarkets. The process is likely to accelerate as several international companies are open to collaborate with local stores to create local supermarkets for the community. Moreover, these stores have several loyalty rewarding features that encourage customers to shop with very little change inexperience.

COVID-19 Realization

The Covid outbreak has propelled the world into an unexpected future. Experts believe that shopping for essential goods is largely habit-driven and the increasing awareness of social distancing and health will divide the consumers into online and offline shopping categories.

According to an FMCG firm, eCommerce stores, small shops, and large convenient stores are the biggest suppliers in the market. The fear of crowing these shops has turned several consumers to the online shopping platform or stay away from large convenient stores. The phenomenon has further increased the usefulness of local kirana stores which are easy to reach and less crowded.

The increase of BOPIS

Buy Online and Pick in Store is a significant shopping behavior in India. The recent changes in technology and health concerns are expected to increase the behavior as it enables customers more freedom. Local kirana stores can base businesses on digital carts and payment methods to provide customers with a safe shopping experience that abides by all the social distancing rules.

Wrapping Up! Collaboration of local kirana stores with powerful digital tools can ensure a dominated market. While the technologies open several features for the customers, it also opens the local stores to multi natural stores with a large inventory, warehouses, logistics, cold chains, etc. These things working aside local kirana stores can provide the best experience and ensure customer loyalty that can improve their hold in the market.

2 thoughts on “Kirana Stores – The Newfound Trust During the Lockdown – Why & How?

  • August 13, 2021 at 10:41 am

    Superb! There are some good things here. I thank you for your good thoughts in the write-up, and I like everything else about your website. I’m interested in this since it has a personal connection for me. Many, many thanks! But where can I find your contact information?

  • August 13, 2021 at 10:41 am

    This is a terrific read, and I want to express my gratitude to you. Every single minute of it was completely enjoyable for me. I’ve bookmarked your site so that I can come back and see what you’ve been up to.


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