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The discussion has always been about whether the consumer behaviour will shift from buying from small kirana stores to gigantic supermarkets. But amidst this global pandemic, the kirana stores have once again proven their viability. Let's find out how and let the data speak.
Back, and How
The neighbourhood mom-and-pop stores had lately been on a terminal decline, especially in cities, due to the consumer shift towards modern chain stores and online retailers. But as India entered its lockdown phase on 25th March, kirana stores are turning out to be a godsend for consumers due to their resourcefulness and agility.
Even as modern stores and online retailers struggle to deliver owing to supply chain issues and shortage of manpower, the neighbourhood grocery shops are putting in extra hours to ensure the supply of daily essentials to Indians.
According to the RAI (Retailers Association of India), the availability of essentials has been least impacted in India. This is because of the presence of kirana stores in every nook and corner of the country. Unlike the West, Indian consumers do not have to line up in front of supermarkets in serpentine queues.
Scenario in the Time of Crisis
India has a $400 billion grocery retail market. Despite the significant growth of e-commerce in the grocery segment, nearly 90% of the country’s retail is still dependent on the 11 million traditional grocery stores.
There has been a spike in consumer demand for certain items post lockdown due to uncertainty and panic buying. With online delivery not fully functional, most essentials have become out of stock, and orders are being frequently cancelled. This has led to a manifold increase in the sales of the mom-and-pop stores. In fact, many Resident Welfare Associations have partnered with local kirana stores to ensure household delivery of groceries and other essential commodities to residential complexes. Kirana owners are exercising precautionary measures and social distancing practices to ensure business continuity and safe transaction with consumers.
Tech in Aid: The B2B Supply Chain Tie-Up
But all of this comes with its own set of challenges. Local retailers are facing severe constraints of stock replenishment and procurement due to the rapid increase in demand. This has led to many B2B supply chain firms tying up with kirana stores to ensure the supply of essentials. Platforms like Near.Store, Jumbotail, ShopX, Ninjacart, and MaxWholesale have been a lifeline to mom-and-pop stores. They are instrumental in supplying products, providing workforce, and even bridging last mile challenges for the local retailers.
For example, Jumbotail is a B2B business that delivers stocks to kirana stores. To ensure a steady supply, its top 700-800 SKUs have been assigned to kiranas. It is also providing demand data to advise shop owners to stock up according to expected demand for specific items, besides helping them in route planning to optimize resource utilization.
Another startup, GoFrugal, is offering cloud and mobile ERP solutions for contactless and safe deliveries to over 5000 kirana stores free of cost for the next six months.
Many supply chain startups like ShopKirana and MaxWholesale are coming up with apps to streamline communication between consumers and retailers, and ensure contactless delivery. Shopkirana’s app “Zaruri” helps the customer find the nearest store and order online from a customised limited inventory. It gets it delivered within a 2-km radius.
Will It Sustain?
While some retailers are optimistic that this goodwill will sustain even post-lockdown, others feel that this improvement is short-lived as consumers will be lured back by deep discounts and doorstep delivery offered by e-tailers. Only time can tell if this pandemic will be a defining factor in changing the face of grocery retail in the country. Or not.
Scenario in the Time of Crisis
India has a $400 billion grocery retail market. Despite the significant growth of e-commerce in the grocery segment, nearly 90% of the country’s retail is still dependent on the 11 million traditional grocery stores.
There has been a spike in consumer demand for certain items post lockdown due to uncertainty and panic buying. With online delivery not fully functional, most essentials have become out of stock, and orders are being frequently cancelled. This has led to a manifold increase in the sales of the mom-and-pop stores. In fact, many Resident Welfare Associations have partnered with local kirana stores to ensure household delivery of groceries and other essential commodities to residential complexes. Kirana owners are exercising precautionary measures and social distancing practices to ensure business continuity and safe transaction with consumers.
(Image Source: Business Standard. Data for Mar 22-Mar 31)
Tech in Aid: The B2B Supply Chain Tie-Up
But all of this comes with its own set of challenges. Local retailers are facing severe constraints of stock replenishment and procurement due to the rapid increase in demand. This has led to many B2B supply chain firms tying up with kirana stores to ensure the supply of essentials. Platforms like Near.Store, Jumbotail, ShopX, Ninjacart, and MaxWholesale have been a lifeline to mom-and-pop stores. They are instrumental in supplying products, providing workforce, and even bridging last mile challenges for the local retailers.
For example, Jumbotail is a B2B business that delivers stocks to kirana stores. To ensure a steady supply, its top 700-800 SKUs have been assigned to kiranas. It is also providing demand data to advise shop owners to stock up according to expected demand for specific items, besides helping them in route planning to optimize resource utilization.
Another startup, GoFrugal, is offering cloud and mobile ERP solutions for contactless and safe deliveries to over 5000 kirana stores free of cost for the next six months.
Many supply chain startups like ShopKirana and MaxWholesale are coming up with apps to streamline communication between consumers and retailers, and ensure contactless delivery. Shopkirana’s app “Zaruri” helps the customer find the nearest store and order online from a customised limited inventory. It gets it delivered within a 2-km radius.
Will It Sustain?
While some retailers are optimistic that this goodwill will sustain even post-lockdown, others feel that this improvement is short-lived as consumers will be lured back by deep discounts and doorstep delivery offered by e-tailers. Only time can tell if this pandemic will be a defining factor in changing the face of grocery retail in the country. Or not.
Written By: Garima Singh
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