India’s retail market space has a whopping 12 million conventional Kirana stores holding over 80 percent market share of the retail landscape. They have been an intrinsic part of the Indian economy for decades and play a significant role in community exchanges.

The Digital Facelift of Local Kirana Shops

In the past few years, the local Kirana stores have faced stiff competition from e-commerce and modern trade, pushing them to improve and become more accessible. Living up with the changing times, they have been very agile in adapting the new digital technologies walking hand in hand with the evolving market demand and changing customer needs. While trying to become tech-savvy, they are striving hard to stay local. The credit also goes to the current government’s initiatives to uplift local retailers and businesses through multiple programs such as Make in India, Local Pe Vocal, and Entrepreneurship Programs.

While many businesses had shut down their operations during the Covid-19 pandemic, the local Kirana store owners became unsung heroes through uninterrupted supplies to their customers. The pandemic witnessed the rapid adaptation of digitalization by customers and Kirana store owners as physical contact was banned. This cultural change triggered by the pandemic also provided them respite from the long tradition of the credit-based system of cash payments. It paved the way for digital transformation in business operations reducing hassle for customers and the Kirana shop owners.

Striving on Customer Loyalty

The Kiranas of new Zamana have successfully created a strong network of brand loyal customers through personalized customer services. It included taking online orders through Whatsapp, accepting contactless digital payments through UPI Apps, catering to urgent demands through quick delivery, offering lucrative discounts and offers, and keeping the customers updated on new supplies through WhatsApp.

For example, Kamla aunty has been ordering her groceries from the neighborhood Kirana shop for the past 30 years and used to make payments on her bi-weekly visit to the store. However, as the pandemic hit, leading to a nationwide lockdown imposed on the country, she started placing an order on the WhatsApp number of the Kirana shop, availing contactless delivery of goods, getting digital bills, and making digital payments through UPI apps. It was a complete turnaround from the way things have worked for her in the past 30 years.

Empowering Business Through Technology

The local Kirana stores we have seen in business since childhood have now come a long way. They have transformed from ordinary neighborhood general stores to the new age digital Kirana stores. While becoming more adaptable to the changing consumer needs, these stores have partnered with the tech-enabled B2B platforms to procure supplies, track delivery, manage inventory, and maintain a transparent payment system through digitalized mediums.

Partnering with the tech-enabled delivery partners has helped them stay abreast of competition as they are highly accessible and fulfill delivery demand within hours compared to the traditional partners taking days to complete the same.

Leveraging B2B Platforms for Business Growth

The new age Kirana store owners have also upgraded their business operations through Whatsapp business accounts and Facebook marketplace to market their products and services and keep in touch with their customers. Large B2B platforms have provided a platform to the small retailers to eliminate middlemen, create a direct connection with the retailers, suppliers, and vendors, keep them upgraded on new government policies, and resolve their logistics and procurement issues.

Pandemic has instilled a new lease of life in Kirana stores strengthening their position as the backbone of India’s massive $700 billion retail sector despite the emergence and threat from major e-commerce such as Amazon, Flipkart, and supermarket chains such as Reliance Mart, Big Bazaar, Spencers, Grofers, etc.

Catering to Changing Consumer Behavior

A recent survey by Ernst and Young has highlighted a welcoming change in customer attitude towards the local Kirana stores. The report observes a refurbished interest of customers in the local Kirana stores who were earlier shopped online or through supermarkets. They preferred to buy from the local Kirana stores to avoid long queues and enjoy quick delivery as they have developed renewed trust and traceability.

Reconfirming the same, another survey by Deloitte also mentions that the consumers in India look forward to purchasing locally sourced items reflecting their rebuilt trust in Kirana stores during the lockdown.

The Road Ahead: Adapting the Changes

Still, despite what seems obvious, the shift to modern trade platforms has been slow. Retail conglomerates, for years, have been trying to take Kirana stores on board to grow their e-commerce business as they understand the strength of these local shops. Kirana stores will not only help these big retailers penetrate deep into markets inaccessible till now but also help in cheaper last-mile delivery in a country where logistics is a key cost component.

The digitization of Kirana stores is not a new concept. Earlier retailers were reluctant to adopt the technology. However, it became the need of the hour after the aftermath of the pandemic outbreak. Also, with the implementation of GST and digital payments, they realized that the technological shift has become imperative for survival.

The local Kiranas of New Zamana have been in operation for decades. They have witnessed all the economic changes in the country and have a thorough understanding of diverse customer needs. Hence in this digital age, while the large e-commerce stores will continue to expand, the local Kirana stores will continue to thrive.