India’s FMCG industry observed a double-digit value growth of 10.2 percent in Q1 2023, a 2.6 percent increase compared to the previous quarter. This value growth is driven by a revival in consumption in the rural markets and traditional trade channels, which have been under pressure for over a year. According to a report by NIQ, the industry is also witnessing a stabilizing inflation-arresting price growth, which has dropped from 7.9 percent in Q4 2022 to 6.9 percent in Q1 2023, aiding the revival of this quarter’s consumption growth.

Kirana Club founded in 2021, has emerged as a game-changer in India's FMCG industry, Anshul Gupta, the visionary Founder & CEO, embarked on a mission to transform the landscape for Kirana stores, creating a platform that bridges the information gap and fosters lasting partnerships. Let's delve into the profound impact Kirana Club has had on the FMCG ecosystem, unraveling the story through Anshul Gupta's insights.

A Beacon for Kirana Stores in the Sea of Information Asymmetry

Anshul Gupta identified a critical issue in the FMCG space - information asymmetry for Kirana stores and a communication gap for brands. In a conversation with us, he highlighted, "Kirana Club provides a neutral and trusted platform for Kirana store owners, empowering them with real-time information on market trends, commodity prices, and brand details. This not only aids in better decision-making but also helps them scale their businesses."

He further states, "Information asymmetry is a hurdle we aimed to overcome. Kirana Club is the bridge that connects Kiranas and brands in a symbiotic relationship."

Kirana Stores: The Cornerstone for FMCG Market Share Recovery

In a market where FMCGs face challenges due to rural consumer demand slowdown, Kirana stores emerge as saviors. Anshul Gupta emphasized, "Kirana stores understand the pulse of consumers and their families. They build enduring relationships, providing not just groceries but recommendations. Kirana owners are influencers, shaping consumer preferences even before traditional advertising kicks in."

Moreover, the personal touch of Kirana stores and their role as influencers make them a crucial channel for FMCGs to regain market share.

FMCG Strategies: Nurturing Trust and Loyalty Among Kirana Store Owners

Recognizing the significance of General Trade, FMCGs are investing in transparent relationships with Kirana owners. Anshul Gupta shared, "Transparency, loyalty programs, and exclusive offers are key strategies to foster trust and preference among Kirana store owners. It's about building long-term partnerships rather than just transactions."

Nowadays, FMCGs are focusing on building relationships, incentivizing Kirana stores, and creating loyalty to strengthen their presence in the Kirana channel.

Kirana Stores vs. Modern Trade

Despite the rise of e-commerce, Kirana stores continue to dominate FMCG sales. Gupta stressed, "Kirana stores offer a unique advantage with their local presence and personalized service. To ensure brand visibility, FMCGs need to create strong connections at the store level, making Kirana retailers pivotal in this competitive space."

To add on to the same, Kirana stores hold 85-90 percent of FMCG sales, making them indispensable for brands looking to stay ahead in the market.

Kirana Stores as Media Channels

Kirana stores not only sell groceries but act as effective media channels. Kirana stores serve as influential media channels, connecting brands directly with end consumers through trust and personalized recommendations. Gupta explained, "Kirana owners, with their understanding of customer preferences, create attractive storefronts, boosting the shopping experience. Their recommendations, often the first exposure to new products, make them potent influencers for brands."

Transforming the Landscape of Marketing and Communication

Kirana Club is not just a platform; it's a revolution in the way FMCGs connect with Kirana owners, influencing decisions and gaining market share.

Anshul Gupta discussed how Kirana Club disrupts traditional marketing paradigms, stating, "For FMCGs, Kirana Club is more than a platform; it's a new media channel to 'influence the influencer.' It empowers brands to leverage the Kirana community, gaining increased market share in this fiercely competitive space."

With a Kirana-first approach, Kirana Club fosters trust through community building. The platform enables Kirana owners to engage, share ideas, and make informed decisions. It's a social media channel for retailers, transforming traditional Kirana store owners into influencers within their community. Thus, Kirana Club is more than a platform; it's a community that empowers Kirana owners, transforming them into influencers within their community.

Future Vision

Kirana Club envisions continuous expansion, providing more opportunities for Kirana owners and playing a pivotal role in shaping the future of Kirana stores and FMCG partnerships.

Gupta outlined Kirana Club's growth trajectory, stating, "We've onboarded 18 lakh Kiranas in the last 18 months, covering 10-15 percent of the market. We aim to grow 3X in the next year, penetrating deeper into existing markets and expanding in southern states like Karnataka, Kerala, Andhra Pradesh, and Tamil Nadu."

As we conclude our journey through the Kirana Club saga, it's evident that this platform is not just a technological marvel but a revolutionary force in the retail sector. Anshul Gupta's vision and Kirana Club's community-centric approach are redefining how Kirana stores and FMCGs interact, creating a future where trust, transparency, and technology converge for the benefit of all stakeholders.