The digital platform has three applications. As India is stepping up its digital push, Kirana stores are trying to ride the wave by turning ‘smart’. Objective: To use e-commerce as a hook to bring neighborhood ‘kirana’ stores in low-income communities onto a digital payment platform, to accelerate merchant acceptance and increase digital payment adoption amongst consumers in these communities. An EY survey among kirana store owners across 12 cities has found that 20 per cent of them had started leveraging online platforms for supply … By 2021, in just a year from now, the share of traditional trade in the retail industry will likely reduce to 75 percent from the present 88 percent. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. Digital Kirana is the buzzword in the Indian retail segment. Accelerating the digital facelift of Kirana stores Kirana stores play a crucial role in the Indian retail sector, with 13 million such stores catering to the everyday needs of people locally. In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. RELATED: Accenture, Founder –​ Trust For Retailers and Retail Associates of India (TRRAIN), Research Senior Manager – Accenture in India, Research Associate Manager – Accenture in India, The first name is required and cannot be empty, The last name is required and cannot be empty. FMCGs must relook at their value chain based on changing consumer needs and financial services should recognize that the kirana store is the new hyperlocal touchpoint to provide secondary services like insurance, KYCs, and cheque deposits. However, the key issue that the kirana stores are facing is that the partnerships come at a high cost and not yet profitable. During the uncertainty, consumers have turned to their local Kirana stores for their requirements. The retail industry accounts for 11 percent of GDP and employs eight percent of the workforce, or approximately 43 million, of which the majority are in the unorganized sector such as Kirana stores. 0 items ₹0.00; Select Page . In fact, Small shops were better stocked than ecommerce companies, which were struggling with the sudden disruption in their supply chain. The app, called Digital Shop, facilitates instant digitization of all business operations for kirana store owners, without the need for an additional investment on a device. 64 people follow this. It is a complete retail shop management software that provides complete sales solutions to shopkeepers. And, canny store owners are realising the benefits of going digital, whether in payments or in having their inventory online, which allows them to plug into hyperlocal delivery firms. Ram Lakhan Kirana Store welcomes you for Digital Shpping, This shop is located in Rekabganj Hanuman Garhi Civil lines Faizabad, Ayodhya. Partner - Customer Experience and Design Thinking, EY India, Sentiments of India – pulse of the country, Kiranas, Sentiments of India – Pulse of the country, Kiranas. Consumer preferences have changed with ‘do it yourself’ (DIY) coming to the forefront. These solutions have not only made payments seamless and … Please try logging in with your registered email address and password. The report covers both the impact that the pandemic has had on consumers and its pursuant impact on kirana stores as providers of essentials. 79% of respondents in non-metros and 50% in metros state that there are new consumers coming to their store post the lockdown period. Lacking other means, they have created a simplified online journey using chat apps as a medium of taking orders, providing contactless delivery and then receiving payments through digital platforms. E-commerce sales were estimated at a mere USD 2.5 billion, of the total USD 550 billion sale of food and groceries … Languishing storefronts could see a strong disruption coming with the aid of technology. Numbers show that the kirana stores are taking these initiatives positively; however, the challenge lies in helping the store owner understand usage and benefits of such digital solutions. © 2020 EYGM Limited. Start-ups such as Max Wholesale, Jumbotail and ShopKirana are helping them place orders, maintain inventory, optimise delivery routes and make payments, all digitally. Store King - Building Highway to Rural India Store King - Building Highway to Rural India Storeking is a digital platform for rural consumption with the rural kirana as the anchor. Logistics and last mile delivery companies have new opportunity and relevance in this ecosystem, retailers can reach their customers who are now suspicious of entering large crowded spaces, through kirana stores. 79% of respondents in non-metros and 50% in metros state that there are new consumers coming to their store post the lockdown period. We interviewed 57 Kirana stores that have already undergone modernization to study the impact and benefits. SLIDESHARE: Kirana transformation in India In addition, food and grocery (the hot sellers of Kirana stores) account for more than 65 percent of the retail sector in India. Does that mean it’s the end of the road for small retail formats? Storeking is a digital platform for rural consumption with the rural kirana as the anchor. Ram Lakhan Kirana Store. These companies have forayed in this segment very recently. The results: Swift improvement in turnover: Store owners report revenue growth of between 20% and 300% with an average of 135 percent. 79% respondents in non-metros and 75% in metros stated that consumers are purchasing specialty food items and DIY items in unprecedented quantities to the extent that the kiranas are finding it hard to source such specialty food items like baking goods, instant foods, ready mixes, special masalas and namkeens due to stock-outs. Reliance is likely to introduce smart MPoS terminals which can track the inventory of a store along with other data on offline sales. “The end objective is to help kirana stores generate more sales, more profits and more cash … 64 people like this. Happy Shopping. Kiranas have proven themselves to be both agile and resilient, being able to bear the brunt of an unforgiving pandemic. The report includes a survey that focuses on insights gathered through 27 qualitative interviews conducted across 12 cities, 5 metros and 7 non metros in India. How entrepreneurs can transform access to safe water, Nine ways to advance LGBT+ policy throughout global organizations, Technology evangelist, a facilitator of customer centricity and innovation. Please refer to your advisors for specific advice. The kirana store owner’s new-found digital appetite is a necessity. 56% of respondents in metros feel that there has been a positive change in the attitude of consumers post the lockdown. The pandemic has caused the kirana system to evolve from physical sales to digital plane. “Reliance Retail has brought a retail revolution in India," Ambani said. Kirana stores have emerged as local saviours during this time of crisis. The EazyBilling app enables the kirana stores to track digital … We also list nine steps to quickly incorporate Kirana stores into the formal economy. Network of your trusted local kirana stores. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Online Kirana Store App, a new addition to the vocal for local movement, where local meets global. The pandemic has led to a renewed trust in the local kirana store with a surge in new consumers visiting the local stores both in metros and non-metros. A huge 90% of the retailers felt they had more time for themselves. The recent situation says otherwise. The kirana store owners have taken a lot of effort to keep up with the changing demands of the crisis and managing their day-to-day supplies. The entity envisages to onboard 30 million small Kirana stores on its digital platform, thereby enhancing their revenues, generating employment, and also resulting in consumer benefit with faster delivery of goods. No painful and time consuming catalogue searching. Just upload your item list and receive your order. The entity envisages to onboard 30 million small Kirana stores on its digital platform, thereby enhancing their revenues, generating employment, and also resulting in consumer benefit with faster delivery of goods. The survey further highlights that there has been a positive movement towards the adoption of technology with 40% respondents (kirana store owners) stating they want to partner with online delivery and supply platforms as they feel it can help them grow and tide over in these testing times. This will navigate you to Accenture.com Sign In page. New Commerce is a massive $700 billion opportunity that will empower kirana stores in smaller towns digitally. 1 was here. grocery item vegetable and fruits electronics item medicine courier pickup and drop Bangalore-based SnapBizz offers new-age solutions to transform traditional Kirana stores into smart stores, complete with several features that will enable the stores to gain a competitive edge and increase profitability. remember settings), Performance cookies to measure the website's performance and improve your experience, Advertising/Targeting cookies, which are set by third parties with whom we execute advertising campaigns and allow us to provide you with advertisements relevant to you,  Social media cookies, which allow you to share the content on this website on social media like Facebook and Twitter. In metros, 58% respondents are convinced with the shift to digitisation due to Covid-19, while 46% respondents in the non-metros still feel that cash is the predominant mode of payment. Review our cookie policy for more information. The math is clear: If stakeholders in the Kirana ecosystem help expedite the modernization process, they multiply benefits for themselves. In India, customers don’t just prefer supermarkets and shopping malls to buy essential groceries. Profits also grew 30% to 400%.Bigger shopper basket size: As stores modernized, there was a qualitative change in what and how much consumers bought. The EazyStore mobile app, that helps a grocery store to set up an online store in flat 30 minutes. You can then update your LinkedIn sign-in connection through the Edit Profile section. Therefore, local traders and kirana stores would become increasingly dependent on the Reliance network on all sides, i.e., procurement, online distribution and offline sales. According to EY’s latest report ‘Sentiments of India – Pulse of the country, Kiranas’  there is a renewed trust in hyperlocal communities with the kirana store emerging as a hub that helped maintain the regular supply of essentials during the lockdown as cities struggle to get back to their normal rhythm. Kirana Net is a network of Kirana Stores. The moral of the story is: There is no doing away with traditional formats. All the kirana store owner needs to invest in is a small TV which will act as the advertising platform. Relax the Back. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Low inventory costs: One of the biggest gains for store owners was greater control on inventory, implying the freeing up of cash reserves. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Another key insight is that consumer loyalty to brands is now in question, providing a window for new brands to replace old loyalties. These are consumers who would earlier shop online or from supermarkets, are now preferring to buy from local kirana stores to avoid long queues and there is a semblance of trust and traceability. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. All Rights Reserved. With consumers now spending more time at home, we see an increasing demand for specialty food items and DIY items. FMCGs, large retailers and financial services companies should recognize that the kirana store is the new local touchpoint and their conduit into the daily life of a trusting consumers. The modernization of small retailers doesn’t just benefit store owners, but also consumers, the government and the industry at large. As recently as January this year, he had no intention of going digital. India's kirana stores, the original ecommerce play By definition, ecommerce is when a customer trusts a seller without visiting the store, orders remotely and has the package delivered home. While store POS modernization has been happening in micro fragments of the Kirana network, it has not scaled and the digitization of Kirana stores has been limited to adopting digital … Their go-to option for hundreds of years has been their near and dear Kirana stores. In addition, most of the stores were able to avail more schemes and benefits from FMCG brands due to their classification into modern trade or incentives based on sales achievement. More than 76% of them reported a bigger customer base, while 67% said they increased staff strength. 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