By 2030, India will mostly be a middle income-led economy, furthering the gap between what customers need and what Kirana stores offer. Consumer preferences have changed with ‘do it yourself’ (DIY) coming to the forefront. The EazyStore mobile app, that helps a grocery store to set up an online store in flat 30 minutes. grocery item vegetable and fruits electronics item medicine courier pickup and drop Storeking is a digital platform for rural consumption with the rural kirana as the anchor. 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. 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. Emerging partnerships and symbiotic relationships are the new way forward for kirana stores. Some of the key insights from the survey include: Consumers have a more positive outlook towards their local kiranas and they are quickly becoming a trusted point in the local ecosystem. Reliance is likely to introduce smart MPoS terminals which can track the inventory of a store along with other data on offline sales. The survey, thus, focuses on how fragile human relationships evolve in the current situation and how these evolving situations challenge loyalties, long established behaviours and the resulting digital awakening. Just upload your item list and receive your order. 1 was here. Kiranas have proven themselves to be both agile and resilient, being able to bear the brunt of an unforgiving pandemic. 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. Moreover, the way that these kirana store owners have adopted to innovation and digital technologies, such as digital payments, changing operating models and reduced friction towards technology, to cope up with the pandemic is highly commendable. Digital Kirana Store. Ram Lakhan Kirana Store. 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. Digital Kirana is the buzzword in the Indian retail segment. Online Kirana Store App, a new addition to the vocal for local movement, where local meets global. 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. Kirana store billing software is a software solution designed specifically for retail stores or chains. 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. 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. Consumers have adopted digitisation in payment methods and so has the kiranas. E-commerce sales were estimated at a mere USD 2.5 billion, of the total USD 550 billion sale of food and groceries … Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. In addition, food and grocery (the hot sellers of Kirana stores) account for more than 65 percent of the retail sector in India. 79% of respondents in non-metros and 50% in metros state that there are new consumers coming to their store post the lockdown period. With consumers now spending more time at home, we see an increasing demand for specialty food items and DIY items. SLIDESHARE: Kirana transformation in India. EY | Assurance | Consulting | Strategy and Transactions | Tax. Rekabganj, Hanuman garhi, Faizabad, 224001 . The platform will transform the unorganised retail market completely, he said. One can plan to set up a store, based on their fund availability. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. The steps they take now will define the future of Kirana stores and of the Indian retail landscape at large. During the uncertainty, consumers have turned to their local Kirana stores for their requirements. As recently as January this year, he had no intention of going digital. 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. Happy Shopping. 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. However, with consumer preferences shifting to shopping online or at supermarkets and the rise of modern retailers across Tier I, II and III cities, Kirana store owners are facing the music. “Reliance Retail has brought a retail revolution in India," Ambani said. 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. Relax the Back. Local Kirana Store Network. Just a call away, the kirana store delivers anything from a … In fact, Small shops were better stocked than ecommerce companies, which were struggling with the sudden disruption in their supply chain. Please try logging in with your registered email address and password. percentage growth in revenue, with an average of 135%. 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. All Rights Reserved. Wagadwala says the only digital enabler in his store prior to … Customers of Kirti Stores, a small kirana store with a countertop in the posh Pedder Road area in Mumbai, would always pay Amit Chheda, the owner, in cash. Manjunath is one of the many small kirana store owners who adopted digital payments post demonetisation. 0 items ₹0.00; Select Page . 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 pandemic has caused the kirana system to evolve from physical sales to digital plane. 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. We help companies thrive in the transformative age by refreshing themselves constantly, experimenting with new ideas and scaling successes. Grover said the company has already disbursed loans to more than one lakh merchants and aims to scale this up by 8-10 times and enable credit for a million kirana store owners in 2021. The survey also highlights the evolving relationships of the kiranas with various stakeholders. Lets Shop; My account; Wishlist; Checkout; Track Order; Products search. 79% of respondents in non-metros and 50% in metros state that there are new consumers coming to their store post the lockdown period. The moral of the story is: There is no doing away with traditional formats. We identify seven systematic steps that can help Kirana store owners evolve into digitally powered retailers who understand their customers and are able to boost engagement and create more fulfilling experiences. © 2020 EYGM Limited. The EazyBilling app enables the kirana stores to track digital … We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. 64 people follow this. “Digital is a means to an end for us,” says Mediratta. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. SLIDESHARE: Kirana transformation in India This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Ram Lakhan Kirana Store welcomes you for Digital Shpping, This shop is located in Rekabganj Hanuman Garhi Civil lines Faizabad, Ayodhya. So, who are these stakeholders? 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. 64 people like this. Moreover, he said, "the way that these kirana store owners have adopted to innovation and digital technologies, such as digital payments, changing … Kirana stores play a crucial role in the Indian retail sector, with 13 million such stores catering to the everyday needs of people locally. 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. Wagadwala Store is a household name in residential complexes of Marol in suburban Mumbai. Network of your trusted local kirana stores. Does that mean it’s the end of the road for small retail formats? As India is stepping up its digital push, Kirana stores are trying to ride the wave by turning ‘smart’. Retailer that have gone the modernization way are enjoying a distinct competitive advantage. However, such promising numbers are still at a nascent stage. We also list nine steps to quickly incorporate Kirana stores into the formal economy. 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 math is clear: If stakeholders in the Kirana ecosystem help expedite the modernization process, they multiply benefits for themselves. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The results: Swift improvement in turnover: Store owners report revenue growth of between 20% and 300% with an average of 135 percent. At least 69% kiranas in the non-metros were able to sell alternative brands to their customers. 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. 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