Kiranas play an important role in the Indian consumption ecosystem, says Sangeteesh
There are projections that the kirana store dominated retail market will gross more than US$1.3 trillion by 2024 in the consumer-driven economy, according to a report by 1K Kirana.
As one of the standout segments within the market, the kirana is made out of small and medium-sized outlets, accounting for around 76% of the industry.
Available data show that there are at least 13 million of these grocery kirana stores in India, contributing billions of dollars to the Indian economy and empowering several millions, while also supporting livelihoods in the country.
As of now, the kirana stores dominates the country’s US$932 billion retail landscape.
The idea of kirana stores lies in their proximity with the local people. The process of walk-ins and physical interaction is more than just economic, but also boosts social interactions.
However, there is a need to build resilience and adapt to evolving trends, especially with regards to digital technology adoption.
The kirana industry is facing a lot of challenges today. Rising from the ashes of the COVID-19 pandemic, there is still the worry over the onslaught undertaken by large FMCG players.
However, there are also opportunities that the sector presents.
Omnichannel is a growth lever that needs to be leveraged on in T2/T3 and even beyond.
Opportunities also abound in digital technologies as mentioned earlier, but outlets must be intentional.
Brands like 1K Kirana that work directly with its kirana partners through franchise-first and community-led approach, equipped with the latest tools, knowledge and advanced technologies, are deploying various proven business strategies to make every stakeholder productive. The brand has over 3 lakh active users on its platform and has served more than 10 lakh customers.
As Kumar Sangeteesh, Founder & CEO, 1K Kirana, says, the kirana segment can grow to become digitally compliant and compete favourably in the retail ecosystem.
“Kiranas play an important role in the Indian consumption ecosystem. We are looking to expand tremendously with a total of 5,000 stores planned by the end of 2023. That’s about three times the number of stores operated at the moment,” he said in the report on 26 Nov 2022.
Sangeteesh further adds that businesses that are more open to digital transformation are more likely to earn more revenues and conform to the growing needs of people.
“The aim is to build resilience and grow to become part of a future that is relevant and responsive to change,” he noted. fiinews.com
