You can then update your LinkedIn sign-in connection through the Edit Profile section. 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. 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. 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. The math is clear: If stakeholders in the Kirana ecosystem help expedite the modernization process, they multiply benefits for themselves. Moreover, he said, "the way that these kirana store owners have adopted to innovation and digital technologies, such as digital payments, changing … Please refer to your advisors for specific advice. Partner - Customer Experience and Design Thinking, EY India, Sentiments of India – pulse of the country, Kiranas, Sentiments of India – Pulse of the country, Kiranas. 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. 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. This is where players such as the Bengaluru-headquartered Jumbotail , an online wholesale marketplace for food and grocery that connects kirana stores to producers and distributors, play a vital role. Retailer that have gone the modernization way are enjoying a distinct competitive advantage. It is a complete retail shop management software that provides complete sales solutions to shopkeepers. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. 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. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. Emerging partnerships and symbiotic relationships are the new way forward for kirana stores. E-commerce sales were estimated at a mere USD 2.5 billion, of the total USD 550 billion sale of food and groceries … Happy Shopping. Online Kirana Store App, a new addition to the vocal for local movement, where local meets global. For more information about our organization, please visit ey.com. SLIDESHARE: Kirana transformation in India. 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. 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. LGBT+ inclusion: Can you apply a globally consistent policy across an inconsistent world? There is already a separate, active Accenture Careers account with the same email address as your LinkedIn account email address. 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. “Digital is a means to an end for us,” says Mediratta. Low inventory costs: One of the biggest gains for store owners was greater control on inventory, implying the freeing up of cash reserves. The modernization of small retailers doesn’t just benefit store owners, but also consumers, the government and the industry at large. 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. Network of your trusted local kirana stores. At least 69% kiranas in the non-metros were able to sell alternative brands to their customers. 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. “The end objective is to help kirana stores generate more sales, more profits and more cash … As recently as January this year, he had no intention of going digital. 0 items ₹0.00; Select Page . 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. 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. Digital Kirana is the buzzword in the Indian retail segment. Review our cookie policy for more information. Kirana stores have emerged as local saviours during this time of crisis. Rekabganj, Hanuman garhi, Faizabad, 224001 . 1 was here. 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. In addition, food and grocery (the hot sellers of Kirana stores) account for more than 65 percent of the retail sector in India. 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. 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. 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. 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. 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. These solutions have not only made payments seamless and … Community See All. A huge 90% of the retailers felt they had more time for themselves. 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 … 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. However, such promising numbers are still at a nascent stage. During the uncertainty, consumers have turned to their local Kirana stores for their requirements. Digital Kirana Store. The mainstay of India’s retail sector Kirana stores play a crucial role in the Indian retail sector. BENGALURU — Facebook will spend $5.7 billion for 10% of Reliance Industries’s digital business, as the social media firm looks to leverage its popular WhatsApp messenger to offer digital payment services to small grocers 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. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. 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. Consumers have adopted digitisation in payment methods and so has the kiranas. We help companies thrive in the transformative age by refreshing themselves constantly, experimenting with new ideas and scaling successes. On the contrary, it’s time for retail industry stakeholders to step up support and help Kirana stores ramp up in a sustainable manner. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. 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. FMCG companies, e-commerce, cash and carry retailers and payment companies, logistic providers and intermediary traders, the government, as well as retail associations and traders—everyone has a role to play. Relax the Back. 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. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. 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. No painful and time consuming catalogue searching. It is clear that the journey from ‘cash-only’ to accepting digital payments for the average kirana store is ridden with speed-breakers at every step of the way. 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. About Us. Another key insight is that consumer loyalty to brands is now in question, providing a window for new brands to replace old loyalties. With consumers now spending more time at home, we see an increasing demand for specialty food items and DIY items. The recent situation says otherwise. In the previous article, we saw how mega-companies like Reliance, Amazon, and Metro have started to make in-roads in this segment. These are consumers who would earlier shop online or from supermarkets, are now preferring to buy … The results: Swift improvement in turnover: Store owners report revenue growth of between 20% and 300% with an average of 135 percent. Just upload your item list and receive your order. 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. Kiranas have proven themselves to be both agile and resilient, being able to bear the brunt of an unforgiving pandemic. Lets Shop; My account; Wishlist; Checkout; Track Order; Products search. This will navigate you to Accenture.com Sign In page. Product/Service . 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 a call away, the kirana store delivers anything from a … More than 76% of them reported a bigger customer base, while 67% said they increased staff strength. A Kirana store is a local department store business which sells all kinds of groceries required in every household. 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. 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 … Storeking is a digital platform for rural consumption with the rural kirana as the anchor. grocery item vegetable and fruits electronics item medicine courier pickup and drop Kirana stores play a crucial role in the Indian retail sector, with 13 million such stores catering to the everyday needs of people locally. All the kirana store owner needs to invest in is a small TV which will act as the advertising platform. Does that mean it’s the end of the road for small retail formats? 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. EY | Assurance | Consulting | Strategy and Transactions | Tax. All Rights Reserved. © 2020 EYGM Limited. 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. Get inputs from the sections below to know where to start and what sequence to follow for your provision store … The kirana store owner’s new-found digital appetite is a necessity. 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. 64 people follow this. The increased disruption in supply chain and distribution channels has led to a growing acceptance of start-ups and partners which are endeavouring to enable the kirana stores with technology and services. 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 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. So, who are these stakeholders? Wagadwala says the only digital enabler in his store prior to … About See All. The steps they take now will define the future of Kirana stores and of the Indian retail landscape at large. 79% of respondents in non-metros and 50% in metros state that there are new consumers coming to their store post the lockdown period. 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. Ram Lakhan Kirana Store. Wagadwala Store is a household name in residential complexes of Marol in suburban Mumbai. Languishing storefronts could see a strong disruption coming with the aid of technology. percentage growth in revenue, with an average of 135%. Download our report for details. Ram Lakhan Kirana Store. One can plan to set up a store, based on their fund availability. Kirana store billing software is a software solution designed specifically for retail stores or chains. By 2030, India will mostly be a middle income-led economy, furthering the gap between what customers need and what Kirana stores offer. We interviewed 57 Kirana stores that have already undergone modernization to study the impact and benefits. Hyper-localization and change in influencers. 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. The EazyBilling app enables the kirana stores to track digital … During the national lockdown because of the global pandemic, our survey revealed people turned to local stores for their daily needs. We also list nine steps to quickly incorporate Kirana stores into the formal economy. 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. 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. The digital platform has three applications. 8578058616. Local Kirana Store Network. Kirana Net is a network of Kirana Stores. The report covers both the impact that the pandemic has had on consumers and its pursuant impact on kirana stores as providers of essentials. New Commerce is a massive $700 billion opportunity that will empower kirana stores in smaller towns digitally. 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. However, the key issue that the kirana stores are facing is that the partnerships come at a high cost and not yet profitable. It can automate POS processes and store operations, provides centralized control for multi-store retailers. The EazyStore mobile app, that helps a grocery store to set up an online store in flat 30 minutes. 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. “Reliance Retail has brought a retail revolution in India," Ambani said. SLIDESHARE: Kirana transformation in India 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. Ram Lakhan Kirana Store welcomes you for Digital Shpping, This shop is located in Rekabganj Hanuman Garhi Civil lines Faizabad, Ayodhya. 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. However, such promising numbers are still at a nascent stage. In India, customers don’t just prefer supermarkets and shopping malls to buy essential groceries. Start-ups such as Max Wholesale, Jumbotail and ShopKirana are helping them place orders, maintain inventory, optimise delivery routes and make payments, all digitally. Their go-to option for hundreds of years has been their near and dear Kirana stores. Manjunath is one of the many small kirana store owners who adopted digital payments post demonetisation. 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. Reliance is likely to introduce smart MPoS terminals which can track the inventory of a store along with other data on offline sales. The positive tilt in favour of the Kiranas in the minds of consumers, collective purchasing via societies and resident welfare associations and close association with digital partners is likely to continue. Consumer preferences have changed with ‘do it yourself’ (DIY) coming to the forefront. The moral of the story is: There is no doing away with traditional formats. The pandemic has caused the kirana system to evolve from physical sales to digital plane. Kirana stores play a crucial role in the Indian retail sector. These companies have forayed in this segment very recently. 56% of respondents in metros feel that there has been a positive change in the attitude of consumers post the lockdown. As India is stepping up its digital push, Kirana stores are trying to ride the wave by turning ‘smart’. 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. The survey also highlights the evolving relationships of the kiranas with various stakeholders. E-commerce sales were estimated at a mere USD 2.5 billion, of the total USD 550 billion sale of food and groceries … 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. The platform will transform the unorganised retail market completely, he said. Consumers now spending more time for themselves companies, which were struggling with the aid of technology relationships! Report covers both the impact and benefits UK company Limited by guarantee, does provide. We help companies thrive in the capital markets and in economies the world over system... The formal economy more information about our organization, please visit ey.com transform the unorganised retail market completely, had... Has been their near and dear Kirana stores have emerged as local saviours during this of. While 67 % said they increased staff strength online store in flat 30 minutes they more! 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