NEW DELHI, Nov. 25, 2022 /PRNewswire/ -- India's $932 billion retail landscape dominated by kirana stores; proving to be the backbone of the country's economy. There are projections that the market will gross more than $1.3 trillion by 2024. One of the standout segments within the market is the kirana - small and medium-sized outlets which make up around 76% of the industry.
Available data show that there are at least 13 million of these grocery kirana stores in India, contributing billions in dollars to the Indian economy and empowering several millions, while also supporting livelihoods in the country. 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 & 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 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 says.
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 notes.