According to the All India Consumer Products Distributors Federation (AICPDF) report, more than two lakh Kirana stores have closed in the past year as customers now lean towards fast delivery platforms like Blinkit and Zepto. These platforms are backed by advanced logistics and technology to cater to the fast-paced lifestyles of customers. The convenience of getting things delivered within 10-15 minutes at home has benefited consumers; it has also highlighted some important challenges for traditional Kirana stores (the small neighbourhood retail outlets).

Local shopkeepers who earned their income through their personal relationships and the community’s trust now have to compete with delivery giants. This blog explores the problems and strategies for local business owners to compete with hyperlocal delivery services while exploring how rapid delivery reshapes the future of India’s beloved Kirana stores.

Quick-Commerce’s Surge: A Real Threat to Kirana Shops?

India’s retail landscape has been dominated by approximately 13 million Kirana stores, responsible for 90% of the country’s food and grocery retail. 

The sudden rise of quick commerce platforms in India, like Zepto, Blinkit, Swiggy Instamart, etc., has significantly affected traditional retail operations. These platforms have changed customers’ expectations while promising them instant access to essentials, groceries, and gourmet items. The impact of quick commerce on them is great, as more than 90,000 Kirana stores have closed in metro cities, with 60,000 in Tier-1 cities and 50,000 in Tier-2 and Tier-3 cities.

The closures are not just numbers but a threat to Kirana shops, showing a loss of livelihood and a change in communities’ trust in the local stores.

Why Kirana Stores Are Finding It Hard to Keep Up? 

The traditional Kirana stores have been in India’s retail ecosystem for ages, offering necessary products with a personal touch. Quick commerce platforms have made it difficult for these shops to stay relevant and compete. Some of the struggles that they are facing are:

• Quick delivery: Quick commerce platforms meet customers’ demands by delivering within minutes. Traditional kirana stores cannot match their speed for every order.
• Technological integration: Most of them still rely on manual processes. Contrarily, quick commerce businesses use real-time inventory systems, data, technology, and optimised routes to provide fast services to customers.
• Affordability: Big quick commerce platforms buy products in bulk, which helps them to offer lower prices and discounts than Kirana stores.
• Product range: Quick commerce platforms provide everything from groceries to gadgets to essentials, whereas Kirana stores have limited space and variety, which makes them less appealing to customers.
• Operations cost: They have higher operations costs because of rent, staff, and utilities, whereas quick commerce incurs less or minimal expenses.

Understanding the Economic Toll of Quick-Commerce on Kirana Stores

Quick commerce is changing the retail world, and Kirana stores can feel the pressure. As the growth of hyperlocal delivery services provides convenience to customers, it also offers significant economic challenges for them. Here are some of the challenges theys are facing because of the rise of quick commerce:

• They generally operate on very low-profit margins. Quick commerce, with its faster delivery and discount options, forces the shops to provide discounts and stay competitive. 
• The convenience of getting things delivered at home has reduced the number of people going out of their houses to shop. Customers today prefer to shop online rather than head out to traditional stores. It is difficult to retain regular and loyal customers when platforms like Blinkit, BigBasket, and Grofers deliver products to the doorstep. 
• The quick commerce platforms like Amazon and Flipkart are also expanding their delivery networks to reach every customer possible. This makes it more difficult for them to compete with the delivery speed, discounts, stock, and variety.
• Local Kirana stores depend on local suppliers and less efficient supply chains. Whereas quick commerce has tech-driven and optimised supply chains to offer rapid delivery and enough stock.

Adapting to Change: Kirana Stores’ New Approach to Compete

Kirana stores are no longer just about groceries; they are changing and progressing with time to stay competitive. Some of the new approaches these shops are adapting to compete are:

• Using digital platforms to move operations online by listing their products on eCommerce platforms like Flipkart, Amazon, and some other local delivery apps. This helps them to offer in-store and online services to their customers.
• Partnering with local quick commerce platforms or using your local delivery system to provide doorstep deliveries.
• Kirana stores can use their community knowledge to offer personalised recommendations and cater to specific customers’ preferences. This will provide an edge to the stores.
• They can also increase their offerings by providing multiple ranges of products as per customer’s needs, demands, and preferences. This will provide them a USP in comparison to quick commerce platforms.
• Adopting technology for automated inventory management and launching grocery delivery apps can help Kirana stores be more efficient and reduce wastage to increase profits.

The Cultural Heartbeat of India’s Retail Sector

Kirana stores have been the soul and heart of India’s retail world. These shops are found in every corner of the country, offering not just products but personalised services, trust, and a sense of community. Here is why Kirana stores are important:

• Whether you live in a small or large city or region, a local Kirana store is around the corner and always accessible to buy everything from essentials to treats.
• Kirana shop owners have earned the trust of their customers and community by providing quality products.
• Small shops across the country are providing jobs to multiple people in every neighbourhood.
• Kirana stores cater to every budget and customer by meeting their local and regular needs.

Leveraging Shiprocket Quick to Boost Kirana Store Efficiency

To stay competitive in the market, Kirana stores need to innovate and adapt. Shiprocket Quick can help with this by offering game-changing solutions. It helps them to boost their operational efficiency and serve their customers better. Some of the features of this app are:

• Fast delivery: Offers same-day and next-day grocery delivery services, which can give kirana stores an edge over their competitors.
• Optimised delivery routes: Smart technology optimises delivery routes, which ensures the packages reach customers on time or in the shortest time.
• Affordable Delivery Rates: Provides services at affordable pricing, which makes it easier for kirana stores to offer fast delivery services without burning a hole in their pocket.
• Real-time tracking: Provides real-time tracking of deliveries to sellers and their customers. This reduces the uncertainty and improves customer satisfaction.

Conclusion

The competition in the market is transforming the retail industry. Kirana store owners should strengthen their ties with the community and use technologically efficient and effective solutions to stay ahead in the world of quick commerce. The future of India’s traditional shops depends on their ability to compete, innovate, and continue offering a personal touch to customers. Shiprocket Quick helps counter the competition from these quick commerce platforms!