During the national lockdown because of the global pandemic, our survey revealed people turned to local stores for their daily needs. The results: Swift improvement in turnover: Store owners report revenue growth of between 20% and 300% with an average of 135 percent. 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. These companies have forayed in this segment very recently. Manjunath is one of the many small kirana store owners who adopted digital payments post demonetisation. 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. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. 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 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. 64 people like this. So, who are these stakeholders? The pandemic has caused the kirana system to evolve from physical sales to digital plane. A huge 90% of the retailers felt they had more time for themselves. 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. As recently as January this year, he had no intention of going digital. Retailer that have gone the modernization way are enjoying a distinct competitive advantage. Wagadwala Store is a household name in residential complexes of Marol in suburban Mumbai. Kirana store billing software is a software solution designed specifically for retail stores or chains. The kirana store owner’s new-found digital appetite is a necessity. 79% of respondents in non-metros and 50% in metros state that there are new consumers coming to their store post the lockdown period. In the previous article, we saw how mega-companies like Reliance, Amazon, and Metro have started to make in-roads in this segment. As India is stepping up its digital push, Kirana stores are trying to ride the wave by turning ‘smart’. This will navigate you to Accenture.com Sign In page. Hyper-localization and change in influencers. 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. At least 69% kiranas in the non-metros were able to sell alternative brands to their customers. 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. 1 was here. A Kirana store is a local department store business which sells all kinds of groceries required in every household. On the contrary, it’s time for retail industry stakeholders to step up support and help Kirana stores ramp up in a sustainable manner. The moral of the story is: There is no doing away with traditional formats. It can automate POS processes and store operations, provides centralized control for multi-store retailers. 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. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. Kirana stores play a crucial role in the Indian retail sector. LGBT+ inclusion: Can you apply a globally consistent policy across an inconsistent world? About Us. Kirana stores have emerged as local saviours during this time of crisis. 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. Lets Shop; My account; Wishlist; Checkout; Track Order; Products search. The platform will transform the unorganised retail market completely, he said. 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. Download our report for details. Kirana Net is a network of Kirana Stores. 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. 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. 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. 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 report covers both the impact that the pandemic has had on consumers and its pursuant impact on kirana stores as providers of essentials. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. The digital platform has three applications. Low inventory costs: One of the biggest gains for store owners was greater control on inventory, implying the freeing up of cash reserves. Local Kirana Store Network. Consumer preferences have changed with ‘do it yourself’ (DIY) coming to the forefront. 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. E-commerce sales were estimated at a mere USD 2.5 billion, of the total USD 550 billion sale of food and groceries … Wagadwala says the only digital enabler in his store prior to … More than 76% of them reported a bigger customer base, while 67% said they increased staff strength. All the kirana store owner needs to invest in is a small TV which will act as the advertising platform. 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. Rekabganj, Hanuman garhi, Faizabad, 224001 . In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. 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. Reliance is likely to introduce smart MPoS terminals which can track the inventory of a store along with other data on offline sales. 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. Review our cookie policy for more information. Digital Kirana is the buzzword in the Indian retail segment. No painful and time consuming catalogue searching. Consumers have adopted digitisation in payment methods and so has the kiranas. However, such promising numbers are still at a nascent stage. During the uncertainty, consumers have turned to their local Kirana stores for their requirements. SLIDESHARE: Kirana transformation in India. E-commerce sales were estimated at a mere USD 2.5 billion, of the total USD 550 billion sale of food and groceries … 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. 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 EazyBilling app enables the kirana stores to track digital … 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. Languishing storefronts could see a strong disruption coming with the aid of technology. We interviewed 57 Kirana stores that have already undergone modernization to study the impact and benefits. 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. Please refer to your advisors for specific advice. Does that mean it’s the end of the road for small retail formats? 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. Storeking is a digital platform for rural consumption with the rural kirana as the anchor. Their go-to option for hundreds of years has been their near and dear Kirana stores. “Reliance Retail has brought a retail revolution in India," Ambani said. You can then update your LinkedIn sign-in connection through the Edit Profile section. “The end objective is to help kirana stores generate more sales, more profits and more cash … 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. New Commerce is a massive $700 billion opportunity that will empower kirana stores in smaller towns digitally. There is already a separate, active Accenture Careers account with the same email address as your LinkedIn account email address. These are consumers who would earlier shop online or from supermarkets, are now preferring to buy … Emerging partnerships and symbiotic relationships are the new way forward for kirana stores. One can plan to set up a store, based on their fund availability. 64 people follow this. Just a call away, the kirana store delivers anything from a … In India, customers don’t just prefer supermarkets and shopping malls to buy essential groceries. © 2020 EYGM Limited. Moreover, he said, "the way that these kirana store owners have adopted to innovation and digital technologies, such as digital payments, changing … grocery item vegetable and fruits electronics item medicine courier pickup and drop 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. About See All. Please try logging in with your registered email address and password. Get inputs from the sections below to know where to start and what sequence to follow for your provision store … It is a complete retail shop management software that provides complete sales solutions to shopkeepers. 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 … The EazyStore mobile app, that helps a grocery store to set up an online store in flat 30 minutes. 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. By 2030, India will mostly be a middle income-led economy, furthering the gap between what customers need and what Kirana stores offer. However, such promising numbers are still at a nascent stage. SLIDESHARE: Kirana transformation in India Product/Service . 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. The survey also highlights the evolving relationships of the kiranas with various stakeholders. Online Kirana Store App, a new addition to the vocal for local movement, where local meets global. 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. 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. Digital Kirana Store. 8578058616. The mainstay of India’s retail sector Kirana stores play a crucial role in the Indian retail sector. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. For more information about our organization, please visit ey.com. In fact, Small shops were better stocked than ecommerce companies, which were struggling with the sudden disruption in their supply chain. 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. Kiranas have proven themselves to be both agile and resilient, being able to bear the brunt of an unforgiving pandemic. We also list nine steps to quickly incorporate Kirana stores into the formal economy. Kirana stores play a crucial role in the Indian retail sector, with 13 million such stores catering to the everyday needs of people locally. Start-ups such as Max Wholesale, Jumbotail and ShopKirana are helping them place orders, maintain inventory, optimise delivery routes and make payments, all digitally. We help companies thrive in the transformative age by refreshing themselves constantly, experimenting with new ideas and scaling successes. 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. 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. These companies have forayed in this segment very recently, based on their availability. Consulting | Strategy and Transactions, and Tax services retailer that have already modernization... “ digital is a small TV which will act as the advertising platform methods and has... 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