Kirana Stores

FMCG major HUL is enhancing its distribution model by directly supplying kirana stores, aiming to cut delivery times and ease credit constraints, thereby improving service and supply efficiency

The Federation of Retailer Association of India on Tuesday asked the government to provide enhanced technology platform to Kirana stores to enable them to compete with quick commerce firms. "Such support would enable the kirana stores to remain competitive amidst the increasing encroachment into their space by quick commerce companies like Swiggy Instamart, Blinkit or Zepto," said Federation of Retailer Association of India (FRAI), which says that it represents about 80 lakh micro, small and medium retailers from across the country with a membership of 42 retail associations. Providing local kirana stores with a technology platform would allow them to compete on equal terms with quick commerce players, effectively creating a level-playing field, it added. "With new technologies brought in by the government, like ONDC (Open Network for Digital Commerce), what is now required is a more focused approach in creating a specific solution for kirana stores that makes them as discoverable a

Analysts said companies like Amazon and Flipkart may have to invest at least $1 billion each in 2-3 years to catch up

Fresh out of bumper USD 350 million funding this time from marquee domestic investors, quick commerce company Zepto says it is on a clear path to becoming a full Indian-owned entity and hitting PAT positive milestone, as co-founder and CEO Aadit Palicha exudes optimism about a possible IPO in 2025. In an interview with PTI, Palicha strongly countered allegations about the quick commerce model disrupting and stunting the growth of traditional kirana stores. He asserted that these and other "narratives" are not grounded in real data and underrate the "net positives" achieved so far by the industry, including job creation. Palicha further said that instant 10-minute delivery models like that of Zepto have generated lakhs of jobs, been wage-additive, and created all-around "value" for both consumers and workers. Moreover, the quick commerce model executed at a scale for groceries and items of daily use is unseen, unmatched globally, he said adding that this goes to showcase the unique .

As consumer preferences shift towards the convenience of last-minute grocery deliveries, quick commerce companies are outpacing traditional retailers, with 46 per cent of consumers surveyed reporting a cut in purchases from Kirana shops, a report has said. The quick commerce market size is expected to reach USD 40 billion by 2030, a jump from USD 6.1 billion in 2024, according to the report by Datum Intelligence. "Nearly half (46 per cent) of respondents report reduced spending at Kirana shops, indicating a shift in customer behavior towards quick commerce platforms," it noted. Quick commerce refers to the delivery of consumer items in 10-30 minutes. Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes are among the top quick commerce platforms in India. The quick commerce market is projected to capture approximately USD 1.28 billion of Kirana sales by 2024, accounting for 21 per cent of total sales on these platforms, the report further said. "Quick commerce's focus on speed an

Recent data reveals, metro cities have experienced the greatest impact of quick commerce with 90,000 kirana stores shutting down in these areas alone, compared to 60,000 closures in Tier-I cities

In India, approximately 13 million kirana stores form the backbone of FMCG distribution, especially in rural regions and Tier-II and Tier-III cities, accounting for nearly 85 per cent of sales

Commerce and Industry Minister Piyush Goyal had said in August that the government is not opposed to e-commerce but is focused on ensuring fair competition between online and offline businesses

Some savvy kiranas are already evolving - becoming specialist gourmet shops, mini-supermarkets, or setting up their own efficient delivery systems

Udaan is revolutionising how kirana stores operate by offering digital solutions that streamline procurement, boost efficiency, and facilitate access to formal credit

The maker of Rajnigandha Silver Pearls and Pass Pass plans to continue its focus on Indian ethnic flavours to drive this growth

The trust in Paytm has decreased among 68% of Indian Kirana stores after the RBI announcement on January 31, a report released on Thursday said

Hindustan Unilever (HUL) became the first fast-moving consumer goods (FMCG) company to join ONDC last year through UShop

The survey, conducted among 5,000 kirana owners across the country, showed that 22 per cent of kirana owners in India are feeling "extremely optimistic" about business prospects this festive season

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Sales of FMCG items slowed both on a month-on-month (M-o-M) basis and year-on-year (Y-o-Y) and stores stocked up on lesser products, according to Bizom data

The federal government is also working on a strategy with state governments and will seek their inputs to increase the base of indirect tax payers

Neither of the officials provided details on how banks would be compensated for providing cheap loans

"Consciously working on addressing the needs of rural consumers by offering them the most relevant packs," said Coca-Cola India

The programme enables the kirana partners to make limited time-based deliveries contingent on their comfort and availability and has enabled large-scale participation from women