80% Kirana stores express need for digitalisation win back business from Zepto, Blinkit

• Kirana store owners said overall sales volumes have been impacted due to quick commerce platforms
• Price competition, delivery speed, product availability are some key issues kirana stores are facing
• Kirana stores felt that partnering with e-commerce platforms and the government can help expand business.

With neighbourhood stores losing business share to quick commerce platforms, owners said that it is time they focus on digitalisation. In a survey conducted by Kiko Live, a SaaS solution for neighbourhood stores,a majority of the kirana stores felt that overall sales volume has reduced because of loss of business to quick commerce platforms. Price competition from quick commerce, speed of delivery and delayed product availability are three of the key issues that kirana stores are facing.

In order to get business back, 80% of the respondents (kirana store owners) felt that they should focus on going online, as digitalisation and quick commerce are essential for growth. They felt that partnering with e-commerce platforms and the government can help expand business. They also felt that it is important to improve customer service, social media presence and increase product range in order to compete with quick commerce players.

Strong supply chains and digital marketing are important along with partnerships like ONDC for wider reach for neighbourhood kirana stores. Offering quick home delivery and loyalty programs can enhance customer satisfaction and competitiveness.

Most of the survey respondents expressed optimism about the future, believing that transitioning to online and quick commerce platforms can help businesses grow within 1-2 years. About 84% of the respondents have already started using technology and digitalisation to some extent at present. However, there were some concerns about survival if current trends continue without adaptation.

Close to 50 kirana store owners were profiled and surveyed to check the degree of impact of quick commerce platforms on their overall business.

About 13 million kirana stores in India generate over $800 billion in annual business, yet most of them do not have a digital footprint.

“Kiko Live is helping sellers build their digital storefront on ONDC Network and give their store customers an online experienceKiko Live aims to on-board more cities across all tiers to enhance ordering ease through ONDC,” said, AlokChawla, co-founder, Kiko Live.

A key milestone that Kiko Live has achieved has been to enable high fulfillment rates by the retailers, with sellers achieving 99% order fill rates to date. These efforts have led to order cancellation rates of less than 1% and repeat buying rates that have been crossing 30% of all orders.