Kirana stores

Article
INFO:-
• A homemaker in Coimbatore who used to buy groceries from the
neighbourhood store now simply orders online what she needs the
night before, to be delivered at 7am.
• It arrives on time, just after her morning puja, every day and she pays
her bill at the end of the month using her mobile wallet.
• The e-store that delivers her groceries customizes reminders and
options, almost seeming to know what she will need before she
realizes it.
The current scenario
• This is the contemporary scenario of grocery retail, and it is an
exciting time to be a retailer and a consumer in India.
• The overall India grocery market is set to grow from about $550
billion to nearly $1 trillion in four to five years.
INFLECTION POINT

• Future scenarios in grocery retail will be determined by how key

uncertainties evolve. We see three significant trends: First, wholesale
will become more organized as players like Reliance, Walmart and
Metro invest to grow. Additionally, e-commerce horizontals like
Amazon and third-party logistics players could enter in a big way,
further boosting the shift towards organized wholesale.
• Second, e-commerce, direct-to-consumer (D2C) models, supermarket
chains and kiranas-turned-independent-self-service stores will
significantly outgrow existing channels and formats, especially in the
top 40 urban towns. Despite policy limitations, we expect e-
commerce players to continue to invest in grocery to drive customer
acquisition and frequency
• Third, by 2030 nearly 31 boom towns and developed rural areas will
drive consumption, premiumization will make hitherto niche
segments viable to address, and consumers will be more open to
using different technologies for discovery, browsing and shopping,
according to a report titled The Future of Consumption in Fast-Growth
• Consumer Markets: India published by World Economic Forum and
Bain and Co. in January.
Challenges for FMCG.
• FMCG players will have to operate differently, regardless of which of
these scenarios emerge. We see the need to re-design offers and
marketing mixes, re-invent route-to-market strategies and re-invest in
technology. Companies will have to handle the complexity of co-
existing organized and unorganized wholesale and retail channels,
emerging e-commerce and D2C models, and different locations of
consumption.
• Notwithstanding which of the scenarios play out, one thing is certain:
The market will be more complicated and it will not be for the faint-
hearted to navigate. Scale, performance, products, differentiation,
cost, technology and people will be key challenges an FMCG player
will need to work through.
 DATA AND INNOVATION

• THIS SHOWS THE GROWTH Chart Title

ESTIMATE OF THE RISE IN

400

THE CONSUMPTION LEVEL 350 335

OF INDIA. 300

250

REF:- BOSTON CONSULTING GROUP

MILLIONS
200

150
110
100

50

0
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YEAR