#Mint Insight: The Big Kirana reboot is not going to be easy

Indian retail today stands at approx. $880bn in sales. This comprises of General Trade (primarily mom & pop stores) at 88%, Modern Retail 9% and Ecommerce 3%. In the latest dispatch of Mint Insight, we decode the increasing appeal of the 'kirana' stores and how its digital reboot is not going to be an easy one. According to Rajat Wahi, Partner, Deloitte India, the Kirana stores in India provide great convenience to their shoppers and consumers through the 5P execution (product, price, placement, promotion and promoters) along with services like home delivery and credit, creating a strong connect with their consumers.He/she is always looking for deals and supplies from multiple sources (be it local wholesalers, close out dealers, inter-state suppliers, ecomm players, B2B MT, importers, etc) to improve margins, range & assortment. In addition, he is also fast learning new ways to augment his income, be it through basic category management techniques, charging for promotions and space in-store, to signage and other marketing initiatives. Wahi goes on to say that is this drive for margins that makes the Kirana a very ‘promiscuous’ shopper of products, always looking for a better deal and not loyal to any brand or partner who wants to work with them. So, while there will be many players who will be claiming victory in their tie ups with Kiranas in the coming months and years, winning their absolute loyalty will continue to be a challenge for alliance partners, and the intense completion to on-board them will only make it easier for Kiranas to continue to ‘flirt’ with many suitors, without committing to any one partner for a permanent relationship.