Kirana stores are local shops in the neighbourhood that supply items of daily use such as grocery, tobacco, cleaning items etc. In other words, these play the role of modern convenience stores. However, like the departmental stores or supermarkets, these Kirana shops don’t offer any discounts on your purchase. These are also easily accessible because the stores are situated in every locality. The wide range of products would cater to consumer requirements effectively. The impact of these stores in the Indian economy can be described in the following words.
Importance of Kirana shops in the retail industry of India
From a wider perspective, Kirana stores are quite helpful in dealing with the economic crisis of the country. Research data shows that the retail industries of India constitute around one-tenth of the country’s GDP. The grocery shops or Kirana stores form the main part of the country’s retail industry. Therefore, its growth and development are directly proportional to the Indian economy’s growth. These shops have been in business for the last many decades and that is why they have comprehended the exact requirements of a wide range of consumers. This is the reason they are able to thrive in this digital era where E-commerce is taking over everything.
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How is the Kirana store responsible for boosting the country’s economy?
The internet is accessible to only 17% of the Indian population. Therefore, the perks of E-commerce due to digitalization are not being enjoyed by everyone. Not only this, a lot of people who have steady access to internet shops for essentials from these local stores because it is more convenient to get the items instantly than to wait for delivery. In this case, to shop for the daily necessities, a huge section of consumers is only dependent on the supplies of the Kirana shops which automatically raises the demands of these products in the market for the proper functioning of these stores. As a result of this, more production will take place that will lead to more business.
In these stores, the human interface is the primary factor. People who like to buy the products by analyzing them physically beforehand, also prefer Kirana shops. As a result of this, a personal relationship is fostered between the shopkeeper and the consumer, considering the loyalty and regularity of the customers. Therefore, the requirements of these people can be addressed in an efficient manner.
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India’s largest share of consumer’s spending budget undoubtedly goes to the chain of Kirana stores because of the versatility of items that is available at reasonable market prices. Another important point that needs to be mentioned is that Kirana stores pave the way for small businesses. Here is how the government gets revenue that contributes greatly to the economy. For starting a Kirana shop, a trade license is mandatory for which, a substantial sum is paid to the government treasury. The steady growth of the small business would not only help the economy but also increase the scope of employment.
Making way for the development of these local shops – establishing B2B relationships with the E-commerce platform
Large-scale businesses invest a fair amount of capital on the development of these small retail stores to nourish the soul of the Indian retail industry. Not only this, for establishing a stable B2B platform for these Kirana stores, technological aids are also utilized to their fullest. It will also help them to stay ahead in the retail competition. For instance, carrying out online transactions and making way for digital payment services will help these shops to bring more convenience to the shopping experience of the consumers. Keeping up with local trends is also very important for these local grocery shops. It also helps to foster a long-lasting relationship with the consumers. The E-commerce industry has paved the way for the growth of these Kirana shops to ensure their development and help them to achieve their true potential. Moreover, these online business platforms are also dependent on the local shops for their survival. In simple words, the E-commerce platforms depend on small retail stores for the supply of items which, in turn, makes way for the growth of their business and leads to more production. Both these platforms are dependent on each other through the modern chain of consumerism.
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For centuries, Kirana shops are in operation and have been catering to the diverse requirements of the consumers. It forms the backbone of the Indian economy, by being an essential part of the country’s retail industry. Therefore, the considerable growth and development of these stores would help to contribute to the growth rate of GDP by tackling several issues like unemployment and giving opportunities for new businesses to rise.
To ensure this positive growth, online lending platforms like Indifi provide round the clock assistance and hassle-free collateral-free loans to boost up local businesses.