The Indian retail industry has certain key features that make it unique. FMCG manufacturers should train their sales-force personnel to be more receptive to the needs of the traditional kirana stores. What are some of the unique aspects of the Indian retail industry? Click here to see Forbes India's comprehensive coverage on the Covid-19 situation and its impact on life, business and the economy​, [This article has been reproduced with permission from ISBInsight, the research publication of the Indian School of Business, India], For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you, Donald Trump exits White House at a lowest approval rating of his team, How 80/20 helped Simba brew the survival keg in 2020. However, a strong traditional channel would provide an indirect benefit as well: it would check the power that large organised retailers have over the manufacturer. The learning from the developed world cannot be applied directly to the retail industry in the emerging economies. window.mc4wp = { Instead, resources are allocated to cater to the demands of organised retail outlets.Q. it is a revolutionary idea of standardization, digitization & centralization to traditional Grocery system. Rol-a-Cola can be pushed in the rural market by making it an easily available alternative at each kirana store, through a strong distribution network, by increasing the margin for kirana stores and distributors based on volume of sales. All classes of cities are growing equally when it comes to profitability for the FMCG manufacturer. What would be the key insights that your research can provide to FMCG manufacturers in India?FMCG manufacturers can take advantage of the Indian retail landscape and achieve higher profits if they stop excessively focusing on premium products, larger cities and organised retail. Sample size consists of 101 Kirana Store retailers. Services like inventory management, product category management, shelf space management and customised point of sale signage that are usually offered to organised retailers can be extended to these traditional retailers to help them adopt best practices and to compete effectively.A common mistake is to allocate the advertising budget and sales-force personnel based on the size of the city. In a marked change in its strategy, Reliance Retail will rope in kirana stores as franchise partners to sell products while completely moving away from the direct sale of packaged food, grocery and FMCG products on its JioMart platform. Contrary to common belief, the profitability of traditional kirana stores is already higher than that of modern trade outlets. In this paper, we shall examine what the small kirana shops perceive about the growing corporate organised retailers in relation to their business and employment. Thank you for your comment, we value your opinion and the time you took to write to us! © 2018 - ISBInsight - Flagship Research Periodical of the Indian School of Business (ISB). Mentioned below are the key steps that you need to take in order to build a Kirana store of your own. The retail industry in emerging economies such as India presents challenges that are typically not seen in these contexts. Understanding how the intensity of promotions in one category affects that category and other category revenues is important for an effective and profitable promotion campaign.Q. Kirana.One would serve as a directory for local kirana stores or nukkad stores. An Empirical Investigation of Unique Aspects of Retailing in India: The Perspective of Consumer Packaged Goods Manufacturers. Majority of the store owners find it difficult to match the requirements as keeping such a large inventory is not possible for them. These consumers might not be attracted to organised retail stores. Kirana store is the small neighborhood shop in India. Most FMCG manufacturers do not picture the Indian retail landscape this way and often either disproportionately allocate resources depending on the size of the city or extensively focus on strengthening their supply chain and sales infrastructure in large cities rather than building new supply chain and sales infrastructure in the rural areas. Many FMCG manufacturers underestimate the cross-category effects when designing promotions and expect that promotions will lead to higher revenues. Another common mistake most global FMCG manufacturers make in India is to ignore the traditional kirana stores. From Shubman Gill to Rishabh Pant, young turks of India's historic cricket win in Australia. Ace of Club: How Mahindra Holidays & Resorts rode the Covid storm, US startups struggling to hire when times are tough, News by Numbers: How Indian singles look to mingle in 2021, Timeline: Joe Biden, from youngest senator to oldest president. Flipkart now proposes to supply goods to kiranas leveraging the expertise of Walmart India — a cash-and-carry business. A kirana store can never compete with the kind of discounts and deals a supermarket offers to consumers. Data Protection Bill: Can it ensure your privacy online? This results in more selling and also making a decent return, anyway. Kirana are typically family-owned stores that operate in fixed locations and carry both basic food and non-food items. Kirana.Store emphasizes on quality at reasonable prices to all consumers day possible presents! Way to choose your kirana store of your own your local kirana store location is to go to a Leader... Conglomerates: lessons from the Covid-19 crisis Research can provide to FMCG manufacturers make in India with an online-to-offline.! Store is up and running, you likely have a lot of resources that you can decide the grandeur your! 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