Indian Kirana stores rapidly adopting digital solutions: Redseer
Sep 18, 2024
New Delhi [India], September 18 : India's kirana stores, long known for their traditional trade methods, are now rapidly adopting digital solutions through eB2B (ecommerce-led Business-to-Business) platforms, according to a study by Redseer Strategy Consultants.
The study highlighted that there is a significant transformation taking place in India's retail sector, which is dominated by over 15 million kirana stores.
As per the study, these small, often family-owned shops are increasingly turning to digital platforms for better efficiency, streamlined operations, and enhanced access to financial services.
The study, explained that the traditional retail market in India has faced several challenges, including fragmented supply chains, inconsistent service quality, and limited access to formal credit. However, eB2B platforms are now offering kirana stores a way to overcome these obstacles, especially in rural and remote areas.
"Kirana stores, especially in remote and rural regions, are increasingly turning to eB2B platforms for better procurement management, access to formal credit, and superior customer service" said the report.
These platforms help kiranas with procurement management, access to formal credit, and superior customer service, allowing them to compete more effectively in a rapidly evolving market.
"Many kirana stores, which previously relied on informal credit arrangements, now have access to formal financing options through eB2B platforms. This access to credit allows retailers to expand their product range and improve cash flow management," added the report.
"The Indian B2B kirana market is on the cusp of a remarkable transformation as digital platforms revolutionize traditional trade practices. Our report highlights strong growth driven by digital adoption, with eB2B solutions reshaping supply chains and improving efficiencies. Kirana stores now have unprecedented access to products and financial services, marking a fundamental shift in how businesses operate and thrive in the coming years" said Anil Kumar, Founder, CEO, Redseer Strategy Consultants
Looking ahead, as per the study the future of India's eB2B market appears promising. As private consumption in India continues to grow at a compound annual growth rate (CAGR) of 10.4 per cent from FY18 to FY23, the retail market is expected to reach INR 116-125 trillion by 2028.
With continued expansion of product categories and deeper penetration into existing markets, the eB2B industry as per the study is set to redefine traditional retail in India.
