Kirana stores, which are enjoying renewed levels of trust from neighbourhood communities, are beginning to leverage on technologies as they believe the new level of growth for traditional trade stores will come from partnerships and symbiotic relationships.

According to a report by EY India, there has been a positive movement towards the adoption of technology, with 40 per cent of the kirana -store owners surveyed stating that they want to partner with online delivery and supply platforms as they feel these can help them grow in these testing times. About 20 per cent of the kirana -store owners across metros and non-metros have started leveraging online platforms to get a steady supply of goods and assistance in deliveries.

Nearly 56 per cent of the respondents in metro cities said that they have been a positive change in the attitude of consumers post lockdown. Also 79 per cent of respondents in non-metros and 50 per cent in metros said that there are new consumers coming to their store post the lockdown period.

“FMCGs, large retailers and financial services companies should recognise that the kirana store is the new local touchpoint and their conduit into the daily life of a trusting consumer,” EY said.

Also, with consumers now spending more time at home, there is an increasing demand for specialty food items and DIY items. “Seventy-nine per cent respondents in non-metros and 75 per cent in metros stated that consumers are purchasing specialty food items and DIY items in unprecedented quantities to the extent that the kiranas are finding it hard to source such food items,” the report added.

Consumer connect

Meanwhile, consumer loyalty to brands is now in question, providing a window for new brands to replace old loyalties. At least 69 per cent kiranas in the non-metros were able to sell alternative brands to their customers.

Shashank Shwet, Partner, Customer Experience and Design Thinking, EY India, said: “Amidst the Covid-19 pandemic, the kirana -store owners have taken a lot of effort to keep up with the changing demands of the crisis and managing their day-to-day supplies. Moreover, the way that these kirana -store owners have adapted to innovation and digital technologies, such as digital payments, changing operating models and reduced friction towards technology, to cope up with the pandemic is highly commendable.”

He added that the new level of growth for kirana stores will come from partnerships and symbiotic relationships.

EY India said the insights were gathered through 27 qualitative interviews across 12 cities in India — five metros and seven non-metros — with participants who represent small and big kirana stores across a diverse socio-economic background.

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