Every business, whether big or small, faces challenges at some point during its business survival phase. This is no different when it comes to Kirana stores. Almost every person in India depends on the Kirana stores for purchasing essential items.
Kirana proprietors have a dedicated customer base and attend to the particular needs of a neighbourhood or community, even with a modest setup. However, as global retailers and e-commerce behemoths expand, Kirana owners are struggling to stay competitive.
With traditional tactics, they can no longer rely on their consumer base. To succeed in their industry, they must have a competitive advantage over the retail behemoths and the availability of Kirana store loans to match the retail giants.
Daily struggles of a Kirana store owner
Kirana owners have been serving consumers for several years, but they may get forced to shut down their doors if they do not continue to invest in their development and expansion. Retailers and e-commerce behemoths have made rapid headway in developing new techniques to attract more customers.
They propose new schemes, sale days, festival deals, and it just continues to grow as more people buy even the tiniest of items online. Mentioned below are some daily struggles of Kirana business owners:
Less attraction for customers
Unlike big departmental stores, Kirana store owners do not roll out exciting offers for the customers. Furthermore, poor buyer encounters, the absence of return or refund policies are some problems that conventional Kirana owners face, and all these problems lead to low conversions and reduced profits.
Lack of expert staff
Modern customers prefer grocery stores that have expert staff to help them make informed choices, and this is something conventional Kirana stores usually lack.
Every small business, including the Kirana store, runs on tight budgets and this is what makes business owners struggle every day. However, nowadays many Kirana business owners can overcome this problem by availing a loan for MSME.
Less scope for expansion
Most of the Kirana shops get established in a pretty small space. This is what makes expansion a struggle for business owners.
Kirana stores run on an extremely tight budget. Hence, they rarely possess sufficient funds to spend on marketing and product promotion drives.
Poor Business Administration
Kirana stores are usually family-run businesses in provincial areas. These stores get passed on to the new generation from the old ones and hence lack proper management.
Lack of technical knowledge
Lack of technical knowledge is also a culprit for the everyday struggles faced by Kirana owners. Numerous small Kirana store owners are not tech-savvy, and they hardly understand how online media can take their businesses and earnings to another level.
Ways to overcome daily struggles of a Kirana shop owner
Mentioned below are some suggestions for Kirana business owners to overcome their daily struggles.
Set up an online store
In this digital world, every business requires an online presence and having one might give you an advantage over your competitors. With a plethora of online tools and websites available on the internet, a Kirana store eCommerce site is pretty simple to set up.
Hence, you should invest in reliable technology for creating an online business and have a solid marketing approach to expand your consumer base.
Also, NBFCs provide shop loans without requiring collateral, making it easier for Kirana owners to develop their businesses in any way.
They can spend actively in a well-rounded marketing plan and an internet presence, giving them an advantage over their local rivals and making them well-known in the community.
Make the consumer experience as simple as possible
Kirana owners’ strongest selling point is that they are always the first choice for clients in times of need, and tiny Kirana owners can take full advantage of this.
Kirana proprietors may create a comfortable experience for clients by stocking their chosen products and contacting them when new stock arrives, knowing their tastes and preferences.
Unique store design
A customer-friendly layout is one of the most ignored components of Kirana businesses. There are a few tried-and-true designs that provide the optimum user experience.
It can help the community because local Kirana owners are familiar with famous brands and can customize the layout to meet the needs and tastes of the community.
Returning to a regular store layout, such as that used by big stores, can provide Kirana owners with an advantage and keep customers satisfied by enabling them to identify good products quickly.
Providing an unforgettable experience
Customers are looking for more than just a local supermarket; they want to get more out of a simple supermarket trip. For example, a Kirana store could be adjacent to a cafeteria or a snack shop, where customers can relax while collecting their weekly supplies.
As a result, customers of all ages love to frequent Kirana stores and enjoy the social experience that comes with them.
Collaboration with other retailers is a good idea
Another option for competing with e-retailers is to form a society by collaborating with other Kirana proprietors. It can take advantage of retailer rivalry and provide consumers with exciting discounts and specials.
In this manner, the Kirana owners can stay in business and not get forced to close when the big supermarkets and merchants plan to broaden their presence. Also, collaboration with supermarket behemoths can benefit Kirana owners hoping to grow their niche products across the globe.
In the end, nothing can replace the convenience of having access to a nearby Kirana shop in case of emergencies. The Kirana shop owners’ equation with consumers will stay intact and inseparable if they invest in their management and customer relationship management.
If you are a Kirana business owner looking for a shop loan to expand your business operations then look no further than Ziploan. At Ziploan, we provide you with an unsecured loan for MSME to take your Kirana store to a whole new level. To know more about our services, you can call us at 011 – 4310 – 9577.
Frequently Asked Questions
What is a small, usually family-owned shop selling groceries and other sundries? Kirana store, a small neighborhood retail store in the Indian Subcontinent.
The profit margin of a Kirana store depends on the number of customers it attracts monthly and varies from store to store. Though a perfect number can be put, the profit margin is largely between 5% – 30%. You might have to invest anywhere between 50,000 to a few lakh rupees to start a Kirana shop.
For a small one in a Tier I city, the rate is more than Rs 15,000 a month.
When startup investment is considered, grocery store owners can expect to spend between $70,000-$100,000 on equipment. A good point-of-sale system will require another $40,000. Initial inventory can be a massive investment, sitting around $160,000.
Overall it’s all about economies of scale. The scale of operation makes grocery a profitable Business. The key to the success of some of the biggest grocery chains is centralized procurement. Therefore, they can offer committed discounts to customers.