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Topic : Kirana Stores Vs Organized Retail
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Retail & Supply Chain Professionals

 
Created by : Shailena Varma, Logistics Manager, Target  | 02 06 2009 11:06:17 +0000
Industry : Retail Chain/LogisticsFunctional Area : Consumer Sales(Sales & Marketing)
Activity:  4214 views;  last activity : 07 06 2010 20:18:09 +0000

Retail is the new buzzword in India. Buying ritual has become shopping experience. Lifestyle is changing rapidly with the concept of value for money.  The information that the Indian consumer has access to is immense which leads to the freedom of choice and in turn the demand for the  differently organized retail formats. The traditional way of retailing is also organized but differently organized. The changing income profiles, change in consumption patterns, changing demographics, diminishing difference between rural and urban India demand the change in the way the retail business is carried out in India. This change is not only restricted to metros but has rapidly spread over to a smaller cities and towns. Do you think the change in consumer behaviour in Indian Retail has begun from kiranas to retail stores? Give your suggestions.....

 
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Top Argument
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it has definitely, else we would not have seen too many firms entering into the scene, but at the same time

for their survival they need to be realistic and act accordingly which unfortunately is not happening today.

take the example of sabka bazaar, they are selling at mrp which can do well in south delhi but can it do well

at place like pratap vihar, ghaziabad where kirana stores are selling below mrp and giving you ration on  a month's credit.


By sudhakar singh, head retail department  03 04 2009 18:28:12 +0000
 
Top Argument
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Though a lot of hard work is being put in by companies like ITC and Godrej in introducing "Retail Sales" to Rural India, the concept is still alien to millions across our country.

Most of us city-bred clan do not realize that over 2/3rd of India is still in the villages. Though technology and awareness have permeated to many villages, the accessibility to technology and the opportunity to experience better consumer goods/services has still not kept pace with the demand.

I feel a large, quantum of our population still go to the kirana shop and ask for 5Kg "Atta" rather than 5Kg "Pillsbury Atta".


By Zahid Hussain Kaliyadan, GM-HR, KIMS Management Internationale  02 10 2009 05:42:55 +0000
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Guys

It is really good to see so many different good views coming out. 

But the bottom line is India has large population and huge consumer based which has all types of people with different purchasing capacity. And the number is huge. So even if the 20-40% of young generation prefers the retail mall then to kiran stores then they have made a statement. That why it is growing. 

Nowdays the trend of the younger generation, young working couples the shopping culture is changing, due to lack of time, quality exposure, qaulity of life, spending urge....

These things are pushing people to go to mall or to retail shops. They going for weekly/monthly grocery conpect of buying things.

And small items, milk, coiple of product to buy, etc.. they are prefering the kiran stores.

And as I said above Kiran stores will still be there, as 60-70% of the crowd in village, elders, couples in age above 35 plus still prefer to buy grocery from the kiran shop down the street.

Also the infrastructure is the major play. For e.g. in Bangalore I ask once my friend , u are crazy to buy things from brand shop, why not now. He says it depends, if we are in good mood and near the mall then we will, esle to go in the trafic it is not worth. So infrastructure too is one of the influence factor - how quick, nearer, parking space, fuel cost, also decide the same.


By Mihir Jhaveri, PMP, CSCM, Senior Manager/Pre Sales & Solution Lead/SCM/Strategy, Bristlecone India  | 04 30 2009 04:30:19 +0000
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Organized way of selling goods and services by the retail stores have resulted a change in consumer behavior and now we are seeing more and more people are buying from them than kiranas.


By Souvik Karmakar, Sales/BD Manager, Reliance Retail  | 03 05 2009 08:18:45 +0000
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ofcourse yes, it has already changed according to me, if not you wouldn't have seen the uprise in so many of retail chains altogether, and walmart is also coming up with Bharti and if that happens the Kirana stores which were running all these days will have to checkout other options as people want everything under one roof. So yes there is total shift in the consumer behavior from kirana stores to retail chains.


By Vijay Sharma, Logistics Manager, Reliance retail  | 02 20 2009 07:23:57 +0000
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Yes I think the retail store offers a wide range of products in an organized fashion that are easily accessible to the consumer. The product line of the retail stores is substantially long which provides better amenities to the consumer for shopping by developing adequate infrastructure for parking, leisure, coffee shops etc. The customers are able to purchase whatever they want from a single roof as compared to kiranas nearby.


By Shailena Varma, Logistics Manager, Target  | 02 06 2009 11:06:17 +0000
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My feeling is that the kiranas are always going to be around. At most they would shed there inhibitions and make a facade change to attract the customer, but they will remain. With the introduction of plastic, only the buying patterns have changed. If tomorrow the world credit organisations like visa and master decide to give a swipe machine to kiranas then would you as a consumer go to a mercahnt establishment where your plastic is accepted which doesnt have decor, neatly stacked racks but can still give you the freedom to buy what you want? i say why not?

How many times do we actually go to specialty stores?? How many times do you just pick up the phone and call for the kirana in the neighborhood and order what you need to be delivered at home? You see the kirana has already started home deliveries that your specialty store hasnt. So both the entities according to me will eventually survie!! As long as there is a divide between the SE segments, kiranas will be seen and specialty stores will also thrive!!


By Makrand Bhave, AGM - Corporate Business, E18, part of Network 18 Group  | 04 30 2009 05:07:50 +0000
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Mr.Zahid i definitely agree with your point.I also believe that no matter how many retail stores have been opened in india but still its penetration is very less if we take into account the rural india.People there still prefer to go to a local kirana store because of the years long relationship and the trust that they have on them And if retail stores want to expand their market to rural india then they have to come up with new strategies which should help them to build a relation with the people there.

What do you say?


By Gargi Sinha, Senior Consultant, Hewitt Associates  | 04 09 2009 06:14:06 +0000
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IT is the other way round. The change in indian retail scene has happened from the large format retail stores to the kirana ones. What big bazaar and relaince did to the retail scene was not just close down the kirana stores where rat infested and limited products were the order of the day. It opened indians to more choices and quality albeit at a higher price. It also turned the malls into a destination shopping point rather than a need based one. Today consumers go to malls to not only buy their monthly provisions but also to catch a movie and entertrain their kids apart from satiating their appetite at the food court.

Yes sir! Retail has taken over not just from kirana stores but as the ultimate in entertainment for the whole family in a comfortable environment where products can be felt/tasted before purchase. No wonder then that the Subiksha concept is a big flop. Subiksha tried its hand at an organised kind of kirana store rather than a decent retailer. The products were still the same rat infested and the choices limited. Only change was a brand name in the packaging.

This itself would prove that the booming of retail has had an impact on the kirana stores.


By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 03 07 2009 16:57:02 +0000
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i dont think so that change of consumer behaviour has started from kirana stores to retail chain. Yes initially such retail chain made an impact because of the consumer behaviour of trying out something new. But the Kirana stores also started changing. Today they have started the practice of door delivery, on phone order, credit for purchases etc. which all has made sure that Kirana stores are still relevant in today's environment. Their interaction with customers have increased and therefore they are catering to changing demand of their customer in stocking various products in their stores. finally the most imporant element is that the kirana store are located in your neighbourhood while the big retail stores are far off


By Radharamanan Panicker, CEO/MD/Director, Cargo Service Center India Pvt Ltd  | 02 21 2009 06:43:35 +0000
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I don't agree that most of the consumer's choice is changed from kiranas to retail stores because of price and the quality of the product they get from kiranas and they can also bargain price with the kirana stores.


By Akhilesh Majumdar, Logistics Manager, Tesco  | 02 06 2009 11:18:54 +0000
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