Top 7 Small Business Tips for Small Kirana Store Owners

Introduction

Small Kirana owners have been a lifeline for every locality in India. Even with a small setup, Kirana owners have a loyal customer base and cater to the specific needs of a locality or a community. However, with the expansion of global retailers, e-commerce giants like Amazon and Flipkart, Kirana owners too have to amp up their strategies to thrive in the market. They can no longer rely on the customer base with conventional practices. They must have an edge over the retail giants to thrive in their business.

In today’s digital age, you can order everything from television right up to a needle. So then, how does a small Kirana owner thrive? The competition for a small Kirana owner is huge, considering there is a Kirana shop at every corner in India. In this article, we list down some tips for small business owners and strategies that have been tested and have worked well to increase profits by 20-30%. Let's take a look at these Kirana business tips.

1. Open an online store

Every business needs a presence online in this digital age, and this can be a good edge over competitive stores. An eCommerce site of the Kirana store is quite easy to implement with a lot of free tools and sites available online. Invest in a good tool to create an online store and have a good marketing strategy to have more customer reach.

NBFCs offer business loans without security, which can make it easy for Kirana owners to expand their shops in every way. They can actively invest in a wholesome marketing strategy and an online presence, which can give them an edge over their local competition and make them popular within the community.

2. Provide deals and coupons

Retail giants and sites like Amazon have taken the shopping experience to the next level. The promotional deals offered on weekends and the big festival sales have made people gravitate to all their basic needs online. The small Kirana owners can introduce promotional offers and discounts over niche products and those that are popular in the locality or community. With their loyal customer base, the deals and sale offers can retain the customer base for longer.

3. Create a convenient customer experience

The biggest USP of Kirana owners is the fact that they are always the first alternative for customers in times of urgency, and small Kirana owners can leverage this to their advantage. Knowing the choices and preferences of the customers, the Kirana owners can create a convenient experience for consumers by stocking their preferred products and notifying them when fresh stock arrives.

4. Collaborate with other retailers

Another alternative to compete with e-retailers is to collaborate with other Kirana owners and create a society. This can leverage the retailer competition and offer attractive discounts and sales to the consumers. This way, the Kirana owners can sustain in the market and will not have to shut down when the giant supermarkets and retailers try to expand their footprints around. The consumer’s preference and convenience will be a huge selling point and will retain the Kirana owners’ business and customer base.

5. Provide personal service

We have seen a lot of changes in customer service, especially around Covid times when basic needs and groceries were in huge demand due to the lockdown. Kirana owners who expanded their service gave special attention to their consumers and went out of their way to provide them with assistance who sustained even through the toughest lockdown in the past year. This is an indication that attention to this detail and providing personal service to the consumer can benefit the Kirana owners in a big way. It can amp up the sales and increase their consumers by word of mouth.

6. Innovate store layout

One of the most overlooked aspects of Kirana stores is a customer-friendly layout. There are certain tried and tested layouts that work best for a good customer experience. This can work well for the community, where the local Kirana owners are well aware of the popular products and can design the layout according to demands and preferences. Revisiting a traditional store layout like big retailers can give an edge to the Kirana owners and keep the consumers happy to find niche products easily.

7. Providing unique experience

Today, consumers don’t just look for a grocery store; they prefer getting more out of a simple grocery trip. For example, a cafe or a snacks outlet can be attached to a  Kirana store, where consumers can hang out while picking up their groceries for the week. This way, consumers across different age groups prefer to visit the Kirana shops and also enjoy the social experience attached to them.

Conclusion

Kirana owners have been serving consumers for many years now, but if they do not invest progressively in their growth and expansion, it could shut them down. Retailers and e-commerce giants have been making rapid progress in bringing innovative ways to attract more consumers. They introduce new schemes, big sale days, festival promotions, and it only keeps expanding more with people buying even the smallest of things online. However, in a case of emergency or quick needs, a Kirana owner is always the first preference for consumers, and this can be a great opportunity for them to take advantage of.

There are 12 million grocery stores in India, and they still hold a share of 92% of the offline grocery retail business. However, it has come down to 88% in the past two years. This can be improved if the Kirana owners transform themselves with these modernisation strategies. In addition, collaborating with giants like Amazon can also be of great service to Kirana owners who want to expand their niche products across the country.

Eventually, in an emergency, nothing can replace the comfort of access to a local Kirana shop. If the Kirana shop owners can invest in their management and customer service, their equation with consumers will remain solid and irreplaceable.

Also Read:

1) How to Start a Kirana Store?
2) Daily Struggles of a Small Kirana Store Owner & How to Overcome Them
3) 7 Different Types of Loans for Your Small Business
4) Hiring and Managing People Wisely: HR Mantras For Small Businesses

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FAQs

Q. How can Kirana owners make use of the Gig economy?

Ans. Kirana owners can take advantage of outsourcing logistics and delivery to external apps that are not too expensive and do not require excessive management. This way, there is a streamlined process to handle their services at a minimal cost.

Q. What is the 7-Eleven store model?

Ans. The 7-eleven stores started as a small consumer retail outlet where they managed to diversify and expand their products based on location and community preferences. They soon became a huge chain of retailers across various cities and catered to the new-age buyers by offering better quality and packaging of food items and other products, thus creating their brand. Kirana owners can maximise their profits following this model.

Q. How can small Kirana owners get business loans?

Ans. There are several banks and NFDCs that offer business loans to medium and small startups or Kirana owners. This way, they can achieve their business goals in a simple, hassle-free manner.

Q. How did the Kirana modernisation begin?

Ans. Several Kirana owners observed the dearth in consumer demand due to digital alternatives for consumers like Amazon, Dunzo, Flipkart, etc. The modernisation happened in the early 2000s when Kirana owners upgraded their business model to cater to digitally advanced customers and offer a more convenient consumer experience. A relevant example is the Sarvodaya supermarket in Dadar that reinvented itself by changing the store layout and going digital. This model has been implemented across several cities in Gujarat and UP.

Q. What is a tested way to free cash reserves in Kirana stores?

Ans. Actively managing inventory can ensure that there are no lapses in the inventory in Kirana shops. This way, damaged and expired products will not be lying around the shop, and it can be a good way to free up the cash reserves.