How Kirana Stores Are Competing With Quick Commerce Startups?

Kirana store owners across India are facing significant challenges as they struggle to keep pace with the growth of quick commerce platforms such as Zepto and Blinkit. These platforms, known for offering faster delivery times, competitive pricing, and a wide range of products, are rapidly gaining market share, affecting the sales of traditional neighbourhood stores.

A recent survey conducted by Kiko Live, a SaaS platform designed to help Kirana stores digitize, highlighted that 80% of the respondents believe digitalisation is essential for reclaiming lost business and staying competitive. TICE highlights how Kirana stores are competing with quick commerce startups.

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Impact of Quick Commerce on Kirana Stores

According to the survey, the introduction of quick commerce has had a tangible impact on the operations of local Kirana stores. The key issues identified by store owners include:

• Price Competition: Quick commerce platforms often offer products at lower prices due to their scale and efficiency, making it difficult for Kirana stores to compete.
• Delivery Speed: The speed at which quick commerce platforms deliver products—often within hours—has made it challenging for Kirana stores to keep up with consumer expectations.
• Product Availability: Quick commerce platforms generally have a broader range of products available at any given time, giving them a clear advantage over local stores.

As one store owner explained, “We are unable to match the speed of delivery and the extensive product range that these platforms offer, which has made it harder to retain customers.”

The Shift Towards Digitalisation

Despite the challenges, many Kirana store owners are optimistic about the future and see digitalisation as a way forward. The survey revealed that 80% of Kirana store owners believe adopting digital tools and platforms is essential to staying competitive in the modern retail landscape.

The survey also found that 84% of store owners have already begun integrating technology into their operations, albeit to varying degrees. Some have set up digital point-of-sale systems, while others have started using WhatsApp and other online platforms to accept orders and interact with customers.

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Many store owners feel that embracing digital platforms will help them improve their customer service and enhance their operational efficiency, which could lead to increased sales over time.

Key Strategies for Competing with Quick Commerce

The survey revealed several strategies that Kirana store owners are considering to combat the growing influence of quick commerce platforms:

1. E-Commerce Partnerships: Store owners are looking to collaborate with e-commerce platforms, such as the ONDC (Open Network for Digital Commerce), to increase their reach and visibility.
2. Improved Supply Chains: Strengthening supply chains to ensure timely product availability is seen as a crucial step in competing with quick commerce platforms.
3. Customer Service Enhancements: Many owners are focusing on improving customer service through better communication and loyalty programs.
4. Expanding Product Range: Some store owners plan to broaden their product offerings to better compete with the variety offered by quick commerce platforms.
5. Digital Marketing: Increasing their social media presence and digital marketing efforts is another key strategy for Kirana stores to attract and retain customers.

Success Stories and Support from Technology Platforms

One such platform helping Kirana stores with digitalisation is Kiko Live, which enables stores to set up digital storefronts on the ONDC Network. This partnership allows store owners to provide their customers with an online shopping experience while preserving the personal touch that local stores are known for.

Alok Chawla, Co-founder of Kiko Live, shared that the platform has helped retailers achieve a 99% order fulfillment rate, with less than 1% order cancellations and a 30% repeat buying rate. These figures suggest that when Kirana stores adopt digital solutions, they can successfully compete with quick commerce platforms.

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Challenges and Optimism for the Future

While many Kirana stores are taking steps toward digitalisation, there is a sense of urgency. The survey highlighted that store owners believe digital transformation is no longer optional—it is crucial for long-term survival. Many respondents expressed concern about the sustainability of their businesses if they fail to adapt to the changing retail landscape.

However, despite these concerns, most store owners remain optimistic. A significant number of respondents believe that a full transition to digital platforms and quick commerce solutions could help them see growth within 1-2 years.

The Road Ahead for Kirana Stores

Kirana stores play a critical role in India's retail sector, with over 13 million stores generating over $800 billion in annual business. However, the majority of these stores still lack a digital presence, which puts them at a disadvantage in the face of growing competition from quick commerce platforms.

The transition to digitalisation, though challenging, appears to be a necessary step for Kirana stores to thrive in an increasingly competitive market. As Kiko Live continues to support local retailers in their digital journey, the future of these stores will largely depend on how quickly and effectively they can embrace new technologies and adapt to the changing demands of their customers.