Is Convenience Killing Community? The Rise of Quick Commerce vs. Kirana Stores
The Quick Commerce Boom and Its Toll on India’s Kirana Stores
The rapid rise of quick commerce in India, offering consumers ultra-fast deliveries from platforms like #Blinkit, #Swiggy, and #Zepto, has impacted an unexpected sector: India’s 13 million kirana stores. In just a year, approximately 200,000 small, family-owned kiranas have shut down, with an alarming concentration of closures in metro areas, where 90,000 stores have been forced to close. The All India Consumer Products Distributors Federation (AICPDF) notes that the trend is spreading to smaller cities as well, with closures in Tier-I, Tier-II, and Tier-III cities totaling an additional 110,000 stores.
The festive season, usually a profitable period for small retailers, has shown stagnant sales this year, suggesting quick commerce is impacting shopping habits across various income groups and regions. While convenience is the primary appeal for urban consumers, these platforms' practices, like deep discounts and free deliveries, are squeezing out the competition.
The Call for Regulation
Earlier this month, AICPDF urged the Competition Commission of India (CCI) to investigate quick commerce giants for alleged predatory pricing. The federation argues that these platforms' low prices make it nearly impossible for kirana stores to compete, threatening not only their existence but also the livelihoods of millions of families. Without regulations, kirana stores—cornerstones of communities for generations—may continue to vanish.
领英推荐
A Path Forward: A Balanced Solution
To protect kirana stores while still allowing quick commerce to innovate, a middle-ground solution is essential:
1. Fair Pricing Regulations: Implement fair pricing guidelines to prevent quick commerce from selling below cost.
2. Local Integration: Encourage quick commerce platforms to partner with local kirana stores, allowing customers to support small businesses through digital convenience.
3. Digital Empowerment of Kirana Stores: Invest in helping kiranas establish a stronger digital presence and integrate online payment systems, enabling them to meet changing customer expectations.
The rise of quick commerce can coexist with the traditional kirana model if balanced regulations and fair business practices are enforced. A combined approach could enhance consumers' convenience while preserving local businesses.
Technology Leadership | Engineering | Products | Programming | Lean Startups | Zero to Ten | Fintech | SME
4 个月This is where platforms like misrut are trying to make a difference. We work with local kirana stores and empower them with technology. As you have rightly pointed out in your title , it's the community that is being killed, it affects the local ecosystem, not just the small businesses in the long run, and when these deep discounts vanish, no other option will be left.