Kirana Shops deliver 10 times more than all Modern Trade in India during lockdown and always !

Normally Kirana Shop share of Grocery business in India is 90 % nationally and in Metros it is 70-75 %. The experience during the lockdown period has been an eye opener. My sources in trade tell me that Kirana delivered more than 95 % grocery across India with just 5 % between e-commerce companies and home delivery of Modern Trade. Major Modern Trade outlets within Malls were closed and biggest beneficiary was D Mart as they mostly have stand alone outlets. While the Paan Bidi type of outlets were mostly closed the proper Kirana Shops were open by and large.

Like rest of India, my family is also under a lockdown in Mumbai for over 10 days now, one thing we can surely thank for, is the uninterrupted supply chain for our items of daily need. We have had a very smooth access to these daily need items for all ten days and confident for the same ahead.

The two most needed every day items in the household are Vegetables and Kirana items apart from Milk. While I must complement the State Govt under the leadership of a new CM Shri Udhav Thackeray and Central Govt under the stellar leadership of PM Shri Narendra Modi, we must not forget the huge contribution made by our neighbourhood Kirana Shops and Fresh Vegetable Vendors. They have both taken huge personal risk in opening the shops every day, sourcing the items, carting them and stocking full range of products every day at a vantage point with easy reach to every one in the neighbourhood. Nationally 90 % of grocery is sourced from Kirana Shops.

There is a Kirana Shop in our Society Compound, we can easily walk to and get all our Kirana items from 7am to 10pm (till 10 days back he used to deliver even small quantities to us at home), there are at least 20 more Kirana Shops with one Km radius. We also have an exclusive handcart with fresh vegetables open twice from 11am to 1pm and again 4pm to 9pm, in addition to this we also get a truckload of fresh vegetables straight wholesale market once every week ! Frankly speaking what more could one ask for !! 

When I talk to my friends in Europe, UK and US, their experience is obviously not the same. While we got every thing at a distance of arms’ length, they have to drive average 6-8 km for 19.5 minutes (Ref :Diary Method /American Time Use Survey), park the car, walk in to the supermarket, stand in a very long Q, buy items and then do everything backwards to get home, many times short of much needed item-Toilet Rolls . The whole activity can take good over three hours these days with half the shopping pending, imagine the pain one has to undergo more so if you are a senior citizen. 

Thankfully Indian grocery business is still run with 90 % business share with Kirana Shops, balance 4% with e-com and 5.5 % with Modern Trade ! In major Metros this share is 75%, but yet dominant. The Traditional Retail share in US is 6 %, France 7 % and UK just 3 %.

India is aptly known as the nation of shopkeepers with 33% share of all Kirana Shops globally, 1.1 Crore Kirana Shops, 3 Lakh Distributors and Wholesalers ! This network really proved to be a great asset during this lockdown. 1.1 Crores Shops is literally 1 shop for every 120 Indians ! The BIGGER advantage was people did not go for much hoarding since a known trusted Lala ji assured them of his pipeline ! 

In the US, UK and Europe they quickly emptied the shelves as we see on TV every day. Mainly because they will not invest another three hours every second day but only once in a week. More so it is risky as well during the lockdown days globally, so they BUY MORE and hoard, where as in India people buy less but more often.

This takes us to the old question of need for 100 % FDI in Grocery Business ! Do we really need to switch from 90 % share of Kirana Trade Vs Modern Trade to a 5-6% share for Kirana Trade. Can Walmart, D Mart, Big Bazar, Star Bazar and Reliance Fresh etc., serve us any better than our neighbourhood Kirana Wala ? For now the war has been won by Kirana Trade with excellent service during the lockdown days people will always remember, while the battle awaits in the PMO ! 

Till then please stay connected with your local Kirana Shop.