About the Researchers: window.mc4wp = { 4 INVENTORY MANAGEMENT. Increasing urbanisation, increasing incomes, and rising aspirations for a better quality of life are reshaping the Indian retail space. A Kirana store is a general department store that stocks and sells all kinds of household items, especially the ones that belong in the kitchen like groceries. FMCG manufacturers should train their sales-force personnel to be more receptive to the needs of the traditional kirana stores. Kirana are typically family-owned stores that operate in fixed locations and carry both basic food and non-food items. FMCG manufacturers should train their sales-force personnel to be more receptive to the needs of the traditional kirana stores. From kirana stores to hybris: SAP’s evolving Business Network strategy Follow RSS feed Like 12 Likes 8,784 Views 12 Comments Walk through a street and you will find more kirana stores than organised retail outlets like Big Bazar or Reliance Fresh. Kirana King - Empowering Grocery Retail. Patil, A., Borle, S., Singh, S., 2018. Kirana King’s core mission is to encourage retailers to adopt transformation of their Kirana stores and to bring them on an organized retail platform. What are the lessons for Kirana stores from the Covid-19 crisis? His pricing strategy was something mind-boggling to me! That led to the birth of kisan.co, which didn’t take off. Working Paper, Indian School of Business. About the Interviewer: Manufacturers can customise their products based on size or packaging. In your paper, you mention that promotions have both within-category and cross-category effects. In return, the kirana store owners are paid a commission to ensure the order is picked up or delivered at customer’s homes in time. This anchors the final retail price for a product.Third, you often see retailers offering extra price and quantity benefits at the store level like discounts or bundled products. To get home delivery of your favourite groceries simply: * Choose your nearby grocery store * Select from a wide variety of products including Dal, Atta, Oil, Ghee, Sugar, Noodles, Soaps and Shampoos. Manufacturers can customise their products based on size or packaging. We analysed over a million sales transactions of a large FMCG manufacturer with traditional kirana as well as organised retail channels for over three years. Kirana.store is a comprehensive platform to cater to the needs of ever growing needs of consumers. Although this strategy seems reasonable and may have worked in the past, our results highlight the need for a more balanced approach. Manufacturers can customise their products based on size or packaging. This creates a win-win for everybody. Contrary to common belief, the profitability of traditional kirana stores is already higher than that of modern trade outlets.Our results show that FMCG manufacturers must cultivate the traditional kirana channel and help strengthen their business. First, the retail space is dominated by traditional kirana stores. Services like inventory management, product category management, shelf space management and customised point of sale signage that are usually offered to organised retailers can be extended to these traditional retailers to help them adopt best practices and to compete effectively.A common mistake is to allocate the advertising budget and sales-force personnel based on the size of the city. Moreover, the way that these kirana store owners have adopted to innovation and digital technologies, such as digital payments, changing operating models and reduced friction towards technology, to cope up with the pandemic is highly commendable. Second, the government regulation requires fast moving consumer goods (FMCG) manufacturers to print the “Maximum Retail Price” or MRP on the package of the product. A kirana store can never compete with the kind of discounts and deals a supermarket offers to consumers. All classes of cities are growing equally when it comes to profitability for the FMCG manufacturer. Could you tell us more about this?The traditional kirana channels might have very limited bargaining power due to constraints in assortment, products, price or location. callback: callback Salespeople should be trained to offer specialised services to build a better relationship. Data Protection Bill: Can it ensure your privacy online? What are some of the unique aspects of the Indian retail industry?Siddharth Singh: There is a lot of academic research in Marketing on retailing and most of it looks at the retail industry in North American and European countries. What are some of the unique aspects of the Indian retail industry? A large chunk of potential in terms of customer relationship personalisation offered by the traditional kirana channels remains relatively untapped by the FMCG manufacturers. Many FMCG manufacturers underestimate the cross-category effects when designing promotions and expect that promotions will lead to higher revenues. Therefore, a skewed approach focusing primarily on the large cities is no longer justified.About the Researchers:Ashutosh Patil is Assistant Professor of Marketing, Robert J. Trulaske, Sr. College of Business, University of Missouri.Sharad Borle is Associate Professor of Marketing, Jones Graduate School of Business, Rice University.Siddharth Shekhar Singh is Associate Professor of Marketing and Associate Dean – RCI Outreach and Engagement at the Indian School of Business.About the Research:Patil, A., Borle, S., Singh, S., 2018. Majority of the store owners find it difficult to match the requirements as keeping such a large inventory is not possible for them. Although this strategy seems reasonable and may have worked in the past, our results highlight the need for a more balanced approach. Manufacturer-led promotions are relatively infrequent. Kirana stores have understood that they are an all-season business. Contrary to common belief, the profitability of traditional kirana stores is already higher than that of modern trade outlets. A common mistake is to allocate the advertising budget and sales-force personnel based on the size of the city. Rol-a-Cola can be pushed in the rural market by making it an easily available alternative at each kirana store, through a strong distribution network, by increasing the margin for kirana stores and distributors based on volume of sales. Unity in diversity – Survival Strategy for Kirana Stores. Services like inventory management, product category management, shelf space management and customised point of sale … In doing so, the direct benefits through increased sales are obvious. Get in Touch. What would be the key insights that your research can provide to FMCG manufacturers in India? Pur-posive sampling method is used in the areas of Baner, Aundh, Pashan, and Pimpri-Chinchwad areas of Pune City. } } } How is the retail industry in emerging markets different from developed economies? The wise way to choose your Kirana store location is to go to a shop that is accessible by the larger community. Hailing from Madurai and having served in the Indian Army for 10 years, he believes that if there is something to be done for the country, it should be done pronto. forms : { The results show that the difference in monthly sales to a distributor across different city size tiers, i.e., metropolises, mini-metros and other cities and rural areas is decreasing over time, while profitability is increasing across all classes of cities over time. Glory George is a Research Associate at ISB. Is a focus on organised retail justified on the basis of profitability or volume rationales?The traditional kirana stores are here to stay and FMCG manufacturers should not neglect the huge potential of this channel. However, with consumer preferences shifting to shopping online or at supermarkets and the rise of modern retailers across Tier I, II and III cities, Kirana store owners are facing the music. Walk through a street and you will find more kirana stores than organised retail outlets like Big Bazar or Reliance Fresh.Second, the government regulation requires fast moving consumer goods (FMCG) manufacturers to print the “Maximum Retail Price” or MRP on the package of the product. By 2021, in just a year from now, the share of traditional trade in the retail industry will likely reduce to 75 percent from the present 88 percent. ISBInsight is the Flagship Research Periodical of the Indian School of Business. This strategy makes distribution to each store cheaper, as well as making multiple deliveries per day possible. This is to make sure that as many stores as possible may be covered from different locations and information collected is not bi-ased or skewed. Online Grocery Shopping in Jalgaon, brought to you by Kiranastore.co.in initiative by Live Media Ventures. Kirana.One would serve as a directory for local kirana stores or nukkad stores. 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