India is a country where you’re sure to find a kirana (grocery) store on almost every street corner. These small, neighbourhood shops are an essential part of daily life, offering everything from groceries to household items, making them easily accessible to people in both urban and rural areas. It is estimated that India has more than 12 million retail kirana stores making them a significant part of the country’s retail landscape.
However the rise of e-commerce and q-commerce in the past few years has a devastating effect on these kirana retails.
Tremendous growth of these quick commerce platforms is taking over these kirana stores threatening the livelihood of many.
According to a note by Elara Capital, “Distributors on the ground are unable to recover dues from kirana stores due to the negative impact on kiranas by digital platforms; kirana stores are sitting with high levels of inventory and distributors are unable to receive money on time,”.
The fast-paced lifestyle and the convenience of quick home deliveries have led many people to prefer online platforms over traditional kirana stores.
In the past few years these quick commerce platforms have become the top choice for consumers looking for speed and convenience. Services like Blinkit, Swiggy Instamart, and Flipkart Minutes have taken advantage and slowly covered the entire grocery market offering numbers of discount and offers with smooth shopping experience that traditional Kirana stores find it hard to compete with.
How quick commerce is challenging traditional kirana stores
A recent report by Datum Intelligence revealed that 75% of online grocery shoppers have made more unplanned purchases in the past six months, with average order values now exceeding Rs 400.
The report highlights that nearly 46% of consumers have cut back on spending at Kirana shops as they shift to quick commerce platforms for their grocery needs.
The report also founded that 82% of respondents have moved at least 25% of their grocery spending from Kirana stores to quick commerce platforms amid losses.
Growth of Quick commerce platforms
Quick commerce is Revolutionizing the Indian grocery market, offering instant delivery of essentials. Valued at $6.1 billion in 2024, this sector is projected to grow to a staggering $40 billion by 2030, reflecting a compound annual growth rate (CAGR) of 48%.
Platforms like Blinkit, Zepto, Swiggy Instamart, and Big Basket have capitalized on this trend by offering delivery in almost every thing, whether it’s groceries, electronics, cosmetics, medicines or even pet supplies. You can get anything with just one click on your screen. In fact, these platforms are expected to capture $1.28 billion in Kirana sales by 2024, which will make up 21% of the total revenue for traditional Kirana stores.
Kirana stores have not only been a part of Indian society but also a feeling of nostalgia since childhood. However, to stay competitive, it’s essential for these stores to adopt new technology. We may see now that many retail stores already started using digital platforms for managing orders, payments, and supplies. Embracing technology, diversifying their products, and exploring new business methods will be crucial for the survival and growth of kirana stores.
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