Srijit Kumar BhadraRest of World has recently published [1] that
Indian kirana stores are struggling to compete with quick-commerce (typically 10 minute delivery) apps like Zepto and Blinkit on discounts and delivery.Around 200,000 kirana stores have closed in the past year, mostly in big cities.Here are my two cents with respect to Bengaluru, India [2].
1. Most gated communities and large apartments complexes have their own mom-and-pop stores. Some even have eateries and barber shops. These stores and outlets have captive customers and are apparently doing okay.
2. The mom-and-pop stores that have closed used to be located almost near these apartment complexes and gated communities but not within a short walking distance.
3. Indian kirana stores (e.g. vegetable and fruit stalls, mini-restaurants and other outlets) in older localities with independent houses or smaller apartment complexes are still surviving and some are doing well.
4. Typically 10 minute delivery service providers like Blinkit, Zepto, Bigbasket Now, Swiggy Instamart etc. also stop operations in a locality almost without any notice. I am convinced thatthese quick-commerce businesses are burning cash to establish a monopoly in the market.5. Due to very heavy traffic in Bengaluru during normal working hours, independently reaching these local stores is a challenge. Sometimes even parking a two wheeler can be a headache.
6. Some of the closed mom-and-pop stores could have survived by providing better customer interface and experience.
7. The article [3] does not mention about the Open Network for Digital Commerce (ONDC) [4] which is a government initiative aimed at empowering small retailers, particularly kirana stores, to compete with e-commerce giants.
* ONDC provides a platform for kirana stores to compete with e-commerce giants.
* Kirana stores face challenges in adopting ONDC, including payment delays and lack of process discipline.
* ONDC offers advantages such as discoverability and competition with dark stores.
1. https://restofworld.org/2024/india-rapid-delivery-zepto-blinkit/
2. https://en.wikipedia.org/wiki/Bangalore
3. https://restofworld.org/2024/india-rapid-delivery-zepto-blinkit/
4. https://www.businessoffood.in/the-ondc-revolution-transforming-indias-kirana-stores-in-the-digital-era/
#MastodonIndians #MastIndia #India #QuickCommerce #ONDC #MomAndPopStores
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