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Aarihant Aaryan

Prev- Founder & CEO ... • 1y

Kirana shops are failing in India but it's not just because of companies like Zepto or Blinkit, In fact the reason for their failure, is why 90% of businesses fail in India See Kirana Shop business model is to be a retailer and make daily essentials available in a certain location, so they make money by buying goods from wholesalers at discounted prices and selling them to the consumers. The ideal margin for every product would be 5% to 20% After cutting down their expenses, kirana shops are left with a 3 to 5% margin, the worst part is you can't expect the revenue to grow either as there are too many Kirana stores It's always impossible to build a low-margin business in a super-competitive space, but many business owners take this route assuming the grass is greener on the other Hence kirana shops were always ripe for disruption, when quick commerce companies like zepto and Blinkit showed up it was an easy job to take their market share.

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