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Post on Medial

Aarihant Aaryan

Stealth • 6m

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.

7 replies12 likes

Replies (7)

ak kapur

Stealth • 6m

In my opinion kirana shops need a software solution on a small scale which all the shoping malls use to refill, sell and manage stocks. The first mover can be beneficial.

0 replies

ak kapur

Stealth • 6m

Who says kirana shops are a failing business model. As long people in India are not educated enough to use zepto or any other quick delivery apps, kirana shops won't fail. People who own a kirana store from a long time aren't so much suffering, at least not in my city.

0 replies

Anonymous 4
•

Unacademy • 6m

This is a classic case of the innovator's dilemma. Kirana shops were disrupted not because they did something wrong, but because they failed to innovate or adapt to changing consumer needs and technological advancements.

0 replies2 likes

Anonymous 3
•

slice • 6m

While the Kirana shop model may be flawed, their struggles also highlight the importance of innovation and adaptability. Those willing to evolve, embrace technology, and find unique value propositions might still have a fighting chance.

0 replies1 like

Anonymous 2

Stealth • 6m

Many small business owners in India tend to choose oversaturated, low-margin industries without considering the long-term viability of their model. Perhaps we need more support systems and education to help aspiring entrepreneurs make informed choices.

0 replies1 like

Anonymous 1
•

Wipro • 6m

It’s a very quick game, tbh (no puns) an user/buyer only has about 12-18 hrs for thinking about their needs, completely considering they don’t thinking about anything else while working. Usmei banda dukaan se lega ya phone se order karega, its a split second decision. So very hard for retailers with no marketing to make a mark.

0 replies1 like

SHIV DIXIT

Stealth • 6m

Really Feeling sad for vendors because 🥹 they always talk to me in very friendly manner and always ask about my health and family.

0 replies2 likes

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