India’s Kirana Stores Embrace Digital Solutions with eB2B Platforms
India’s kirana stores, long known for their traditional trade methods, are now rapidly adopting digital solutions through eB2B (ecommerce-led Business-to-Business) platforms, according to a study by Redseer Strategy Consultants. The study highlighted that there is a significant transformation taking place in India’s retail sector, which is dominated by over 15 million kirana stores.
These small, often family-owned shops are increasingly turning to digital platforms for better efficiency, streamlined operations, and enhanced access to financial services. The traditional retail market in India has faced several challenges, including fragmented supply chains, inconsistent service quality, and limited access to formal credit. However, eB2B platforms are now offering kirana stores a way to overcome these obstacles, especially in rural and remote areas.
“Kirana stores, especially in remote and rural regions, are increasingly turning to eB2B platforms for better procurement management, access to formal credit, and superior customer service,” said the report. These platforms help kiranas with procurement management, access to formal credit, and superior customer service, allowing them to compete more effectively in a rapidly evolving market.
“Many kirana stores, which previously relied on informal credit arrangements, now have access to formal financing options through eB2B platforms. This access to credit allows retailers to expand their product range and improve cash flow management,” added the report.
Anil Kumar, Founder, and CEO of Redseer Strategy Consultants, said, “The Indian B2B kirana market is on the cusp of a remarkable transformation as digital platforms revolutionize traditional trade practices. Our report highlights strong growth driven by digital adoption, with eB2B solutions reshaping supply chains and improving efficiencies. Kirana stores now have unprecedented access to products and financial services, marking a fundamental shift in how businesses operate and thrive in the coming years.”
Looking ahead, the future of India’s eB2B market appears promising. As private consumption in India continues to grow at a compound annual growth rate (CAGR) of 10.4 percent from FY18 to FY23, the retail market is expected to reach INR 116-125 trillion by 2028. With continued expansion of product categories and deeper penetration into existing markets, the eB2B industry is set to redefine traditional retail in India.
Doubts Revealed
Kirana Stores -: Kirana stores are small, family-owned shops in India that sell everyday items like groceries, snacks, and household goods. They are very common in neighborhoods and are similar to local convenience stores.
Digital Solutions -: Digital solutions refer to using technology, like computers and the internet, to make tasks easier and more efficient. For kirana stores, this means using apps and online platforms to manage their business.
eB2B Platforms -: eB2B stands for electronic Business-to-Business. These platforms help businesses, like kirana stores, buy products from suppliers online, manage their inventory, and even get loans.
Redseer Strategy Consultants -: Redseer Strategy Consultants is a company that does research and gives advice to businesses on how to grow and improve. They study different markets and trends to help businesses make better decisions.
Procurement Management -: Procurement management is the process of buying goods and services for a business. For kirana stores, it means ordering products they need to sell from suppliers.
Formal Credit -: Formal credit means getting loans or financial help from banks or other official institutions. This helps kirana stores get money to buy more products or improve their shop.
Rural and Remote Areas -: Rural and remote areas are places that are far from big cities and towns. These areas often have fewer resources and services, so digital solutions can help businesses there a lot.
