With the challenges faced during the pandemic, traditional grocery retailers adopted digitisation by collaborating with digital marketplaces and other channels. The collaboration with marketplaces such as Indiamart for bulk orders, with Amazon and Flipkart to improve visibility and reach, and with JioMart to improve supply, helped traditional grocery retailers grow in 2021.
The government of India has created a number of initiatives to help traditional grocery retailers grow and provide more jobs in India. The loans disbursed under MSME (micro, small and medium enterprises) promotional programmes have helped small businesses to formalise their operations, build credibility and improve their reach.
With the low penetration of modern grocery retail channels in tier 2 and tier 3 cities and rural markets, the main choice for consumers there remains traditional grocery retailers. In these areas, with years of operation, these retailers tend to build personal relationships with their customers and offer services such as extending small loans, personalising their shopping experience and making items available for them on demand.
With the success of collaborations between e-commerce players such as Amazon, Walmart and Snapdeal, they have realised the huge potential to reach shoppers in traditional grocery retailers in India. With improvements in online and offline collaborations, traditional grocery retailers or kirana stores will benefit from improved reach and visibility – a win-win proposition for both parties.
Retail 4.0 or the shift to multi-channel or omnichannel retailing is expected to disrupt traditional grocery retailing as we know it.
Traditional grocery retailers has extremely deep penetration and a vast network compared with other formats of grocery retailers in India. They are particularly predominant in areas where the average income is low, and the customers buy small-ticket items on a regular basis.
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Understand the latest market trends and future growth opportunities for the Traditional Grocery Retailers industry in India with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. For Euromonitor traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers. While there can be modern (i.e. chained) food/drink/tobacco specialists or other grocery retailers, due to the store's presence in the channel, these stores are still considered as traditional for Euromonitor International.See All of Our Definitions
This report originates from Passport, our Traditional Grocery Retailers research and analysis database.
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