According to a report by the Associated Chambers of Commerce and Industry of India and Yes Bank, local Kirana Shops selling grocery account for 68% of the total value of groceries sold in the country. These shops are sometimes even smaller than 400 square feet. They often sell grocery on credit. High end departmental stores and super markets have small chunk of market share. Online grocery shops in Hyderabad have tiniest market share.
Organized multi brand retail sector is slowly developing in metropolitan cities. Swelling middle class and growing incomes attract foreign investors to invest in India’s retail sector. However, the local shops are still thriving with the business. One of the reasons behind their success is they are easy to access. Most of the time, you find them at the corner of the street. They also offer customized services as they know their customers personally. The quality of the goods can be checked, if it is good or not, as the goods are not pre-packed. To purchase small items such as Boro Plus creams or Nestle chocolates, people do not want to go all the way to the malls.
Online grocery shops are slowly picking up in metropolitan cities in India. Some of them tie up with the local Kirana stores for home deliveries in their areas. You can place your order online and select a shop in your area. They will deliver goods at your doorsteps. To promote their services, some online grocers even offer discount up to 60%. Some of them offer cash on delivery options and no questions asked return policy.
- Online Grocery Shopping in India (artfulensemble.wordpress.com)