The rapid rise of quick commerce platforms such as Blinkit and Instamart is posing a serious challenge to India’s traditional kirana stores. Known for their close-knit community ties and personalized service, these small, family-run shops are being overshadowed by the speed and discounts offered by their digital counterparts. As consumer preferences shift towards convenience and immediacy, the future of kirana stores hinges on their ability to adapt through digitalization.
For generations, Kirana stores have been the heartbeat of neighbourhoods across India, offering not just goods but also a sense of familiarity and trust. These local shops are characterized by personalized interactions, the distinct aroma of merchandise, and the occasional bargaining, all of which contribute to a deeply ingrained cultural experience. However, with the advent of quick commerce—an evolution from traditional e-commerce that promises delivery within minutes—these stores are facing unprecedented challenges.
The pandemic marked a turning point for quick commerce in India as urban consumers increasingly turned to platforms like Blinkit, Instamart, Zepto, and BB Now. These platforms, which offer discounts of 10–15% compared to local stores, are gaining traction, especially among time-pressed city dwellers who value speed over tradition.
Initially, many industry experts dismissed the viability of quick commerce in India, doubting whether consumers would pay for the convenience of rapid delivery. However, the landscape has shifted dramatically, with fast-moving consumer goods (FMCG) companies now reporting that quick commerce is not only their fastest-growing channel but also a key driver of their overall e-commerce growth.
According to Delhivery CEO Sahil Barua, quick commerce is primarily impacting kirana stores rather than larger e-commerce players. He notes that while quick commerce remains a small segment within the broader e-commerce market, its effect on Kirana stores is significant. FMCG giants like Nestle, Parle, ITC, Marico, and Emami have reported that quick commerce platforms now account for 30–50% of their annual e-commerce sales.
The growing popularity of quick commerce has intensified the slowdown at India’s 12 million kirana stores, particularly in the last quarter of 2023. Consumers are increasingly using these platforms for both impulse buys and bulk purchases, leading to a shift away from traditional retail.
Despite these challenges, there is hope for kirana stores if they can embrace digitalization. Hindustan Unilever (HUL) has pledged to onboard nearly 1.3 million kirana stores onto the Open Network for Digital Commerce (ONDC), a government initiative aimed at democratizing e-commerce. This move could help Kirana stores compete more effectively with both e-commerce and quick commerce platforms.
However, the question remains: Can Kirana stores withstand the onslaught of quick commerce? While digitalization offers a lifeline, the allure of speed, convenience, and lower prices provided by quick commerce platforms may be difficult to counter. The future may see innovative partnerships between kirana stores and quick commerce companies, similar to Reliance Retail’s plan to integrate its quick commerce venture with its vast network of kirana partners.
As the battle between tradition and technology unfolds, the resilience of India’s kirana stores will be put to the ultimate test.