COVID-19 pandemic prompts kirana store to go digital, survey reveals

The novel coronavirus-enforced lockdown has made the local grocer or kirana stores go digital to serve millions of households which moved online to buy essential items, reported Mint, citing an EY survey.

Consultancy EY, which surveyed kirana store owners in 12 cities, found that 40 percent respondents were keen to partner with online delivery and supply chains. It led to faster digitisation of 12 million kiranas, or mom and pop stores, which form the bulk of retail trade in the country, the report said.

The supply chain between manufacturers, distributors and shopkeepers was disrupted due to the restrictions imposed in the first phase of the lockdown to break the chain of infection.

It saw fast-moving consumer goods (FMCG) companies such as Dabur India, Marcio, and ITC tie-up with logistics firms to directly reach the stores and help them met the orders, the report said.

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Also, local shopkeepers have taken to online messaging service --WhatsApp -- to accept orders and adopt digital payment systems.

According to EY, about 20 percent of kirana store owners started using online platforms to get a steady supply and assistance in deliveries. They used chat apps to take orders and provide contactless delivery and received payments through digital platforms, the report said.

The EY survey found that the disruption in the FMCG sector could prompt technology adoption by small stores even for the long-term by partnering with more businesses, the report said.

In June, an EY survey had said that consumer behaviour in India was radically changing due to the outbreak, with 60 percent of buyers believing that the pandemic would alter the way they shop.

The EY Future Consumer Index expects five broad emerge to emerge beyond the pandemic: back with a bang (constituting 38 percent of respondents), stay frugal (29 percent), keep cutting (19 percent), cautiously extravagant (11 percent) and get to normal (2 percent).

The "back with a bang" group is expected to spend much more in all categories, while "stay frugal" will spend slightly less.

The "keep cutting" segment will drastically cut spending, whereas the "cautiously extravagant" group will pay a premium for certain products and spending in 'get to normal' group will be largely unchanged, the survey noted.

(With inputs from PTI)