Kirana items are essential to daily life. In fact, they will never become non-essential. The 2020-2021 lockdown due to Corona pandemic has made this clearer than ever before.
Kirana store, therefore, has become among profitable businesses in India. The profit margins of an average kirana store range from 5% to 20%. An independent kirana shop gets a margin of 1-4%, while bigger kirana store brands make over 5%. It’s profitable also because opening a kirana shop doesn’t involve overwhelming costs.
Kirana store as a business
Although a kirana store business will have its set of challenges, Indians’ growing spending power makes grocery store a great business option. There are more than one kirana stores in every area. Secondly, looking at the population and demand in India, a kirana store appears to be a feasible business idea, and you can definitely make money here if you work it out carefully.
However, investing in the business is just the beginning of your story of success. The business needs to sustain till it gets established and actually makes profits for you.
The amount of money you can make from a kirana store depends on how many customers your store attracts and retains. This depends on how you build up your business. Let us discuss the factors, which determine how much money you will make in the business.
Take your kirana store online
A whopping 170 million people in India are estimated to be shopping online in 2021 says a study. There are two reasons for this.
First, life has gotten too busy. In their extremely packed schedules, people get very little quality time with their families, even on weekends. So, to create some time for themselves, most people are choosing to shop online.
Secondly, it has become possible to virtually buy everything online – from a needle to a car. Thirdly, many kirana shop owners are aware and have already started selling their products online.
You don’t want to lose out on a valuable number of customers by not being present online. The size of your store doesn’t matter. You can also take a step ahead and promote your kirana store on social media.
Also, make it a point to list your store on shopping websites such as Amazon. Additionally, you can make your own website and help your regular customers with smooth online ordering, backed by a prompt delivery system. You can also create a third channel for your customers by opening “orders on phone” for them.
Keep customer-friendly store timings
Many kirana shops miss out on profits due to rigid timings or laid-back schedules. For instance, a store opening at 10 AM and closing early, say 8.30 PM, is of no use to many customers who hope to make their purchases early in the morning before office time or after office time.
You can open your store at 8 AM and keep it open till at least 9.30 PM. Also, Sundays and holidays bring you higher sales, for obvious reasons. People get some time to make their important purchases these days. By simply keeping the store open for a little more time you will develop trust among customers that your kirana store is always there to provide for their needs.
Beware of the competition
Before you set up your kirana store, it is important to assess the competition as well as demand in the locality you wish to open a shop. A basic formula is to have your shop where there are a lesser number of kirana stores. However, you can also decide to open your kirana shop at a location where there are ten other sellers already; provided the area is well-populated and has ample scope for another kirana provider.
Customer Engagement & Store Design
Many store owners think that the best way to engage customers is through marketing and advertisement. However, the first thing is presentation, and you need to present yourself well in two ways.
First is how you treat a customer, irrespective of his age or appearance. This is much more powerful than any kind of marketing. An advertisement may just bring a customer to you, but whether you will retain that customer depends upon your treatment of him.
Another important part of the presentation is how well your store is designed. A modernized and well-designed kirana store brings 40% more sales. The racks and fixtures in your kirana store must be designed to offer maximum product display with a clearer view of products and offers.
Instor has been a specialist in designing small format kirana stores. Its fixtures and designs add high aesthetic value, ensure optimum space utilisation, and higher in-store customer flow.
From display racks and shelving racks to storage units and cash counters, Instor makes your store look unique, shopping-friendly and gives you higher returns on your investment.
Understand Customer Preference
It’s important to understand customer preference if you wish to make kirana store business profitable. Observe customers’ overall choices, and offer brands or products that will suit their choices. This will increase their trust in your efficiency. Plan your inventory smartly. Prompt deliveries of groceries and return offers will leave a strong impact on the customers and ultimately result in greater profits for you.
Be prepared to offer things your competitors are not offering. Get more ideas by reading about big businesses’ success stories. You can learn successful business tactics and gain a competitive edge over competitors and grow your profits up to 30%.
