How to Open a Kirana Store?

A recent news article highlighted that India alone has over 12 million kirana stores. Why do you think so many exist? During this pandemic and prior to it, kirana stores have been doing brisk business and proved to be profitable business ventures. What is a kirana store and how can you open one?

In India, a kirana store is a small neighbourhood shop that stocks up groceries and daily need products such as rice, wheat, vegetables, spices, shampoos, etc, required for a general household. These kirana stores — which range from 50 to 500 sqft – have been the lifeline of Indian colonies.

It is one of those businesses which do not require any fancy degree. To start a kirana store, all you need is a little money, basic knowledge, and a drive to start your store.

Kirana shops are available within residential localities, so they are easy to reach out to. You can buy daily need items only so much as you need. 

We are here to upgrade you on the new best ways to run a kirana shop. Let us see what all it takes to can open a Kirana store.

Choose the locality

Deciding where to set up your shop is as vital as deciding the type of business. A great location may not always guarantee success, but a wrong choice of location will definitely cause your business to fail.

One natural factor in selecting the right locality to set up your kirana shop is to look for an area where there is lesser competition. Although this factor is considered an essential step towards opening your Kirana store, there is no harm in putting up your shop even in the midst of a competitive market, provided there is a good scope of selling groceries in the areas around it. You will need a little research there. 

The location would be ideal if it has good visibility, is easily accessible to the public, and has reasonable security. A kirana store is particularly more successful in newly developed areas.

Know your customers

Did you know that your Kirana shop’s profits are directly proportional to customer engagement? Never forget the thumb rule of any business: – higher profits come with greater customer engagement. Therefore, always put customers on high priority while planning your marketing and business strategies. Focus on customers will draw high-profit rates soon. A useful tip: Customers usually prefer Kirana shops which can offer essential items from both branded and non-branded products.

Study your competition

There are ample opportunities to succeed in a kirana store business, which has created a high competition here. Therefore, it’s essential to do a little market study of the area where you are planning to open a Kirana store. Some of these factors could be – the location of your competitors’ kirana stores, hot-selling products, the high-demand products, contacts of genuineness and trusted wholesale suppliers and vendors, seasonal items and other festival-related products.

Calculate the investments

The next step would be to chalk out a solid budget plan in a structured and systematic way. Planning will give you an overview of the high-priority segments and primary goals. You can then allocate your funds to the priority areas. 

Suppose you can invest 2,50,000 INR in your Kirana store business. First decide your high-priority tasks, such as renting a space, creating an inventory, a website and an app for home delivery services. With strong planning, you can efficiently allocate the budget to all sections. Lack of planning will lead to not-so-essential expenses on secondary resources. You must begin well.

Create a business plan

Any small or big business may turn into a disaster if there is a lack of a proper business plan. Price your commodities by first understanding the financial status of your potential buyers. Check out their preferences, track their needs, choices and preferences, and observe the frequency of their purchases. With all this data, you will easily figure out your selling strategy. Also, you need to plan your staff carefully. You need some sincere and hard-working hands to support your startup growth.

Plan the Stock List

So, now your research, budget and business plan are ready. Now is the time to stock up items to sell. If you purchase many items and do not find buyers soon, you will feel anxious about losing profits and perishable items. And, if you keep a smaller stock and get a lot of customers, who don’t get what they want, then people may prefer not to visit your store again. Ensure that you have a balanced stock. There are several free and paid inventory management software designed for Indian businesses.

Get the necessary store permit

One of the most important parts is the permits or licenses for your kirana store. You must carefully fulfill the application processes and get them completed as most of them are mandatory. Here are the necessary licenses you will need.

  • Business Entity Incorporation
  • Shop Act Registration
  • FSSAI Licence & Registration
  • GST Registration
  • Trade License

Build a thoughtfully designed store for better product visibility

Kirana stores that work to modernize themselves get a better design see average revenue growth of 135%. A thoughtfully designed store also brings up to 40% more profits, says a report.

However, most kirana stores’ infrastructure looks far from contemporary, which spoils the shoppers’ experience. To create a fine shopping experience at your store, get in touch with the best departmental store racks manufacturers in India, which can offer a range of space-efficient fixtures and display racks for your kirana store. 

Instor has been supplying grocery display racks to thousands of small and big stores across India. It can provide a wide range of fixtures customized to your store space, giving your new kirana store the contemporary look needs.

Digitize the store

In this digitalized world, everyone looks for a hassle-free interface to order essential kirana items. Kirana stores offering smooth online ordering and home delivery services are preferred by customers. So, you must create an app or a good website that operates smoothly if you wish to attract customers to your store from the start.

Give attractive discounts and offers regularly

To get your kirana store rolling soon, kickstart its operations by engaging buyers with attractive schemes and offers. Such discounts also help in retaining buyers in the long term. The best way to start is by offering discount vouchers and freebies for children. Attach good customer service to the customers you gain through giving out freebies.

Although kirana shops don’t have a specific target audience, they have a considerable market presence, and so the competition mostly remains high. You may not be able to compete with the traditional marketing methods. They need to be modified a little with the start of a new decade. 

We hope this guide will help you upgrade to the modern kirana store needs.



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