Is it a Good Idea to Open a Kirana Shop in a Village?

What is a Kirana Shop Business?

Kirana store is a tiny community shop in India. These small shops stock a wide variety of groceries and everyday necessities such as sanitary goods, beverages, and cigarettes. These stores do not offer any form of discount or other types of deal that supermarkets or grocery stores can provide as they carry small stock. As a result, the rates are comparatively higher than in superstores. These stores may provide everything you need, but only at a certain schedule since they are only open for a few hours per day at the discretion of the owner.

Why are Kirana Businesses more profitable?

Numerous reasons have led to Kirana store business being as viable and evergreen, including the following:

• Accessible via public transportation.
• Stocking only products and services that are important to the consumer.
• There is no wait for deliveries. You can quickly head to the nearest shop and purchase something.
• Contributes to the maintenance of long-term, stable partnerships with regular customers.
• If you are a regular customer, they offer free home delivery with no minimum order requirement.
• Offering digital payment solutions for online shopping.
• Few people believe in buying something in person, that is, purchasing a product by examining its features through their own eyes.

Online E-commerce Vs. Offline Kirana Stores

There will still be differences between online and offline Kirana shops. They both have distinct advantages in distinct ways, and the debate is never-ending.

• Due to the human interface, consumers may develop a personal partnership with suppliers. They can even get decent deals in terms of purity and guidance about choosing the best for themselves.
• The offline and online Kirana shops are inextricably connected, as these online stores purchase items from these small shops and deliver them to your home.
• Kirana store offers several other offers that consumers need aside from the commodity they need, such as cash. You will be able to obtain small credits in the event of an immediate and essential need if you have a positive partnership with the proprietors of these stores.

Opening a Kirana/Grocery shop in a village is always a profit-making step. But the question is, how? So here are some points you have to keep in mind before going for it:

Kirana Business Plan-

Step1: Solid Business Plan

• Without a well-executed business plan, every small or large business quickly devolves into failure.
• As you are opening a Kirana Store in a village, you have to take extra care of your business plan.
• Recognise the financial situation of your potential buyers and market the goods appropriately. Keep in mind in a village, your customer will be from a middle-class or lower-middle-class family.  So start by analysing the prospective buyers' tastes.
• By keeping track of their wants, likes, preferences, tastes, and buying pace, you can quickly devise a selling plan.

Step 2: Choosing the Best Location

• Each region has a distinct consumer base, and the requirements are unique.
• Keeping track of the age ranges of customers in your service area will help you determine the daily goods in demand and held in stock.
• Even, be ready to consider moving just a short distance away from the town, as they travel to distant locations to purchase basic daily provisions. Ascertain that the location you select is readily available to the public.

Step 3: Stock up

• Assume you've completed the store's setup and the infrastructure is ready. Now is the time to stock up on things to offer. If you buy a large number of goods and are unable to reach buyers fast, you may feel concerned about business profits, and your items will be going to waste.
• On the other side, if you keep a small amount of stock and witness a surge of customers, customers would be unable to find what they are looking for and would likely avoid your shop in the future.

Therefore, be sure to achieve equilibrium.

Step 4: Business from home (Digitisation of your store)

• Since the outbreak of the pandemic, the only businesses that have been unaffected are Kirana stores for basic supplies and pharmacies for emergency medications.
• The majority of people who stop travelling outdoors to preserve social distance choose to buy online.
• Digitising the store does not only include offering home delivery and utilising WhatsApp for business; it often includes using OkShop to manage your credit/debit consumer accounts.

Step 5: Legal laws & License

• Shop & Establishment Registration
• Food license
• Entity Registration

How Can you Increase Profit

You have taken the first baby steps toward opening a Kirana shop. However, you also have a long way to go before establishing a customer base.

1. Take Your Kirana Business Online

In comparison to those residing in towns, more people in our villages have connections to the internet. As a result, you might want to consider expanding your Kirana store online. If you own a local Kirana store or a supermarket chain, you should be online. The idea of an online Kirana shop is not recent. Numerous shop owners have already begun selling their merchandise online, and you should follow too.

2. Communication

Many shop owners believe that the most effective way to engage customers is by advertising and marketing. However, when it comes to running a Kirana shop, the way to go is to speak to every customer politely, regardless of age or gender. Consistency of communication should also be upheld since it helps to create brand awareness. Besides, you can provide discounts on the items. Discounts are another effective method of attracting consumers.

3. Work-Time

You must conduct your business under the demographics of your neighbourhood. If young families live in your neighbourhood and the majority of people work during the day, you should keep the shop open until late evening and on Sundays to ensure that they can make a hassle-free purchase.

4. Customer Service

You can deliver products to customers' homes during breaks or at night, which would seem to be a significant initiative on your behalf. You may also request that consumers refund goods if they deem them to be defective. This has a positive effect. Both of the above-mentioned market mantras would assist you in growing your business and earning a 20-30% profit.

Conclusion

As we are all aware, old is gold. As are these Kirana stores, which have existed for centuries and continue to evolve exponentially as technology advances. Kirana shops can often meet people's needs and desires by hitting any corner of the neighbourhood. Establishing your Kirana shop business is not that hard, whether you are from a village or a city. All you need to do is lay the groundwork and launch your firm. Collaborate throughout the early days to overcome any hiccups to ensure that business runs smoothly. A fundamental tenet of a profitable retail company is to be aware of your opponents and to establish a connection with your customers.

Also Read:

1) How to Start a Kirana Store?
2) Daily Struggles of a Small Kirana Store Owner & How to Overcome Them
3) 7 Different Types of Loans for Your Small Business
4) Hiring and Managing People Wisely: HR Mantras For Small Businesses
5) OkCredit: Simple, Paperless & Secure solution for businesses

FAQs

Q. How much investment is required to open a Kirana store?

Ans. In the beginning, a decent store investment with all costs could range from 50,000 rupees to 2 lakhs.

Q. Are Kirana Stores profitable?

Ans. The Kirana store has enormous growth potential in almost all small, large, and metropolitan cities. Profits vary from a few rupees to thousands of rupees, depending on the object.

Q. What is the Kirana store profit margin?

Ans. About 2.2%. Traditional Kirana stores have a net margin of around 2.2 per cent on average.

Q. Is Kirana shop business a good business?

Ans. Selling groceries is one of the most lucrative businesses ever. In reality, this is a business that can be launched virtually anywhere and has a high-profit potential.