Project report for Provision-Grocery shop

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The retail market in India is seeing considerable development during the last decades. The entire value of the Indian retail industry was $276 billion in 2008-09 and has increased to $700 billion in 2010. India is now the globe’s fourth-biggest retail sector, with a projected increase to $1.1 to 1.3 trillion by 2025. The retail environment in India is primarily unorganised, with shopkeepers accounting for 88 percent of the total retail sector, it is a country of shopkeepers. This unstructured component also called the informal sector, is made up of 13 million Kirana and neighborhood shops.

These establishments perform an important part in the Indian retail industry, which accounts for nearly 11 percent of India's GDP and 8 percent of its entire employment.

Furthermore, there’s been a change in customer buying habits during the last few years. Customers are frequently purchasing online, at supermarkets, or in bigger contemporary shops, and as a consequence, Kirana businesses are losing customers. By 2021, the percentage of commerce controlled by Kirana shops is anticipated to fall from 88 percent to 75 percent. Many of the factors leading to the market decrease include, and therefore are not restricted to a delay in the implementation of new retailing practices like digital payments, inventory management, or perhaps an approved shop layout. This growing threat in the informal retail category can be mitigated by renovating Kirana shops.

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Promoter(s) Details



Location, Land , Building & Utilities

The retail shop / online selling point is located at the busy street  and having a prominant location for getting good visibility


Market potential & Strategy

Larger businesses failed to provide owing to supply chain problems amid the COVID-19 lockdown in India, and people relied primarily on Kirana stores for everyday needs. These stores have a personal connection with their customers and are well versed in customer preferences, which in turn enables them to stock locally relevant products. That is a potential for Kirana shops made capable to fulfil customer needs with their connections with local wholesalers.

Kirana store or the neighborhood grocery store has proved extremely durable. These stores have not only survived the supermarket or large format retail chains then, and e-commerce now, they are also thriving. 

Throughout that period, several  Kirana shops welcomed digital payments using Paytm or another mobile wallet, suggesting their readiness to adopt current digital practices. While just 3% of Kiranas are tech equipped in 2018, 70% of Kirana stores in metropolitan regions and 37% of Kiran stores in tier 2 cities are eager to accept tech to grow their company.

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