Indian Retail Study - the Kirana or Mom and Pop store

Authors Avatar by yuvraj12 (student)

Leadership is the state or position of being a leader. It is being No.1 in one's area of operation. This No.1 status is not easy to attain. Flexibility, trust, integrity and sustainability are just some of the virtues that make a person or an entity a leader. A leader can be a person, a corporation or a brand for that matter.

Becoming a leader in any industry requires having a business model which more than anything else stands the test of time. Such a model has to be unique and must be equipped to meet all the requirements of its customers.

In the Indian retail industry, one such unique model of business has been so successful that it has been replicated over 12 million times. This model is the face of unorganized retail in India, the ubiquitous Kirana store or mom n pop store as it is referred to in English. These kirana stores are the leaders in selling food and grocery to Indians and have been leaders ever since retailing started in India.

                                                                     

The Indian retail industry is unique in many ways. The retail market in India is estimated at US$ 470 Bn in 2011, which accounts for roughly 35% of GDP and is expected to grow to US$ 675 Bn by 2016 with a CAGR of 7.5%. The biggest share of the retail pie belongs to the food and grocery segment, roughly 70 %. But the most significant fact about retail in India is that much of it is unorganized (more than 97%).

Join now!

                                                                 

(Technopak Analysis, 2011)

(Technopak Analysis, 2011)

Kirana stores fall under the unorganized category of retail. There are more than 12 million mom n pop stores in India and they generate revenues of well over $200 billion each year. That is why they are the undisputable leaders in food and grocery retail and retail in general. The average kirana store is around 500 ...

This is a preview of the whole essay