April 22, 2007

Are Kirana stores losing their relavance?

A big yes, gone were the days when families used to wait for the start of the month to place their monthly purchases.

With spending power/consumption expenditure (disposable income – savings) on the rise, middle class India have the option to buy anytime of the month.

The advantages that that the kirana stores enjoyed viz. personalized service, door delivery, and personal touch have have all been lost with the advent of organized retailing. Organized retailing provides a number of advantages i.e. they provide variety, quality in terms of freshness, good prices, convenienence; these factors combined with the rise of disposable incomes have made a big hit with the burgeuing middle class population.

Note: “Kirana stores” is equivalent to a “Mom and Pop Business” The term "mom and pop business" is a common colloquial expression for a single-family operated business with few (or no) employees other than the owners.

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