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Why Customers Prefer Modern Kiranas: Tips to Convert Your Traditional Grocery Store Today

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Across India, traditional kirana stores have been the backbone of retail for decades. With their familiar counters, handwritten ledgers, and strong community trust, they remain unbeatable in customer loyalty. But times are changing—urbanization, e-commerce, and shifting consumer expectations are forcing even the most established kiranas to modernize. The good news is, transforming a traditional grocery store into a modern shop doesn’t require Reliance-level capital; it just takes smart upgrades, technology adoption, and customer-centric thinking.

Step One: Upgrade the Look and Layout

A clean, organized, and well-lit store instantly elevates perception. Instead of cluttered shelves, consider open racks, baskets, and glass displays. Simple changes like branding your store name, adding signage, or creating product categories (staples, snacks, dairy, personal care) make shopping easier. Chains like D-Mart have shown how self-service layouts boost basket size, and even small shops can replicate that on a smaller scale.

Step Two: Embrace Digital Payments and Billing

Cash and udhaar (credit) may still dominate, but UPI has become non-negotiable. Adding QR codes, card machines, and even digital billing (POS systems like Paytm for Business or GoFrugal) makes transactions seamless while helping you track inventory. Many kiranas that adopted billing software during the pandemic report reduced pilferage and better profit tracking.

Step Three: Introduce Delivery and WhatsApp Ordering

Customers today value convenience as much as price. Offering home delivery via WhatsApp orders can modernize a traditional store instantly. Start small—deliver within 2–3 km using local staff or delivery boys. Many kiranas in Bengaluru and Delhi are already competing with Blinkit and Zepto by promising “within-the-hour” delivery through their own networks.

Step Four: Stock Smarter, Not Just More

Modernization isn’t about adding 1,000 SKUs; it’s about understanding what sells. Use billing software or even a notebook to track fast-moving items. For instance, staples (atta, rice, pulses) drive footfall, but high-margin products like chips, biscuits, and cosmetics improve profitability. Successful kiranas balance both, just as big retailers like Reliance Smart and Big Bazaar once did.

Step Five: Leverage Loyalty and Personalization

One strength kiranas already have is personal connection. Modernize it with loyalty programs—offer discounts after a certain spend, or send bulk SMS/WhatsApp updates about new arrivals and festive offers. A kirana that remembers customer preferences can build stickiness that even Amazon Fresh can’t replicate.

Step Six: Partner with Online Marketplaces

Apps like JioMart Partner, Udaan, and Flipkart Wholesale are modernizing kirana supply chains by offering bulk purchases at better margins. Tying up with these ensures competitive pricing without relying solely on local distributors. Some kiranas are also listing themselves on Swiggy Instamart or Dunzo to expand reach.

The Bottom Line

Converting a traditional grocery store into a modern shop is not about becoming a supermarket overnight. It’s about blending trust and tradition with convenience and technology. With small, steady steps—better layouts, digital payments, delivery, smarter stocking—any kirana can stay competitive in India’s evolving retail market.

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Grocery Store vs General Store: Why Kiranas Beat Reliance Fresh in Essentials but General Stores Win in Margins

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Walk down any Indian street and you’ll notice two kinds of shops that often blur into each other: the grocery store and the general store. Both are neighborhood essentials, but they aren’t the same. While people casually use the terms interchangeably, the difference lies in the products they sell, the business model they follow, and the way they serve customer needs.

Grocery Store: The Food & Essentials Specialist

A grocery store, whether it’s a tiny kirana or a larger mini-mart, is primarily focused on edible and household essentials. Think rice, wheat, pulses, oil, packaged snacks, dairy, bread, fruits, vegetables, spices, and cleaning items like detergents or soaps. Their strength is repeat purchases—items people buy daily or weekly. Grocery stores run on thin margins (3–12% depending on product categories), but high frequency makes up for it. In towns and cities, kiranas still dominate because of their personal touch—home delivery, credit (udhaar), and quick access.

General Store: The Jack of All Trades

A general store, on the other hand, is wider in scope but shallower in necessity. It stocks a variety of products that go beyond daily food needs—stationery, toys, plastic goods, hardware, cosmetics, seasonal items, and sometimes even clothing. A general store focuses on diversity over frequency. Customers might not come daily, but when they need a school notebook, a bucket, or a comb, the general store becomes the go-to. Margins are usually higher (10–30%) since many of these products aren’t commoditized like rice or flour.

Why the Confusion?

In smaller towns, many shopkeepers blur the line, mixing grocery staples with general merchandise to maximize earnings from limited retail space. That’s why you might find a packet of Maggi, a nail cutter, and a birthday candle under the same roof. Big chains, however, keep the distinction sharper—Reliance Fresh and More lean towards grocery, while local bazaars or mom-and-pop general stores cater to miscellaneous needs.

Which Model Works Better?

If you’re planning a business, the choice depends on your location and target audience. Grocery stores are safer, with constant cash flow, but they demand daily restocking and tight inventory control. General stores have less pressure on daily sales but require understanding trends and customer demand beyond food essentials. Many successful small-town shops operate as a hybrid, blending the reliability of groceries with the higher-margin products of general retail.

The Bottom Line

A grocery store feeds households; a general store fills in the gaps of daily life. Both are indispensable, but their economics and customer pull work differently. For entrepreneurs, knowing the difference can help decide what to stock—and how to position the business for steady growth.

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Asaya Secures ₹28 Crore Funding as 5x Growth Startup Plans State-of-the-Art Innovation Center, 6 New Launches in 12 Months

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Asaya, a science-backed skincare brand focused on hyperpigmentation solutions, has raised Rs 28 crore in a pre-Series A funding round led by RPSG Capital, with participation from strategic investors including Suyash Saraf and Anisha Agarwal Saraf, co-founders of Dot & Key, alongside existing backers OTP Ventures and Huddle Ventures.

Founded by Eeti Sharma, Mandeep Singh Bhatia, and Neeraj Biyani, Asaya has positioned itself as a research-first brand in a sector often dominated by marketing-led launches. The company claims it has grown revenues 5x in the past year, achieving nearly 400 percent year-on-year growth. Central to its success is its proprietary molecule, MelaMe, which the company says delivers visible results on hyperpigmentation within 14 days and has consistently outperformed global multibillion-dollar skincare brands when tested on Indian skin.

“We are solving one of India’s most common but overlooked skincare challenges with research designed specifically for Indian consumers,” said co-founder Neeraj Biyani.

The company plans to deploy the fresh funds to establish a state-of-the-art innovation center that will serve as its research and product development hub. Over the next 12 months, Asaya intends to introduce six new products, including another patented formulation addressing a prevalent skin concern among Indian users.

Investors believe the company’s sharp focus gives it a strong edge in a crowded market. “Indian consumers are moving away from generic, one-size-fits-all beauty products. Asaya’s clinical efficacy and targeted solutions make it a brand built for the next decade,” said Abhishek Goenka, Lead Investor at RPSG Capital.

Industry voices echo the optimism. “Asaya’s rapid traction, with thousands of new customers joining daily, reflects the growing appetite for homegrown, research-driven beauty,” said Suyash Saraf of Dot & Key.

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Godrej Interio to Expand Retail Footprint to 1,500 Outlets, Aims to Double Revenues and Capture 20% Furniture Market

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Godrej Interio, the furniture division of the Godrej Enterprise Group (GEG), has announced a Rs 300 crore investment push aimed at expanding its retail presence and strengthening digital capabilities as it targets revenues of Rs 10,000 crore by FY29.

The company, currently contributing the second-largest share to GEG’s consolidated revenues of Rs 16,000 crore, reported a topline of Rs 3,400 crore in FY25. It expects to close the current fiscal at Rs 4,000 crore before accelerating growth in the years ahead. Business head Swapneel Nagarkar said the brand is confident of scaling at 25 percent annually from FY27 onwards to reach its long-term revenue goal.

Of the proposed Rs 300 crore outlay, Rs 100 crore will go towards strengthening digital technologies for an omnichannel retail strategy, Rs 100 crore for expanding its store network to 1,500 outlets, and Rs 100 crore for design innovation. This investment is in addition to Rs 350 crore already deployed over the past few years to modernise its five manufacturing plants across the country.

Interio’s strategy includes rebalancing its revenue mix. The company expects the contribution from B2B sales to decline from 65 percent to 55 percent, while B2C will rise from 35 percent to 45 percent. Growth will be driven by premium furniture, consumer demand for branded products, and rising penetration in tier-II and tier-III markets.

Over 60 percent of new stores will come up in tier-II towns, 30 percent in tier-III cities, and the remainder in metros. A new retail format will include a 20,000 sq ft flagship in Vikhroli, mid-sized 7,000 sq ft stores, and compact outlets.

Executive Director Nyrika Holkar said the focus is on making premium design more accessible. GEG itself has set a target of Rs 20,000 crore in revenue by FY29, up from Rs 16,000 crore in FY25, with group profits standing at Rs 500 crore.

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Why Sabyasachi Refuses Fast Fashion: Inside the Rs 1,200-Crore Label That Made Restraint Glamorous

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Kolkata-born designer Sabyasachi Mukherjee, who this year marked 25 years of his eponymous label, has become India’s most recognisable luxury export by building a brand on restraint rather than scale. From a three-person studio in 1999, the Sabyasachi label has grown into a Rs 1,200-crore fashion house with flagship stores in Mumbai, Delhi, Kolkata and New York, alongside partnerships with Bergdorf Goodman, H&M and Estée Lauder.

Mukherjee’s strategy rests on what he calls “the discipline of no.” Unlike global luxury giants that flood markets with seasonal collections, Sabyasachi has deliberately avoided mass distribution, fast fashion cycles or celebrity-driven overexposure. His creations are hand-built by over 2,000 artisans across India, turning commerce into what he describes as “cultural preservation.”

The result is the globally recognisable “Sabyasachi bride,” a cultural archetype made iconic through weddings of Bollywood stars such as Anushka Sharma, Deepika Padukone and Priyanka Chopra. Yet, for Mukherjee, the real achievement lies in reviving dying crafts. He recalls investing Rs 15,000 to revive traditional kirna tinsel work for Padukone’s bridal attire, an act he calls “small capital, big preservation.”

The brand today competes with global maisons not by imitation but by rooting itself in Indian provenance. Stores are designed as “living museums,” with layered textiles, rugs and tapestries intended to deliver what Mukherjee terms “forty per cent commerce, sixty per cent culture.” His New York flagship opened in 2022 to critical acclaim for reimagining Indian heritage in a global context.

Industry observers note that India’s luxury market, estimated at $8.5 billion in 2023 and projected to cross $20 billion by 2030, is now moving beyond Western labels. Mukherjee believes this shift will position India as the world’s teacher of “value” in luxury—rare, authentic and rooted in craft.

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Sanjay Dutt Joins Bollywood’s Food Business Rush, Opens Solaire at Grand Hyatt as India’s Fine Dining Market Booms

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Bollywood actor Sanjay Dutt, popularly known as Sanju Baba, has announced the launch of his maiden restaurant venture, Solaire, in Mumbai. The restaurant, which will open at the Grand Hyatt in Bandra Kurla Complex (BKC), places the actor among a growing list of celebrities entering India’s expanding fine-dining and luxury hospitality market.

The announcement came directly from Dutt through Instagram, where he shared a glimpse of the interiors alongside the caption, “I’ve eaten around the world, now it’s my turn to plate it. The first of many! Welcome to @solaire_mumbai.” His post indicates that Solaire is not a one-time experiment but the beginning of a broader push into the food and beverage business.

Located in one of Mumbai’s busiest corporate and luxury districts, Solaire is designed to appeal to both the city’s high-profile business clientele and its food-focused social circuit. The interiors feature earthy tones, ambient lighting, and intimate seating arrangements, positioning the space as a blend of sophistication and comfort.

According to hospitality industry estimates, the premium dining segment in India has been growing at a compound annual rate of over 12 percent, with Mumbai accounting for nearly a third of the market. Dutt’s timing reflects a trend where celebrity-owned restaurants, including those by Shilpa Shetty and Priyanka Chopra, have found steady traction among urban diners.

For the actor, who has built a career spanning more than four decades in Indian cinema, Solaire marks a personal as well as professional milestone. “Having travelled extensively and sampled cuisines worldwide, this is my way of bringing those experiences back home,” he said in his announcement.

The restaurant is expected to open its doors later this year, with plans for additional outlets already being explored.

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117-Year-Old Vadilal Breaks Tradition, Hands Reins to Outsider Himanshu Kanwar in Post-Restructuring Era

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Ahmedabad-based Vadilal Industries has appointed Himanshu Kanwar, a former Unilever executive and senior leader at startup advisory platform Xto10x, as its first professional chief executive officer. The move comes on the heels of a sweeping restructuring that ended decades of disputes within the Gandhi family, which has promoted and run the 117-year-old ice cream maker.

Kanwar spent more than 15 years at Unilever, where he worked on global personal care and ice cream categories, before moving to Xto10x, a platform founded by former Flipkart executives to help startups scale. His appointment marks a clear shift for Vadilal, which until now was managed directly by members of the founding family.

The Rs 1,200-crore company, known for its extensive ice cream range and frozen foods, competes with Amul and Hindustan Unilever’s Kwality Walls. Earlier this year, Vadilal concluded a long-standing family settlement, which included the merger of three promoter-held entities—Vadilal International Private Limited, Vadilal Finance Company Private Limited, and Veronica Constructions Private Limited—into Vadilal Industries. By consolidating the brand under one structure, the company eliminated issues around royalty payments and streamlined operations.

Shiv Shivakumar, chairman of Vadilal Industries, said Kanwar’s track record in consumer insights, innovation, and go-to-market execution would be critical in steering the company as it transitions from a family-led business to a professionally managed enterprise. “Himanshu will play a crucial bridge role in helping Vadilal evolve for the future,” he said.

As part of the governance reset, long-time managing directors Rajesh R. Gandhi and Devanshu L. Gandhi stepped down after legal disputes within the family were settled. The new leadership model is aimed at strengthening shareholder value while preserving promoter control of the business.

With Kanwar at the helm, Vadilal is expected to double down on growth in its core ice cream segment while expanding its frozen foods portfolio across domestic and export markets.

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Nepal Unrest Puts $1.5-Billion FMCG Market at Risk: Varun Beverages, Dabur, HUL, ITC and Marico on High Alert

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India’s largest consumer goods players are bracing for potential disruptions in Nepal, where political unrest has raised concerns over supply chains, distribution networks and employee safety.

PepsiCo’s bottling partner Varun Beverages, which earns nearly 3% of its consolidated revenue from Nepal, is among the companies most exposed. Dabur, ITC, Marico, and Hindustan Unilever also run significant operations in the Himalayan nation through their Indian listed entities. Industry executives say the immediate priority is ensuring the security of partner teams operating in border districts.

Reliance Consumer Products, which only in July this year launched Campa soft drinks in Nepal in collaboration with Wai Wai-maker Chaudhary Group, is also assessing risks. “We see the Nepal issue to be a slight overhang for most consumer staples,” noted Abneesh Roy, executive director at Nuvama Institutional Equities, in a client advisory.

Close to a dozen Indian companies across packaged food, soft drinks, and hospitality sectors are active in Nepal, underscoring the scale of exposure. Jaipur-based Bikaji Foods International entered the market just two months ago through a 50:50 joint venture with Chaudhary Group for manufacturing, marketing and distribution of its snacks portfolio.

Executives point out that Nepal’s geographic closeness to India magnifies the concern. “Our partner teams are on high alert, and their safety is the top priority,” said a senior executive at a listed FMCG company, who requested anonymity.

While most firms have not yet reported operational disruptions, analysts caution that prolonged instability could affect supply chains and consumer demand in Nepal, which has become a growth market for Indian FMCG players in recent years.

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Is Opening a Supermarket Worth It? Lessons from D-Mart’s Success and Big Bazaar’s Collapse

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Walk into any Indian city today, and you’ll see Reliance Smart, More Retail, or D-Mart packed with shoppers. At the same time, neighborhood kirana stores continue to thrive. This raises the obvious question for entrepreneurs: is opening a retail or supermarket business still worth it?

The short answer: yes—but only if you understand the margins, the competition, and the changing habits of Indian consumers.

Why Supermarkets Look Attractive

The allure of the supermarket model is scale. A single outlet can serve thousands of customers daily, with a product range that spans groceries, personal care, home essentials, and even electronics. Footfall drives volume, and in retail, volume is where the profits lie. Chains like D-Mart have built billion-dollar businesses on this formula, combining bulk procurement, efficient supply chains, and competitive pricing.

For smaller entrepreneurs, supermarkets promise:

  • Higher ticket sizes compared to kirana stores.
  • Brand credibility and trust.
  • Opportunities for expansion through franchising or multiple outlets.

The Margin Game

Margins in the supermarket business are notoriously thin. Essentials like rice or wheat offer 5–8% margins, FMCG items around 10–15%, and premium or non-essential products up to 25–30%. The real money is made not from individual products but from sheer sales volume.

To make it worth the effort, supermarkets rely on:

  • Efficient supply chains to cut procurement costs.
  • Private labels (D-Mart and Reliance both push their in-house brands for better margins).
  • Add-ons like electronics, fashion, or household goods with higher markups.

The Challenges You Can’t Ignore

  1. High setup cost: Renting a large space in a prime location, interiors, shelving, refrigeration, and staff can easily run into crores.
  2. Competition from kiranas: While supermarkets attract bulk shoppers, local kirana stores still dominate daily essentials with credit and home delivery.
  3. E-commerce and quick commerce: Apps like BigBasket, Blinkit, and Zepto are training customers to shop from their phones rather than visit a store.
  4. Thin margins: Even with volume, profits can feel underwhelming if costs aren’t tightly controlled.

Town Advantage: The Midway Path

Interestingly, small-town supermarkets are emerging as a profitable sweet spot. They face less competition from e-commerce, enjoy lower rentals, and cater to aspirational customers who prefer modern retail formats. A 5,000 sq. ft. supermarket in a tier-2 city often breaks even faster than a metro outlet because costs are lower and loyalty is stronger.

Is It Worth It?

If you’re chasing quick profits, supermarkets may disappoint. But if you’re thinking long-term, willing to invest in efficient sourcing, smart technology, and customer loyalty programs, retail can still be a solid bet.

For proof, look no further than D-Mart’s phenomenal rise—its no-frills, volume-first strategy has turned it into India’s most valuable retail chain. On the other hand, poorly managed ventures like Future Group’s Big Bazaar serve as cautionary tales of high debt and poor execution.

The Bottom Line

Opening a retail or supermarket business is worth it if you approach it with scale and efficiency in mind. It’s not just about stocking shelves; it’s about building supply chains, leveraging data, and adapting to customer needs in an increasingly digital world.

In metros, hybrid models that blend offline supermarkets with online delivery options seem to be the future. In towns, supermarkets thrive on community trust and aspirational shopping. Either way, success lies in understanding that retail is no longer just a store—it’s an ecosystem.

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How to Sell Your Packaged Product in Grocery Stores: Lessons from Haldiram’s, Paper Boat, and Local Startups

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For any new FMCG or food brand in India, cracking modern retail chains like Reliance Smart or D-Mart is a long road. The real entry point for most startups is the humble kirana or small grocery store. These shops are the backbone of India’s $800 billion retail market, and if your packaged product finds space there, you’ve won your first—and most loyal—customers.

So, how do you convince a grocery store owner to stock your product?

Start with Trust, Not Just a Sales Pitch

Small store owners are risk-averse. They already stock products that sell daily—biscuits, chips, soaps—so convincing them to replace or add something new requires trust. Approach the shopkeeper directly, introduce your product, and offer free samples so both he and his customers can try it.

Offer Margins That Make Sense

Retailers survive on margins. If a packet of biscuits from Parle gives them 10–12%, your product should ideally offer equal or better margins to make it attractive. For new brands, 15–25% retailer margin is common to ensure owners are motivated to push your product.

Support with Visibility

Don’t just drop off cartons and hope for sales. Provide free point-of-sale materials like posters, wobblers, or branded racks. Some startups even supply small display units so their product stands out instead of getting lost in a pile of FMCG giants.

Build Demand Locally

Retailers will only reorder if the product moves off their shelves. To ensure this, create local buzz:

  • Offer free sampling near the store.
  • Run buy-one-get-one offers in the first few weeks.
  • Encourage customers to ask for your brand by name—this makes the retailer more confident about stocking it again.

Be Flexible on Credit and Supply

Many kiranas work on short credit cycles with distributors. Be prepared to offer flexible payment terms (say, a week’s credit) and ensure timely replenishment. If your product is always available, store owners are more likely to rely on you.

Scale Through Distributors

Once you’ve cracked 10–20 shops on your own, partner with a local distributor. Distributors already supply dozens of kiranas daily. Getting your product into their basket is the fastest way to expand reach without handling every retailer yourself.

The Bottom Line

Getting a small grocery store to sell your packaged product isn’t about big marketing—it’s about building relationships, trust, and local demand. If you can offer good margins, strong visibility, and consistent supply, shopkeepers will welcome you. Remember, kiranas thrive on customer loyalty. If their customers start asking for your product, the retailer will stock it without hesitation.

The path to becoming the next Parle-G or Haldiram doesn’t start in a boardroom—it starts with one grocer agreeing to put your product on his shelf.

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