Million dollars mark, a beautiful beginning of India’s biggest and most impactful dream!!

ShopKirana

Million dollars mark, a beautiful beginning of India’s biggest and most impactful dream!! 

“If you have last penny left either save it for future or buy grocery for yourself”. An economist advice.

Some people say “Either you love Grocery or hate grocery but you can’t ignore grocery” 

At ShopKirana we started our love with grocery a year back, it has been a 

•  Million dollar sales
• 25000 orders delivered, with smiles and care
• 1 million+ products handled
•  All this happened with just 2000 customers. We call it piloting the potential!!

Key drivers so far:

Customer is king:

• Every retail store is our customer; we talk and care for one store at a time. Not random million downloads.
• We understand power of B2B , B2B makes business strong where LTV>> CAC. A retailer worth million dollar of sales and touch 100 families, we earn trust of 100 families by earning a retailer.
• We talked to our customer every 72 hr, we can talk as we have relation. In B2C you can’t call a customer and ask “sir why you don’t make purchase every day?” Or “why you have not placed order for Sunflower oil this week?” , to a retailer we can ask hence we talk to him every 72 hr

Team made the difference

• We have a team with purpose, a purpose big enough for them to pursue
• People is biggest contributor in all success, hence clear focus in all our discussions about strategy or entertainment
• Intent is above skills. Skill are built by many wherever and whenever required but they had clear intent of empowering retailers from day zero
• We gear up every time we fail or face a challenge. Great team can overcome any problem hence we focus more on building great team vs focusing on possible problems

Big purpose

• We ask to ourselves several times “Why we all work day and night at ShopKirana ??”
• Because we know/claim/challenge that we have biggest and most impactful vision in country as of now. We believe “Integrating and empowering retailers can change Indian retail forever”
• Soon in a single town we will be selling more tons of wheat flour than a normal plant can produce, without discounting a single rupee.
• Soon we will be profitable start-ups with huge volumes too. An answer  to people seeking for something sustainable (Zero discount, makes money) and scalable ($300Bn blue ocean of grocery), in India.

ShopKirana is based out of Indore(A tier II town) we are building here things which will change India retail forever, A dream withd plan, bigger than any E-retailer can even imagine. Model like Amazon will take more than 5 years to create this volumes in Grocery categories if they don’t discount and don’t advertise. 

Grocery segment in India is Blue Ocean but if you discount you can bleed red too!! Differentiate with systems and services vs discounted demand!! 

Join the revolution with minds or money by writing at deepak@shopkirana.com

Time to say thankyou !! #thankyoukirana

#Thankyoukirana for being there, you make our life easy every day!!

• Rajiv is an Hide & Seek lover, he have seen advertisement of it went to near by kirana, twice he didn't had it than. Third time he asked , he had it. He cared!! #thankyoukirana for caring about Rajiv

• Nirmla left the key with husband and her phone got discharged.She wanted to make a call but how?  #thankyoukirana for helping her making a call with your phone

• Today  milkman didn't turned up!! She have to call Kirana wala to deliver. #thankyoukirana for over delivering anytime, every time.

• Dinesh is looking for a new house in colony. He don't know whom to talk. #thankyoukirana for connecting him to Verma Ji in next street. 

• Raj is an student he stays alone. He was not keeping well. #thankyoukirana for taking him to hospital. 

• Visitors were searching for my home. It is in interior. #thankyoukirana for directing them to my home. Thank you for knowing me so personally!!

• Laxmi was facing itching in hands while washing clothes, #thankyoukirna for recommending better detergent. Thank you for improving life

• Radha suddenly had pimples. #thankyoukirana for recommending the right cream. She fill confident  now.

• Everytime my child ask for chocolates you gave him healthier fruit candy!! #thankyoukirana for caring about my child

• Hiral ordered online but she can't take delivery  as delivery boy come at office time. #thankyoukirana for taking my E-delivery

• Varsha got stuck in traffic, #thankyoukirana for asking her kid to sit in your shop, till she arrives. 

• #thankyoukirana for recharge while I am not having cash

• #thankyoukirana for giving some instant cash when it's very critical

• #thankyoukirana for providing me credit till I get my salary

• #thankyoukirana for talking about my parents when I miss them.

• #thankyoukirana for knowing me and my family so closely.I always feel you have opened shop just for me.

• #thankyoukirana for smiling every time we transact vs installing some boring machines.

• #thankyoukirana for being there for years, you make our life easy everyday!! 

Kirana touch our familie's life everyday and they are going to be there. 

Have you ever said #thankyoukirana? Reasons can be many, may be none but it can bring smile and hope on the face of Kirana wala who is struggling to survive. 

You can also say #thankyoukirana by taking and sharing a Selfie and saying a thank you!! 

Don't forget to #thankyoukirana. 

Your one click and share can make them feel valued.

Shopkirana: Empowering retailers with technology , better supplier and superior emotions!! 

Go-to-market time and India retail.

What is a Market "Market is a place where buyer and seller meets". 

I will say "Market is a place where Buyer goes, as seller anyway have to follow"

In new age of marketing and technology seller's information and product has to go to market, not the seller. Two critical item to sell are "Awareness of the product" and "Availability of the product". 

Some examples: 

1. Fair & Lovely make customer aware by TV ad and simultaneously ensure it's available in nearby store.

2. Religious organisation put a hoarding for "Baba’s" lecture (Pravachan) in town and then ensure smooth organisation of event for masses on big ground in town.

Hence critical aspects of “Go-to-market” are “Awareness to consumer” and “Availability to consumer”. A brand needs Marketing channel for awareness while Distribution channel for availability.  (Yes Baba is a brand, may be for peace and happiness)

In competitive and copycat world. “Go-to-market time” is critical for any brand to succeed so that products or new innovations or initiatives reach to consumers as quickly as possible. (or at least before someone copies you)

Go to market time= Max(Awareness time, Availability time). Assuming product is ready to sell.

India retail is one of the tough markets to go to. It has huge diversity and depth. There are1Bn+ consumers, 9Mn+ retailers, 29 states (Government bodies, creating hurdles to go to market vs creating roads to reach), 22 languages (to advertise),  3000+ TV channels, 99600 news paper to advertise even if you do all this 25% of consumer is uneducated (can’t read/understand your ad). Tough to make a right marketing mix based on reach and timelines

Now let’s see what are biggest channels to market (Aware) and distribute (Avail) in India and how brands are doing.

% of media spent. On different channels

% split to Distribution channels in India.

Key marketing channel: TV+ Print (~80%)

Key distribution channel: Traditional retail  (~91%)

If Go to market time= Max(Awareness time, Availability time).

But with technology,  Awareness time (time to adv TV/Print) has reduced a lot and has become << Availability time (Time to reach to traditional retailers)

Below info-graphics give glimpse of India’s top FMCG’s and their reach to retailers. You will be surprised to see Go-To-Market time is in decades in India.

So, there is no CPG company less than a decade old and have national presence. Hence it's Big challenge for brands to go-to-India market !!

With growing economy lot of international brand would like to enter in India, domestic brand will go national and existing brand would expand portfolio or come up with new initiatives but if Go-To-Market for 90% of India retail remains  in decades the growth will be a big challenges, brands which will overcome the Go-to-market time challenges will definitely be the winner.  

What can be the solution? What is the future?

What if there is a channel for brands to reach to thousands of retailers overnight with right merchant mix?

What if there is a ready to use technology and retail analytic for brand to reach to 

right outlet? (reaching to right outlet can increase sales by 40%)

And what if there is no "what if"?? We @Shopkirana has taken this as an opportunity to solve India's GTM problem.

Case : At Shopkirana , UNIBIC have changed the way brands plan for Go-To-Market in India. UNIBIC has emerged as a one of the smartest brands to use Shopkirana as a Go-To-Market platform to reach to thousands of retailers. 

It has happened first time in retail history ...It took just 6 days to reach to thousands of retail store vs more than 6 months earlier. Supported by great data analytic and business forecast!! 

No one can think of significant market share in first month of launch, in a category like biscuits? But it has happened, detailed case study will be revealed soon.

Stay tuned!! We are going to make a dent in Indian retail space!! 

Here is traditional retailers own brand !!

  Garner: Aapka Apna Brand

While working on "Empowering transitional Kirana(Retail) store we observed something interesting, little disappointing from an angle but another angle  gave it an excitement. As every problem of retailer is a challenge and opportunity for us. 

90% of retail products are sold by traditional retailers. Big companies earn huge from their sells.

But when we talk about

-              Pricing: Traditional retailers hardly get great margins are they are disintegrated. Traditional retailer doesn’t have negotiation power as they doesn’t have financial and scale muscles.  While modern retailers get great discount from companies because they are integrated hence looks big. Brand sometime take loss with modern retail as they see long term there. So what’s happening here a traditional retailer is indirectly fueling the growth the competitor (Modern retailer). Hence there is need of a brand which promise single and fair price across market.

-          Supply reliability: While modern retail have supplier KPI, traditional retailer don’t have. Hence they don’t get great supply assurance. Great reliability issues making product un-availability a big concern for traditional retailers. There is need of a brand which promise supply reliability to traditional retailers.

-          Own brand: For basic staples and highest frequency items every modern retail have their own brands so that they have base product range dependency on themselves. Ensuring highest shelve availability at-least for daily essentials. So when every modern retailer have their own brand “Where is Traditional Retailers Own Brand?”

-          Exclusivity: Lot of new brand, SKU and promotions are offered to modern retail which give them advantage of exclusivity fueling attraction of new customers towards modern retail. When 90% of sales is driven by traditional retailers there is no brand which offers exclusivity only with Kirana store so that they can attract/retain customers. There should be a brand which can promise exclusivity to traditional retailers

Current Brand & retailer relations are based towards fueling the modern retail growth. At ShopKirana we have to “Empower traditional retailers” hence we had to come up with some brand which can solve the key problem of supply, single pricing, exclusivity, and which can be “Retailer’s own brand".

With this burning need followed with heated discussions and most importantly vision of “Empowering retailers” Garner has evolved.

Garner: Your own brand.(Aapka apna brand)

-          Exclusive: India’s first brand which will be sold exclusive at traditional retail stores,

-          Reliability: Promise 24 hour delivery and 100% fill rate. First time ever in the country.

-          Variety: Widest range of daily essentials under single brand.

We are at day zero of empowering retailers....

India retail, time to rethink!! Drama will not work, something dramatic will!!

Indian retail is witnessing remarkable changes. E-com, last-mile and on demand are new buzzwords of the industry, although they hardly impact 0.5% of the industry. Getting instant delivery, 1000s of e-com start-ups, 100’s of on demand apps, launch of 1000’s of new brands, key global retailer’s entry and continues coverage/discussions on FDI in retail are key indicator of hotness.

What has changed in change drivers?

-          As a consumer :

o   Understanding/awareness: Packaging to quality to content.

o   Lifestyle :Convenience , consolidation and help in quick decision making are required

o   Income: I am getting richer more importantly, I can dispose more now.

-          As a businessman(new gen-entrepreneur) : I see

o   Huge middle class growth with disposable income 

o   Retail is and will be there –it’s safer investment in portfolio

o   Retail is about size : India will be biggest soon

-          As a country and industry:

o   E – Infra (Digital) penetration: Internet penetration (~ 19.2+ %), Affordable Smartphone (~21%)

o   P-Infra(Physical) : helping fast last mile and interstate delivery

o   Payment modes : access to banking and availability of new generation e-payment

o   Favourable demographics:  Young (60% in 15-55 yr age) with 300Mn+ middle class

Key question, “is E-com going to engulf whole retail?” Obviously not (all passengers will never travel by flights) but % is going to increase for sure. Let’s see how the future of India retail looks like and where is the business.

- Indian retail is projected to $1trillion in 2020 from $600Bn of 2015. It means there will be $400Bn growth in 5 year. This is big!! Let’s see where the growth is 

Sector	% share	Volume 2015(Bn)	CAGR(2015-20)	Volume 2020(Bn)	Growth(2015-2020)
E-com	0.5	3	57%	29	26
Modern B&M	9	54	20%	113	59
Traditional	90.5	549	10%	874	331
Total	100	600	100	1016	416

-      Above numbers reflects a lot, if there will  be $331 Bn sales increase in traditional retail why all buzz, news and coverage and investment on E-com. Investors are not fool they invest in disruption and they will keep doing that. So let’s try to understand disruption and how it can affect Indian retail.

Disruptive innovation: Innovation that creates a new market or value network and eventually disrupts an existing market or value network.

So Disruption can be?

a.       New market and segment

b.      New value network

Some more examples of type one and type two disruption.

-          What’s app vs. Skype – Big , part of day to day life

o   Everyone wants to chat not video call every day.

-          Uber vs. aviation : Big, part of day to day life

o   Everyone want ride on demand vs. fly every day

Don’t In next 5 years traditional retail will grow by $331BN vs $26Bn o E-com. While retail is hot, e-com has lot of seduction.Question is will every one travel by flight?

Let’s draw a parallel with transportation industry to understand the same. Aviation in transportation industry was new market segment and future trend. It’s looked fancy, charming with lot of hot air hostess and shinning colors. With cutlets, drinks and video games in air, it fascinates everyone including customers, employees and immature investors. 

What happened in transportation, when everyone was investing huge in aviation (and was in Air) something like Uber came and changed the game (on ground). Solving basic and big need with technology and innovation!!  I will put that in second category. When problems are in day to day basics all resources should not be fascinated by rare required luxury of tomorrow. While 80% of public transportation was on ground. Investors, innovators were investing money and minds in Air!!

  "Don’t fall in % trap “Small % of big is better than big% of nothing”

Still new fields, sectors and innovations cannot and should not be neglected but do that if you find today’s opportunity small and boring!!  Otherwise focus in today’s big and exciting.

So if E-com is the new trend of retail (category one disruption) and what is the basic, day to day and big of Indian retail?

I will ask again “is E-com going to engulf whole retail?” Obviously not, as everyone can’t access and then can’t afford flights!! What then? Will traditional retail remain the way it’s? Obviously not, as change is necessary evil!! But again traditional retail has to have something disruptive—affordable, scalable and self sustainable. Something which is day to day and grounded!!

” By2020 having 12% share of Indian e-com ($3Bn) will be equivalent to just 0.3% share of traditional retail. 30 times bigger than E-com.

What will be real disruption? It will be in basics and in day to day?  One thing is for sure it will be something in “traditional retail” –as it affect  day to day life and it’s big ($800Bn by2020). Transforming traditional retail will be a disruption.

Understanding above facts and conclusion is not a rocket science it’s a common sense. Rocket science will be how of it? To disrupt you have to

-          Identify something big and day-to-day

-          Think smart and make it simple and win-win-win

Indian traditional retail is day-to-day and need transformation. Investment of minds and money will pay back as it’s one of the biggest untapped opportunities globally but key will be disruptive innovations with “day to day” and “scale” at heart of it. 

At Shopkirana we just raised hammer to create  that dent in Indian retail universe by Empowering stars of retail Universe i.e. Traditional Retailers!!