Sunday, February 25, 2007

Kiranas Forever

Super-powered supermarkets are taking over by storm. But, unlike the perfect storm, it's not able to wash away the little corner shops better known as kirana stores. Long live the great Indian middle class, and perhaps, longer lived are these stores.
Human factor coupled with convenience makes these stores a part of the common man's daily life. These Shuklajis, Mishrajis and Hasmukhbhais (the store owners) mean more to us than mere shop owners. Have you ever wondered what's the name of a salesperson in a supermart? They know you personally, ask about your family, well-being and are also ready to give you credit, if you want. "No issues, you can pay later," they'll quip and quickly open your account.
The growing Indian middle class can't live without them. Though they are regular supermart-goers, but they will also frequent a Manoj's Multi-purpose Store, for instance. Unfortunately, the store owners aren't very secure about their long-term existence.
I quizzed a few kirana store owners across the city. What would they do if suddenly a supermart comes up just beside their store? Whether they have any defence mechanism like a cartel to resist it? Or, do they have a strategy like changing the product mix or starting a price war to tackle them? Or are they confident that their loyal customers won't let them down?
A majority of them admitted that they fear supermarkets may eventually throw them out of business. And if you shop in bulk, they lose out on the best buys that the retail chains offer. But, their doomsday won't come in the near future, kirana owners feel. They are confident on the long-term ties they have developed with the clients i.e. on the human bondage.
"It's a matter of trust that we share with our customers. Most of them have their accounts open with us and they pay us at their convenience. Moreover, they know me by my name. I don't think they can ever develop such a relationship with a supermarket," says Ganesh, owner of Tirupati Supermart in Kandivali (what's in a name).
Well, besides trust on loyalists and the human factor some also have faith in the almighty. Says Aziz Khan, a Thane-based kirana owner, "No, there's no cartel to prevent super stores from setting shops. They are far more powerful than us. But, god is with me and I believe my shop will run even if there's a mart beside it."
Well, they are right. Andheri-based Manisha Goel, a housewife, and an "account holder" in her neighbouring kirana shop says, "The best part is you can pay them later. I also buy from the super stores but there are times you don't need to shop in bulk. Say if you need just a small item in the month-end, you won't certainly go to a supermarket and use your credit card for it. Kiranas are very convenient."
But, weekend shopping at the supermarkets isn't a happy experience, feel some customers. The marts are crammed and you need to jostle your way to get the stuff. Moreover, there's a perpetually long queue at the cash counter.
Malad-based banker Ankita Ghosh says, "They even remember the FMCG brands you use. You just give them a call and they'll deliver them at your doorstep."
When asked would she still prefer kiranas if the supermart gives her home delivery, she says, "Yes, I would still go for kiranas. Because, first, I am sure the phone lines will be busy forever. Second, even if they take your call, if the quantity required is small, they'll refuse to deliver saying the total amount does not exceed their pre-determined threshold for delivery."
Despite the support from these loyal customers, the superstores have been able to hit the bottomline of these stores. "Our sales figures would have been much higher had the supermart not been there. They can offer goods at a cheaper rate because they buy in volumes. I can't beat them on the price front. But, still my shop is doing good business," says a Mulund-based shop owner Mohan.
A few shops have also started keeping mobile recharge coupons to attract more customers. Some have included ice creams, cold drinks and even cosmetics in their product mix.
However, super markets also have their share of loyalists. Mulund-resident Anita Shukla, a BPO employee, Says, "The superstore is just a 5-minute walk from my house and I shop there in bulk once a week. I save quite a lot. Kiranas can't offer me stuff at such cheap rates."
Supermarkets and kiranas can co-exist, peacefully. Though they share a common customer base, they cater to different needs of their clients and that's a specialised job. They can't replace each other.
So, they can live in harmony happily at least for a few decades, if not ever after.

No comments: