Kirana shops, also known as small neighborhood stores or mom and pop stores, are an integral part of the economy in many countries. They are often the only source of essential goods and services in rural and remote areas, and they play a vital role in the distribution of goods in urban areas as well.
Where are kirana shops present?
Kirana shops are particularly prevalent in countries in South and Southeast Asia, including India, Pakistan, Nepal, Bangladesh, and Indonesia. Kirana shops can also be found in other parts of the world, such as Africa and Latin America.
In some countries, Kirana shops are the dominant form of retail business, while in others they exist alongside larger retailers and supermarkets. In India, for example, Kirana shops are an important part of the retail landscape, with millions of small neighborhood stores serving as the primary source of essential goods and services for many people.
Kirana shops are typically small, family-owned businesses that sell a wide range of goods, including groceries, household items, and personal care products. They are often located in residential areas and are a convenient source of everyday necessities for local residents. Kirana shops are known for their personal service and ability to provide customized products and services to meet the needs of their customers.
What are sold in kirana shops?
Kirana shops typically sell a wide range of goods and services. These can include:
Groceries: Kirana shops often sell a variety of fresh and packaged food products, such as fruits, vegetables, grains, meats, dairy products, and processed foods.
Household items: Kirana shops may also sell household goods, such as cleaning supplies, paper products, and kitchen and bathroom essentials.
Personal care products: These small stores may also carry a selection of personal care products, such as soap, shampoo, toothpaste, and other toiletries.
Other goods: Kirana shops may also sell other items, such as clothing, electronics, books, and other miscellaneous goods.
In addition to selling goods, some Kirana shops may also offer services, such as bill payment, mobile phone recharge, and money transfer.
Overall, Kirana shops serve as a convenient source of essential goods and services for local communities, and the products and services they offer can vary widely depending on the needs and preferences of the community they serve.
Revenue generated by kirana stores
It is difficult to provide an estimate of the revenue of Kirana stores, also known as small neighborhood stores or mom and pop stores, as these businesses can vary widely in size and scope. Some Kirana stores may be very small, with annual revenues of only a few thousand dollars, while others may be larger and generate significantly more revenue.
Factors that can affect the revenue of a Kirana store include the size of the store, the location and demographics of the area it serves, the products and services it offers, and the level of competition in the area. Kirana stores that are located in high-traffic areas, offer a wide range of products and services, and have a loyal customer base are likely to generate more revenue than those that do not.
How do kirana shops contribute to the economy?
One of the main ways in which Kirana shops contribute to the economy is by providing employment. These small businesses typically employ one or a few people, who are often members of the local community. This helps to stimulate the local economy and keep money circulating within the community.
In addition to providing employment, Kirana shops also contribute to the economy by serving as outlets for local producers and manufacturers. Many small producers and manufacturers rely on Kirana shops to distribute their products, as they may not have the resources to reach a wider market. By selling local products, Kirana shops help to support the local economy and provide a market for small producers and manufacturers.
The human interface is the most important factor in these stores. People who prefer to buy products after physically inspecting them prefer Kirana stores. As a result, a personal relationship is formed between the shopkeeper and the customer, taking into account the customer's loyalty and regularity. As a result, the needs of these people can be met in an efficient manner.
Finally, Kirana shops play a vital role in the distribution of essential goods and services to the wider community. In many cases, they are the only source of these goods and services in their local area, and they are often able to provide them at more competitive prices than larger retailers. This makes them an important resource for many people, particularly those living in rural or remote areas.
Because of the variety of items available at reasonable market prices, India's largest share of consumer spending budget undoubtedly goes to the chain of Kirana stores. Another critical point to emphasise is that Kirana stores pave the way for small businesses. Here's how the government generates revenue that helps the economy. A trade licence is required to open a Kirana shop, for which a significant sum is paid to the government treasury. Small business growth would not only benefit the economy but would also broaden the scope of employment.
Overall, Kirana shops are a vital part of the economy in many countries, providing employment, supporting local producers and manufacturers, and serving as a vital source of essential goods and services for the wider community.
The significance of Kirana shops in India's retail industry
In India, Kirana shops are known for their personal service and ability to provide customized products and services to meet the needs of their customers. Many Kirana shop owners have a deep knowledge of the products they sell and can provide helpful recommendations and advice to their customers.
From a broader perspective, Kirana stores are extremely beneficial in dealing with the country's economic crisis. According to research, India's retail industries account for roughly one-tenth of the country's GDP. The country's retail industry is dominated by grocery stores, also known as Kirana stores. As a result, its growth and development are directly proportional to the growth of the Indian economy. These stores have been in operation for many decades, so they understand the specific needs of a wide range of customers. This is why they can thrive in this digital age where E-commerce is taking over everything.
Kirana shops have been in operation for centuries, catering to a wide range of consumer needs. It serves as the backbone of the Indian economy by being a vital component of the country's retail industry. As a result, the significant growth and development of these stores would help to contribute to the GDP growth rate by addressing several issues such as unemployment and providing opportunities for new businesses to rise.