Kirana stores technology support: FRAI asks govt to provide tech support for kirana stores to face quick commerce challenge

The Federation of Retailer Association of India on Tuesday asked the government to provide an enhanced technology platform to Kirana stores to enable them to compete with quick commerce firms. “Such support would enable the kirana stores to remain competitive amidst the increasing encroachment into their space by quick commerce companies like Swiggy Instamart, Blinkit or Zepto,” said Federation of Retailer Association of India (FRAI), which says that it represents about 80 lakh micro, small and medium retailers from across the country with a membership of 42 retail associations.

Providing local kirana stores with a technology platform would allow them to compete on equal terms with quick commerce players, effectively creating a level-playing field, it added.

“With new technologies brought in by the government, like ONDC (Open Network for Digital Commerce), what is now required is a more focused approach in creating a specific solution for kirana stores that makes them as discoverable and accessible to customers, much like the way quick commerce companies are operating,” FRAI Honorary Spokesperson Abhay Raj Mishra said.

Essentially, the kirana stores should remain competitive by being empowered to tap into the growing digital market and meet new customer needs,” said Mishra, who is also Member & National Coordinator, Indian Sellers Collective.

Kirana stores are facing steep challenges due to the rise of quick commerce players, Lok Sabha member Praveen Khandelwal said.

“For shopkeepers, it is crucial to stay updated and embrace all channels to meet the evolving expectations of customers,” he added.

FRAI said quick commerce platforms have “unfair advantage” over Kirana stores, which cannot match the heavy discounts offered by quick commerce giants who benefit from deep pockets, large warehouses and a huge customer base.

The increased competition from quick commerce players has resulted in stagnant sales for kirana stores, particularly during high-demand periods such as the festive season, it added.