This is my first post since I shifted to Bangalore.One of the most interesting experiences I have had in Bangalore so far, has been visiting the local kirana stores.I have just returned from the US where retail is in a very mature state. I was living close to a regional retailer called Wegmans and was very impressed with their structure. I wanted to see the how the scenario was in Bangalore, which borrows heavily from the US.
The US retail experience
The retail format in US is always about variety. Super stores like WAL-MART pride themsleves on having a variety of goods under one roof. No one bothers you as you shop for these basic goods and there is always an offer on. To add to this you are never far away from a local superstore like Wegmans or WAL-MART. They also come with ample parking and sometimes a food court so that you can recover the calories you lost pushing the cart.
I wanted to compare stores like Spenser's and Total with their counter parts in the US. Also standalone local Kirana shops like 'Aishwarya' based in Sarjapur. Not too long ago, there was a big debate on whether organized retail could destroy the local businesses. Delhi, for example, has about 7.5 lakh local kirana stores. All of these were under threat from organized retail. But unfortunately for the doomsday analysts, nothing of that sort happened.
Both formats co-exist with each other today and the ultimate beneficiary has been the consumer.
--------LOCAL KIRANA STORES --------
The local kirana store has been the conrner stone of the Indian economy since Independence. There are many reasons for it. Economists have often blamed the license raj for the lack of opportunities and hence, driven by circumstances, kirana shops had been opened. Others like Minister Kapil Sibal blame our education system for it, which produces many more B.As , B.Coms and now Engineers, than the economy can incorporate. Most of them end up running small shops.One of the vendors who used to sell me apples during my stay at Manipal, was an M.Sc in Statistics.
These kirana stores often offer many value added services. Most of them offer credit, some upto a period of 6 months. Others offer free delivery and phone orders. Some even go to the extent of helping procure an item that was not easily available.
But still a visit to a kirana store is not an experience one would look forward to. During my childhood days, my siblings and I would play "Stone- Paper-Scissors" to decide who would be the unfortunate one to make the trip to the kirana store.The store in particular was 'Sree Rama Stores', which every self respecting South Indian in South Delhi visits , at least once a month.
The experience itself is very nerve wrecking. As you walk towards the store, you are greeted by a mob, already waiting their turn at the store,jostling with each other for a good vantage point, from where they could shout out orders to one of the store helpers inside. The store helpers, experts at multi tasking, would be carrying out multiple orders , often with disastrous results. To add to this cacophony, the big tickets would be "phoning in" and the shop owners would be shouting out orders to the over stretched helpers. I used to dread losing that game of "Stone-Paper- Scissors".
But the local kirana store today has come a long way from the dingy, dusty stores of the past. Stores like 'Aishwarya' despite being local are set up in the same format as organised retail. All goods are displayed and the shoppers can walk along the aisles, withour being disturbed. To add to this they still give credit and free home delivery.
--------RETAIL FORMATS--------
Fast forward to 2009, it was with great reluctance that I entered a retail shop again., And this was Spencer's on Sarjapur Road, Bangalore. This was at the behest of my best friend, my wife, who tried to make sure I was in a good mood so I did not refuse.
The first thing I noticed, was there were clowns on long wooden stilts and a big banner syaing Happy Children's Day. A guard saluted very smartly and handed me a shoopping cart. Wow! What a difference.
As I walk inside, I noticed aisles and aisles of FMCG. Nestle, Hindustan Lever, ITC and the likes competing with each other to attract my attention. Most people were very well dressed and were walking about with a keen sense of purpose. The kids too were having a ball.
These shoppers had come for the experience. Experience at a grocery store?! As I looked around, there seemed to be a sense of achievement in the faces of most of these shoppers. The kids had found their own play area, the youngsters were busy at the cosmetics section while the men were reading various labels on food content. The women, needless to say, were checking out the prices. There was also a local MC who was shouting out all the latest offers at the store, just in case people had not seen the un-missable boards and placards placed around the store.
Retail formats like Spencer's are also excellent sources of cross sell. As I walked towards the counter, a young man walked up tp me and asked if I had a visiting card. I thought he was looking for a job. But he was the local agent for HSBC,trying to sell me a retail credit card. Now, what the hell id a retail credit card?!
There are credit cards and there are debit cards. But HSBC has decided to launch a retail credit card that offers you points and 5% cash back when you shop at a Spencer's retail store. I am sure there will be similar offers from other banks soon.
There were also outlets from Baskin Robbins, Marry Brown, Mr and Mrs Idly and Hyderabad House within the store.
--------THE FINAL VERDICT--------
Both formats are here to co-exist.And one will never give way to the other. It's not every day that one feels like dressing up and going to a grocery store. For those rainy days, there is always your local kirana store who will deliver the goods to you at your doorstep with a smile. And for thoe who want to live it up, there is always organized retail.
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