M Tech based B2B procurement disrupting rural retailing formats through an integrated supply chain model: Fast

turnaround time facilitating convenience of choice while ensuring high quality products

E –Commerce retail industry is growing around 12%-15% every year adding up to 50-60 billion dollar in terms of
share potential. The FMCG sector in rural and semi- urban India is estimated to cross US$ 100 billion by 2025. Rural
FMCG market accounts for 40 per cent of the overall FMCG market in India, in revenue terms.

Rural India consist of about 650,000 villages. These villages constitute of about 850 million consumers amounting to
70 per cent of population and contributes to around half of the country's Gross Domestic Product (GDP).
Consumption patterns in these rural areas are gradually changing and increasingly resemble the consumption
patterns of urban areas. Some of India's largest consumer companies serve one-third of their consumers from rural
India. Owing to a favorable changing consumption trend as well as the potential size of the market, rural India
provides a large and attractive investment opportunity for private companies.
Rural consumer’s aspirations are turning towards branded & high quality products. The country's rural consumer
markets are expected to grow faster than urban consumer markets. Networking & tendency to proactively seek
information via multitude sources to be better informed while making purchase decisions has also increased & this
is facilitated through the robust mobile penetration facilitating higher e commerce purchases, banking, utility
payments to name a few. Rural consumers' evolution towards value added products and services involves a
combination of price with utility, aesthetics and features, and not just pricing alone. However no supply chain
innovation to cater to this disruption in demand has created void in customer satisfaction which is primarily related
to a void in delivery & availability of products & services

Filling the void Enter Shop Kirana

“A Tech enabled supply chain model to empower retailers & suppliers alike”- ShopKirana is a B2B – E-Commerce
platform created to serve the undeserved retailers in smaller geographies connecting 2 of the biggest domestic
sectors -farm and retail. ShopKirana as a business model is built around supply chain innovation & scalability. As
aggregators they directly connect Suppliers with retailers to deliver consistent quality products to consumers.
Thereby enhancing the entire supply chain module which in turn benefits the end users.

To facilitate robust logistics ShopKirana E-Trading Pvt Ltd. developed a Mobile Application by the name ‘Shopkirana’.
The Mobile app enables Kirana store owners to choose their products from a diverse catalogue of brands allowing
them the convenience of comparing & making purchases accordingly. An integrated payment system enables
electronic as well as conventional methods of transaction which in turn enhances business for the retailers.
Interactive multilingual UI, real time order tracking, a customized flow in functioning & gamification, are just some
of the attributes of this E-Commerce mobile application.

Taking the extra step and striving towards innovation is what drives their success making them a standout from
others.

From enrolling 1000 kirana(retail) stores in their first year since inception(2014) they are now working with 12000
kirana stores and have raised 17 crore till date .On the 26th of June 2019, ShopKirana achieved a sale ₹ 1 crore within
just 12 hours of initiating a flash sale without imposing any discount scheme. Currently with
presence in Indore, Bhopal and Jaipur they are strategically targeting multiple cities to add much more value to the
overall industry. ShopKirana is looking forward tapping into the $100 billion dry foods industry in India as well& have
launched a brand called Kisan Kirana which caters to the non-perishable dry food sector in India. From the end of
2018 to June 2019 Kisan Kirana sales have increased 5 times contributing to 15% of their total sales.
ShopKirana’s USP is its 24 hours supply chain and delivery guarantee of in within 24-48 hours of order placement
with the elimination of the middle man. This has helped the retailers & suppliers reduce dependency and has also
reduced frequent stock-out woes providing better service to end user. Other than Retail store owners & suppliers
ShopKirana works with national & regional brands as well. Delivering goods directly from a distribution points to
retail store & at the same time they have their own storage facilities which ensures no lapses in supply to kirana
stores.
 Suggested Talk points:

 Current Marketing strategy & related Campaign/innovations which have facilitated tangible results
 Mobile content & related strategy in addressing consumer needs
 Plans for expansion
 Product categories/Brands(Regional/National/unorgainsed) which are creating demand & how Shopkirana is
working on innovations which is driving sales for them
 Innovation & service offering on supplier side
 Tech /online initiations that can drive growth for rural FMCG demand