Only 22% Indian kiranas extremely optimistic about business prospects
A survey conducted by India’s largest Kirana Community, Kirana Club, reveals that Kiranawallahs are expressing a sense of caution in their optimism despite the festivities and the concurrent Cricket World Cup. Only 22% of India’s kirana owners are feeling ‘extremely optimistic’ about business prospects this festive season, while about 37% expressed ‘some level of optimism’. The survey further indicated that 29% kiranas are unsure about the season’s business prospects.
Recent industry reports indicated that FMCG companies have witnessed subdued consumer demand and a decline in rural consumption given the persistent food inflation and uneven rainfall. Kirana Club’s survey aimed at gauging the sentiment of kirana owners and the implications of these challenges on their business.
The positive sentiment was the most prominent among kirana owners in Madhya Pradesh, with 63% holding this view, followed by Bihar at 60%, Rajasthan and Maharashtra at 59%. In contrast, Uttar Pradesh had the highest number of kiranawallahs expressing pessimism regarding business prospects, with 14% reflecting this mood.
‘The Mood of Kiranas’ survey was conducted among 5,000 kirana owners across the country including Maharashtra, Bihar, Uttar Pradesh, Rajasthan, Madhya Pradesh etc.
Kirana Club Founder Anshul Gupta said, “Over the years, the retail sector has been witnessing increased consumer demand, thereby boosting sales and revenue during the festivities however the usual upbeat mood seems to be missing among Indian kiranas this season. The cautious optimism among kirana owners expressed in our survey is a true reflection of the current dynamics of the retail sector across the country. This is a valuable insight for FMCG companies and a reminder for them to be attuned to these sentiments and evolve as per changing consumer preferences to stay ahead of the curve.”
“By being part of the Kirana Club community, kiranas are able to plug their information gaps when it comes to real-time insights on ‘mandi’ rates of commodities, latest brand and variant launches, schemes, offers and a lot more, which empowers them to take better business decisions and scale
their business, even amid uncertainties,” added Gupta.
Kirana Club also conducted sentiment analysis among kirana owners to evaluate the demand for small size SKUs (stock keeping units) which indicated that 71% Indian kiranas witnessed a surge in demand over the past few weeks.
Kirana owners in Madhya Pradesh (72%), Bihar (72%), Rajasthan (72%), Uttar Pradesh (69%) and Maharashtra (68%) confirmed increased demand for small size SKUs, indicating that consumers are either trading down to smaller packages or experimenting with new variants of brands. It also correlates with muted sentiments during the festive season, indicating that consumers are cutting back on spending in these regions as compared to others.