Clocking above industry growth rate-ShopKirana

-ShopKirana growing parallel to the price hikes and sluggish rural FMCG market

-Gaining Traction among Kirana stores without tailor made pricing or imposing Discount Schemes

The US$ 25 billion Rural FMCG market India has been facing a slowdown since 2018. Data suggests that rural
households have gradually reduced consumption because of lower income growth, hence slowing down the
sector’s growth to 11-12% in FY2019 .On the contrary, ShopKirana E-Trading Pvt. Ltd. as an aggregator has been
clocking above the Industry growth rate, despite targeting Tier 2 cities and rural areas and dealing with FMCG
products only. They have grown more than 8 times in the first five months of 2019 said founder Sumit
Ghorawat. From making just ₹ 12 Crore afer their first year of operation in 2014, ShopKirana boasts a revenue
of ₹ 120 crore as of March 2019. FMCG companies in India have witnessed higher growth in rural areas
compared to urban ones. With 12.2% of the world’s population living in the villages of India, the Indian rural
FMCG market cannot be ignored by investors.

BOOSTING FMCG GOODS SALES IN RURAL RETAIL MARKET

Based out of Indore, online B2B platform ShopKirana has successfully stepped in to promote a more efficient
trade cycle (both on the retailers and manufacturer sides) for FMCG products. Retail Store owners are the
primary outlet through which FMCG products are channelized into the rural population. Due to lower
consumption levels manufacturers are incurring sales losses, damaging their brand image and losing their
customer loyalty. In this uphill battle of rural FMCG sales they have gained traction among Retail (Kirana) store
owners in rural areas and created a robust chain of product distributors. From enrolling 1000 Retail (Kirana)
stores in its first year since inception (2014) this online aggregator is now working with 12000 kirana stores.
They are successfully doing this as their methodology of working is the elimination of the middleman .This has
brought down the price hikes as Retailers no longer have to pay extra commission to suppliers which in turn
benefits Consumers in the end of the cycle. They already have 7% market shares captured in 3 months of a new
brand launch and have access to 30% of consuming population of their cities of operation. Brands are getting
digital access to the stores and are able to hold on to their customers as constant supply ensures brand loyalty
and customers no longer change brands or postpone purchases. On the 26th of June 2019, ShopKirana achieved
a sale ₹ 1 crore within just 12 hours of initiating a flash sale without any discounts scheme. Without any tailor
made pricing, against the odds ShopKirana raised 17 crore in 2019 itself. They carry on all trade related
activities solely through the use of their mobile application.

The high growth rate of the FMCG industry in India goes beyond growth drivers such as income growth. The
consumption habits of India’s new age consumers have resulted in an attitudinal shif in the market .
ShopKirana has a target of ₹ 600 crore and expansion in 30 new cities by 2020-2021 reaching out to 50 Million
consumers based on studies done on this market’s statistical facts and parameters.

Talk Points-

-Mobile Tech solutions boosting the Rural FMCG Demands

-How ShopKirana is providing Innovation on the supplier’s side

-Going against the flow and succeeding in promoting FMCG sales in rural retail sector

-To Go Platform for Kirana Store owners and FMCG brands alike