India is a great nation with endless possibilities. When starting a grocery company, then India would be the place to be. And that, if you want to start a grocery store in India is the best place in the world! The Indian market is a lucrative place to operate with more than 1 billion people and a developing economy; hence there are possibilities to grow and succeed in this market.
Initiating a grocery or hypermarket in India might be a highly rewarding business opportunity. Knowing how to start Kirana business involves a lot of decisions and choices that need to be made before embarking on this adventure. On the other hand, with a bit of attention and determination, this new grocer will be a hit in this town. Hence, if you’re ready for this task, here are the following ways that will help you open a new grocery store in no time!
Set up a sound business model
The Indian grocery market is expected to grow by 20% in the next 5 years and hence this leaves a lot of room for expansion. You will find a number of ways how to start a grocery shop in India with little capital investments – listed below are some of them.
* The franchise model: This model works well for starting a grocery store chain and requires a small investment from the owner.
* Joint venture: This involves entering a partnership with a company in which they contribute with their resources and divide the earnings equally.
Make a clear definition of the target market that you are going to be focusing on
When commencing a Kirana business, one of the first and crucial things to do is define your target market in order to be able to concentrate and channel your efforts in the right direction. You must be able to identify your target market and understand what they need in order for this step to be successful.
The list of factors that will come into play when identifying customers can be as long as this: from income levels and dietary preferences to location and cultural norms. By focusing on a niche and targeting a certain consumer group, you will be better able to grow in the marketplace.
A grocery shop may generate a profit if its activities and service delivery are highly effective and respond to the needs of the local populace. The target consumers of a grocery shop in India could be housewives or working people in general.
Work out your unique selling proposition
While grocery shopping people tend to have a wide range of options available to them. In other words, what will motivate them to come and shop with you as opposed to other shops that sell similar items? Which characteristics set your store apart from others?
The key element of this kind of business is that quality goods and services should be available at fair prices as compared to those provided by competitors. As a result, locating and promoting your shop’s unique selling point (USP), which can include a variety of offerings such as a specialized selection of goods or a welcoming atmosphere, will be critical in retaining new customers and encouraging them to return.
Here are some reasons you can give to your customers to choose your store over others: Here are some reasons you can give to your customers to choose your store over others:
You sell a bigger range of goods than the competition does.
You offer low prices on popular items.
You open your store at a more convenient place.
The quality of service that you give in which you stand out from the competition is excellent.
Decide on what items to sell and in what quantity
Before you start welcoming your first customers and selling a product, think about what kind of inventory you need to stock up in a grocery shop or what kind of goods you plan to sell at your marketplace.
Perhaps, you might be sure about which type of foods and drinks you will sell in your cafe, but it’s better to define a product mix in detail. You need to offer both popular items and exclusive items that will attract consumers and at the same time stand out from competitors.
This means that by choosing the right items, you will be able to build a grocery shop that serves your market segment and helps you achieve better sales numbers.
Get all required licenses and permits
As an entrepreneur, you should be familiar with the license and permission required to open a grocery shop in India. A grocery shop in India generally needs a trade license, shopkeeper license, food license (such as an FSSAI license), and a GST registration as well.
A trade license is a must for every business in India. The Shopkeeper’s License is a must-have for every retail firm. Registration under GST is compulsory only for those companies that have a yearly turnover that exceeds 20 lakhs rupees.
Besides this, some additional licenses or approval might be necessary as per the type of product that you want to sell. As an illustration, a vendor must be in possession of a separate permit in order to sell meat or dairy produce and a different one in order to sell vegetables or fruits.
Conclusion
Indian grocery stores are the key players in the Indian economy and with proper planning and execution, you can build a niche in this competitive market. These are a few pointers that would give you a clue on how to start a grocery shop in India.
Research, plan ahead, and do not be shy in seeking advice when you feel lost. Given a little push from you, this small business will be able to meet the expectations of the customers and become a valuable addition to the surrounding neighborhood as well.
