Is Kirana Retail dead? David vs. Goliath

For the first half of my life, I grew up in Tamil Nadu Housing Board Quarters in Chennai which had odd 800 tenements. Lloyds Colony at Royapettah, close to the Marina Beach came up in the 1960s when Late Shri. Bhaktavatsalam was the Home Minister of former Chief Minister K. Kamaraj's cabinet who’s primary motive was to provide affordable rented houses for the EWS, LIG & MIG of the state. The houses were owned by the Government of Tamil Nadu and houses were allotted to users on a rotational basis. Within the entire housing complex, there was a one commercial complex, a school, a community center for weddings & events, a park, a milk vending booth, a library, two playgrounds and about 400 trees. Yes, you read that right – 1970s. And the complex had a few shops allotted for various vocations such as carpentry, automotive, Public Distribution Scheme centers (for Ration products) and most memorably a Kirana Shop (Provisions Shop). That the shop owner was our immediate neighbour and a family well wisher was an advantage for me as I used to visit the shop as a child quite often to pick up some thing or the other and the Uncle would give me a toffee or two once in a while.

I remember vividly collecting newspaper copies of “The Hindu” which had a full page Advertisement in the early 90s when Pepsi launched in town and one could get a sample 100ml RGB against the paper clipping and we exchanged several of these at this particular shop which functioned in the name and style of “Murugan Stores”. Guess, the seeds of Retail and Consumer Business was sowed in my heart in an early age, unknowlingly. Or by design. And hence my nemonic, "Retailer by Profession and Choice".

So, when Subhiksha Retail stores started expanding in the late 90s along with a bunch of new age airconditioned super markets in the “Mecca of Retail” that is Chennai including my alma mater and first job at RPG run Foodworld, conches were blown that this was the death knell for small and marginal kirana shops. Around the new Millenium, larger corporates such as Tatas, Birlas, Rahejas among others entered in to business of Organised Retail and we saw formats such as Supermarkets at Neighbourhoods, standalone Hypermarkets as well as those in basements of Malls and so on, Big Bazaar being the most popular such chain across India over the past 15 years and is India's largest Hypermarket chain. Once again, naysayers blew the conch that this would be the death knell for Kiranas. 

Then came the likes of Big Basket followed by small dotcom companies such as PepperTap, Grofers (including Oyethere.com founded by Your’s truly in 2015 and made strides) where the conch was blown yet again against the Kirans. 

Yet, amidst all this hullaboo, the Kiranas are standing rock solid with their determination, continued efforts to modernize & upgrade and of course, sustain their business with changing times by adapting to the new normal. 

Covid-19 is yet another opportunity for the Kiranas who form the backbone of India’s FMCG retail industry. With over 13 million Kirana shops across India, the Industry employs over 50 million people directly and indirectly including shop management, logistics such as first mile (from factory), middle mile (to Distributor points) and last mile (delivery of goods to Retailers / Consumers). Other than this, the Organised Retail Industry is estimated to employ a million or so staff members. The Share of Kiranas in Grocery & Household / FMCG Retail is approx. 90% which over the past 100+ days during Lockdown has increased to, perhaps say 98% since most Organised Retail stores were shut and E-Comm players remained non-operational or marginally. 

I have been saying this for over 15 years – in this battle, Kiranas are the Goliath. 

It’s almost impossible to get them off this equation – not because they outnumber organized retailers on a ratio of 9:1, rather because of the proximity that they enjoy with the end Consumers and the longstanding relationship they've meticulously built. 

According to a recent study by E&Y, over 40% of Kiranas have imbibed the Digital route including collecting online payments through Google Pay or PayTM as well as delivering through e-comm apps. Agility and Adaptability are the two main traits that these small business owners display, which is also the bane of larger companies and corporates who's employees work for a salary while the small entrepreneurs work for a living and especially to earn for the next meal. Makes a lot of difference in their approach, isn’t it.

A Makeover’s Makeover

There are very few instances when we lose something and still be happy – One is at a Salon and another when we watch with glee, a drop-in ounce on a weighing scale. It’s a different pleasure to watch one’s own hair strewn all over the place even as the “Stylist” performs like in a concert – with utmost precision and concentration, chopping off even that one extra strand of hair. Salons have come a long way over the past 20 years in India. From being popular as a Sunday morning ritual for men across metro cities and smaller towns to discuss current affairs, politics, cricket and everything in between; and a “behind the curtains” secret service of sorts for women even in popular cities, the business of “make-over” has seen a “make-over” for themselves all these years. 

“Preeti Beauty Parlour” or “Ganesh Hair Dressers” is now more formal in their approach – they have either taken up a Franchise of a popular National or International chain; else they have upgraded their infrastructure and have a more modern name, especially with words like “Trendz” and “Salon” as a suffix to draw the attention of passersby and potential customers. Not just that, the staff have undergone tremendous training than before and are now well entrenched into the job and many even see this is a viable career option. Most importantly, the workforce has a new identity now – they are no more addressed as “barbers” rather more stylishly called as “Stylists”, after all. Their Salary packages range from Rs. 12,000 – Rs. 30,000 pm and many Salon chains even offer them a “cut” on their services as well in the form of a commission. Discerning Customers fix their own daily schedules depending on the availability of their preferred Stylists at select Salons to ensure a more personalized service. 

After a hiatus of over 3 months, I finally visited my neighborhood Salon recently. The brisk 12-minute walk from home was one among the happiest moments in the past 70 odd days of confinement during the 4 phases of lockdown. Much to my surprise, the entire experience at the Salon was spectacular. I had already taken an appointment much in advance before visiting, so I was just in time for the service. My body temperature was checked using a thermo-gun, I was asked to wear a PPE and sanitise my hands before entering the precincts. The boys were already in PPEs and were sweating profusely looking tired sans the A/c. With the number of Guests availing services being rationed, the boys were sweating it out for the sake of customers who were willing to pay a “tad extra” towards the additional costs incurred by the Franchisee of the popular Salon chain. But for extra “fittings” on both of us, the migrant stylist and I shared our usual camaraderie and banter; about the lockdown, loss of livelihood, extra safety measures and how they were the real “Covid warriors”. 

This is the beginning in my opinion. 

The cost of a “make-over” is only going to further increase in times to come, thanks to higher hygiene standards and overall salon maintenance. There was already a forwarded message on WhatsApp which was floating, questioning the additional cost included in the bills by Salons. I wondered why would customers expect the business to offer PPEs at charitable costs; someone argued that a PPE can be procured at much lesser cost than what was being charged by the Salon; another said this has not been approved by the Government; yet another piqued that the Salon owners were trying to make a quick buck by showing such additional costs to the service. I wonder why we criticize businesses with our varied personalized attacks. The Salons didn’t send a home invitation to anyone, anyway. So, why this fuss? 

This, IMHO, is the New World Order. This is how things would evolve and this is how Businesses and Customers would adapt themselves to the Corona Crisis. 

Those who complain of expensive PPEs always have a choice of the good old Tamarind Tree "stylists" or friendly neighbourhood salons and ladies parlours with closed curtains. There is no push from the semi-organised Industry which employs over 3-4 lakh people directly and indirectly across the country. While there is no doubt that there is going to be a burden on the wallets of the urban and rural middle class visiting salons regularly, this is a price the world is to pay for the unwanted and uninvited Virus which has become a part of our daily lives. Let's hope we don't mess up ourselves even further - there are fewer woods to cremate and even lesser earth to bury. 

As the Make-Over Industry goes through yet another "make-over" to itself, Our own personal Safety first should be our only goal, isn't it? 

The Power of Scheduling

It was the second week of April 2020. Three weeks into Lockdown 1.0, a broken supply chain, employees and team members dispersed all across and most retail stores closed, it was one of the toughest moments in my professional life. That I had a roof and secure four walls, three meals to eat, a lot of snacks to munch and salaried job – the real luxuries of the Corona-crisis made me feel a lot luckier than the millions who were displaced world over. And that I was staying with my wife and kids – I had come on a work trip to Chennai on 13^th March and remained here ever after through the lockdown – was the happiest thing I could enjoy in life. Honestly, we have never spent such a long time together within a single precinct all our lives!

Yet, I was beginning to crack under pressure – workwise as well as managing household chores including mopping the floor intermittently, washing vessels, drying and folding clothes among other things all day. To get a peaceful uninterrupted 7-hour sleep was becoming a challenge. I am usually a reasonably disciplined guy. I cannot fathom that my bed is not done within a few mins of waking up; a small slush on my white car and I get it cleaned as soon as I could; from rotating my shoes, watches and dresses on FIFO basis to booking darshan at Tirupati 4 months in advance, it’s been a usual rigor. After all, when you are the son of a Factory Worker whose salary gets deducted for late attendance and a schoolteacher mother who must arrive before the students come to school every day, this is just a way of life. 

Even as I was struggling to manage things better, was when I recalled I should speak to one of my professional mentors, a former boss of mine whom I’ve admired for his multi-tasking Leadership abilities. Working with a popular Promoter Entrepreneur, managing a team of a dozen high-flying direct reports and handling a Retail business spanning the length & breadth of the country, I couldn’t think of anyone better than him to seek advice and assistance in my Leadership role at Levista Coffee which I began in January this year. I too have a similar professional assignment at the moment although the complexities are quite different and a lot lesser, so a comparison may be inappropriate. 

A scheduled 60-minute call with him helped me sort out my stuff quite easily. 

To begin with, I created scheduled buckets of my time for all my key tasks – regular VCs with direct reports, allocating time for emails, for clearances & providing approvals, Meetings with external stakeholders, Interviews with Candidates & Media interaction and so much so, that I also included “Lunch” on my Calendar. Keeping my EA involved in all my day-today business activities helped immensely so he could follow up on important tasks from others and revert to me as per schedule. And most importantly, absolutely no out of turn calls or VCs unless it’s tearing urgent. All my day's activities get captured in the iWatch which my beloved wife gifted me 5 years back and the device keeps reminding me of my schedules  as well as measures my sleep patterns (through the Sleep++ App) and my daily fitness goal - how many steps I walk inside home. This is such a blessing. 

I also included slots to, don’t exclaim, Read Newspaper & Articles as well as for my Daily dose of Yoga at 6am! In exactly one month’s time, my entire day has been well sorted out and results are showing up. My Blood Sugar is well under control, I sleep and wake up on time with my 5am routine, spend enough time to read 4 Newspapers and a couple of Articles early in the morning and of course, write and share my thoughts regularly on social and other public media. I ended up doing Four Webinars each weekend too. 

And on the work front, not only have I been more efficient, my team has also done a spending job in the month of May and we have set new business standards for ourselves. I cannot thank my former Boss enough for that timely intervention and take this opportunity here to acknowledge the same. I hope this schedule gets better, so I get more efficient in June and beyond. 

How does your time management go about? What's your kind of Scheduling of Tasks?