The Federation of Retailer Association of India (FRAI), representing over 80 lakh small retailers, has called for immediate technological interventions to help kirana stores compete with quick commerce platforms like Swiggy Instamart and Blinkit. The association has suggested leveraging solutions such as the government’s Open Network for Digital Commerce (ONDC) to make local stores more accessible and competitive in the fast-growing digital marketplace.
A Push Towards Digital Transformation
Speaking on behalf of FRAI, spokesperson Abhay Raj Mishra emphasized the urgency for kirana stores to adopt digital platforms to align with evolving customer expectations. “Digital transformation is no longer a choice but a necessity for small retailers to thrive in today’s market. With support from initiatives like ONDC, we can empower these stores to cater to the digital-first consumer,” Mishra said.
ONDC, a government-backed initiative, aims to democratize e-commerce by creating an open network where buyers and sellers can connect directly. FRAI believes this could level the playing field for kirana stores by providing them access to tools and platforms traditionally dominated by large e-commerce players.
Unfair Competition
FRAI has criticized quick commerce giants for their “unfair advantages,” such as deep discounting strategies and access to vast resources, which have led to stagnation in sales for local retailers. The association argued that such practices not only hurt small businesses but also create a monopolistic environment detrimental to the broader retail ecosystem.
“Quick commerce platforms have been using predatory pricing and promotional tactics that small retailers cannot match. This has resulted in an uneven playing field,” Mishra added.
Bridging the Gap
To address these challenges, FRAI is advocating for the following measures:
- Access to Digital Tools: Enabling kirana stores to use digital payment systems, online ordering platforms, and inventory management tools.
- Training and Support: Conducting workshops to familiarize retailers with emerging technologies and digital marketing.
- Policy Interventions: Urging the government to regulate unfair practices by quick commerce platforms and provide subsidies for technology adoption.
A Sustainable Future for Small Retailers
FRAI’s initiative comes at a critical time when the retail landscape is undergoing a massive shift. By adopting technology, kirana stores can offer competitive services such as hyperlocal deliveries, digital payments, and loyalty programs to retain and attract customers.
“Small retailers have been the backbone of India’s economy for decades. With the right support and technology, they can continue to thrive in the digital age,” Mishra concluded.
The FRAI’s call to action underscores the importance of inclusive growth in India’s retail sector, ensuring that the benefits of technological advancements are shared across all levels of the market.
