Wednesday, August 12, 2020
Home Lead Story Reliance to Digitise 5 mn Indian Kirana Stores by 2023: Report

Reliance to Digitise 5 mn Indian Kirana Stores by 2023: Report

Reliance, with a deep footprint in over 10,000 Reliance Retail outlets pan-India, is working on to create the world's largest online-to-offline new ecommerce platform

As more and more neighbourhood kirana stores aim to modernise their tech infrastructure, the entry of Reliance Industries Limited (RIL) would help expand the current 15,000 digitized store base to over five million stores by 2023, a Bank of America Merrill Lynch research said on Tuesday.

One of the most interesting trends in retail sector in India is that kirana stores are keen to upgrade their merchant point-of-sale (MPoS) technology, which is driving a wave of modernisation (90 per cent of the $700 billion retail market is still unorganized).

“The current one-time price point of Rs 50,000 limits the market to Class A/B stores (turnover of Rs 900K+/month).

“We believe that with the RIL’s entry, we could see an increase in merchant adoptability, as the price points will likely come down (RIL’s current one-time deposit is Rs 3,000) and reach should expand,” the research noted.

As a big player, RIL is entering an otherwise scattered market. Some of the key players in the fragmented merchant point-of-sale (MPoS) today are SnapBizz, Nukkad Shops and GoFrugal.

“Overall, we expect RIL to help expand the current 15,000 digitized store base to over 5 million stores by 2023,” said Sachin Salgaonkar and Sukriti Bansal, Research Analysts at DSP Merrill Lynch (India).

In this photograph taken on June 6, 2013 Reliance Industries Chairman Mukesh Ambani poses as he arrives for the company’s annual general meeting in Mumbai. India’s 100 richest people are for the first time all billionaires, according to an annual Forbes survey released September 25, 2014, with the country’s top earners worth a third more combined than last year. Industrialist Mukesh Ambani topped the list for an eighth straight year with a 23.6-billion dollar fortune, Forbes India said on its website. AFP PHOTO/Indranil MUKHERJEE/FILES

For the research, the team met with the SnapBizz management which has over 4,500 devices installed in more than seven cities in India (or over 30 per cent of the digitized store base).

For a one-time payment of Rs 50,000, the merchant gets a PoS device with Snapbizz software, a screen space to display ads and a personal app to interact with users.

On back of these products, the retailers’ revenue is estimated to increase by Rs 8,250 month each, thus recovering the investment in six months.

Also Read- Microsoft Upgrades Edge Browser, Cortana at ‘Build’

“Kirana stores liked the ease of billing/generating GST complaint bills the best. The PoS system provides an option of adding in-built discounts and also push offers to entire customer database via SMS,” the research noted.

Reliance, with a deep footprint in over 10,000 Reliance Retail outlets pan-India, is working on to create the world’s largest online-to-offline new ecommerce platform. (IANS)

STAY CONNECTED

18,957FansLike
362FollowersFollow
1,780FollowersFollow

Most Popular

Are Hindu Gurus too Naive About Christianity and Islam?

By Maria Wirth There are several major differences between Christianity and Islam on one side and Hindu Dharma on the other, and all of them...

What Does the Word ‘Swastika’ Mean?

In Sanskrit, the word swastika is a combination of ‘su’ (meaning ‘good’) and ‘asti’ (meaning ‘to exist’) — often getting translated as ‘all is...

Janmashtami: Learn Five Lessons from Lord Krishna to Achieve Success in Life

By Muskan Bhatnagar According to Hindu Panchang, every year, Krishna Janmashtami celebrations take place on the Ashtami date of Krishna Paksha of Bhado month and...

Top 10 Things to Know Before Planning a Trip to Europe

If your next travel destination is Europe, these are the things you should keep in mind: Check passport validity: Clearly remember that many countries require a...

Bollywood Blends In Janmashtami Colours

On the occasion of Janmashtami, celebrities took to social media to extend greetings to their fans, giving a glimpse of how they are celebrating...

5 Reasons Why More Online Casinos Accept Indians

Gambling in India is as old as India itself, so it is not surprising that more and more online casinos accept Indian punters, looking...

3 Types of ULIP Plans in India that Gives Guaranteed Returns

In today’s competitive world, there are plenty of saving and investment choices that decide your future financial wellbeing as well as that of your...

Mouthwash Use Can Reduce Covid Transmission Risk

In the fight against the novel Coronavirus, a team of German scientists has claimed that Sars-Cov-2 viruses can be "inactivated" using commercially available mouthwashes. According...

Recent Comments