International Journal of Accounting and Financial

Management Research (IJAFMR)

ISSN (P): 2249–6882; ISSN (E): 2249–7994
Vol. 11, Issue 1, Jun 2021, 9-12
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THE PARADIGM SHIFT OF KIRANA STORES INTO DIGITAL WITH REFERENCE

TO THE PANDEMIC – CASE STUDY ON CASHLESS ECONOMIC REVOLUTION IN
INDIA

Dr. UMAMAHESWARI.K* & MR. BALU. J **

Assistant Professor, Lead College of Management, Kerala, India
ABSTRACT

Anything from basic provisions to consumer-packaged products has been sold in Kirana stores, which are known for
being India's traditional and neighbourhood shops. Almost 15 million people have always been a cash-based economy
in the world. People have begun to take outflows via digital methods in the last five months, especially in semi-urban
and urban areas.As towns struggle to re-establish their normal routines, Kirana stores help to maintain a steady supply
of necessities. The network of Kirana stores has also played an important role in enabling monetary transactions for the
masses during the pandemic.

It is thought to be a win-win scenario. Customers prefer cashless transactions for safety reasons, which prompted a
local kirana grocer to adopt the digital payment platform. The value and volume of digital link transactions have also

Original Article
reached new highs because of the lockdown.

KEYWORDS: Kirana stores, covid-19, Pandemic, e-commerce giants, Tough lockdown, Technology, Google Pay,
Phone Pe and UPI Paytm, digital plane & Digital platform.

Received: Dec 28 2021; Accepted: Jan 18, 2021; Published: May 07, 2021; Paper Id.: IJAFMRJUN20212

INTRODUCTION
Innovative business models emerged cheering up

In the early days of Covid-19, the pandemic forced e-commerce giants and distribution apps to face vulnerability.
During the lockdown, they were unable to provide basic necessities to customers. Despite the fact that supermarkets
and shopping malls were completely shut down during the national lockdown, local kirana stores took over the task
of supplying essential goods to households.

Local kirana shops, on the other hand, accumulated the day by maintaining a near-constant supply of
everyday necessities, ensuring that people do not go hungry in the midst of a terrible virus outbreak. Many kirana
stores recognised the potential for growth by considering how to promote themselves using new technologies. It
was discovered that in many Indian cities, there is a rehabilitated confidence in hyper-local communities, and kirana
store owners want to collaborate with online distribution and supply podiums to flourish in these exciting times.

Furthermore, the pandemic forced local kirana stores to quickly embrace technology. More and more
kirana stockpile owners are turning to apps to help them expand their businesses and streamline their processes.
According to a survey, 58 percent of metro traders and 46 percent of non-metros believe that the Covid-19
pandemic necessitates a transition to a digital platform.

For a large number of societies in rural and urban India, Kiranas stores have facilitated financial

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10 Dr. Umamaheswari.K* & Mr. Balu. J **

transactions during lockdown. Many citizens in rural areas, unable to travel long distances to fulfil their banking needs,
rushed to kiranas stores instead of withdrawing cash from ATMs.

Innovative business models arose, encouraging small retailers to become acquainted with key features such as Knock and
Pay and Cashless Pay through QR code scan. In reality, more kirana stores have moved away from the internet and begun
to provide home delivery services.

Nearly 12 million neighbourhood kirana stores dominated India's native grocery retailing scene, with a 90%
market share. This trend has accelerated during the current lockdown, with customers relying on kirana stores for everyday
necessities.

During the COVID-19, coronavirus pandemic, India's kirana stores have been magnificently whirling to the
digital plane to help in all aspects of their market, and millions of people are looking forward to seeing how kirana stores
will continue to push this forward in the coming days.

Owner of a small kirana store with a countertop, customers of Kirti stores, posh Pedder road area of Mumbai,
would always receive payment in cash. The grocer forced Covid-19 to accept digital payments, so he was changed. Once
the money received, the device playssound message, “that money has been received on the Paytm” makes convenient to
the merchant of which allows not looking at his or mobile every time.

“Every day, more than 100 customers will come into my store, so I want to protect myself from the deadly disease
while also not putting my customers in danger.” As a result, I'm using Google Pay, Phone Pe, and UPI Paytm,” Chheda
explained.

Customers themselves prefer to make financial payments in a digital format, according to Kirana, the store owner.
There is no inconvenience in making changes, and the money is transferred to my bank account almost immediately. It is
much more practical than the conventional one.” Harish Gada - Manish Stores.

Presently, Paytm Mall is working with all leading logistics players including GATI, Ecom Express.

The gaps: -

Customers prefer online shopping, which has become fashionable. Well before the outbreak of the COVID-19 -19
pandemic, customers began to confirm their orders in large numbers through WhatsApp or phone messages.

Kirana taking orders in bulk during the day makes keeping track of the purchasers' orders incredibly difficult for
kirana shop owners. Human errors occurred, such as orders being mixed up and certain products not being delivered.

As a result, closing this distance is unquestionably necessary. Even, since all kirana owners are not tech savvy,
and the majority of those who work at kirena stores are school dropouts, the crucial theme to pay attention to is - the keys
will survive tradition expected - because all kirana owners are not tech savvy, and the majority of those who work at kirena
stores are school dropouts, don't have much technological knowhow normally.

Many applications have sprung up in recent years to help kirana store owners with their business processes.
However, the majority of them created the app solely to make money and did not genuinely solve the problems faced by
kirana owners, and the apps were too complicated for kirana store employees who lacked accounting or technology
knowledge.

Impact Factor (JCC): 7.8593 NAAS Rating: 4.08

The Paradigm Shift of Kirana Stores into Digital With Reference to the Pandemic – Case Study on 11
Cashless Economic Revolution in India

It's also worth noting that, apart from the app, kirana store owners are expected to up the ante in order to survive
the cutthroat competition from major multinationals. To this end, they will create user-friendly applications to ensure that
orders are taken, purchases are completed smoothly, and goods are delivered on time.

Technical expertise can assist kirana store owners in maintaining their essence. It's also worth noting that app
developers should make their subscription fees as low as possible so that even small business owners can profit.

Paytm ensures safety payments, as the country goes into the social distancing, masking.

CONCLUSIONS

Consumers who previously purchased from supermarkets or online shops are now opting to buy from kirana stores located
nearby in order to avoid long lines and to give the impression of confidence.

It's also worth noting that the kirana's sprouting relationships with a variety of stakeholders are particularly
noteworthy. As a result of the pandemic, the kirana system has shifted from physical to digital sales.They prove themselves
by facing a pandemic that is both agile and robust, with Kirana able to withstand the effects. Kirana stores have shortened
the online journey by using chat apps like WhatsApp as a means of winning orders and offering physical cashless
distribution by receiving payments over the internet.

REFERENCES

1. https://www.business-standard.com/article/companies/local-kirana-shops-embrace-retail-tech-as-covid-19-puts-focus-on-
essentials-121041300588_1.html

2. https://www.business-standard.com/article/economy-policy/covid-19-impact-paytm-mall-plans-to-partner-with-over-10-000-
kirana-shops-120042600731_1.html

3. https://business.paytm.com/blog/paytm-all-in-one-payment-gateway-let-customers-shop-but-dont-let-them-drop/

4. https://economictimes.indiatimes.com/topic/kirana-stores

5. https://www.financialexpress.com/lifestyle/how-covid-19-lockdown-and-digitization-has-changed-your-neighborhood-kirana-
store/2099174/

6. https://www.financialexpress.com/industry/kirana-stores-become-new-supermarket-amid-coronavirus-lockdown-aim-to-go-
online/2014870/

7. https://www.business-standard.com/article/companies/kirana-stores-are-the-new-battleground-for-india-s-e-commerce-giants-
120042401656_1.html

8. https://www.business-standard.com/article/economy-policy/how-covid-19-made-kirana-stores-adopt-tech-innovation-and-
online-platforms-120070600604_1.html

9. https://www.business-standard.com/article/economy-policy/how-covid-19-made-kirana-stores-adopt-tech-innovation-and-
online-platforms-120070600604_1.html

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