1) KiranaNow is an Indian online grocery marketplace that partners with local kirana stores to source inventory and provide delivery, allowing customers to order groceries online. 2) By sourcing directly from local stores, customers can go to the stores directly if issues arise. Prices are listed in rupees and do not change daily. Deliveries are sourced locally for more locations and faster delivery. 3) Operating with a zero-inventory model keeps costs low, but KiranaNow faces challenges around quality control from partner stores, high employee turnover, convincing stakeholders to adopt technology, and changing consumer behavior around online grocery shopping.

1. AMAZON KIRANANOW:THE
INDIAN ONLINE GROCERY
MARKET
ANKIT SHA

2. Consumer preferences changed with respect to online
grocery shopping:-
1) Increasing mobile penetration growing acceptance of
online shopping, growth in the online retail market leading
to a reduction in prices, and the launch of lucrative
schemes for customers were all the growth of online
grocery shopping.
2) The convenience offered by the prospect of grocery
delivery to one’s doorstep was another factor that
prompted an increase in online shoppers.
3) To ensure more consumers came onto its platform,
lower the cost of customer acquisition, improve
the purchase volume of repeat purchasers, and generate
more referrals by repeat purchasers,
Kirana Now must focus on service elements such as the
ease of transaction, fair prices, on-time
delivery, and product quality

3. KiranaNow’s marketplace business model:-
• Since the sourcing of material was done
from local Kirana stores, customers
could approach these stores directly in
case there were any issues.
• The prices, inclusive of all taxes, for
various products were listed in rupees
and did not usually change on a daily
basis.
• Deliveries were sourced from local
retailers, therefore increasing number
of locations and faster delivery.
• Operating a zero-inventory model, it
has a low-cost structure.

4. Operating a zero-inventory model, KiranaNow faced the following challenges.
 Merchandising Issues : Collaboration with local retailers led to decrease in quality control. Kirananow cannot
control all the retailers actions. To ensure delivery of fresh products ,especially of perishable category, huge
amount of resources and capital is used.
 People-Management Challenges :This industry cannot hold employee for a long time. It seems People do not
find growth opportunities and future prospects. Also , the volatile nature and working conditions make this
industry sceptical to employees, on which this company depends a lot. A lot of training and hiring cost is
wasted, every time a new employee comes on board.
 Technology Challenges :Most difficult job is to convince all the stakeholders(employees, customers, delivery
boys) to learn and adapt technology. This is a sole criteria for the success on online grocery business. Also ,
data
availability for market research and data analytics is poor ,which effects the insight of the company.
 Consumer Behavior :Though digital buying penetration in India is expected to almost double
by 2020, leading to the growth of many small online grocery retailers, relatively few
consumers are ready to buy groceries online.
 Logistics : Adapting innovative technology in logistics poses a great challenge .

5. Factors contributing to sustainability of KiranaNow:
1. Business model of KiranaNow was a hybrid model
consisting of both inventory-led and direct pickup. Thus
providing flexibility in operations.
2. KiranaNow launched two delivery models- Delivery and
Scheduled Delivery to improve quality of service.
3. KiranaNow also has a very diverse set of
vendors/partners. It also had several collection points which
can coverup for one another.
4. KiranaNow partnered with 10-15 super market chains to
facilitate delivery.
5. KiranaNow also planned to open 14 collection points in
Bengaluru and hire 130 delivery staff for its implementation.
6. For customer service, KiranaNow had a customer service
team that operated from 8:00 a.m. to 2:00 a.m., seven days a
week.
7. Local delivery persons or kirana stores; local Employees
deliver the product to the Customer’s doorstep.
8. Customer preferred time slots were there.

6. The following options can be used by KiranaNow for achieving
growth:
 Inorganic growth – Inorganic growth can be achieved by
acquiring established-small size retail grocery companies which
will help it in expanding business over different cities.
 People management issues - Since the attrition rate is high, 12-
30% of delivery staff leave their respective jobs. For this
incentives can be introduced to increase motivation amongst
employees and rewarding system can be brought in.
 Technology challenges – To counter this proper management of
IT can be done by mentoring and tutoring small retailers
regarding the positive aspects of connecting through technology
and how this can lead to an increase in their sales and profit.
 Consumer behaviour – Consumers’ buying experience can be
increased by offering better quality products, in-time delivery of
goods, competitive and fair prices of products.
 Merchandising issues – Proper quality checks of goods need to
be ensured before delivering to customers can prevent them
from taking back of delivered products and thus reducing the
costs incurred by them.