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Rediff.com  » Business » Brand bug may bite kirana shops soon

Brand bug may bite kirana shops soon

By Udit Prasanna Mukherji in Kolkata
February 21, 2007 10:50 IST
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Despite the onslaught from big retail chains, small kirana shops could get a lifeline from the Indian Institute of Packaging.

The premier packaging institute of the country is chalking out a cluster branding strategy, which could help the thousands of kirana shop owners of the country to counter the organised mega-retailers such as Big Baazar, Bharti Wal-Mart or Reliance Retail.

Chairman of Indian Institute of Packaging B S Kampani said that the institute is evaluating an alternative model for kirana shops, which would be a win-win for both customers and the shop owners.

"We want to club the kirana shops of a locality under a single brand. These kirana shops can sell packaged rice, pulses or other groceries under that brand rather than selling it in just conventional paper wraps," he said.

Kampani pointed out that the packaging could be done by small and medium units at a minimum cost. On the other hand, the customer will get some kind of quality assurance, which may come at a higher price. "But then taking into consideration the locational advantage of the kirana shops you will not mind paying extra," he said.

According to IIP chairman, the institute has already spoken to 800 kirana shops in Mumbai and over 250 kirana shops in Ahmedabad.

"We have discussed the issue of common branding and packaging and the response is positive. They understand that this is a survival issue for them. If the model is successful in Mumbai and Ahmedabad then it can be replicated in other metro cities including Kolkata," he added.

Kampani has already had a series of discussions with Union Minister of State for Food Processing Subodh Kant Sahay on this issue. "We have sought the help of the Union ministry for this initiative.

Considering the unemployment that could result if the kirana shop infrastructure gets destroyed; some small subsidy could be a better option," he added.

Kampani even indicated that FMCG majors were also willing to help the project. The bargaining power of the FMCG majors in case of an organised retail is much less than that of the small kirana shops.
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Udit Prasanna Mukherji in Kolkata
Source: source
 

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