--- title: "Will E-commerce Shake Hands With Small Retailers and Kirana Stores?" id: "8971" type: "post" slug: "will-e-commerce-team-up-with-retailers" published_at: "2019-11-13T18:57:00+00:00" modified_at: "2025-09-02T14:29:39+00:00" url: "https://locus.sh/blogs/will-e-commerce-team-up-with-retailers/" markdown_url: "https://locus.sh/blogs/will-e-commerce-team-up-with-retailers.md" excerpt: "The Indian government has approached e-commerce companies to send plans to work with small retailers and Kirana stores to make room for mutual growth." taxonomy_category: - "E-Commerce" taxonomy_post_tag: - "Delivery Fulfilment" - "Ecommerce" - "Retail" --- #### [E-Commerce](https://locus.sh/blogs/category/ecommerce-fulfillment/) # Will E-commerce Shake Hands With Small Retailers and Kirana Stores? [Team Locus](/author/team-locus/) Nov 13, 2019 4 mins read ## Key Takeaways - India’s e-commerce sector is growing at 51% annually, driven by increased smartphone usage and internet penetration in semi-urban and rural areas. - Traditional small retailers and Kirana stores face significant business challenges from e-commerce growth, particularly due to online discounts and limited technological capabilities. - The Indian government is pushing for collaboration between e-commerce companies and small retailers to create a framework that benefits both sectors. - Locus’s partnership model enables local retail stores to handle last-mile deliveries for e-commerce companies, improving delivery efficiency while creating opportunities for traditional retailers. *Indian government urges e-Commerce players to make small retailers and Kirana stores part of their growth.* India is among the fastest-growing e-commerce economies in the world. The industry is growing at an annual rate of 51% and is expected to jump to US$ 120 billion in 2020. Unmatched Foreign Direct Investment and uniform implementation of Goods and Services Tax has contributed majorly to this growth story of e-commerce in India. Furthermore, smartphone usage and internet penetration in India’s semi-urban and rural areas have largely influenced consumers’ buying behaviors, boosting e-Commerce sales remarkably all over the country. Online shopping offers customers numerous choices at competitive prices across a wide array of products and the convenience to shop anything, at any time and from anywhere with just a few clicks on their computers, tablets, or mobile phones. ## India’s E-Commerce growth threat to traditional retail stores? While it has spoiled the Indian customer for choice, the tremendous growth of e-Commerce is a major threat to traditional mom-and-pop stores. Many retail enterprises are stepping up by opening online stores and adopting tech solutions to offer e-payment options, quicker deliveries, and better customer experiences. However, small-scale brick-and-mortar stores with limited capital and infrastructure accessibilities are struggling to keep up. The participation of niche industries like [FMCG](https://locus.sh/manufacturing-logistics/) in online trading is choking a large number of small Kirana shops and retail outlets to death, owing to tremendous online discounting and significant loss of business. ## Government urges E-Commerce enterprises to team up with small retailers The Department for Promotion of Industry and Internal Trade (DPIIT) has approached e-commerce companies asking them to send plans to work with small retailers, indicating that a policy may be implemented in this interest. With this initiative, the government is trying to address the concerns of India’s unorganized retail industry. Cooperation from e-tail businesses will help the government in creating a standard framework empowering small retailers to catch up to the rapidly growing e-commerce sector. Such collaborations will also strengthen India’s e-commerce landscape in the years to come. Fulfillment companies in the [3PL sector](https://locus.sh/3pl-and-cep/) , tech logistics, inventory management, customer support, etc. will also play a major role in putting the two pieces together. Locus is working towards this vision in association with one of India’s leading fashion e-commerce players. The company was seeking [greater last-mile efficiencies](https://locus.sh/blogs/how-can-route-optimization-reduce-costs-and-improve-last-mile-delivery-in-southeast-asia/) , especially in locations where several packages are delivered on a daily basis. Locus devised a business model that involves local retail stores that offer [home delivery](https://locus.sh/home-services/) services in dropping off the company’s packages in neighboring areas. Partnering with such local Kirana stores in heavy-density areas helps save a significant amount of time and effort otherwise taken by delivery agents to find correct addresses. ### In conclusion: Will e-commerce team up with small retailers and Kirana stores making room for mutual growth? Let us wait and watch! However, e-commerce giants like Flipkart, Amazon, Zomato, and Swiggy haven’t yet responded to DPIIT’s query. We at Locus are looking to work with [E-Commerce](https://locus.sh/ecommerce-logistics/) companies to drive synergies across the retail ecosystem in India by bringing e-commerce companies and retail stores together and would be happy to participate in this discussion. 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