Redseer study highlights digital transformation of India's B2B kirana market

 

India's traditional retail market, dominated by over 15 million kirana stores, is undergoing a significant transformation. A new study by Redseer Strategy Consultants reveals that the B2B kirana market, which has long relied on fragmented, traditional trade-distribution models, is embracing digital innovation through eB2B (ecommerce-led Business to Business) platforms, fueling rapid growth and operational efficiency in the sector. 

The report, titled ‘B2B e-commerce Opportunity in India’, outlines how the rise of digital solutions is reshaping the market, which has historically faced challenges. Kirana stores, especially in remote and rural regions, are increasingly turning to eB2B platforms for better procurement management, access to formal credit, and superior customer service.

The study also highlights how udaan, India’s leading eB2B platform, has solidified its position as the preferred partner for kirana stores in Bengaluru and Hyderabad, significantly outpacing other competitors in the market. The findings highlight udaan’s remarkable growth, capturing a significant market share and continuing to expand and strengthen its position, while other eB2B players have been in decline.

Anil Kumar, Founder and CEO of Redseer Strategy Consultants, said in a statement, "The Indian B2B kirana market is on the cusp of a remarkable transformation as digital platforms revolutionize traditional trade practices. Our report highlights strong growth driven by digital adoption, with eB2B solutions reshaping supply chains and improving efficiencies. Kirana stores now have unprecedented access to products and financial services, marking a fundamental shift in how businesses operate and thri ..

Challenges for traditional retail: Traditional retail continues to face challenges such as fragmented supply chains, inconsistent service quality, and limited financing options. These inefficiencies have driven retailers toward eB2B platforms like udaan, which provide digital solutions to streamline operations.

Growth drivers and industry shift
The shift toward digital B2B platforms is being driven by several key factors:

Fragmented supply c ..Operational efficiencies: Through improved demand forecasting, streamlined warehousing operations, and vertical integration with suppliers, eB2B platforms enable kiranas to better manage inventory and improve profitability.

Financial inclusion: Many kirana stores, which previously relied on informal credit arrangements, now have access to formal financing options through eB2B platforms. This access to credit allows retailers to expand their product range and  ..

A promising future for eB2B
The future outlook for the eB2B industry remains promising, with platforms like udaan expected to replicate their success across more regions. The continued expansion of product categories, the adoption of private label strategies, and increased penetration in existing cities are projected to propel the industry forward. While traditional retail channels still dominate India's essentials market, the rapid growth of digital B2B solutions is likely t ..