1. Why did India fail to emerge as a pioneer in e-commerce? Despite its extensive trading network and large pool of software experts, India could not develop a pioneering e-commerce ecosystem. It certainly had the capacity to do so, as demonstrated by its success in the field of digital payments.
2. Can traditional kirana stores adapt and reinvent themselves? They can still align their businesses with an indigenous digital platform. Each store could function both as a bright store, a conventional, customer-facing retail outlet that also fulfils online orders, and as a dark store, a dedicated fulfilment centre for online orders. They could also integrate their operations with local suppliers and producers, thereby creating a locally rooted supply and distribution network.
3. Leveraging personal relationships and trust: A local retailer can retain and attract loyal customers by offering a line of credit to trusted customers, continuing the traditional practice of maintaining khatas (credit accounts), with customers settling their dues periodically, often at the end of each month. Such personalised relationships and trust-based arrangements can give local retailers a distinctive competitive advantage. Digital platforms can facilitate the maintenance of these accounts and make the transactions more transparent and convenient.
4. Integrating farmers and producers: Farmers growing fruits, vegetables, flowers, cereals, honey, milk, and other products can learn to sell directly by integrating with this network. With appropriate packaging, storage and supply chains, they can market their produce far and wide, reaching consumers beyond their immediate localities. SMEs, too, can participate in this network and benefit from its wider reach.
5. Building cooperative platforms: Better still, local retailers, farmers and producers can form cooperatives and pool their resources to develop their own digital platforms. These cooperatives can then cross-connect their platforms with those of other cooperatives, creating an interconnected network of locally owned marketplaces.
6. Reinventing existing platforms: Existing e-commerce platforms can also reinvent themselves by aligning more closely with local suppliers, producers and shopkeepers, while extending their networks and operations globally.
7. Taking the model global: If Amazon and Walmart can do business in India, why can't Indian enterprises and cooperative platforms do the same in the United States and other continents? There is no reason why India should remain merely a market for global e-commerce companies rather than become a global player in its own right.
The larger idea is to build Glocal Platforms, combining local roots with global reach. Such platforms would integrate kirana stores, farmers, producers, artisans, SMEs and other local businesses into interconnected digital networks. They would draw upon existing local resources, relationships and infrastructure while enabling businesses, however small, to access wider national and international markets. This would combine the advantages of local participation and decentralised ownership with the efficiencies and reach of digital commerce.
The point is to compete and serve your customers better. Think and act, or perish. The only thing you can blame is your own lack of imagination and action.
Niraj Kumar Jha
