BIGROWTEC
CONSULTING PVT LTD
R
" 'Idea to IPO' MSME scaling experts"
A true success
story of smallers' collaboration.
In the picturesque state of Kerala, a group of 1000 mini supermarkets, small groceries, and local provisional store owners decided to rewrite their destiny. Despite the challenges of competing with large hypermarkets and online stores, these small businesses were determined to succeed. They found their solution in BIGrowtec, a company specializing in facilitating peer-group collaboration strategies.
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The alliance, known as the “Kerala Grocers’ Collective” (KGC), was a revolutionary initiative in the local retail industry. BIGrowtec helped the KGC implement a cooperative bulk purchasing system, which significantly reduced their purchase costs by 15-25%. This allowed the local grocery stores to compete with larger competitors in terms of pricing.
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Logistics was another area where the KGC saw significant improvements. BIGrowtec helps them to purchase Goods from across the globe that are delivered right to their doorsteps, adding diversity to their product offerings and attracting more customers.
As a strong centrally coordinating group of 1000+ stores, they were able to advertise frequently to attract and connect customers. For example, only need to share 1000 rupees for each store to make a 10 lac rupee ad per month for the group!.
BIGrowtec also helped the KGC develop their own e-commerce app, allowing them to tap into the online market. This resulted in an increase of 50-100% in sales and revenue, and approximately 30-40% more profit.
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The KGC became a well-known brand locally, and the ease of doing business improved significantly. The best part was that all these benefits were achieved without incurring high costs. The customers were happy with the competitive prices and diverse product offerings, and the store owners were thrilled with the increased profits.
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The success story of the Kerala Grocers’ Collective is a testament to the power of collaboration and strategic planning. It serves as an inspiration for other small businesses to explore similar strategies for growth and success.
Retailers' Co-operative for Purchase, Mktg, and Branding
India,
Retail, and Future Growth
Consumers no longer make purchasing decisions in the same way they did a decade ago. Today, the internet has become an entrenched part of daily life, and it is changing how and what people buy. In India, for example, online retails accounted for 3 percent of total retail sales in 2018, expect to grow six-fold (300 billion dollars) by 2030. But, digitally-influenced retail spending to surpass USD 1.5 trillion by 2030 accounting for about 80 percent of total retail spending- huge.
With one of the world's lowest data and smartphone costs, growing internet penetration, economic and social development, and a proliferation of new online shopping channels, India is experiencing a dramatic rise in e-commerce and digitally influenced spending as India becomes the second largest digital economy by the number of internet users, the report said.
This shift into the digital battleground is not confined to a handful of products and service categories- it is almost universal. Today, consumers increasingly use multiple channels- including traditional brick and mortar stores, the internet, social media, and mobile devices- simultaneously and in sequence at each of their purchasing journeys. So,
Winning retailers will use (capitalize on) all of these customer touch points and ensure that these channels integrate with and complement one another. Retail channel boundaries will blur; retailers will seek to engage customers across all channels, not only to achieve business results but also to develop a deeper understanding of- and deeper relationships with- their customers. Consumers will come to expect a personalized, seamless all-channel experience- and the best retailers will meet this expectation.
Retailers' cooperative & alliance
help small and individual retailers- participants, stay competitive even in this very competitive and changing retail world.
A retailers' cooperative is a type of cooperative which employs economies of scale on behalf of its retailer members. In this retailers' cooperative, using their cooperative direct bulk purchasing and sharing power to acquire huge discounts from manufacturers; and often reduce marketing/promotion/delivery expenses through their marketing alliance.
Retailers' cooperative is essentially a grouping or alliance of independently owned small businesses/retail stores that cooperate to purchase in bulk direct from sources and share among to enjoy huge bulk order discounts; and jointly engage in promotion/advertisement/marketing/delivery efforts. It is not only beneficial but crucial today for locally owned grocery stores, bakery stores, hardware stores, furniture stores, garments stores, meat stores, pharmacies, even local restaurants, etc to participate in retailers' cooperatives- to succeed in this tough and competitive market.
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Benefits
1- In order to lower the purchase costs, retailers' cooperatives establish a central buying system, providing them the opportunity to purchase in bulk directly from sources at huge discounts- and divide among. It helps each member merchant to impress its customers by offering quality products at discount rate to customers
2- Retailers' cooperatives also engage in group advertising, promotion, uniform stock merchandising, and private branding. This leads to consumer recognition of brands and gives the member stores the benefits of being branded one, with the autonomy and freedom of an independent store.
3- The main aim of the cooperative is to improve buying conditions (i.e. buy in bulk at its lowest prices direct from sources) for its members, which are retail businesses in this case. The incentive to remain in the cooperative is largely due to the profits that members gain. Generally, any surpluses are shared by the members in accordance with their original input.
There are various benefits or advantages of operating retailers' co-operative such as buying economy, no middlemen, quality goods at the lowest price, purchase from sources, always fresh in quality, non-cost delivery, group e-commerce, technology support, distribution of dividends to the members, etc. Retailers' co-operative eliminates middlemen from the channel of distribution.