Context :

Tech startups test new models for a foothold in grocery retail

Extract :

Which Tech Startups ?

Ø Express Stores

Ø Behtar stores

Ø Gully Network

Ø Good-Box

Ø ShopKirana / Need Square

Ø NIFLR [ ankur@niflr.com ]

Ø Jumbotail [ karthik@jumbotail.com / ashish@jumbotail.com ]

What “ new models “ ?

Ø Co-branding

Ø Efficient Supply Chain [ connecting retailers directly with brands ]

Ø In-store Experience

Ø Customer Engagement

How executed ?

Ø Merchandizing

Ø Inventory Procurement

Ø Invoicing

Ø Financing

Ø Branding / Brand Partnership

Ø Self-Check-out

Ø Online Ordering

Ø Customer Relationship Management Tools

Ø Analytics

Ø Logistics

Ø UPI – QR Code-based Payment solutions / POS solutions

Ø Digitization and Ledger Solutions

Quotes :

Ø Ajay Nain ( Founder , Gully Network Retail )

[ ajay@gullynetwork.com / hello@gullynetwork.com / 13ajaynain@gmail.com ]

“ Physical retail is such a large, fragmented, differentiated and unorganized business that no one solution can fit this underserved market

Our thesis is that small shops need a 360 degree handholding to embrace technology to cope with the ever-dynamic purchase behavior of consumers and generate additional income other than their primary business “

Ø Sumit Ghorawat ( CEO, ShopKirana )

[ sumit@shopkirana.com / info@shopkirana.com ]

“ Kirana stores in India will take their own journey to be the STORES of the FUTURE.

Our aim is to work on taking these steps with them “

Ø Abey Zachariah ( CEO, Goodbox )

[ mayank@goodbox.in / pinky.banthia@goodbox.in / anand@goodbox.in ]

“ It has become an imperative for kiranas ( corner stores ) to use technology to even survive in the future “

What is the Reliance Retail bandwagon ?

In my blog : MA = DA x 4,000,000 ? [ 17 July 2018 ]

I envisaged Reliance Retail “ Game Plan “ as follows :

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SALES :

All of your merchandize will be available for selection / ordering on our ONLINE web portal

This online presence of your merchandize will expand / extend your " reach " to thousands of consumers in your neighborhood

You will need to only focus on OFFLINE ( across-the-counter ) sales to consumers who walk into your store

For OFFLINE sales , we will install in your stores , all the necessary Computers / POS terminals / Routers / Internet Connections / Mobile Wallet Payment systems and an end-to-end , RETAIL MANAGEMENT software

All of your OFFLINE sales data will get transferred to our Central Server

SUPPLY :

We will deliver to your store , all merchandize on " Consignment " basis

This means , you do NOT need to pay us for what we deliver to you store !

Till sold , all goods in your store will be our " stock "

This way , you do NOT need any " Working Capital " as far as your stocks are concerned

We will also tie-up with the manufacturers

You don't need to have any interaction / dealing with the manufacturers

INVENTORY :

On a continuous basis , our web server will keep a track of each and every item of merchandize sold from your stores

Our Server will calculate , your " Stock Movement "

Based on this data , our Server will compute / set for each item :

# Minimum Stock Level

# Alarm Stock Level

# Stock Re-Order Level

# Re-Order Quantity ( Minimum Batch Size )

Based on this logic , our Server will instruct the relevant " Merchandize Manufacturers " ( or their dealers / stockists ) , to deliver the stipulated " Re-Order Quantities " to your stores

A " Re-Order Instruction intimation " , will get delivered to your computer

Upon arrival , you will need to update the data

From time to time , our Software will also figure out your current stocks of " Extremely Slow Moving " and " Obsolete / Expired " items , and arrange for " Return Delivery " , which you will need to enter in your database

DELIVERY :

Not only we will deliver the merchandize to your store , but we will also pick up " Ordered Items " ( for ONLINE orders only ) , from your store and deliver the same to your customers !

Initially we will employ manual " Delivery Persons " for this but , before long , we will deploy a fleet of autonomous DRONES for this purpose

This fleet will cover " Kirana Stores " and " Online Customers " , located in pre-designated areas , covering 4 sq km ( 2 km x 2 km )

We are in talk with www.What3Words.com , to enable precise delivery through your 10th floor window !

These drones will get their " Delivery Instructions " directly from our Web Server , for all ONLINE orders

When these drones arrive at your Store to pick up the items ( to be delivered ) , they will transfer ( Blue Tooth / NFC ) and display on your Computer screen , following data :

# Online Order Number / time / date

# Items covered with description / value of each

# Customer Name / Address

# Mode of Online Payment / Bank Details

# Your online account CREDIT details , giving,

( Sales Value ) - ( Purchase Price )

" Purchase Price " of goods in your stock will be

based on FIFO method

FINANCE :

As explained earlier , you will have a bare minimum need for " Working Capital " , since all of your stock will be on " Consignment " basis

We will collect the " ONLINE PAYMENTS " directly from the customers and " Credit " the same to your " online sales account " with us

Against same account , we will " Debit " the " purchase price " ( price at which you purchase the merchandize from Reliance ) of the goods sold

Our server will also take care of all GST payments and filing of GST returns

As far as OFFLINE sales is concerned , all the data captured through POS terminal will get transferred to our Central Server

MARKETING :

Not only will we carry out all marketing for your ONLINE sales , we will help you with your OFFLINE marketing , through introduction of the following technology-enhanced features :

# Arranging a better display of merchandize on your shelves / re-arranging of shelves

# Introducing Augmented Reality ( AR ) for clothes / fashion goods in " Trial Rooms " for

giving the customers , an experience of " touch - feel - looks "

# Introducing Robots to answer customer inquiries

# Eliminating " Check Out Counters " , based on " Payments through Bio-metric

Recognition " of customers

# Embedding RFID sensors in each item of merchandize and RFID readers embedded in

Shopping Carts

# Improving your window display thru rotation

# Introducing music

# Eventually replacing " Physical " merchandize with " Holographic Display " of

merchandize on your store shelves !