Thinking of starting a supermarket business in India? If yes, then it is of vital importance to plan your upcoming business accordingly. The first and foremost thing to do is work on a strategic supermarket business plan to succeed ahead. Here in this article, we will be highlighting key factors involved in a grocery store business plan and how to work on the same.
The Current Retail Scenario
The retail market is the distribution of goods and services for customer’s purposes. It consists of department stores, hypermarkets, food chains, shopping complexes, specialty stores, restaurants, and bars.
Here, you will know the basics of a supermarket business plan before we talk about the way India is in the retail sector!
India retains the fifth position among the retail sectors of the world, which contributes 10% to its GDP and occupies employment for more than 8% of the working population.
The pandemic struck during 2020 but the sector has now recovered 93% of the sales compared to the pre-pandemic days. In 2022, food and general merchandise held a 68% share of the retail market in India. Besides, numerous new Indian supermarkets e.g. ‘Reliance Fresh‘, ‘More‘ and ‘Big Bazaar’ have come to the fore taking the country by storm.
For sure, the predictions in the retail sector are stating that it can have some very alluring outcomes even now which is the right moment to start a business in it.
How about a Supermarket Business in India?
A supermarket is a large store outlet that sells packaged foods, groceries, household essentials, clothes, small electric appliances, shoes and footwear, toys, cleaning products, food supplements, etc. The main difference between a Kirana business and a supermarket is that customers pick up their products by themselves, while grocery stores have assistants to help you find the items you need on the shelf.
However, despite that, it is very important to have clarity about the process of having a supermarket business in India.
Retail Business Plan
First of all, before starting any business supermarket or otherwise, it is important to have an action plan. A business plan for your supermarket will help you define details such as: A business plan for your supermarket will help you define details such as:
* Size of business
Does your budget have room for a large store, a medium-sized store, or a small shop? The kinds of products your store will have to determine the size of the store.
* Capital Involved
Analyze your budget so that you can clearly understand how much money you will require to raise. Capital requirement, normally, depends on the scale/ size of your business – so it is important to figure out the amount you are willing to pay.
* Who will take the ownership?
With whom are you going to run your supermarket? Are you going to own it as a partnership, or do you want to be a sole proprietor? Remember that the optimal organizational structure is required to ensure the company is litigiously sound for the effective purpose of management and administration.
The Ideal Location
The next thing to do is to find the place for your supermarket. It should be reachable from the city and have good advanced communication by public transport. Large enough stores should have enough space for 2 to 3 SKUs (stock-keeping units)for every product line. Additionally, you need a store room where you can keep the inventory of products. Also, you need standards for product quality.
Get The Necessary Licencing
It is a must to register a business to make sure that it is suitable and may take note of prominent brands to consider as partners. Some necessary permits for opening a supermarket business are: Some necessary permits for opening a supermarket business are:
- Trade licence
- FSSAI license
- GST Registration
- Import Export Code
- MSME Registration
- Shop Act Registration
Know the Product Pricing & Policy
A business operation for a supermarket is feasible only if you determine the products and stock you will be holding at your store. The consideration of the income levels in the area, current circle rates of properties as well as additional factors are to decide the product category and the price range.
It is the prerogative of every startup to emphasize the price of its products or services. Surveys are usually beneficial in that they help us to find out how competitors position their brands, consumers’ behavior, and purchasing patterns. Do note, that first impressions are invaluable when it comes to any enterprise. Your journey will follow the same path too!
Advertising
The fact that nobody will know about your supermarket unless you tell them about it implies that you personally are the one who has to pass this information to your prospective customers. Therefore, these are potent factors. Using offline marketing methods is possible through utilizing the means of pamphlets, place hoardings, and local newspaper ads. You can also run digital marketing campaigns and create content on social media that is engaging and useful.
Customers are important factors that influence the practices of supermarkets. Hence, early-bird discounts or loyalty programs can be available to you to build your customer base. Also, think about a great opening ceremony to welcome the interest of people towards your supermarket. How about trying to invite a celebrity/prominent person in the area to make even bigger the event?
Conclusion
Through this article, we have furnished how you can start a supermarket business and some necessary tips to write a supermarket business plan. Supermarkets, at the same time, are great for customers who want both local and international brands of their products. Currently, you have also significant opportunities in the trade markets which we discussed already above. For getting more information and support, get in touch with experts available at Kirana Friends.