The Success Story of Nepal's Kirana Stores
Lessons from the Lanes
Walking through the world of selling things can sometimes feel like finding your way through a maze, especially when you keep hearing big words like "scalability," "marketing," and "growth." But hidden in the busy streets of Kathmandu and peaceful corners of various cities, there's a different kind of shop that doesn't follow the usual rules but still does well in its particular way.
I'm talking about the humble Kirana stores found everywhere in the cities of Nepal.
Here's how they succeed without employees, marketing, or scaling.
The Power of Family: Zero Cost Business Model
You won't find any employees at Kirana stores. Families typically run these shops, with everyone from the oldest to the youngest pitching in. (Descending order of age: Grandparents - Children).
This means they don't need to hire anyone from outside, and it also creates a sense of togetherness and dedication that you can't get with regular employees.
The family members know everything about the business, know their customers well, and care about the store's success. This way of running a store without team costs is a big reason Kirana stores are flourishing.
Word of Mouth: The Unsung Hero of Marketing
Kirana stores don't invest in flashy advertising campaigns or sophisticated marketing strategies. Their best way of advertising is simply people talking.
The excellent quality of their products, the personal touch in their service, and the trust they've earned in their community all help to build their good name. People in our country rather believe in word of mouth than any recommendations online.
For example, Imagine I just happened to find a shop and bought something for a reasonable price. If the person running the shop were nice to me or gave me a discount, it would make my day. Just a few kind words can convince people to buy things. These shopkeepers know that if they make me happy, I'll tell others about their shop, which will help them sell more.
The One-Store Phenomenon: Scaling Through Depth, Not Width
Unlike conventional retail models focusing on horizontally scaling by opening multiple outlets, Kirana stores rarely scale beyond one store. Instead, they focus on deepening their roots within the community they serve.
They know their customers by name, understand their preferences, and often extend credit based on trust.
To share - I have a friend who started a restaurant in Kathmandu. We sat down one day to talk, and he told me about how he opened his restaurant. He said he keeps a list of people who come to eat there, and if someone comes back, he will give them a discount. Anyway, the point here is, This depth of customer relationship allows them to retain a loyal customer base and remain resilient in the face of competition.
Dual-Purpose Spaces: The Blended Rental Model
Many Kirana stores double up as homes for the owners, further reducing their operational costs. This blended rental model allows them to optimize resources and maintain low overhead costs.
This shows how clever and flexible they are, traits that are key to their ability to keep going no matter what.
Defying Management Norms: The Unconventional Success
Even though they don't spend money on a team, advertising, or expanding, and they use their shop for business and living, Kirana stores don't follow the usual business running rules. Still, they work well for many stores across big cities in Nepal.
Their success comes from knowing their customers, being able to change when needed, and running a smooth, cost-effective business.
Endnote
Kirana stores are exciting examples of how to be successful in a different way. They show us that the usual ideas of how to run a shop can be challenged. They prove that being straightforward and genuine can sometimes win over being complicated and big.
As our world becomes increasingly digital, we can learn a lot from these small shops that have been around for a long time and continue to do well in their special way. Plus, we can't help but adore their warm and welcoming gestures.