India’s traditional retail sector is set for a major digital transformation as DigiDukaan aims to bring nearly 1.4 crore kirana stores onto a unified digital platform. The initiative is designed to improve procurement processes, inventory management, and sales efficiency for small retailers while strengthening the broader FMCG distribution ecosystem.

The effort gained momentum following the Bharat Commerce Chintan Shivir, a strategic roundtable organised by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Open Network for Digital Commerce (ONDC). The gathering brought together leaders from FMCG companies, distributors, technology providers, and logistics firms to discuss the future of India’s general trade sector and identify ways to accelerate digital adoption among kirana stores.

Industry Leaders Address Long-Standing Challenges

Participants at the roundtable examined several structural challenges that continue to affect general trade. These included fragmented retailer engagement, rising sales-force expenses, inventory management inefficiencies, and increasing competition from digital-first business models.

Stakeholders agreed that digitisation could play a key role in addressing these issues by creating stronger links between retailers, distributors, and brands. Discussions focused on developing practical solutions that could improve operational efficiency across the supply chain while helping small retailers remain competitive in a rapidly evolving market.

Key Areas Identified for Faster Adoption

Several recommendations emerged from the discussions as participants explored ways to expand DigiDukaan’s reach.

One of the primary suggestions was the digitisation of distributor operations to streamline order placement and collection processes. Industry representatives also highlighted the importance of catalogue standardisation, which could improve product visibility and simplify product discovery for kirana retailers.

Another major focus area was retailer onboarding. Participants stressed the need for effective onboarding strategies to encourage faster adoption of digital tools among small businesses. Technology integration was also identified as a critical requirement to ensure seamless data sharing and smooth operations throughout the distribution network.

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Strengthening the Backbone of FMCG Distribution

General trade continues to be a vital component of India’s FMCG sector, accounting for an estimated 75 to 80 percent of total sales. Despite its importance, the segment still relies heavily on manual processes, resulting in limited digital visibility and operational inefficiencies.

DigiDukaan seeks to address these gaps by providing kirana stores with direct procurement capabilities, improved access to promotional schemes, better inventory availability, and opportunities to optimise working capital. The platform is also expected to help distributors expand their market reach without significantly increasing field sales costs.

For brands, greater digital integration can provide access to shop-level demand insights, enabling more targeted promotions and improved decision-making. The initiative is therefore positioned as a collaborative effort that benefits retailers, distributors, and manufacturers alike.

Hyderabad Pilot Demonstrates Practical Potential

The platform has already shown encouraging results through its pilot programme in Hyderabad. Implemented through Qwipo, the pilot successfully onboarded more than 10,000 retailers and 35 brands.

According to the programme outcomes, the initiative improved inventory visibility, reduced operational costs, and enhanced distributor productivity. The positive response from participating retailers and brands demonstrated the practical feasibility of integrating traditional retail businesses into a digital procurement ecosystem.

The success of the Hyderabad rollout has strengthened confidence among stakeholders and laid the foundation for wider expansion across the country.

Jaipur Rollout Marks the Next Phase

Building on the Hyderabad experience, DigiDukaan is preparing for its next major launch in Jaipur on June 19. The rollout will be executed through Salescode and is expected to serve as an important test of the platform’s scalability in a new market.

Following Jaipur, the initiative is scheduled to expand into Mumbai, Bengaluru, and Delhi-NCR over the coming months. These launches will help evaluate the platform’s ability to operate across diverse retail environments while creating a broader digital procurement network for India’s general trade sector.

If the expansion continues to deliver positive outcomes, DigiDukaan could contribute to lower distribution costs, improved effectiveness of trade schemes, and stronger bargaining power for small retailers. As India’s retail landscape continues to evolve, the initiative represents a significant step toward bringing millions of kirana stores into the digital economy.

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