Hungry Kya vs. Vegetable Mandis

CASE STUDY 8

Hungry Kya vs. Vegetable Mandis

In recent years, „Hungry Kya has become one of the largest food retailers in India. By 2009, „Hungry Kya s share of the organized Indian food market was 13.5%, made possible by its pan-India presence of nearly 350 outlets. In fact,
„Hungry Kya has also expanded to neighboring countries such as Bangladesh, Sri Lanka, Nepal, Thailand, with some of their stores. Also it has few stores in New Jersey, USA and Ontario, Canada, where a large number of the Indian
Diaspora reside. A typical „Hungry Kya store stocks about 10,000 kinds of food products and some additional offerings in the area of kitchen related utensils, cleaning agents and accessories. Its own private labeled products are an
important part of their offerings account for nearly 60% of their sales. About 2500 new products suitable for the Indian taste and palate are being introduced year on year. In contrast to this, retail behemoth, „Vegetable Mandis have been a traditional phenomenon in India over centuries. These „Vegetable Mandis provide an opportunity to small farmers to gain direct access to local customers. This in fact also creates a unique social milieu where housewives, domestic servants,
and small vendors create a social ecosystem with almost fanatical gathering. The majority of vendors or stall holders at these „Vegetable Mandis are mostly working out of home or are farm food producers within 50-60 kms. of the
market. This assures customers about the source of the product and also gives them a feeling that they are supporting farmers in the local community to survive. They also enjoy the experience of haggling and bargaining with these
small vendors. By some estimates, such „Vegetable Mandis across India have estimated sales of Rs. 500 million (in 2008) as compared with „Hungry Kya s sales volume of Rs. 5 billion.

However, with growth of India s middle class and double income no kids (DINKS) families, it is the organized retail format that is gaining more acceptance and in large urban locales, the concept of „Vegetable Mandis is
fading away, slowly and steadily. Discuss:
Taking a cue from this case, please discuss whether India has accepted organized retailing for green groceries or do you feel that subzi mandis still rule the roost.