For most small businesses in India, the launch of large format stores, especially ones from the big corporate houses sounded scary. In parallel when online stores started expanding their logistics and marketing, it looked like doomsday. But incidentally there has been some revival in hopes!
While large format stores are able to give cost benefits to customers, they are not able to match the customer intimacy of a corner store. I am sure this applies to a lot more small businesses than ‘kirana stores’. Hence this threat has, in reality, turned out to be a lot less threatening than expected.
On the other hand, the online stores have actually enabled a lot of small businesses to expand their businesses. Everyone is surprised! Instead of a flipkart.com or amazon.in / jabong.com / ebay.in (amongst others) killing small businesses with price gains, they have actually enabled small businesses reach more number of customers. Unless you are one of those small businesses which is still outsmarting the customers who are unaware of cost differentials or are information starved, all others are actually benefitting from this trend. If you are one of those who is still exploiting your customer simply because of information challenges, then you deserve the onslaught from good quality competitors. For all others who truly add value to customers in some fashion, the online market places seem to be a boon.
You can now see reports of how small businesses are gaining because of their listing on the above mentioned online stores. It is also interesting to note that the above stores especially flipkart.com and Amazon.in are aggressively trying to bring on board a lot of small businesses. Read a sample news on this: http://economictimes.indiatimes.com/industry/services/retail/small-vendors-net-big-gains-as-e-tailers-spread-wings/articleshow/37491429.cms
As a start-up are you trying to still duplicate the above businesses and fight them or are you leveraging them enough? Building it is useless, unless you have a very clear reason to do it!
As a digital start-up are you leveraging the market-places available to you? Why build something that is already available for a variable fee?
Think about it!