consumer preference towards organized retail to unorganized retail
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  • 1. A COMPREHENSIVE PROJECT REPORT On “Study on changing consumer preference towards organized retailing from un-organized retailing to Ahmedabad City” IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF Master of Business Administration Second Year SUBMITTED TO GANDHINAGAR INSTITUTE OF TECHNOLOGY (MBA DEPARTMENT) AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY AHMEDABAD UNDER THE GUIDANCE OF MR. NEHAL SHAH Assistant Professor, GIT SUBMITTED BY TWINKLE V. KANDE: - 127150592012 KARTIK H. KOSHTI: - 127150592015 YEAR 2013-2014
  • 2. DECLARATION We, Twinkle Kande and KartikKoshti, hereby declare that the report for comprehensive project entitled “Study on changing consumer preference towards organized retailing from un-organized retailing to Ahmadabad City”is a result of our own work and our indebtedness to other work publications, references have been duly acknowledged. Place : - Motibhoyan Date :- Twinkle V. Kande (En.No.:-127150592012) Kartik H. Koshti (En.No.:-127150592015) 1
  • 3. INSTITUTE’SCERTIFICATE “Certified that this comprehensive project titled ““Study on changing consumer preference towards organized retailing from un-organized retailing to Ahmadabad City”is the bonafide work of Mr. Twinkle V. Kande (Enrollment No. 127150592012) and Mr. Kartik H. Koshti (Enrollment No. 127150592015), who carried out the research under my supervision, I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Internal Guide: Counter signed by: Mr. Nehal Shah Asst. Prof., GIT Mr. Milan Shah Head of Dept. GIT Twinkle V. Kande (En.No:-127150592012) Kartik H. Koshti (En.No:-127150592015) GANDHINAGAR INSTITUTE OF TECHNOLOGY (Management Department) Gujarat Technological University Ahmadabad 2013-14 PREFACE 2
  • 4. ACKNOLEDGEMENT 3
  • 5. Only due to the blessings of ―GOD‖ and ―OUR PARENTS‖, we have been successful to handle this project. It is a pleasure to recognize the many individuals who helped us in all phases of the project. Without their help, we would not have finished this project, or even started it. Achievement of a goal is not a one person‘s job. It is obtained by guidance & co-operation of others. Our sincere thanks to Dr. N. M. Bhatt, Director of Gandhinagar Institute of Technology, Gandhinagar and Mr. Milan S. Shah, HOD-MBA for his moral support and constant encouragement without which it was not possible for us to complete the project work successfully. We take this opportunity to express our sincere gratitude to all thefaculty members of Department of Management, Gandhinagar Institute of Technology, at Gandhinagar whose advice and supervision had helped in the completion of the project work. We are also very thankful to Mr.Nehal Shah (Internal Guide), Asst. Prof. at Gandhinagar Institute of Technology, Gandhinagar for guiding us in completing our project successfully. Place: Motibhoyan Date: Twinkle V. Kande (En.No:-127150592012) Kartik H. Koshti (En.No:-127150592015) TABLE OF CONTENTS 4
  • 6. SR. NO. PARTICULAR  Declaration  Certificate of Institute  Preface  Acknowledgements  Executive Summary Part 1 GENERAL INFORMATION 1. Overview of Indian Retail Industry 2. Major players of Retail Industry in India 3. Type of retail industry in India 4. Growth Indian retailing industry PART 2 4. PRIMARY STUDY Introduction of Study 4.1 Literature Review 4.2 Background of the Study 4.3 Objectives of the Study 5. Research Methodology 5.1 Research Design 5.2 Sources of Data 5.3 Data Collection Method 5.4 Population 5.5 Sampling Method 5 PAGE NO.
  • 7. 5.6 Sampling Frame 5.7 Date Collection Instruments  Annexure Questionnaire for  Bibliography& References  Remarks LIST OF FIGURES 6
  • 8. SR. NO. 1. PARTICULAR Different categories of organising retail sector 2. 3. 4. 5. 6. 7. 8. 9. 10. LIST OF TABLES 7 PAGE NO.
  • 9. SR. NO. PARTICULAR 1. Global retail scenario of all the world 2. Major players of retailing industry in India 3. Top 10 Retailers Worldwide 4. Summary of research methodology 5. 6. 7. 8. 9. 10. 11. 8 PAGE NO.
  • 10. PART – I GENERAL INFORMATION Chapter 1:OVERVIEW OF INDIAN RETAIL INDUSTRY 9
  • 11. The word "Retail" originates from a French-Italian word "retailer" meaning “someone who cuts off or shreds a small piece from something”. Retailing includes activities of marketing and selling products or services to end consumers for their own household or personal use. Retailer is a Person or Agent or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.  What is retailing? Retailing is a distribution channel function, where one organisation buys products from supplying firms or manufactures products themselves, and then sells these directly to consumers. In majority of retail situations, the organisation, from whom a consumer buys, is a reseller of products obtained from others, and not the product manufacturer. However, some manufacturers do operate their own retail outlets in a corporate channel arrangement. Retailers offer many benefits to suppliers and customers as resellers. Consumers, for instance, are able to purchase small quantities of an assortment of products at a reasonably affordable price. Similarly, suppliers get an 10
  • 12. opportunity to reach their target market, build product demand through retail promotions, and provide consumer feedback to the product marketer. Most Indian shopping happens in open markets or numerous small grocery and retail shops. Shoppers typically wait outside the shop, ask for what they want, and cannot pick or examine a product from the shelf.Access to the shelf or product storage area is limited. Once the shopper requests the food staple or household product they are looking for, the shopkeeper goes to the container or shelf or to the back of the store, brings it out and offers it for sale to the shopper. Often the shopkeeper may substitute the product, claiming that it is similar or equivalent to the product the consumer is asking for. The product typically has no price label in these small retail shops; although some products do have a manufactured suggested retail price (MSRP) pre-printed on the packaging. The shopkeeper prices the food staple and household products arbitrarily, and two consumers may pay different prices for the same product on the same day. Price is sometimes negotiated between the shopper and shopkeeper. The shoppers do not have time to examine the product label, and do not have a choice to make an informed decision between competitive products. India's retail and logistics industry, organized and unorganized in combination, employs about 40 million Indians (3.3% of Indian population). The typical Indian retail shops are very small. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq. ft. (46 m2) in size. India has about 11 shop outlets for every 1000 people. Vast majority of the unorganized retail shops in India employ family members, do not have the scale to procure or transport products at high volume wholesale level, have limited to no quality control or fake-versusauthentic product screening technology and have no training on safe and hygienic storage, packaging or logistics. The unorganized retail shops source their products from a chain of middlemen who mark up the product as it moves from farmer or producer to the consumer. The unorganized retail shops typically offer no after-sales support or service. Finally, most transactions at unorganized retail shops are done with cash, with all sales being final. 11
  • 13. Until the 1990s, regulations prevented innovation and entrepreneurship in Indian retailing. Some retails faced complying with over thirty regulations such as "signboard licenses" and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to states, from states, and even within states in some cases. Farmers and producers had to go through middlemen monopolies. The logistics and infrastructure was very poor, with losses exceeding 30 percent. Through the 1990s, India introduced widespread free market reforms, including some related to retail. In between 2000 to 2010, consumers in select Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.  Major retail sector in India There are many sectors in retail industry in India and there are established in various company at specific sectors. 12
  • 14. 1. Food and grocery: Food Bazaar Aditya Birla Retail Ltd Trinethra Super Market Ltd Reliance Retail 2. Fashion and accessories Pantaloons Shoppers Stop 3. Koutons: 4. Footwear Reebok Bata 5. Khadim’s: 6. Home and office improvement Godrej Lifespace  Home Stop  Home Town 7. Electronics eZone: Viveks: 8. Catering services Yum! Restaurants: McDonald‘s Café Coffee Day 9. Telecom The Mobile Store: MobileNXT: 10. Pharmaceuticals Apollo Pharmacy MedPlus: 11. Beauty and wellness 13
  • 15. Reliance Wellness Himalaya Drugs 12. Jewellery Gitanjali: Tanishq: Reliance Jewels 13. Timewear Citizen: Titan Books, music and gifts 14. Crossword 15. Entertainment  How does the retail sector consumer think? 14
  • 16.  Trends in the Retail industry → Emergence of organized retail: 15
  • 17. Real estate development in the country, for example, the construction of mega malls and shopping malls, is augmenting the growth of the organized retail business → Spending capacity of youth of India: India has a large youth population, which is a conducive environment to growth of this sector. → Raising incomes and purchasing power: The per capita income in India has doubled between 2000- 01 and 200910 resulting in improved purchasing power. → Changing mind set of customers: The customer mind set is gradually shifting from low price to better convenience, high value and a better shopping experience → Easy customer credit: Emergence of concepts such as quick and easy loans, EMIs, loan through credit cards, has made purchasing possible for Indian consumers, for products such as consumer durables → Higher brand consciousness: There is high brand consciousness among the youth; 60% of India‗s population is below the age of 30 leading to popularization of brands and products  Global Retail Scenario 16
  • 18. → Retailing has played a major role in the global economy. In developed markets, retailing is one of the most prominent industries. In 2008, the US retail sector contributed 31% to the GDP at current market prices. In developed economies, organized retail has a 75-80% share in total retail as compared with developing economies, where un-organized retail has a dominant share. (Table no. 1 = Global retail scenario of all the world)1 Sr. No. Company name Country Banner sales 2007E (in us$ million) No. of outlets, 1 WALMART US 395305 7331 2 CARREFOUR FRANCE 142229 13419 3 TESCO UK 103573 3750 4 METRO GROUP GERMANY 102942 2541 5 SEVEN & I(ii) JAPAN 84375 22590 6 KROGER US 73633 3672 7 AEON (i) JAPAN 73416 14803 8 TARGET US 71125 1591 9 SCHWARZ GERMANY 70969 8575 10 COSTCO US 69704 518 → Global retail sales was estimated to be around US$ 12 trillion in 20072; however, in 2008, the slowdown in the global economy, especially in the US, and credit crunch, decreased consumer spending. On a global level, the economy performed robustly till 2007, but the US crisis spread over to Europe in early 2008, and its impact was felt in the Asia-Pacific region by mid-2008. → India has the highest number of retail outlets in the world at over 13 million retail outlets, and the average size of one store is 50-100 square feet. It also has the highest number of outlets (11,903) per million inhabitants. The per capita retail space in India is among the lowest in the world, though the per capita retail store is the highest. Majority of these stores are located in rural areas.  Retail formats in India: 1 17
  • 19. Hyper marts/supermarkets: large self-servicing outlets offering products from a variety of categories. Mom-and-pop stores: they are family owned business catering to small sections; they areindividually handled retail outlets and have a personal touch. Departmental stores: are general retail merchandisers offering quality products and services. Convenience stores: are located in residential areas with slightly higher prices goods due to theconvenience offered. Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types ofproducts and services including entertainment and food under a single roof. E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other smallitems can be bought via vending machine. Category killers: small specialty stores that offer a variety of categories. They are known as categorykillers as they focus on specific categories, such as electronics and sporting goods. This is also knownas Multi Brand Outlets or MBO's. Specialty stores: are retail chains dealing in specific categories and provide deep assortment Mumbai's Crossword Book Store and RPG's Music World are a couple of example. Chapter: - 2 18
  • 20. Major players of retailing industry in India2 There are various major players in India retailing industry and there are location at various cities in India Ownership RPG Brand Name Spencers Outlet type Supermarkets Location Across cities all major Hypermarkets DFL (Joint venture with Food World DSP Merrill Lynch and Rahejas) Supermarkets Chennai, Bangalore and Hyderabad Pantaloon Food Bazaar Supermarket Across cities Big Bazaar Hypermarket all major Nilgiri‘s Franchisee Pvt. Nilgiri‘s Ltd Supermarkets Chennai, Bangalore, Pondicherry and tier two towns in Tamil Nadu The Trinethra Group Trinethra Supermarkets Major cities in Andhra Pradesh and Tamil Nadu Fabmall India Pvt Ltd Fabmall Supermarkets Bangalore Chennai and Franchisee ownership Margin Free model regulated by cooperative Discount stores Major cities in Kerala, Tamil Nadu and Karnataka Food Express India Ltd Monday to Sunday, Jumbo Supermarkets Hypermarkets Bangalore Home Stores Pvt. Ltd. Sabka Bazaar Discount stores Delhi and adjoining areas Pyramid Retail Ltd. Trumart Supermarkets 2 MaharashtraMumbai International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780 , Data has been compiled from the website of different companies 19
  • 21. Trent (Tata Group) Star India Bazaar Hypermarkets Ahmedabad, Mumbai Spar- India Ltd. Spar Supermarkets Mumbai Namdhari‘s Group Namdhari‘s Fresh Supermarkets Bangalore, Delhi Adani Group Adanis Supermarkets Gujarat Department of Food and Super Bazaar Public Distribution (Govt. of India Coop.) Supermarkets Delhi Department of Food and Kendriya Bhandar Public Distribution (Govt. of India Coop.) Supermarkets Delhi Vishal Mega Mart Food Mart Hyper Market Across cities all major Reliance India Ltd. Reliance Fresh Discount Stores Across cities all major Rei Agro Ltd. 6Ten Discount Stores North India Chapter: - 3 20
  • 22. Kind of Indianretail industry The Indian retail industry is divided into organized and unorganized sectors. The Indian retail sector is highly fragmented, with a major share of its business is being run by unorganized retailers like the traditional family run stores and corner stores. The organized retail however is at a very nascent stage, though attempts are being made to increase its proportion bringing in a huge opportunity for prospective new players. There are two types of Retailing: Organized Retailing Unorganized Retailing → Organized Retailing Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. → Unorganized Retailing Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called "unorganized retail" or traditional retail. Difference between Organized Retailing &Unorganized Retailing 21
  • 23. Organized Retailing Organized retailing refers to Unorganized Retailing trading Unorganized retailing, on the other hand, activities undertaken by licensed retailers, refers to the traditional formats of low-cost that is, those who are registered for sales retailing tax, income tax, etc There are include the corporate-backed There are include the local kirana shops, hypermarkets and retail chains, and also the owner-manned general stores, chemists, privately owned large retail businesses. footwear shops, apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc Multi storied malls and huge complexes Low cost retailing. These are highly that offer a large variety of products in competitive outlets, with negligible rental terms of quality, value for money and costs (unregistered kiosks or traditional makes shopping a memorable experience. property), cheap workers (work is shared by members of family) and low taxes and overheads. The ownership and management rest with The ownership and management rest with two or more person. one person only The organized stores are not having number The unorganized stores are having number of options to cut their costs of options to cut their costs The customersare want to change in This is one of the good reasons which many shopping malls. the customer doesn't want to change their old loyal kirana shop. ORGANISED RETAILING 22
  • 24. Organized retailing comprises mainly of modern retailing with busy shopping malls, multi storied malls and huge complexes that offer a large variety of products in terms of quality, value for money and makes shopping a memorable experience. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. According to AT Kearney report for the year 2011, organized retail accounts for 7 per cent of India's roughly US$ 435 billion retail market and is expected to reach 20 per cent by 2020.Food accounts for 70 per cent of underpenetrated by organized retail. Organized retail has a 31 per cent share in clothing and apparel and continues to see growth in this sector. The home segment shows promise, growing 20 to 30 per cent per year. India's more urban consumer mind-set means this sector is poised for growth.Indian retail, but it remains. 23
  • 25. Organized retailing refers to trading activities undertaken by licensed retailers, i.e. those who are registered for sales tax, income tax, etc.These include the corporate backed hypermarkets and retail chains and also the privately owned large retail businesses. (Table no. 2 = Top 10 Retailers Worldwide)3 Rank Retailer Home country 1 Wal-mart store ,inc. USA 2 Carrefoer Group 3 The Home Depot, Inc. USA 4 The Kroger co. USA 5 Royal Ahold 6 Metro AG 7 Target corporation USA 8 Alertson`s, inc. USA 9 Sear,roebuck and co. USA 10 Kmart corporation USA France Netherlands Germany  Different categories of organizing retail sector 4 3 4 24
  • 26. ORGNASING RETAILING 50 45.6 45 37.8 PERCENTAGE 40 35 30 25 18.9 20 12.6 10.6 15 10.4 9.1 6.9 10 4.1 2.8 2.6 5 0.8 0 1 DIFFERENT RETAIL SECTOR Watches Footwear Clothing, textiles, & fashion accessories Books, music, gifts Health & beauty care services Consumer durables, home appliances Furnishings, furniture home & office, utensils Catering services Entertainment Jewellery Pharma other  CHALLENGES TO RETAIL DEVELOPMENT IN INDIA 25
  • 27. Organized retail in India is little over a decade old. It is largely an urban phenomenon and the pace of growth is still slow. Some of the reasons for this slow growth are: - → The Kiranas Continue The very first challenge facing the organized retail industry in India is competition from the unorganized sector. Traditionally retailing has established in India for centuries. It is a low cost structure, mostly owner operated, has negligible real estate and labor costs and little or no taxes to pay. Consumer familiarity that runs from generation to generation is one big advantage for the traditional retailing sector. On the other hand, organized sector have big expenses to meet and yet have to keep prices low enough to compete with the traditional sector. → Retailnot beingrecogning as an industry in India Lack of recognition as an industry hampers the availability of finance to the existing and new players. This affects growth and expansion plans. → The High cost of Real estate Real estate prices in some cities in India are amongst the highest in the world. The lease or rent of property is one of the major areas of expenditure; a high lease rental reduces the profitability of a project. → High Stamp duties In addition to the high cost of real estate the sector also faces very high stamp duties on transfer of property, which varies from state to state (12.5% in Gujarat and 8% in Delhi). The problem is compounded by problems of clear titles to ownership, while at the same time land use conversion is time consuming and complex as is the legal process for settling of property disputes. → Lack of adequate infrastructure– Poor roads and the lack of a cold chain infrastructure hampers the development of food and grocery retail in India. The existing supermarkets and foods retailers have to invest a substantial amount of money and time in building a cold chain network. → Multiple and complex taxation system – 26
  • 28. The sales tax rates vary from state to state, while organized players have to face a multiple point control and system there is considerable sales tax evasion by small stores. In many locations, retailers have to face a multi-point octroi with the introduction of value Added Tax (VAT) in 2005, certain anomalies in the existing sales tax system causing disruption in the supply chain are likely to get corrected over a period of time. → There is price war between different retail organizations. Each and every one is saying to provide goods at low cost and offers various promotional schemes. In such a case it is difficult to keep one‘s customers with oneself.  OPPORTUNITIES TO RETAIL DEVELOPMENT IN INDIA 27
  • 29. Retail marketing gets various opportunities to grow up in the Indian market. Not only retailing but Manufacturers as well as suppliers, and buyers have various opportunities, some of which are mentioned below → What is in store Organized retail provides brands much needed visibility and platform for customer interaction. It also helps in launching of new product or product variant and in market penetration. It has wider product range and more frequent, speedier deliveries. → Urbanization Increased urbanization has shifted consumers to one place and thus a single retail can catch more customers. → Nuclear family As the time passed away joint families came in a new form i.e. nuclear family. Again the income level of these nuclear families increases because both members started earning. This results into increased power of purchase and lack of time. Now they want everything under one roof. This brought the concept of organized retailing. → Plastic revolution Increased use of credit cards is in favour of retail marketing. It creates requirement even when it is not necessary. → Jo Dikata Hai Woh Bikta Hai Organized retail stores put stress on proper infrastructure like well-maintained building, air conditioning, trained employees, electronic machine, parking facilities and proper display of goods category wise. Here customers feel comfort, joy and entertainment. Purchasing becomes joy for him. Selfselection saves time and gives more opportunities and satisfaction. Fix cost removes the threat of misleading. They avail various discounts and promotional schemes presented by the manufacturers. They also get product of different varieties and of proper quality. 28
  • 30. → Employment Retail marketing is one of the largest employments generating industry. It provides employment to skilled, semi-skilled as well as to unskilled persons. Thus it helps in the socio- economic development of the society. → Price war Increase in the no of retail outlets increases competition among these retailers. To attract customers they give various promotional schemes as various discounts, buy one get one free, another product with any particular product, festival special, etc. → Contract farming The retail marketers directly purchase from farmers and reducing middlemen, thus provide proper cost to farmers and also set proper price for consumers. They also make contract with farmers to get proper amount of crops and vegetables. → Reduces supply chain management The big players of retail marketing and the manufacturing companies directly come in contact thus reducing many intermediary chains. Manufacturers also give many promotional schemes for their product that is beneficial for consumers. UNORGANISED RETAILING 29
  • 31. Traditional or Unorganized retail outlets are normally street markets, counter stores, kiosks and vendors, where the ownership and management rest with one person only. This sector accounts for two thirds of the market and requires low skilled labor. These are highly competitive outlets, with negligible rental costs (unregistered kiosks or traditional property), cheap workers (work is shared by members of family) and low taxes and overheads. Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi(local betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called ―unorganized retail" or traditional retail. The last few years have witnessed the entry of a number of organized retailers opening stores in various modern formats in metros and other important cities. Unorganized retailers normally do not pay taxes and most of them are not even registered for sales tax, VAT, or income tax. 30
  • 32. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, hand cart and pavement vendors, & mobile vendors, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hardware shop at the corner of your street selling everything from bathroom fittings to paints and small construction tools; or the slightly more organized medical store and a host of other small retail businesses in apparel, electronics, food etc. The reasons might be obtain by unorganised retailing:- 31
  • 33. → In smaller towns and urban areas, there are many families who are traditionally using these kiranashops/ ‗mom and pop‘ stores offering a wide range of merchandise mix. Generally these kirana shops are the family business of these small retailers which they are running for more than one generation. → These kirana shops are having their own efficient management system and with this they are efficiently fulfilling the needs of the customer. This is one of the good reasons why the customer doesn't want to change their old loyal kirana shop. → A large number of working class in India is working as daily wage basis, at the end of the day when they get their wage, they come to this small retail shop to purchase wheat flour, rice etc. for their supper. For them this the only place to have those food items because purchase quantity is so small that no big retail store would entertain this. → Similarly there is another consumer class who are the seasonal worker. During their unemployment period they use to purchase from this kirana store in credit and when they get their salary they clear their dues. Now this type of credit facility is not available in corporate retail store, so this kirana stores are the only place for them to fulfill their needs. → Another reason might be the proximity of the store. It is the convenience store for the customer. In every corner the street an unorganized retail shop can be found that is hardly a walking distance from the customer's house. Many times customers prefer to shop from the nearby kirana shop rather than to drive a long distance organized retail stores. → This unorganized stores are having number of options to cut their costs. They incur little to no real-estate costs because they generally operate from their residences. Chapter: - 4 Growth of Indian Retail industry 32
  • 34. → An increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. → The organized retail market is growing at 3.5 percent annually while growth of unorganized retail sector is pegged at 6 percent. → The Retail Business in India is currently at the point of inflection. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. → It is a huge industry in terms of size and according to management consulting firm Techno Park Advisors Pvt. Ltd., it is valued at about US $ 350 billion. Organized retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. → According to the tenth report of GRDI of AT Kearney, India is having a very favourable retail environment and it is placed at 4th spot in the GRDI. → The main reasons behind that is the 9% real GDP growth in 2010, forecasted yearly growth of 8.7% through 2016, high saving and investment rate and increased consumer spending. → According to report, organized retail accounts for 7% of India‘s roughly $435 billion retail market and is expected to reach 20% by 2020. Food accounts for 70% of Indian retail, but it remains under penetrated by organized retail. Organized retail has a 31% share in clothing and apparel and continues to see growth in this sector. → A report by Boston Consulting Group has revealed that the country‘s organized retail is estimated at US $ 28 billion with around 7% penetration. → It is projected to become a US $ 260 billion business over the net decade with around 21% penetration. → The analysts believe that the sector is likely to show significant growth of over 9% over the next ten years and also see rapid development in organized retail format with proportion likely to reach more respectable 25%by 2018. → The BMI India Report for the first quarter of 2012 released forecasts that total retail sales with growth from US $ 422.09 billion in 2011 to US $ 825.46 billion by 2015. 33
  • 35. → The report highlights strongly underlying economic growth, population expansion, increasing disposable income and rapid emergence of organized retail infrastructure as major factors behind the forecast growth. → According to department of Industry Policy and Promotion Cumulative, FDI inflows in single brand retail trading stood at US$ 44.45 million during April 2000 to September 2011. → Indian retail sector is wearing new clothes and with a three year compounded annual growth rate of46-64%, retail is the fastest growing sector in the Indian economy. → The sector is the second largest employer after agriculture, employing more than 35 million people with wholesale trade generating an additional employment to 5.5 million crore.The enormous growth of retail industry has created a huge demand for real estate. Property developers are creating retail real estate at an aggressive pace. → According to report titled ―India Organized Retail Market 2010‖, published by Knight Frank, during 2010- 12,around 55 million square feet of retail space will be ready in Mumbai, NCR, Bangalore, Kolkata, Chennai, Hyderabad and Pune. → Besides between 2010 and 2012 the organized retail real estate will be grown from existing 41 million square feet to 95 million square feet. → The total no. of shopping mall is expected to expand at CAGR of 18.9% by 2015. → Hypermarket, currently accounting for 14% of mall space is expected to witness high growth. → Industry experts predict that the next phase of growth in the retail sector will emerge from the rural market. → By 2012, the rural retail market is projected to have a total of more than 50% market share. → India's retail market is expected to be worth about US$ 410 billion, with 5 per cent ofsales through organised retail, meaning that the opportunity in India remains immense. → Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with 10 per cent coming from organised retail, reflecting a fast-growing middle 34
  • 36. class, demanding higher quality shopping environments and stronger brands, according to the report ‗Expanding Opportunities for Global 35
  • 37. PART – 2 PRIMARY STDUY 36
  • 38. Chapter 4:- INTRODUCTION OF THE STUDY Literature Review Background of the Study Objectives of the Study 4.1 :- Literature Reviews → According to Dholakia (1999),i the rationale for shopping is making physical visits to a shopping site. It is considered as a household task as well as a form of recreation, relaxation and entertainment. Shopping is also considered to 37
  • 39. have the most positive attribute of being a leisure activity along with work (Dholakia, 1999). → Sinha & Banerjee (2004)ii studied the drivers of store choice in various product categories, in the context of evolving retail industry in India and found that the distinct store features as perceived by respondents with true motivations of various consumers in patronizing various stores. Study suggests that consumers of Indian unorganized retail market do not require the service paraphernalia offered by many retailers. Store environment plays a vital role for store patronage and repeat purchases which includes convenience, value for money products, etc. → Backstrom & Johansson (2006)iii studied factors that influence consumers' in-store experiences. In-store experiences are constituted by traditional values such as the behavior of the personnel, a satisfactory selection of products, price and a layout that facilitates the store visit. → Terblanche & Boshoff (2006)iv suggested that retailers will have to accept that it is not only what they are marketing but also how it is done. The personal (face-to-face) interaction between retail staff and shoppers is of critical importance. → Kalhan (2007)v studies the impact of organized retail on unorganized retail shops. Major findings reveal that 70 % of unorganized retailers reported falling sales. This fall in sales is due to superior shopping environment, convenience, availability of variety, ambience of shop, and availability of parking space and perception of quality of products sold in organized retail setup. → Goswami (2008)vi studied the shopping experiences in kirana stores and in modern stores. The major findings suggest Kirana stores to improve or to enrich shopping experiences. Kiranas also have to stay alert, try to upgrade and have to improve on service quality while concentrating on innovation and efficiency. → Das & Kumar (2009)vii studied the impact of sales promotion on consumers shopping experiences. A major finding reveals that keeping product satisfaction constant, sales can be improved by enhancing shopping experience which includes convenience of shopping, ease of locating products, easy check in and checkouts, customer friendly sales people and customer friendly 38
  • 40. policies. Secondly finding reveals that purchase decision for the same product under same promotion at different stores may vary because difference in shopping experiences provided by different stores. Further this study shows that promotion plays a limited role on consumers buying behavior where only small percentage of people are attracted to such sales promotion and wait for it. Study lastly emphasizes on the importance of shopping experience (ease of shopping, parking space, convenience etc.) for positively impacting consumer buying behavior. → Goswami & Mishra (2009)viii seek to understand whether Indian consumers are likely to move from traditional Kirana stores to large organized retailers while shopping for groceries. The research finding reveals that customer patronage to grocery stores was found to be positively related to location, helpful, trustworthy salespeople, and home shopping, cleanliness, and offers, quality and negatively related to travel convenience. Kiranas do well on location but poorly on cleanliness, offers, quality, and helpful trustworthy salespeople. The converse is true for organized retailers. Study also finds that Kiranas have major disadvantages on all customer perception scores except location. These scores being less important determinants of patronage compared with location, in the short run kiranas may not be ousted out of customers' flavor. However, in the long run if they do not work on these other factors, they would face oblivion. Kiranas need to upgrade their facilities to be able to compete with the organized retailers to provide consumers better shopping experiences, whereas organized retailers which are expected to improve their location scores rapidly in the near future will grow rapidly. → Inside store (2009)ix studied the shopping experiences at traditional Indian retail stores. Major findings reveal that 70% of purchases are made at the point of purchase, so store environment can impact the 70% of purchases which is one of the important constituent of shopping experience in unorganized retail setup. → Mittal and Parashar (2010)x explained that irrespective of area, people prefer grocery stores to be nearby, product assortment is important for grocery. Ghosh & Srivastava (2010) in his research found that service quality has become vital for service firms to pay attention due to increased competition. 39
  • 41. → Sivaraman (2010)xianalyzed customer attitude toward unorganized retailers on the attributes of store image, range of products, brand choices, price, store ambience, credit availability, shop proximity and complements. However there were no perceived difference on product freshness and customer care. This study clearly point out that the unorganized retailers are facing stiff competition from the organized retailers. This has reduced their sales, profit, and employment considerably. The operational cost, consumer credit also increased due to the presence of organized retailers. → Kumar (2011)xiistudied on the strategies of unorganized retailers with reference to consumer durables and found that a product strategy which means merchandise is the most important factor followed by price, distribution and promotion. → Kushwaha (2011)xiii compared the perception of consumers in organized and unorganized retail market and found that factors like cleanliness, distance, price, quality, safety and space for shopping are the determinant factors for unorganized retail. → Purohit and Kavita(2013) according to their studies that the traditional retailers are not very much clear about the consequences of the modern retailing the traditional retailers are neutral or undecided, modern retailing will cut the profit margin of the traditional retailers; the modern retailing will lead healthy competition in the market, modern retailing will reduce the sales volume of the traditional retailers and traditional retailers should improve customer care services in the era of modern retailing. → Shaoni Shabnam (2013): It is important to highlight that in organized retail, the status of employment is much better than that in unorganized retail. Hence it is definitely desirable that more and more labor gets absorbed in this sector of retail. In the current context, the labor employed in unorganized retail stands unfit for finding employment in organized retail. If appropriate training and skills could be imparted to them, it is possibly feasible to offer better forms of employment to them in the organized retail sector. The status of employment is much better than that in unorganized retail. Hence it is definitely desirable that more and more labor gets absorbed in this sector of retail. In the current context, the labor employed in unorganized retail stands 40
  • 42. unfit for finding employment in organized retail. If appropriate training and skills could be imparted to them, it is possibly feasible to offer better forms of employment to them in the organized retail sector. → Meeta Punjabi (2013): According to their study they suggest that the development efforts in this area are based on three grounds: First, farmers associated with the modern value chains earn higher returns than selling to the traditional markets. Second, the modern supply chains have specific quality requirements which are easier to meet by the large and medium farmers and the small farmers tend to get left out of these markets.Third, there are several successful examples of linking small farmers to these modern value chains with effort from government agencies, NGOs and development agencies. This knowledge presents strong grounds for a closer look at the emerging sector in India. → Mathew Joseph (2013): Unorganized retailers in the vicinity of organized retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organized retailers. The adverse impact on sales and profit weakens over time. There was no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers. There is some decline in employment in the North and West regions which, however, also weakens over time. The rate of closure of unorganized retail shops in gross terms is found to be 4.2% per annum which is much lower than the international rate of closure of small businesses. The rate of closure on account of competition from organized retail is lower still at 1.7% per annum. There is competitive response from traditional retailers through improved business practices and technology up gradation. A majority of unorganized retailers is keen to stay in the business and compete, while also wanting the next generation to continue likewise. Small retailers have been extending more credit to attract and retain customers. 4.2 :- BACKGROUND OF THE STUDY 41
  • 43. The Indian Retail Industry is the fifth largest in the world. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially the retail industry in India was mostly unorganized, however with the change of taste and preferences of consumers, the Industry is getting more popular these days and getting organized as well. The Indian Retail Industry is expected to grow from US$330 billion in 2007 to US$640 billion by 2015. According to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney,India is having a very strong growth fundamental base that‘s why it‘s the perfect time to enter into Indian Retail Market. Indian Retail Market accounts for 22% of country‘s GDP and it contributes to 8% of the total employment. The total retail spending is estimated to double in the next five years. Of this, organized retail –currently growing at a CAGR of 22%- is estimated to be 21% of total expenditure. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $309 billion in 2006-07 to $496 billion in 2011-12. This paper focused on changing face of Retail Industry, organized or unorganized retail industry, major players in retail industry and also highlights the challenges faced by the industry in near future.  Indian Retail Industry India‘s Retailing Boom has acquired further momentum, dynamism and vibrancy with international players experimenting in the Indian market and the country‘s existing giants taking bold innovative steps to woo the consumer. At the same time, the early entrants are redefining their strategies to stay competitive and suit the new market landscape. The next few years are liking to witness rapid growth in the organized retailing sector with several leading international players establishing their presence in India by adjusting their formats to suit local tastes and buying behaviour while regional players have stepped up their defences and are striving to gain edge over global players by using their knowledge of local markets. Clearly the next wave of the retail boom is upon us. Retailing is one 42
  • 44. of the pillars of the economy in India. Over the past few years, the retail sale in India is hovering around 33-35% of GDP as compare to 20% in the US. The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. Now with growing market demand, the industry is expected to grow at pace of 25-30% annually. The Indian retail industry is currently growing at a great pace and is expected to go up to US $ 833 billion by the year 2013. In the last four years consumer spending in India has climbed up to 75%. In India though, organized retail accounts for app. 5-6% of total retail revenues, however, with a young population, increasingdisposable income, changing life styles and a robust economy India is set to emerge as one of the fastest growing organized retail markets in the world. Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in retailing in India signifies the beginning of retail revolution. India's retail market is expected to grow tremendously in next few years. According to AT Kearney, The Windows of Opportunity shows thatRetailing in India was at opening stage in 1995 and now it is in peaking stage in 2006. The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies tocome up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymond‘s, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing. 43
  • 45. Retail outlets such as Food world in FMCG, Planet M and Music world in Music, Crossword in books entered the market before 1995. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous improvement in the supply chain management, distribution channels, technology, back-end operations, etc. this would finally lead to more of consolidation, mergers and acquisitions and huge investments. India's retail market is expected to grow tremendously in next few years. India shows US$330 billion retail market that is expected to grow 10% a year, with modern retailing just beginning. In India, the most of the retail sector is unorganized. The main challenge facing the organized sector is the competition from unorganized sector. Unorganized retailing has been there in India for centuries. The main advantage in unorganized retailing is consumer familiarity that runs from generation to generation. It is a low cost structure; they are mostly operated by owners, have very low real estate and labor costs and have low taxes to pay. Organized retail business in India is very small but has tremendous scope.  Customer Attribute affecting choice of format 44
  • 46.  Challenges Faced by the Retail Industry: → International Standards: Even though India has well over 5 million retail outlets of different sizes and styles, it still has a long way to go before it can truly have a retail industry at par withInternational standards. This is where Indian companies and International brands have a huge role to play. → Inefficient supply chain management: Indian retailing is still dominated by the unorganized sector and there is still a lack of efficient supply chain management. India must concentrate on improving the supply chain management, which in turn would bring down inventory cost, which can then be passed on to the consumer in the form of low pricing. → Lack of Retail space: Most of the retail outlets in India have outlets that are less than 500 square feet in area. This is very small by International Standards. → Cultural Diversity: India's huge size and socio economic and cultural diversity means there is no established model or consumption pattern throughout the country. Manufacturers and retailers will have to devise strategies for different sectors and segments which by itself would be challenging. → Real estate issues: The enormous growth of the retail industry has created a huge demand for real estate. Property developers are creating retail real estate at an aggressive pace. With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India will need additional retail space of 700,000,000 sq.ft. (65,000,000 m2) as compared to today. → Human resource problems: Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian retailers have difficulty in finding trained person and also have to pay more in order to retain them. This again brings down the Indian retailers profit levels. 45
  • 47. → Frauds in Retail: It is one of the primary challenges the companies would have to face. Frauds, including vendor frauds, thefts, shoplifting and inaccuracy in supervision and administration are the challenges that are difficult to handle. This is so even after the use of security techniques, such as CCTVs and POS systems. As the size of the sector would increase, this would increase the number of thefts, frauds and discrepancies in the system. → Challenges with Infrastructure and Logistics: The lack of proper infrastructure and distribution channels in the country results in inefficient processes. This is a major hindrance for retailers as a nonefficient distribution channel is very difficult to handle and can result in huge losses. Infrastructure does not have a strong base in India. Urbanization and globalization are compelling companies to develop infrastructure facilities. Transportation, including railway systems, has to be more efficient. Highways have to meet global standards. Airport capacities and power supply have to be enhanced. Warehouse facilities and timely distribution are other areas of challenge. To fully utilize India's potential in retail sector, these major obstacles have to be removed. 46
  • 48.  SWOT Analysis of Retail Sector: 1. Strengths: Major contribution to GDP High Growth Rate: High Potential: High Employment Generator: 2. Weaknesses (limitation): Lack of Competitors Highly Unorganized Low Productivity Shortage of Talented Professionals No Industry‗ status, 3. Opportunities (benefits): Healthy Competition will be boosted and there will be a check on the prices (inflation). Create transparency in the system. Intermediaries and mandi system will be evicted, hence directly benefiting the farmers and producers. Quality Control and Control over Leakage and Wastage. Heavy flow of capital will help in building up the infrastructure for the growing population. There will be sustainable development and many other economic issues will be focused upon. 4. Threats: Current Independent Stores will be compelled to close Big players can knock-out competition. India does not need foreign retailers. 47
  • 49. Remember East India Company it entered India as trader and then took over politically. The government hasn‗t able to build consensus.  In view of the above analysis, if we try to balance opportunities and prospects attached to the given economic reforms, it will definitely cause good to Indian economy and consequently to public at large, if once implemented. Thus the period for which we delay these reforms will be loss for government only, since majority of the public is in favour of reforms. All the above mentioned drawbacks are mostly politically created. With the implementation of this policy all stakeholders will benefit whether it is consumer through quality products at low price, farmers through more transparency in trading or Indian corporates with 49% profit share remaining with Indian companies only. 48
  • 50. 4.3 :- OBJECTIVE OF THE STUDY The following are the objectives of the Study:- Indian retailers are providing creditworthiness to their customers and also providing good relation to their customers while the organized retailers are good space for visiting and parking. To study the strategy using by Organized and Unorganized sector to survive in this competitive market. To present the future constraints of retail sector in Ahmedabad city. The aim of the study is to identify the factors affecting consumer preference related to shopping at organized retail store and unorganized retail stores. To identify the reason for people select unorganized retailing for shopping (local market). To know about the selling technique through which the consumer are attracted towards the organized retail‘s (shopping malls) products & services. To know about the situation for present retailing industry in Ahmedabad city. To find out Does Festival season‘s advertising has any impact in the minds of consumers. To understand the nature of merchandise budgeting and unit planning. To understand the concept of relationship marketing and how does it apply to theOrganized retail and unorganized retail sector. To find out, what attributes consumers are looking for in retailing product, 49
  • 51. Significance of Study The following are the Significances of the Study:- → This study report will help to Retailing Companies in improving their selling strategy → The report contains the suggestions and findings of the product of the company which will help them to improve their quality of the product. → The study work did on the basis of the retailer viewpoints which will help the company to understand the customer needs, requirement, perception and many more things. → The report‘s conclusion and suggestion will help the companies to understand the coverage of the market with the use of sales strategy and also provide the idea to the company in findings the necessary field where the product is highly demanding. → This report will help to the society or in commercial sector who wants to go for research work in future on Retailing industry. 50
  • 52.  Aspect that put consumers off 51
  • 53. Chapter: - 5 Research methodology Research design Sampling Procedure Sample location Sampling Method Sample Size Data collection Data collection instrument 52
  • 54. 5.1 Research design Research design is a one kind of framework or blueprint upon which whole process going on. In this we have to clearly define that which method of the research we have to follow. It may be based on the judgment or situational objectives. A research design specifies that method and procedures for conducting a particular study. The researcher should specify the approach be intends to use with respect to the proposed study broadly speaking research can be groped in to three categories. i. Exploratory (ambiguous problem), ii. Descriptive (aware of problem), iii. Explanatory (clearly defined problem). Exploratory Research Design An exploratory research design focuses on the discovery of ideas and is generally based on secondary data. Descriptive Research Design A descriptive study is undertaken when the researcher want to know the characteristics of certain group such as age, sex, income, education level etc. Explanatory Research Design A casual researcher is under taken when the researcher is interested knowing a cause and effect relationship between two or more variables. 5.2 Sampling Procedure For collecting the data from the population I have used simple random sampling method to get the sample from the population. This enables us to make the study easy and create fewer disturbances, and study work can be completed in the less time. 53
  • 55. 5.3 Sample location I am choosing different areas of Ahmedabad city for the research to be carried out. 5.4 Sampling Method Any organization whether big or small, private or public need different types of information are to know its popularity. I have gathered secondary data and primary data and collected information from the combination of these two data. Secondary data:Secondary data consist of information that already exists somewhere, having been collected for another purpose. I have gathered secondary data from website of different operators, different magazines, newspapers and libraries. Primary data:I have taken great care while collecting primary data to answer that it is relevant, accurate, current and unbiased. I have taken a sample of 200 people. I have visited them personally to get data. 5.5 Sample Size: Sample size is to be taken to make the study easy in a shorter Time, period in less and effective timing two hundred questionnaires are to be taken for gathering the Information from the population of the Ahmedabad. The sample size taken in this study is 384 and the data are gathered through questionnaire. 54
  • 56. 5.6 Data collection Data collection is one of the important tasks in research on the basis of collected data analysis is done upon which Take effective decision. For collecting the data various types of Instruments are used like, questionnaire, telephone interview, Mail interview, here in this study we are using questionnaire. Types of data used in data collection Primary data Preparing a Questionnaire is collecting the primary source of data & it was collected by interviewing the investors. These are the data which are not collected before by any of the competent person. This are the data collected by the researcher himself for the study purpose Secondary data These are the data which already exist. For having the detailed study about this topic, it is necessary to have some of the secondary information, which is collected from the following:Books. Magazines & Journals. Websites. Newspapers, Ebscohost, etc. In this study I have used Questionnaire for the primary data collection and for secondary data collection I have used internet, magazines, reference books and articles which are necessary for my project completion 5.7 Data collection instrument To come at the particular result we have to collect the data from the respondents through various ways. In this report work I have used the questionnaire to collect the data from the respondents. 55
  • 57. SUMMRY OF RESEARCH METHODOLOGY Research Type Quantitative Research Research Design Descriptive Single cross sectional Conclusive Research Primary data source: Primary Retailers in Ahmedabad city Secondary Sources: Reference Material, Books & e-Books, e-Magazine & Newspapers, Websites Data Collection Method Survey Method, personal visit, E- mail, Population 400 Sampling Method Convenient non probability sampling Sampling location Ahmedabad. Sample size 384 Data Collection Instrument Structured Questionnaire Table: - Table shows the summary of Research Methodology 56
  • 58.  Objective behind the questionnaire: Indentify the factors that affect the choice of format viz. organized/Unorganized Retail. The perception and attitude towards both formats. The type of goods the customers prefer to purchase from each format. Findings that help unorganized and unorganized retail gain its key strength and weakness. 57
  • 59. Questionnaire We are pursuing MBA at Gandhinagar Institute of Technology, approved by AICTE and affiliated with Gujarat Technological University, Ahmedabad. As a part of our comprehensive project Study, we have prepared a brief questionnaire. We aresolicit your help for the same. We assure you that the information provided by you will be used for academic purposes only and will not be divulged to anybody. Thanking you for your valuable time. : Twinkle Kande ,KartikKoshti Title: A Questionnaire on Study on changing consumer preference towards organized retailing from un-organized retailing to Ahmedabad City 1. Are you a localite (based out of Ahmedabad) or are you from other place and working here? [ ]Based in Ahmedabad [ ]From other place 2. Do you prefer to Organized or Unorganized kirana shops for your purchase? [ ]Organized Retail [ ]Unorganized Retail 3. How did you make your most recent purchase? [ ] Online [ ] By phone [ ] By mail/catalogue [ ] In-person/in-store [ ]Through a dealer 58 [ ]Depends/Not Fixed
  • 60. [ ] Other (please specify)………………………………. 4. How would you rate organized retailing in term of? Excellent Very good Average Fair Poor Courtesy and Service: Store Cleanliness: Selection and Variety: Produce Quality/Freshness: Meat Quality/Freshness: Dairy Quality/Freshness: Bakery Quality/Freshness: Regular Prices: 5. If you organized Retail, Which shop do you prefer? [ ]D-Mart [ ]Big Bazar [ ]Food Bazar [ ]Spinach [ ]Reliance Fresh [ ] Star Bazar [ ] Apna Bazar [ ]Le Marche Bhandar [ ] Shoprite [ ] Subhiksha [ ]Sarkari [ ] Foodland Garments [ ]Shoppers Stop [ ] Lifestyle [ ] Globus [ ]Hyper city [ ] National Handloom [ ]other 6. What do you shop, how often from where? [Organized Retail: - o.r. Unorganized Retail: - U.R.] Daily Weekly Bimonthly Vegetables Grocery(DalRice,Wheat) FMCG(Biscuit,Detergent,s oaps) 59 Monthly O.R. U.R.
  • 61. Oil Garments/Clothes Utensils 7. Why do you prefer to go for Organized Retail formats? [ ] Price is less [ ] Near house []Everything at one place [ ] Good Service [ ]Good Quality [ ]Ambience [ ]Long Relationship Aspiration [ ]Good Offers [ ] Self Service [ ]Large Variety [ [ ]Faster(take less time) [ ]Overall experience 8. Kindly rate the below of an organized retail and unorganized retail based upon your preference? (1-poor,5-best) Organized Retail Parameter 1 2 Price Quality Variety Location Service Everything at one place Offers Relationship Ambience Home Delivery Faster 9. What is your gender? [ ]Male [ ]Female 10. What is your age? [ ] 18 as under 60 3 4 Un Organized Retail 5 1 2 3 4 ] 5
  • 62. [ ] 19-35 [ ] 36-50 [ ] 50 or more 11. What is your annual household income? [ [ [ [ [ ]Under 25000 pm. ]25000-50000 ]50000-75000 ]75000-100000 ]100000 or More 12. Kindly tell any other experience or factors you feel makes your Organized Retail to Un Organized Retail 13. Do you plan to continue to buy organized/unorganized retail? [ ] Yes [ ] No 61
  • 63. Websites: 1. http://www.dnb.co.in/IndianRetailIndustry/issues.asp 2. http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1098& context=jekem 3. http://web.yonsei.ac.kr/dslab/Journal/Journal%20of%20International%2 0Consumer%20Marketing%20%202011.pdf 4. http://www.abesit.in/pdfs/a-study-of-diversity-in-retail-purchasesbehaviour-in-food-prof-manish-kumar.pdf 5. http://www.iosrjournals.org/iosr-jbm/papers/Vol8-issue3/A0830105.pdf 6. http://indianresearchjournals.com/pdf/IJMFSMR/2013/June/7.pdf 7. http://www.abhinavjournal.com/images/Commerce_%26_Management/ Aug12/7.pdf References:i Dholakia, R. R. (1999). Going shopping: key determinants of shopping behaviour and motivations. InternationalJournal of Retail and Distribution Management Bradford, 27, 154–165. ii Sinha, P. K. and Banerjee, A. (2004). Store choice behaviour in an evolving market. International Journal of Retail & Distribution Management, 32(10), 482- 494. iii Backstrom, K & Johansson, U (2006). Creating and consuming experiences in retail store environments: Comparing retailer and consumer perspectives. Journal of Retailing and Consumer Services, 13, 417–430. 62
  • 64. iv Terblanche, N. S. and Boshoff, C. (2006). The relationship between a satisfactory in-store shopping experience and retailer loyalty. South African Journal of Business Management, 37(2), 33-43. v Kalhan, A. (2007). Impact of Malls on Small Shops and Hawkers. Economic Political Weekly, 6, 2063-2066. vi Goswami, P. (2008). Would Kiranas in Urban India Survive the Modern Trade Onslaught? Insight from Efficiency Perspective. Advances in Consumer Research, 8(3), 44-67. vii Das, G. & Kumar, R. V. (2009). Impact of Sales Promotion on Buyers Behaviour: An Empirical Study of Indian Retail Customers. Global Marketing Journal, 3(1), 1124. viii Goswami, P., Mridula, S. Mishra, (2009). Would Indian consumers move from kirana stores to organized retailers when shopping for groceries? Asia Pacific Journal of Marketing and Logistics, 21(1), 127 – 143. ix Inside store (2009). Unplanned Buying at Traditional Retail in India. A Research Report Insight in store, Research report USA. x Mittal, K. C., Arora, M. and Parashar, A. (2011). An Empirical Study on factors affecting consumer preferences of shopping at organized retail stores in Punjab. KAIM journal of management and research, 3(2), 38-40. xi Sivaraman. P. (2010). The future of unorganized retailing in Kanyakumari district. Asian Journal of Management Research, 2(1), 434 – 442. xii Kumar, K. S. (2011). A study on the strategies of unorganized retailers with reference to consumer durables. International Journal of Business and Management Tomorrow, 1(1), 1-13 xiii Kushwaha, S. and Gupta, M. K. (2011). Customer perception in Indian retail industry: A comparative study of organized and unorganized retail industry. Research Journal of Economics and Business studies, 1(1), 61-73. 63
  • 65. 64