e-Commerce sector is booming in India so everyone have focusing only on e-tailing but still Modern retail have life. In this presentation researcher pointed out some opportunist fact which will be beneficial for retail sector.
1. Has Modern Retailing in India
Influenced the Consumption
Expenditure Behavior of Urban
Socioeconomic Classes ?
By
* Debjani Banerjee * Shradha Shivani
Source
Indian Journal Of Marketing
Volume:- 45 Issue Number:- 6 June 2015
KIRAN S. KARANJKAR
2. ABSTRACT
WHY THIS STUDY IS
NECESSARY & FACTORS VITAL
IN EXPANSION
The expansion of organized retail in
different format has created ample
opportunities & has brought a sea
changes in consumer buying behavior
among the various
socioeconomics classes in
urban india.
As per McKinsey Global Institute (Ablett et.al., 2014)
MT focuses on various Non
Price Aspect of human
preferences towards
Consumption behavior like-
dietary diversity, Quality &
Brand, Which has implications
for food demand.The growing SCM efficiencies
That reduced real food prices
Over time have facilitated in boosting consumer
demand by relatively expanding the budget line.
India, Unlikely any other
nation, has diversity in
terms of geographical
spread & cultural aspect.
Kishor Biyani- 1st person who estimated this cause &
effect factor in 1989 by introducing Future group.
3. ESTIMATION & FOCUS
NUMERIC FACTS
The retail industry
of India is estimated
to be valued of
$470 billion.
ESTIMATION
The modern
trade occupies
8% Share of the
business.
OCCUPATION
It was projected to
reach US $574
billion by 2015.
REACH
The organized retail market is
estimated to grow at a CAGR of
18.8% & increase its expansion to
20% of the retail share by 2020.
C.A.G.R.
Factors
Scale
$470
billion
8%
$574
Bn.
18.8%
20% BY
2020
4. RETAILANALYSIS
How retail
grew in India
in step-by-
step mode
Factors
Responsible
for retail
existence.
Various
examples
from
industry
FACTORS
FACTORS slot refers to a particular
phases which is responsible for
expansion of retail industry. This
factors cover all areas like Objective,
Expansion & Examples.
Source for this data is:- *Thapar, 1966 as cited in sachadeva,2008
*Sengupta, 2008 as cited in sachdeva
*Indian Brand Equity Foundation
5. FDI & CHANGING CONSUMPTION BEHAVIOR
FDI
FACTORS OFATTRACTION
TECHNOLOGICAL &
OPERATIONAL PROCESS
OUTSIDE OF INDIA
CHINA & INDONESIA
5.IMPULSE BUYING
& BRAND SWTICHING
6. Socio
Economics
Classes
1. CHALLENGES
The ever changing
consumption practices.
mostly happening in
developing country.
2..Per Capital
Grain
Consumption.
Clear shift in Non-Food
Grain
& Animal Consumption
3.STATISTICS
According National
Sample
Survey Organization.
Consumption drop
from 11.2 Kg to10.2
Kg.
* The ever changing consumption Practices.
* Being brand loyalist to conscious analyzers of rupee value.
* Heterogeneous demand pattern.
CHALLENGES
* From basic cereals to more non-cereal based diets.
* Clear shift in Non-Food Grain & Animal Consumption.
* There are various reasons.
Per Capital Grain Consumption
* The National Sample Survey did survey.
* According that survey average monthly
consumption of cereal of urban areas drop from
11.2 kg to 10.6Kg & Rural from 15.3 kg to 13.4 kg
respectively.
STATISTICS
* Supply Chain Management
* Convenience
* Quality food
* Growth of Packaged & readymade goods.
Factors influencing consumption behavior
Socio Economic Classes
4.Factors
influencing
consumption behavior
there are certain factors which
responsible
for influencing consumer behavior.
6. OBJECTIVE & HYPOTHESIS
What all factors
influenced rise?
OBJECTIVE 1
To examine if rising
consumption is an
outcome of impulse
buying.
OBJECTIVE 2
To examine the
preferences of the Urban
socioeconomics classes
to buy from MTR outlets.
OBJECTIVE 3
To examine CEB of
Socioeconomic classes has a
positive relation with their
changes in income of 3 years.
OBJECTIVE 4
H01 : Higher consumption through MTR has not been an
outcome of impulse buying.
Ha1 : Higher consumption through MTR has been outcome of
impulse buying.
1
H02 : Modern retail has not enhanced the consumption
expenditure of the urban SE classes.
Ha2 : Modern retail has enhanced the consumption
expenditure of the urban SE classes.
2
HO3 : There is no association between the SEC of the respondent & the
pattern of consumption expenditure in proportion to change
in income with the MR Food.
Ha3 : There is an association between the SEC of the respondent & the
pattern of consumption expenditure in proportion to change
in income with the MR Food.
3
HO4 : There is no association between the SEC of the respondent & the
pattern of consumption expenditure in proportion to change in
income with the MR to grocery
Ha4 : There is an association between the SEC of the respondent & the
pattern of consumption expenditure in proportion to change in
income with the MR to grocery
4
HO5 :There is no association between the SEC of the respondent & the pattern of
consumption expenditure in proportion to change in income with the MR to apparel.
Ha5 : There is no association between the SEC of the respondent & the pattern of
consumption expenditure in proportion to change in income with the MR to apparel
5
7. 52.9
34.5
65.3
38.1
52.4
2.8
4.6
Good Quality
Attractive Display
Wide Variety
Experience Of Shopping
Reasonable Price/D&O/Ambience
Others
None
Attributes Influencing Consumption
Expenditure
ANALYSIS & RESULTS
89% Felt
25% Increased
Grocery & Apparel
MTR,
Food –Unorganized
For Touch & Feel
Factor- Local
stores
35% From SM
(60-80)
65% From Mandi
(40-20)
Large Format
Retail Outlet-
Pull Factor
8. FINDING OF THE STUDY
FACTORS FOR CONSUMPTION
The growth of the nation Economic growth Urbanization
CASE STUDY FROM EASTERN INDIA
Conducted study in Bihar, WB & Odisha. For Food & Grocery prefer local shops but for
Apparel assortment range is important that why organized retail sector following
“Shopping experience” concept. In Mumbai for grocery & Apparel people highly prefer
organized retail but for wet food prefer local shops.
CASE STUDY OUTSIDE OF INDIA
Conducted study in Marques, Portugal & Farhangmer. Factors influencing purchase
from Super market are Store appearance & Attractive discounted price. Lower price
fandaa.- Modernized bulk & Direct purchase from the producer enable stores to offer at
low prices.