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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
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.
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
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
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.
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
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
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.
Reatailing consumption behaviour

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Reatailing consumption behaviour

  • 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.