Buying Behavior is the
decision processes and acts
of people involved in buying
and using products.
Main factors affecting
Buying Behavior :
Retailing in India
Retailing in India is one of the pillars of its economy and
accounts for 14 to 15 per cent of its GDP.
The Indian retail market is estimated to
be US$ 450 billion and one of the top five retail markets in the
world by economic value.
India is one of the fastest growing retail markets in the world,
with 1.2 billion people.
Indian Retail is broadly divided into 2 categories viz.
Unorganized Retail and Organized retail
In the year 2004, ratio of organized-Unorganized retail was
3:97 which is expected to be 9:91 by 2013.
Unorganized Retail includes
the local kirana shops, owner
manned general stores,
paan/beedi shops, convenience
stores, hand cart, etc
On the other hand, organized
retail comprises of hypermarkets
and retail chains, Shopping
Organized retail, which constitutes 8 per cent of
the total retail market, will grow much faster than
It is expected to gain a higher share in the
growing pie of the retail market in India.
Various estimates put the share of organized retail
as 20 per cent by 2020.
Retail Market India
The Indian retail industry has experienced growth of 10.6% between 2010 and 2012
and is expected to increase to USD 750-850 billion by 2015. Food and Grocery is the
largest category within the retail sector with 60 per cent share followed by Apparel
and Mobile segment.
Retail Market India (contd…)
Within the organized retail sector, Apparel is the largest segment. “Food and Grocery”
and “Mobile and telecom” are the other major contributors to this segment.
Evolution of Retail Malls in India
Mom and Pop
Types of consumers in Retail mall
The trading environment
Most consumers take as little as 3
seconds to pass the entrance to your
The frontage and fascia, the windows
and the displays all need to arrest the
This is why so much investment is
made into new shop fronts because if
the business looks exciting, then there
is a likelihood that the customer will
come in and seek more information
about your products and services.
Key factors of consumer motivation
Circulation in browsing and self
To be able to touch and feel the
Grasping Customer’s Attention
Factors affecting consumer
Greed: Drives a customer to purchase more than what he or she need. A wide
range of options, better products, and lower prices generate the increased desire
Fear to loose opportunity: Higher purchase is driven by the fear that current
price offer may not be available for long-time and thus the product has to be
purchased at once.
Envy or Demonstration Effect: Envy sets in when a customer sees others buying
and making the best out of deal.
Price-value Equation: It is believed that Average Indian customer is highly PriceSensitive and looks for savings in terms of money in their grocery purchase.
Private-Label Brands: In India the concept of Private-Label Brand is in its nascent
stage and customers still rely on branded product.
Some key observations
Lower income Indians feel alienated in the shiny environment of modern retail
Lower income Indians move and find lot of comfort in crowds, so they
normally hesitate in visiting the stores having broader area coverage.
It is observed during the research that given the right environment and a
correct emotional connect with customers, anything is possible , as Big Bazaar
did by celebrating “Sabse Sasta Din” , on 26th January and attracted the
Customers feel conservative to buy fruits & Vegetable from air-conditioned
Customers looked into Price-Value equation. Most of the retailers report that
customers were very much conscious for the value, and they usually compared
the value sacrificed & received.
Some key observations (contd…)
Retailers often overlook the schemes & offerings expected by the customers
and tried to impose their own offerings upon customers which ultimately
cause the dissatisfaction.
Shopkeepers dealing in apparels, accessories, & other items reported that
they were able to attract the Customers but conversion rate is not more than
30-40% which is again very alarming and a matter of high concern.
Shopkeepers dealing in food items & Vegetables report that:
Customers for food items always expect hyper discounts & offers.
Where as customers for vegetables still believe in the past notion that
vegetables sold in the open market are fresh.
Shopkeepers dealing in jewelry items reported that in case of unbranded
jewelry items Indian customers still rely on their traditional jewelry