This document discusses the effect of organized retail on unorganized retail in the Indian retail market. It notes that organized retail is growing rapidly in India and generating employment, while also posing a challenge to traditional unorganized retail formats. The paper aims to understand consumer behavior and satisfaction regarding organized versus unorganized retail stores. It also examines the perceptions of traditional retailers regarding modern retailing formats. Overall, the document explores the debate around the impacts of expanding organized retail in India and whether it provides overall positive impacts on the economy or poses threats to unorganized retail sectors.
AN EMPIRICAL STUDY ON ORGANIZED RETAIL OUTLET AND CONSUMER PERCEPTION TOWARDS...IAEME Publication
The Indian Retail Industry is divided into Organized and Unorganized Sectors. Traditional markets are making way for organized formats such as Departmental Stores, Hypermarkets, Supermarkets and Specialty Stores. Indian Retail Industry contributes over 10% of the country’s GDP. Strong income growth, changing lifestyles, and favorable demographic patterns, suggest that by 2020, the Modern Retail Industry in India will be worth US$ 275-400 billion. This study was undertaken, considering three competitive Retail Chain Outlets, Big Bazaar, Reliance Fresh and Marks Spencers, to evaluate the consumers’ opinion and preferences towards these outlets. The study also highlights the pros and cons of the outlets considered and the level of satisfaction compared to the Local Retail Outlets.
CUSTOMER BUYING BEHAVIOUR AT PANTALOONSSrihari Reddy
Customer Buying Behavior is the study of individuals and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Customer behavior is increasingly a part of strategic planning for the future investment and growth of any industry. Retail industry or precisely to say apparel industry is no exception.
ProJecT RePorT On BuYinG behAvioR of CusTomerS In BiG BazAaRSonu Sah
The Project Report is duly outcome of my hardwork for the future Viewers/Reader who is in the need to make the project report as their partial fulfillment for their academic purpose from where you can get the idea about the Big Bazaar and the Consumer Buying Behavior. Please do Like and Share if you find it fruitful.
AN EMPIRICAL STUDY ON ORGANIZED RETAIL OUTLET AND CONSUMER PERCEPTION TOWARDS...IAEME Publication
The Indian Retail Industry is divided into Organized and Unorganized Sectors. Traditional markets are making way for organized formats such as Departmental Stores, Hypermarkets, Supermarkets and Specialty Stores. Indian Retail Industry contributes over 10% of the country’s GDP. Strong income growth, changing lifestyles, and favorable demographic patterns, suggest that by 2020, the Modern Retail Industry in India will be worth US$ 275-400 billion. This study was undertaken, considering three competitive Retail Chain Outlets, Big Bazaar, Reliance Fresh and Marks Spencers, to evaluate the consumers’ opinion and preferences towards these outlets. The study also highlights the pros and cons of the outlets considered and the level of satisfaction compared to the Local Retail Outlets.
CUSTOMER BUYING BEHAVIOUR AT PANTALOONSSrihari Reddy
Customer Buying Behavior is the study of individuals and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Customer behavior is increasingly a part of strategic planning for the future investment and growth of any industry. Retail industry or precisely to say apparel industry is no exception.
ProJecT RePorT On BuYinG behAvioR of CusTomerS In BiG BazAaRSonu Sah
The Project Report is duly outcome of my hardwork for the future Viewers/Reader who is in the need to make the project report as their partial fulfillment for their academic purpose from where you can get the idea about the Big Bazaar and the Consumer Buying Behavior. Please do Like and Share if you find it fruitful.
This presentation is highlight of the Report recently completed on "Organised Indian Retail Sector- Competitive Analysis." This Report is approved by one of Top Five Mangement Institute in India.
The technologies and people we are designing experiences for are constantly changing, in most cases they are changing at a rate that is difficult keep up with. When we think about how our teams are structured and the design processes we use in light of this challenge, a new design problem (or problem space) emerges, one that requires us to focus inward. How do we structure our teams and processes to be resilient? What would happen if we looked at our teams and design process as IA’s, Designers, Researchers? What strategies would we put in place to help them be successful? This talk will look at challenges we face leading, supporting, or simply being a part of design teams creating experiences for user groups with changing technological needs.
UX, ethnography and possibilities: for Libraries, Museums and ArchivesNed Potter
These slides are adapted from a talk I gave at the Welsh Government's Marketing Awards for the LAM sector, in 2017.
It offers a primer on UX - User Experience - and how ethnography and design might be used in the library, archive and museum worlds to better understand our users. All good marketing starts with audience insight.
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5) Next Steps - if you'd like to try out UX at your own organisation
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Final dissertation paper vishal paul 20152032_ibm 2015Vishal Paul
The retail industry in India has begun to evolve at a very large scale which has led to transform other large economies. With the introduction of liberalization of consumer goods in India in the 1980’s, the retail industry has started to grow through the 90’s and has impacted the Indian society as well as the minds of the Indian consumers affecting their consumer behaviour pattern.
The main concept of retail which is basically the communication or interaction between the consumers and the shopkeepers, has evolved through the past years. Starting from the traditional retail shops and local vendors to multi-national brand outlets, like the big MNCs - Big Bazar, Shoppers Stop, Life Style etc. and other departmental stores.
The main objective is to see the various parameters or factors that have influence a particular buyer’s or consumers reason to visit a particular retail shop which in return has led to the shop’s turnover (in terms of sales and profits) which ultimately leads to overall success.
So, my research will include why these departmental stores or retail stores are emerging to be every consumer’s priority lists especially the middle-class family, amongst the shopping spree in Kolkata, as the consumers seem to gain immense pleasure of convenience and exposure, everything under one roof, in their hustle bustle life. Also, to assess the consumer behaviour pattern of those consumers - why they tend to choose between a branded retail shop and a local retailed shop. Also, to see the differences between a loyal customer and a new customer. Lastly, to see how the generation gaps plays a huge role in shaping one’s buying pattern – whether the new generation tend to shop from the old local retail stores which their parents or family tradition has been following or they tend to opt for the new branded retail outlets for their own consumption.
Also it has been seen that some of the customers have a perception that these new branded shiny retail stores are very much expensive and only high income group of people can afford those, but the actual scenario is not quite true. Shops like Big Bazar and Shoppers Stop as well as West Side – their main aim is to target the middle-class families of the society and these stores are genuinely making constant effort in making those confused consumers to visit those stores at least once during the sale period or the discount offers.
Customer Perception Towards Traditional and Modern Retailinginventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Summer Internship Report on Study of Consumer Behaviour At Louis Philippe which is part of aditya birla group.Louis Philippe is Owned by Madura Garments P Ltd.
There has been a tremendous amount of
literature and discussion on retail formats and present concern
seems to be the viability of various formats, particularly in
the Indian context. Whereas the idea of retailing has caught
up the fancy of corporate investors including some of the big
names in the Indian corporate world, and many of them have
diversified, integrated and changed various operating
parameters with respect to improving the service efficiency and
quality, the main question remains as to the profitable
operating format, size and display characteristics.
Transferring and applying manufacturing principles and
practices to improve both service efficiency and service
quality is an important area of research in service operations.
Research work advances this stream of research by examining
the compatibility of operating efficiency and service quality.
Specifically, our research paper addresses the following
questions: Do operating efficiency and service quality have to be
traded off, or can they exist in unison (are they compatible)
What aspects of service quality have a stronger association
with operating efficiency? How synergies from a combination of
retail formats can be used to optimize profitability of retail
operations? Overall, our analyses suggest important strategic
decision-making implications for service operations managers
and provide novel insights for academic research.
Whereas the operating margins and profits have not given
any incentive for promoters to invest in organized retail
business, the Indian retailers have been on the lookout for a
successful formula for increasing margins and profits. The
future of Indian retailing will hinge on finding a suitable
answer by any means: Be it a joint venture or cooperative
effort; or an integrated effort with the participation of
multiple retailers under one roof and making use of synergies
and cost efficiencies to improve bottom lines – which
incidentally is the most important concern of organized retail
industry. The future of Indian retailing in the organized
formats is still a question mark; but as the industry goes through
the evolutionary process we need to wait and see what the
future holds for this upcoming industry as it is promising for
employment opportunity! Developments in social centric
marketing techniques and social networking will have a profound
influence
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Learn about Common Rail Direct Injection (CRDi) - the revolutionary technology that has made diesel engines more efficient. Explore its workings, advantages like enhanced fuel efficiency and increased power output, along with drawbacks such as complexity and higher initial cost. Compare CRDi with traditional diesel engines and discover why it's the preferred choice for modern engines.
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Why Is Your BMW X3 Hood Not Responding To Release CommandsDart Auto
Experiencing difficulty opening your BMW X3's hood? This guide explores potential issues like mechanical obstruction, hood release mechanism failure, electrical problems, and emergency release malfunctions. Troubleshooting tips include basic checks, clearing obstructions, applying pressure, and using the emergency release.
𝘼𝙣𝙩𝙞𝙦𝙪𝙚 𝙋𝙡𝙖𝙨𝙩𝙞𝙘 𝙏𝙧𝙖𝙙𝙚𝙧𝙨 𝙞𝙨 𝙫𝙚𝙧𝙮 𝙛𝙖𝙢𝙤𝙪𝙨 𝙛𝙤𝙧 𝙢𝙖𝙣𝙪𝙛𝙖𝙘𝙩𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚𝙞𝙧 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙨. 𝙒𝙚 𝙝𝙖𝙫𝙚 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙥𝙡𝙖𝙨𝙩𝙞𝙘 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙪𝙨𝙚𝙙 𝙞𝙣 𝙖𝙪𝙩𝙤𝙢𝙤𝙩𝙞𝙫𝙚 𝙖𝙣𝙙 𝙖𝙪𝙩𝙤 𝙥𝙖𝙧𝙩𝙨 𝙖𝙣𝙙 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙛𝙖𝙢𝙤𝙪𝙨 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙗𝙪𝙮 𝙩𝙝𝙚 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙛𝙧𝙤𝙢 𝙪𝙨.
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In this presentation, we have discussed a very important feature of BMW X5 cars… the Comfort Access. Things that can significantly limit its functionality. And things that you can try to restore the functionality of such a convenient feature of your vehicle.
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2.isca rj mgt-s-2012-003
1. Research Journal of Management Sciences _____________________________________ Res. J. Management Sci.
Vol. 1(1), 7-13, August (2012)
Effect of Orgenised retail on Unorgenised retail in Indian retail market
Gupta Himanshu1 Dubey Neetu2 and Patani Pawan3
1
Pioneer Institute of Professional Studies, Indore, INDIA
2
Institute of Management and research, IPS Academy, Indore, INDIA
3
Pioneer Institute of Professional Studies, Indore, INDIA
Available online at: www.isca.in
Received 25th May 2012, revised 28th June 2012, accepted 30th June 2012
Abstract
Retail is currently the flourishing sector of the Indian economy. This trend is expected to continue for at least the next two-
three decades, and it is attracting huge attention from all entrepreneurs, business heads, investors as well as real estate
owners and builders. Availability of quality, retail space, wider availability of products and brand communication are some
of the factors that are driving the retail in India Retail sector is also supporting to create huge employment while a new
form of organized retail sector has emerged within the retail industry and it gave speedy phase to Indian retail sector. The
rationale of the study is twofold: First, to examine the nature of changes in the retail sector taking place due to organized
form of retailing and implications of shift to this new form of retailing. Secondly, this area has remained largely an
unexplored part of research till date especially in the Indian context. The broad objective of the study is to understand
consumer behavior towards organised and unorganised retail stores and to find out the consumers satisfaction level from
organised retail stores as well as unorganised retail stores. The perception of the traditional retailers about the modern
retailing. The study uses primary data collected through in depth qualitative analysis to represent organized and
unorganized retails sectors respectively.
Keywords: Orgenised retail, unorgenised retail, consumer satisfaction, consumer behavior
Introduction The most important debate concerning the implications for the
expansion of the organized retailing in India revolves around
India started its Retail Journey since ancient time. In Ancient whether it is going to have positive impacts on the economy as a
India there was a concept of weekly HAAT, where all the buyers whole as compared to the traditional unorganized form of
and sellers gather in a big market for bartering. It takes a pretty retailing. According to one camp, it has overall positive impacts
long times to and step to shape the modern retail. In between in terms of generating more number of employments, new
these two concepts (i.e. between ancient retail concept and the diversified forms of employments, and improving the nature of
modern one there exist modern Grocery/ mom and pop shops or retail employment (higher salary, more job benefits, security of
Baniya ki Dukan. Still it is predominating in India So the Indian job, employability etc). This form of retail sector is also looked
retail industry is divided into two sectors- organized and upon as a huge sector having immense business opportunities
unorganized. The Indian retail industry is now beginning to for entrepreneurs and capital investors. Moreover, organized
evolve transformation that has swept other large economies. retailing is considered to be efficient and apt to cater to the
There is a vast change in Indian retail, the liberalization of the diversified and changing nature of the consumer demands in
consumer goods industry initiated in the mid-80’s and accelerated growing economies like India. The general benefits of organized
through the 90’s has begun to impact the structure and conduct of retail also include improved supply-chain, improved
the retail industry. The concept retail, which includes the marketability of farmer’s produce and it is also expected that it
shopkeeper to customer interaction, has taken many forms and will contribute to heightened economic activity. The extensive
dimensions, from the traditional retail outlet and street local research brought me to conclude that departmental stores are
market shops to upscale multi brand outlets, especially stores or soon emerging on the top priority lists, amongst the shopping
departmental stores. spree in Delhi, as they seem to derive immense pleasure as
shopping is considered as a experience now rather than a task
Hence, focusing on two aspects of retail marketing i.e. store and exposure to variety under one roof in their extremely busy
retailing and non store retailing. Store Retailing as the lives, when they don’t have time for things.
departmental store, which is a store or multi brand outlet,
offering an array of products in various categories under one The organized retail food and grocery stores make constant
roof, trying to cater to not one or two but many segments of the efforts to induce customers to visit the store by discount offers.
society and Non store retailing as the direct selling, direct Most of these stores believe in creating not just a marketing
marketing, automatic vending. activity with its customers, but rather favor relationship building
with him so as to convert first time customers into a client. They
International Science Congress Association 7
2. Research Journal of Management Sciences _________________________________________________ Res. J. Management Sci.
Vol. 1(1), 7-13, August (2012)
provide better parking facilities to customers and the facility to In any newspaper or television channel, we find hordes of news
examine the product. They also offer a wide range of payment about happening in organized retail sectors, which is indeed
options to customers. fairly real situation. While the role of organized retail sector in
growth of economy cannot be denied, but one thing is also of
India is currently the twelfth largest consumer market in the extreme importance that unorganized retail format is a support
world. According to a study by McKinsey Global Institute, to a large chunk of population- providing direct employment to
India is likely to join the premier league of the world’s 39,500,000 individuals. So there is no way that government or
consumer markets by 2025 improving its position to the fifth. anyone can discount these foundation stone of Indian economy.
But this growth is not going to happen is smooth way. Any
change always comes up with some friction and Indian retail Changing landscape of Indian consumerism: The face of
sector is and will be witnessing the same friction. Indian retail Indian consumerism is changing: not Indian consumerism is
sector is still in its nascent form if we consider its full potential. evolving from Bajaj Scooter family man to Bajaj Pulsar trendy
While most of the developed market of US and Europe and also youngster. This changing consumer’s taste and lifestyle,
some SE Asian emerging market economies have reaped the somewhere automatically give some advantage to organized
benefits of modern retail, India has not yet entered into sector. This makes imperative for unorganized retail sector to
advanced phase of modern retail forms. Unorganized retailing, restructure itself in order to withstand the increasing
on the other hand, refers to the traditional formats of low-cost competition and to meet consumer expectations by moving with
retailing, for example, hand cart and payment vendors, and trends. What they can do and what they are doing, some of these
mobile vendors, the local Grocery shops, owner manned general issues will be discussed in future parts of article.
stores, paan / beedi shops, convenience stores, hardware shop at
the corner of your street selling everything from bathroom Role of government: As in other countries, government policy
fittings to paints and small construction tools; or the slightly can and should play an important role in modernizing the
more organized medical store and a host of other small retail unorganized sector and improve its competitiveness. But
businesses in apparel, electronics, food etc. Small-store retailing question is what should be exact role of government. Should it
has been one of the easiest ways to generate self-employment, go for policies for protection of traditional retailers by
as it requires limited investment in land, capital and labor. It is restricting organized retail or encourage organized retail to reap
generally family run business, lack of standardization and the benefits that are generated by it? What should be mechanism to
retailers who are running this store they are lacking of promote or protect one or other? Can government act only as a
education, experience and exposure. This is one of the reasons facilitator or enablers or both?
why productivity of this sector is approximately 4% that of the In the said context, it is imperative to develop a strategic
U.S. retail industry. Unorganized retail sector is still roadmap for unorganized retail form to be able to survive,
predominating over organized sector in India, unorganized retail compete and keep the economy growing.
sector constituting 98% (twelve million) of total trade, while
organized trade accounts only for 2%. Retail Trends in past few years: Before the decade of eighties,
India with hundreds of towns and cities was a nation striving for
The road side hawkers and the mobile (pushcart variety) development. The evolution was being witnessed at various
retailers. The Grocery stores (the Indian equivalent of the mom- levels and the people of the nation were learning to play
and-pop stores of the US), within which are: i. Open format different roles as businessmen and consumers. The foundation
more organized outlets, ii. Small to medium food retail outlets. for a strong economy were being laid, youth were beckoning
new awareness in all spheres. And this brought in an
Modern trade or organized retailers within modern trade, we opportunity for retail industry to flourish. First in the metros and
have: i. The discounter (Subhiksha, Apna Bazaar, Margin Free), major cities later to impact sub urban and rural market as well.
ii. The value -for- money store (Nilgiris), iii. The experience Retailing in India at this stage was completely unorganized and
shop (Food world, Trinethra). Iv. The home delivery it thrived as separate entities operated by small and medium
(Fabmart)Tug of war: entrepreneurs in their own territories. There was lack of
international exposure and only a few Indian companies
Organized vs. Unorganized Sector: Future of retail sector in explored the retail platform on a larger scale. From overseas
India is swerving- on one side organized retail is marching into only companies like Levi's, Pepe, Marks and Spencer etc. had
life of urban consumers, while on the other our own entered targeting upper middle and rich classes of Indians.
neighborhood ‘Grocery stores’ are resisting fiercely with their However as more than 50 % population was formed by lower
existing strong foothold. India today is at the crossroads with and lower middle class people, the market was not completely
regard to the retail sector. A shift between organized and captured. This was later realized by brands like Big Bazaar and
unorganized retail sector is evident, which has led to a number Pantaloons who made their products and services accessible to
of speculations on the fate of Indian retail. Unorganized sector all classes of people and today the success of these brands
cannot ignore. proves the potential of Indian retail market. A great shift that
ushered in the Indian Retail Revolution was the eruption of
International Science Congress Association 8
3. Research Journal of Management Sciences _________________________________________________ Res. J. Management Sci.
Vol. 1(1), 7-13, August (2012)
Malls across all regional markets. Now at its peak, the mall Mathew Joseph: Unorganized retailers in the vicinity of
culture actually brought in the organized format for retailing in organized retailers experienced a decline in their volume of
India which was absent earlier. Though malls were also initially business and profit in the initial years after the entry of large
planned for the higher strata, they successfully adapted to cater organized retailers. The adverse impact on sales and profit
to the larger population of India. And it no wonder, today malls weakens over time. There was no evidence of a decline in
are changing the way common Indians have their shopping overall employment in the unorganized sector as a result of the
experience. However there is still great scope for enhancing entry of organized retailers. There is some decline in
Indian mall culture as other than ambience and branding many employment in the North and West regions which, however,
other aspects of Retail Service remains to be developed on also weakens over time. The rate of closure of unorganized
international standards. it is surprise that there was not a single retail shops in gross terms is found to be 4.2 per cent per
mall in India a decade before and just a few years ago only a annum which is much lower than the international rate of
handful of them were striving, today there are more than 50 closure of small businesses. The rate of closure on account of
malls across different cities and 2 years from now around 500 competition from organized retail is lower still at 1.7 per cent
malls are predicted to come up. Indeed this shows a very per annum. There is competitive response from traditional
promising trend ahead, however before taking a leap into the retailers through improved business practices and technology
future of Retail in India, let's see what the Indian retail Industry upgradation. A majority of unorganized retailers is keen to stay
is currently occupied with. in the business and compete, while also wanting the next
generation to continue likewise. Small retailers have been
Review of literature: Purohit and kavita according there studies extending more credit to attract and retain customers. However,
that the traditional retailers are not very much clear about the only 12 per cent of unorganized retailers have access to
consequences of the modern retailing the traditional retailers are institutional credit and 37 per cent felt the need for better access
netural or undecided, modern retailing will cut the profit margin to commercial bank credit. Most unorganized retailers are
of the traditional retailers; the modern retailing will lead healthy committed to remaining independent and barely 10 per cent
compition in the market, modern retailing will reduce the sales preferred to become franchisees of organized retailers.
volume of the traditional retailers and traditional retailers should
improve customer care services in the era of modern retailing. The objectives of the research are: i.To find out the consumer
behavior towards organised (supermarkets/malls, hypermarkets,
Shaoni Shabnam: It is important to highlight that in organized departmental storesetc) and unorganized (local Grocery stores,
retail, the status of employment is much better than that in weekly bazaars etc) retail stores in Indore, ii. To find out the
unorganized retail. Hence it is definitely desirable that more and consumers satisfaction level from organised retail stores as well
more labour gets absorbed in this sector of retail. In the current as unorganised retail stores.
context, the labour employed in unorganized retail stands unfit
for finding employment in organized retail. If appropriate Research Methodology
training and skills could be imparted to them, it is possibly
feasible to offer better forms of employment to them in the The data for this research paper has been taken from primary
organized retail sector. The status of employment is much better data collected by a survey of the retailers between Dec 2010 and
than that in unorganized retail. Hence it is definitely desirable May 2011 for the doctoral thesis being prepared by the author,
that more and more labour gets absorbed in this sector of retail. for submission to The DAVV University, Indore, India.
In the current context, the labour employed in unorganized retail
stands unfit for finding employment in organized retail. If Sampling Method: The sampling method chosen is simple
appropriate training and skills could be imparted to them, it is random sampling which is a type of probability sampling.
possibly feasible to offer better forms of employment to them in
the organized retail sector. Sample Size: To calculate the sample size following formula
was used. If the researcher plans the results in a variety of ways
Meeta Punjabi: According there study they suggest that the or if he/she has difficulty in estimating the proportion or
development efforts in this area are based on three grounds: standard deviation of the attribute of interest, the following
First, farmers associated with the modern value chains earn formula may be more useful.
ଶ×ଶହ
higher returns than selling to the traditional markets. Second, ݊=
{ୢଶ × (ିଵ)} ା {ଶ × ଶହ}
the modern supply chains have specific quality requirements Where n= Sample size required, d= Accuracy precision level
which are easier to meet by the large and medium farmers and (i.e 0.01, 0.05, 0.10 etc.), Z= Standardization value indicating a
the small farmers tend to get left out of these markets. Third, confidence level (Z= 1.96 at 95% confidence level and Z= 2.56
there are several successful examples of linking small farmers to at 99% confidence level N= Population Size (known or
these modern value chains with effort from government estimated)
agencies, NGOs and development agencies. This knowledge Here N= 180 Let us take confidence level as 90% and ± 10%
presents strong grounds for a closer look at the emerging sector precision level (d=0.10 and Z= 1.64), then the sample size (n):
in India.
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ଵ଼×(ଵ.ସ)ଶ×.ଶହ the initial years after the entry of large organized retailers.
n=
ଵ଼×(ଵ.ସ)ଶ×.ଶହ According to the Indian Council for Research in Impact of
n = 49.15 = 50 companies Organised Retailing on Unorganised sector International
Economic Relations (ICRIER), there would be no long term
There are many traditional and modern retailers were sent the impact due to the entry of organised retail chains on the
201.72Questionnaire, which was structured in nature. These neighbourhood irana shops in the country. In clear terms the
retailers were located Indore. Questionnaires were filled by impact of organised retailing on unorganised sector is as
direct interview. The Questionnaire was filled mostly by follows: i.The adverse impact on sales and profit weakens over
retailers. time, ii.There is some decline in employment in the North and
West regions which, however, also weakens over time., iii. The
Questionnaire Testing and Reliability Analysis: The rate of closure of unorganized retail shops in gross terms is
questionnaire was pretested on 38 retailers and data was fed into found to be 4.2% per annum which is much lower than the
SPSS software. Using SPSS reliability analysis was conducted. international rate of closure of small businesses., iv. The rate of
The validity of the questionnaire was tested by using expert closure on account of competition from organized retail is lower
validity, which is part of expert validity. The Experts approved still at 1.7% per annum.
the questionnaire with small modifications. The revised
questionnaire was administered and data was collected from 50 The Grocery stores and pan shops are seen as part of community
retailers in Indore. life and hence unorganised retail will stay but ICRIER observes
that if organised retail does not grow, the unorganised sector
Survey: A two page, Questionnaire was designed keeping in will not be able to handle the surging demand. Hence the share
mind the objectives of the study which were To analyze the of organised retail will grow at a rate between 45 and 50% per
impact of orgenised retailing on unorganized retail and to find annum. The observation rings true as well, this is being
out the survival strategies adopted by unorgenised retailers in witnessed in some urban centres already.
mall culuture. The Literature survey and pre study consultation
with industry experts were taken into account. The It has come out with certain valuable recommendations. It
questionnaire consisted of few open ended questions, some suggests a nationwide uniform licensing policy to aid modern
questions were either using ranking scale or Likert scale, and retailing which will help carry the countries retail sector to the
dicotomes type of questions and open ended question. USD (US Dollar) 590 billion mark in 2011-12. It suggests better
access to cheaper institutional credit so the Grocery stores can
This survey intends to analyse the impact of organised retailing take on competition from organised retail. Presently, only 12%
on unorganised retail sector in Delhi/NCR. This research of unorganised retail enjoys access to institutional credit.
explicates various aspects like the perceived and expected levels Another recommendation by ICRIER is worth a serious try. It
of satisfaction of the consumers and the factors which suggests cash and carry outlets which will sell to unorganised
unorganised retailer should take cognizance of in the course of retail and procure from farmers. This can help unorganised retail
establishing and enhancing their business. to buy at wholesale prices for eventual retailing, thereby
generating a handsome margin. Farmers too can benefit since
The survey is based on interviewing grocery store consumers at they can sell at lucrative prices and realise the sale proceeds in a
various catchment areas in Indore, India. Four areas swift and transparent manner. Once this cushion is provided,
Gumastanagar, Sch no71, A.B Road, Laxmi Nagar are selected unorganised retail can have no grouse against the government
based on number of households and income groups in the and even if it has, the government can ignore it. Being
catchments. The data is collected using a random sample of unorganised retailing is at serious step; there are still challenges
consumers. Consumers who have significant knowledge of the for organised retailing in India. Traditional retailing has been
topic were identified and selected at random for questioning. As established in India for some centuries. It has a low cost
per questionnaire, interviews were conducted face to face so as structure, mostly owner operated, has negligible real estate and
to capture the attitude and experience of consumers who had labour costs and little or no taxes to pay. Consumer’s familiarity
just purchased grocery items from organised and unorganised that runs from generation to generation is one big advantage for
retail outlets. Both qualitative and quantitative data analysis is the traditional retailing sector. In contrast, players in the
done in order to get deeper insights into the consumer behaviour organised sector have big expenses to meet, and yet have to
and store loyalty for local grocery stores. Larger the sample size keep prices low enough to be able to compete with the
greater is the precision or reliability when research is replicated. traditional sector. Moreover, organised retailing also has to cope
But constraints on time, manpower and costs have influenced with the middle class psychology that the bigger and brighter
decisions on the study sample size. sales outlet is, the more expensive it will be.
Impact of Organised retailing on Unorganised sector:
Unorganized retailers in the vicinity of organized retailers
experienced a decline in their volume of business and profit in
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Results and Discussion Purpose of visiting malls: 32% Customers visit mall for
Shopping while 36% visits for Entertainment and rest 34 %
its
Preference of Customers towards retail outlets 38%
etail outlets: visits for Window shopping. During the survey, I got straight
customers prefers unorganised retail shopping while 26% forward Purpose of visiting Malls Shopping, Entertainment, and
customers prefers organised retail shopping but 36 % customers Window Shopping.
are still not sure.
Purpose of visiting malls
Preference of Customers towards retail
outlets
36% 26% 32% For Shopping
Unorganised 36%
Organised For Entertainment
34%
Not sure
38% For Window shopping
Figure-1
Preference of Customers towards retail outlets
Figure- -4
Customers preferences towards the retail stores for Purpose of visiting malls
purchase of daily groceries: 38% customer’s purchases daily
groceries from local Grocery stores while 24% customers shop Customer’s satisfaction on the basis of price strategy
from Supermarkets, 22% customers from Convenience Stores adopted by malls: 64% Customers are satisfied with the pricing
and rest 16% Customers prefer Hypermarket. Thus, highest strategy of the malls after considering various discounts, sales
percentage is still with local Grocery stores however the and other offers, while 36 % Customers are not satisfied
difference between supermarket and local Grocery is less. Customers satisfaction on the basis of
Coutomers preferences towards the retail price strategy adopted by malls
stores for purchase of daily groceries
16% 36%
local kirana stores Satisfied
38% 64%
22% Supermarkets Unsatisfied
24% Convenience Stores
Hypermarket
Figure--5
Customer’s satisfaction on the basis of price strategy
pric
Figure-2 adopted by malls
Customers preferences towards the retail stores for
purchase of daily groceries Customers Preference for Best Shopping Deals: It was found
Deals
64%consumers finds best shopping deals in malls with various
Frequency for Visiting Malls: 44% Customers visit fortnightly Discount offers, gift packages etc. 28% customers are satisfied
to the malls for various different purposes, 32% customers visit with the shopping deals served by the local Grocery stores while
weekly, 18% monthly and rest 6% Daily visiting mall
mall. 8% customers has no opinion.
Frequency for visiting malls
Customers Preference for Best Shopping
18% 6% Deals
Daily 8% Organised
32% Retailing
Weekly 28% Unorganised
44% Fortnightly 64% Retailing
Monthly Not sure
Figure - 3 Figure--6
Frequency for Visiting Malls Customers Preference for Best Shopping Deals
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Impact of organized retailing on spending 48% consumers
spending: vital function in the economy and is a significant source of
declared an increase in spending 28% indicated a decrease and employment. However, it suffers from huge inefficiencies as
rest 24% no change. Thus the arrival of organized retail has a result of which consumers do not get what they want. In
enhanced spending in general. The reasons indicated for higher contrast, organized retail provides consumers with a wider
spending have been mainly the purchase of larger quantities due choice of products, lower prices, and a pleasant shopping
to wider range of products, availability of attractive offers like environment.
discounts and promotional schemes, and access to better quality
products with higher price. Conclusion
The concept of retail is primitive in Indian context. we had
Grocery stores, medical stores and lot many other stores
Impact of organized retailing on working surprisingly well all over the country. Recently
spending with the entrance of big players like Walmart or Reliance,
people are getting idea of the traditional stores going to be
24% vanished. But just to remind us, we should never forget how
48% Increase deep rooted is this old concept. The very modern organised
oncept.
stores have taken the idea of retailing nowhere else than from
28% Decrease
these old shops.
No change
The survey concluded that India's organised and unorganised
retail sectors can co-exist and flourish. The growth in the
exist
Figure-7 Indian organized retail market is mainly due to the change in
Impact of organized retailing on spending the consumer’s behaviour. This change has come in the
consumer due to increased income, changing, lifestyles, and
Key Findings and Recommendations: The key finding of patterns of demography which are favourable. Now the
the research is as follows: i. Unorganized retailers in the consumer wants to shop at a place where he can get food,
c
vicinity of organized retailers have been adversely affected entertainment, and shopping all under one roof. This has
in terms of their volume of business and profit. Unorganized given Indian organized retail market a major boost. While on
retail has maintained employment levels perhaps as a result the other hand the traditional stores are shops where the
of competitive response, ii. The adverse impact on various product available are the range of product really
unorganized retailers tapers off over time, iii. The major required by the customers. They cautiously take care of the
factors that attract unorganized retailers to consumers are choice of the customers and bring the product which is
proximity, goodwill, credit sales, bargaining, loose items, demanded by them. They try to satisfy them with the wide
convenient timings, and home delivery, iv. There is clear range and at the same time maintain a good relationship to
evidence of a competitive response from traditional retailers retain them and consequently convert them into their loyal
conve
who are gearing up to meet the threat from organized customer. The shopkeepers keeps latest products to their
retailers., v. Consumers have generally gained with the stores and then learn how is it actually affecting the sales of
emergence of organized outlets through the availability of products Although there stores have comparatively less
better quality products, lower prices, oneone-stop shopping, product range the selection made is quite relevant. Having
choice of additional brands and products, family shopping, looked at the features let us find the loopholes. However
and fresh stocks. Lower income consumers have saved more good is the ambience and wide is the product range, when it
from purchases at organized outlets. comes the selling price of the various goods, traditional
shops are always more efficient than these newly evolved
These results are not indicative of the countrywide scenario. stores. These retail shops lacking the interaction with the
tail
For the country as a whole, unorganized retail is growing at a customers have miserably failed in building base with loyal
reasonable rate and will continue to do so for many years to customer. No matter how much the companies talk about
come. Yet it is clear that the growth in demand for retail CRM (customer relationship management), when it comes to
business is likely to substantially exceed any possible supply the implementation they endeavour it only through the
response coming exclusively from the unorganized retailers. discount sales driven by their profit motive. Thus, in India it
India is at the crossroads with regard to the retail sector. is quite doubtful that the organised retail will be ever able to
Several emerging market economies have gone ahead and overcome the unorganised retail completely. The values,
reaped the benefits of modern retail. India is however a culture and beliefs of the customers prompt them to go the
latecomer to organized retail expansion and the picture still same retail shop where they can get the product required, at
remains unclear as to its future direction. The study low price and with least waiting time for billing. No matter
advocates a balanced approach to retail and suggests that the how lucrative is this sector and how bright is the market; the
government plays a major role in shaping its future course. organised sector in retailing has to go a long way to
There is no doubt that traditional retail has been performing a understand the customer requirement.
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Vol. 1(1), 7-13, August (2012)
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Effectivness of E-Tailing in the era of Techno Revolution
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