This study examines changing consumer preferences from unorganized to organized retailing in India. It analyzes factors influencing consumers to prefer organized retailers, such as the availability of all grocery products in one place, clear product classification, computerized billing, parking facilities, and credit card options. The study revealed customers' grocery shopping preferences are shifting from local kirana stores to organized convenience stores, with brand choice and credit cards being major determinants of this preference change.

1. A STUDY ON CHANGING
CONSUMER PREFERENCE
TOWARDS ORGANISED RETAILING
FROM UNORGANISED RETAILING
BY
S.DEEPIKA
M.SARANYA

2. The word retail is derived from French word “
Retaillier’’Which means “TO CUT A PIECE OFF’’ or
“TO BREAK BULK’’.
Retailing involves a direct interface with the customer
and co-ordination of business activities.
In simple words , it implies first hand transaction with
customers.
WHAT IS RETAILING ?

3. 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. In developed
economies, organised retail has a 75 - 80% share in
total retail as compared with developing economies
were unorganised retail has a dominant share.
GLOBAL RETAIL INDUSTRY

4. 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 sq.feet . It also has the
highest number of outlets.
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.
RETAILING IN INDIA

5. Government of India has allowed 100% Foreign Direct
Investment (FDI) in online retail of goods and services
through the automatic route, thereby providing clarity in the
existing businesses of e-commerce companies operating in
India. As per the current regulatory regime, retail trading
(except under single-brand product retailing – FDI upto 51%,
under the government route) is prohibited in India. Simply
put, for a company to be able to get foreign funding,
products sold by it to the general public should only be of a
“single – brand’’ this condition being in addition to a few
other condition to be adhered to. That explains why we do
not have a harrods in Delhi.
GOVERNMENT INITIATIVES

6. MAJOR RETAIL SECTORS IN INDIA

7. Emergence of organised retail
Spending capacity of youth on India
Raising incomes and purchasing power
Changing mind set of customers
Easy customer credit
Higher brand consciousness
TRENDS IN RETAIL INDUSTRY IN
INDIA

8. Hyper market/super market
Mom and pop stores
Convenience stores
E- retailers
Discount stores
Vending
Category killers
RETAIL FORMATS IN INDIA

9. KINDS OF RETAIL INDUSTRY

10. Organised retailing refers to trading activities
undertaken by licensed retailer, that is, those who are
registered for sales tax, income tax, etc..,
These include the corporate – backed hyper markets
and retail chains, and also the privately owned large
retail businesses.
ORGANISED RETAILING

11. Unorganised retailing on other hand refers to
traditional formats of low cost retailing.
Indian retail is dominated by a large number of small
retailers consisting of the local kirana stores, owner –
manned general stores, chemists, footwear shops
,etc..,
UNORGANISED RETAILING

12.  This study is to identify and analyse the factors which
influences the customers to move towards the
organised retailing from unorganized retailing.
 This study also helps to find the facts regarding the
most prioritized attributes of the organised outlets
which attract more customers towards them .
This study will help the retailers to make an analysis of
them and understand where they stand, and in order
to move forward in what area they must focus .
A STUDY ON CHANGING CONSUMER PREFERENCES
TOWARDS ORGANISED RETAILING FROM UNORGANISED
RETAILING

13. To study the influence of demographic factors on
buying decisions from organised and unorganised
retailers.
To analyse the factors which influencing the
consumers to prefer organised retailing from
unorganised retailing.
To analyse the most favoured organised retail
attributes by consumer.
OBJECTIVES OF THE STUDY

14. SAMPLE DESIGN
SAMPLING FRAME : consumers who purchase from
organised retailers at Kancheepuram (Guduvanchery)
SAMPLING UNIT : consumers from different age
groups, gender, and income levels.
SAMPLING METHOD : purposive sampling
SAMPLE SIZE : 50
RESEARCH METHODOLOGY

15. PRIMARY DATA : survey method ( by issuing
questionnaires)
SECONDARY DATA : Data were collected from
respondents and from previous study related to
retailing sector.
TYPE OF QUESTIONS : structured questionnaire with
multiple choice.
STATSTICAL TOOL USED : coefficient of correlation
and probable error.
DATA COLLECTION METHODS

16. Research instruments for the purpose of primary data
collection were collected through issuing questionnaries.
The questionnaire was divided into 4 parts.
1. CUSTOMER PERCEPTION
2. CUSTOMER ATTITUDE
3. SERVICES OFFERED
4. PROMOTIONAL MEASURES
RESEARCH INSTRUMENTS

17. AGE (X) 20 - 30 30 – 40 40 - 50 50 - 60
PERCENTAGE
OF RESPONDENTS 50 16 26 8
COEFFICIENT OF CORRELATION

18. X M.P X-A x Y Y-A y dxdy
20-30 25 -15 225 50 25 625 -375
30-40 35 -5 25 16 -9 81 45
40-50 45 5 25 26 1 1 5
50-60 55 15 225 8 -17 289 -255
Total - 0 500 - 0 - -580
SOLUTION

19. FORMULA
r = - 0.82189

20. P.E. r = 0.162158
PROBABLE ERROR

21. FINDING OF THE STUDY:
“I PREFER ORGANISED RETAILERS BECAUSE I CAN VISUALIZED RANGE OF ALL THE
GROCERY PRODUCT FROM ONE PLACE ’’
From this study most of the
consumers agree that they
prefer organised retailers
because they can buy all
grocery products from one
place. We can conclude that
availability of all grocery
product at one place is the
main reason why consumer
choose organised retailer than
unorganised retailer.

22. “I VISIT ORGANISED OUTLETS BECAUSE PRODUCTS ARE
CLEARLY CLASSIFIED PROPERLY’’
From this diagram we can say
that most of the consumers
prefer organised retailing
because products are classified
properly. 46% of the consumer
agree that they prefer organised
retailer because products are
classified properly and no
consumers disagree with this.so
this is one of the main reason
why consumer buy products from
organised retailers.

23. “ I VISIT ORGANISED RETAILERS BECAUSE OF
COMPUTERISED BILLING’’
This study shows that majority
of the customers of organised
retailers agreed that they buy
goods from organised retailers
because of computerised
billing which is provided by
organised retailers like hyper
market, super market,
departmental stores, etc..

24. “ I VISIT ORGANISED RETAILERS BECAUSE OF PARKING
FACILITIES’’
From this diagram we can
conclude that parking
facilities plays a major role
in choosing retailers by
consumers because 48 % of
consumers agreed that
statement and 20 % of
people strongly agreed with
that statement.

25. “ I VISIT ORGANISED RETAILERS FOR GROCERY SHOPPING
BECAUSE THE GIFTS ARE GIVEN’’
From this survey we
understood that gifts does
not plays a major role in
choosing retailers by
customers because 48 % of
customers disagree with
the statement “I visit
organised retailers for
grocery shopping because
gifts are given’’.

26. “ I CHOOSE ORGANISED RETAILERS BECAUSE CREDIT CARD
FACILITIES IS AVAILABLE’’
This diagram shows that 84%
of the consumers prefer
organised retailers because
credit card facilities is provided
and only 4% of the consumers
disagree with that statement.
So, we can conclude that
credit card facilities attracts
more consumers towards
organised retailers.

27. We visited these stores in Guduvanchery

31. This study revealed that customer’s preferences for
grocery shopping were gradually shifting from local
kirana stores to organised convenience stores. Brand
choice and credit card facilities were the major
determinants which influenced preferences from kirana
to organised retail store.
CONCLUSION

32. A SATISFIED
CUSTOMER IS THE
BEST BUSINESS
STRATEGY OF ALL
THANK YOU