CHAPTER 1

1.1 INTRODUCTION
India is becoming most favoured retail destination in the world. Today retail sector
contributing 10% to countrys GDP. Indian retail industry is ranked among the ten largest
retail markets in the world. The change of attitudes of Indian consumers and the emergence
of organized retail formats have transformed the face of retailing in India. Organized retailing
offers huge potential for future growth of retailing in India.
Retail is the sale of goods to end users, not for resale, but for use and consumption by the
purchaser. The word retail is derived from the French word retailer, meaning to cut a piece off
or to break bulk. In simple terms, it implies a first hand transaction with the customer.
Retailing can be defined as the buying and selling of goods and services. It can also be
defined as the timely delivery of goods and services demanded by consumers at prices that
are competitive and affordable.
In 2004, The High Court of Delhi defined the term Retail as a sale for final consumption in
contrast to a sale for further sale or processing (i.e. wholesale), a sale to the ultimate
consumer. Thus retailing can be said to be the interface between the producer and the
individual consumer buying for personal consumption. This excludes direct interface between
the manufacturers and institutional buyers such as the government and other bulk customers.
Retailing is the last link that connects the individual consumers with the manufacturing and
distribution chain. A retailer is involved in the act of selling goods to the individual consumer
at a margin of profit.
Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for
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about 10% to the country's GDP. The organized retail market in India out of this total market
accounted for Rs 350 billion which is about 3.5% of the total revenues.

Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010.
Traditionally the retail industry in India was largely unorganized, comprising of drug stores,
medium, and small grocery stores. Most of the organized retailing in India have started
recently and is concentrating mainly in metropolitan cities.

The growth in the Indian organized retail market is mainly due to the change in the
consumers behaviour. This change has come in the consumer due to increased income,
changing lifestyles, and patterns of demography which are favourable. Now the consumer
wants to shop at a place where he can get food, entertainment, and shopping all under one
roof. This has given Indian organized retail market a major boost.

Retail market in the organized sector in India is growing can be seen from the fact that 1500
supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian
companies are entering the Indian retail market which is giving Indian organized retail
market a boost. One such company is the Reliance Industries Limited. It plans to invest US$
6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets.
Indian organized retail market is increasing and for this growth to continue the Indian
retailers as well as government must make a combined effort.

1.2 OBJECTIVE OF STUDY

1. To study the preference of consumers for shopping in organized Retail store.
2. To study if the consumers are satisfied or not shopping in a Retail Store.
3. To study what motivates them to purchase from a Retail Store.
4. To study the advertisement impact.

1.3 HYPOTHESIS
1. Ho- Consumers shopping in a Retail Store are not satisfied.
Hi- Consumers shopping in a Retail Store are satisfied.
2. Ho- Retail Store does not motivate the consumers to purchase.
Hi- Retail Store does motivate the consumers to purchase.

1.4 NEED OF STUDY

Retailing provides an important link between producer and consumer in modern economy.
Retail in India is most dynamic industry and represents a huge opportunity for domestic and
international retailers. It is important for the retailers to know about the preference, habits,
styles and behaviour of the consumers therefore, it is important to make study in this context.
This study discusses how the Retail store satisfies and motivates the consumers.

1.5 RESEARCH METHODOLOGY

It is search for knowledge and is systematic and scientific search for getting relevant answers
on any taken up specific topic and scientific enquiry into a subject. Research is a movement
from the unknown to the known. It is the voyage of discovery. The information related to this
study is been collected from Secondary source such as E-data, Books and Journals.
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1.6 LIMITATIONS OF THE STUDY

The study of Consumer preference for shopping in Organized Retail Shop is comprehensive
and vast. Only limited part of it is covered in this study and detailed briefly. In this study we
understand the shopping behaviour of the consumers in a Retail Store. The different
format/types or retail store, Reasons for growth of retail store and challenges faced by them.
Retailing is broad concept and why people prefer purchasing from such stores is all discussed
briefly.