‘Impact of COVID-19 on unorganized fashion retail sector and their

shift on to online platforms’

A Research Report

Submitted by

Rushikesh Bhattad

Sai Shivani

Shubhangi Dash

Shubhangi Maniyar

Under the guidance of

Dr. Jagriti Mishra

In partial fulfilment of the Post-Graduate degree

In Fashion Management

Department of Fashion Management Studies

National Institute of Fashion Technology

Gandhinagar, Gujarat

January 2021
 Table of Contents

Declaration ....................................................................................................... 3

Acknowledgement ........................................................................................... 5

Chapter I ........................................................................................................... 6

Chapter II ....................................................................................................... 10

Chapter III ...................................................................................................... 19

Chapter IV ......................................................................................................20

Chapter V....................................................................................................... 23

Chapter VI ......................................................................................................58

References ...................................................................................................... 60

APPENDIX

2
 Declaration

We hereby declare that this research is our own work and that, to the best of our knowledge and
belief, it contains no material previously published or written by another person nor material
which has been accepted for the award of any other degree or diploma of the university or other
institute of higher learning, except where due acknowledgment has been made in the text.

Date: 7.1.2021 Name: Rushikesh Bhattad

Sai Shivani D

Shubhangi dash

Shubhangi Maniyar

3
 Certificate

This is to certify that the research report entitled ―Impact of COVID-19 on unorganized fashion
retail sector and their shift on to online platforms‖ is done by Rushikesh Bhattad, Sai Shivani D,
Shubhangi Dash and Shubhangi Maniyar is an authentic work carried out by them during their
1st semester under my guidance. This research report is submitted in partial fulfilment for the
award of the Post Graduate degree in Fashion Management from National Institute of Fashion
Technology, Gandhinagar. The matter embodied in this research report has not been submitted
earlier for award of any degree or diploma to the best of our knowledge and belief.

Signature of Supervisor:

Name of Supervisor: Dr. Jagriti Mishra

Designation: Associate Professor, FMS Department, NIFT Gandhinagar

Date: 07 Jan. 21

4
 Acknowledgement

This is a great opportunity to acknowledge and to thank all those persons without whom this
research would not have been impossible. We are extremely grateful to Dr. Jagriti Mishra, for
her guidance, valuable suggestions, moral support, constant encouragement and contribution of
time for the successful completion of assignment. We are also very thankful to NIFT, for
providing all the facilities needed.

Date: 07.01.2021 Name: Rushikesh Bhattad

Sai Shivani D

Shubhangi Dash

Shubhangi Maniyar

5
 Chapter I. Introduction

Industry profile

Retailing in India as also elsewhere in the world is divided into organized and unorganized
retailing. Organized retailing refers to trade activities undertaken by the licensed retailers i,e,
those who are registered for sales tax, income tax etc. These include the corporate backed
hypermarket, retail chains and also the privately owned large retail business. Unorganized
retailing, on the other hand, refers to traditional format of low cost retailing, for example the
corner store (kirana i.e. grocery shops),owner manned general stores, Cigarette shops,
convenience store, hand cart, pavement vendor etc. Unorganized retailing is the most prolific and
visible form of retailing in India while the organized retailing constitutes only a very small
percentage (3- 4%). The reasons as to why Indian retailing is so fragmented or unorganized in
nature lies in her entrenched poverty and the fact that a large number of educated unemployed
and superfluous labor takes refuge in retailing in the face of joblessness and glaring poverty.
India is one of the largest emerging markets, with a population of over one billion. It is one of the
largest economies in the world in terms of purchasing power. Retailing in India is at a nascent
stage of its evolution

Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to
the entry of several new players. Total consumption expenditure is expected to reach nearly US$
3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10% of the country‘s
gross domestic product (GDP) and around eight% of the employment. India is the world‘s fifth-
largest global destination in the retail space.

India‘s retail market is estimated to reach $1.75 tn by 2026, from $0.79 tn in 2018, growing at a
CAGR of 9-11%, driven by socio-demographic and economic factors such as urbanization,
income growth and rise in nuclear families. On the other hand, the Indian e-commerce industry is
expected to cross $200 bn mark by 2026.

6
The E-commerce market in India is also set to grow at a CAGR of 30% for gross merchandise
value to reach $200 bn by 2026, and have a market penetration of 12% compared to 2%
currently.

Fig1. Unorganized Retail Sector Source: elkjournals.com

The figure shows comparative to other nations of the world Indian retail sector is highly
dominating by the unorganized retail sector because of the unorganized retail sector is one of the
easiest ways to generate self-employment as it requires minimum investment in terms of land
labour and capital and also Indian population size is also one of the main reason to this. These
stores are not affected by modern retailing as it is still considered very convenient to shop.

Fashion Market

The fashion market includes menswear, women wear and kids wear. Among these the men‘s
apparel market is 46 percent of the total apparel market in India. This is due to increasing
preference for readymade garments and this has become inevitable with the rise in urbanization.

7
On the other hand, the women's apparel market covers 17 percent of the total apparel market in
India and is increasing constantly owing to the changes in the dressing habits among the working
women. Also the cross nation movement and employment in MNCs has resulted in increased
preference for the branded Western and Indo-western apparels among the working as well as
younger women. Kids ‘apparel market is 37 percent of the total apparel market but the brand
penetration in this segment is lowest at 9 percent exhibiting a lot of potential for the branded
players to exploit this segment.

In India, apparel is the second largest retail category having yearly growth rate of 12-15% and is
expected to lead the organized retail sector in India in upcoming years. The Indian apparel retail
sector generated total revenue of $28,102.6 million in 2009, representing a Compound Annual
Growth Rate of 9.9% for the period spanning 2005-2009. This is currently growing at a great rate
of knots and is expected to go up to US$ 833 billion by the year 2013. It is further expected to
reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth
rate, the consumer spending has also gone up and is also expected to go up further in the future.
In the last four years, the consumer spending in India climbed up to 75% indicating further
growth in the Indian retail industry in coming days.

Fig 2. Graph of Indian Apparel retail Market Source: Technopak analysis

The organized apparel retail market in India is estimated at US$ 5.5 Bn in 2011 and is expected
to grow to US$ 8 Bn by 2016 at CAGR 8.5%

8
Research Profile

Through this research, we aim to find out valuable information regarding the shift in strategies by
unorganized retailers in India due to the Covid-19 pandemic. COVID-19 has been affecting lives
since a year which has put the country into lock down. This research paper is conducted to
analyze how much the unorganized retail sector has been affected, either negatively or positively.

The research focuses on the adaptation to survive in the market and what means they are
following, and how it has affected the sales and marketing of the merchandise. By pitting the
platforms against each other, we aim to also find the most effective one that should be a
preference for Fashion Retailers. Online presence especially for Fashion is a great new
opportunity for smaller and more rural players. Information on social media channels and online
applications is still little to none. This would guide the upcoming retailers in their online presence
strategy. A clear vision on the paradigm shift from brick and mortar system to online retail is the
need being solved.

Problem Definition

Through the literature review of other research papers on unorganized retail, some areas were
discovered where there was scope for further digging. Online selling is the new revolution and
especially after the pandemic. Many unorganized retailers in India have started using social
media but still there is lack of information as to how social media marketing as a marketing
medium is helping in sales, visibility, customer satisfaction and improvement process in the
fashion sector.

The researches that have already been conducted are mainly done on worldwide data or are
mainly targeted towards developed countries and not in specific to unorganized retail. The data is
also not current, as the pandemic is only over a year old. Therefore the direct impact of a crisis
on smaller retailers has no information. The information collected will be aimed to understand
effectiveness of platforms as more and more choices are coming into picture. This research is
aimed at delivering information on the core marketing strategies that retailers should imbibe to
attract maximum customer attention.

9
 Chapter II. Review of Literature

Research has found the challenges being faced by Indian retailers in the pandemic are shrinkage
in business, fall in consumption, diminishing brand loyalty, subsidized hedonic needs, reduction
in money flow, managing the fixed cost, operational difficulties and other threats. These
problems have also given scope to opportunities for modification of operations, market
penetration, diversifying the products, looking beyond the market, moving out of large buildings
and benefits of organized retailing. (Rajalakshmi, Rajavel, Anitha, Aartheeswari, 2020). In
specific to the fashion retail market, the findings reveal that consumers from tier ii cities express
interest towards unorganized retail stores while tier i city consumers have reservations.
Furthermore, cheaper prices and discounts offered were found to be key attributes to attract
customers to unorganized retailers. (Kaur, Devgan, 2014). Younger consumers are more likely
than older customers to opt for online shopping as they are more comfortable with technology
and some of the factors that influence the online consumer behavior are normative beliefs,
gender, and age according to study.

In their study Mr. Raghavendra R.H.(2012) attempted to present the overview of unorganized
retail sector in India and discussed about the reasons for domination of unorganized retail sector
over the organized one also the opportunities and challenges faced by the unorganized retail
sector. In India unorganized retail sector is predominant over organized retail sector. Indian
consumers are showing rapid changes by shifting their buying attitude from unorganized outlets
to organized outlets. Dinar Fatima made effort to present an In-depth study of Impact of
organized retailing on unorganized Retailing and identified emerging retail trends in India,
consumer behavior towards the unorganized retail and emerging organized retail sector in India
and competitive advantage of both the sectors on each other. Both organized and unorganized
retail sectors not only coexist but also grow substantially in size.

Unorganized retail sector in India is the most dominating as it has been one of the easiest ways
to generate unemployment which is a huge boon for the current population. Due to the current
pandemic a lot of these retailers have been affected which has resulted in mass layoffs and
closures, adversely influencing the financial capability. According to an interview conducted
recently, these retailers have shown resilience in this time and are adapting to various means to

10
grab at the opportunity to keep the business going.

Seema S. Shenoy, Deepa Nayak P. & Devaraj K.(2011) through their study about Paradigm
Shift in Indian Retail are trying to search for a more lucrative retail format. Retail industry is the
second largest in India. This study covers players in both the organized and unorganized sector
and identifies the best suited retail format for our country. It focuses on various retail formats
like malls, specialty stores, discount stores, E retailers, departmental stores and exclusive stores,
hypermarkets, supermarkets, cash and carry, vending and convenience stores. In view of the
same this research has designed a model for the retail players to judge if the format choices have
been appropriate for growth and survival amidst the stiff competitive pressures in the market.

The apparel industry is one of the fast growing industries in India. The industry has short life
cycle, volatile and unpredictable demand and tremendous product variety with long and
inflexible supply process. Moreover, Indian apparel industry is in the global radar, attracting the
attention of other international countries. The apparel industry in India has substantially
diversified on the basis GJRIM Vol 3, No 1, June 2013 2 of fashion, climate, region, culture and
fiscal factors. Apparel’s are segmented into Ethnic, Formal, Casual and Sport wear. Casual
apparels dominate the segmentation with major share of 53% followed by sports with share of
27% due to youth population being the major demographic of India’s population. Indian textile is
witnessing great growth and development in the industrial sector in India as well as abroad. The
significance of the apparel industry is entirely based on the contribution of the industrial
productivity and employment. Indian apparel industry produces clothes for domestic as well as
international markets. The apparel industry consists of small, medium and large size companies.
According to the company sizes, total number of employees in a firm varies. Small
manufacturing companies that sell garments primarily to the local market are scattered in all over
India. Medium and large size firms produces bulk quantity for export market as well as domestic
market are located only in few zones, like in North India (Delhi, Gurgaon, Noida, Ludhiana),
South India (Chennai, Tripura and Bangalore), East Zone (Kolkata) and west zone (Mumbai and
Ahmadabad). In recent years the apparel industry is growing in other parts of India like
Rajasthan, Hardwar and Patna etc. In manufacturing maximum no. of employees are worker. The
Indian apparel industry has seen remarkable changes in the past few years and it is also one of
the India's largest foreign exchange earners. India’s Apparel industry (domestic + exports) is
expected to grow from the current $ 70 billion to $ 220 billion by 2020. Apparel industry in India
11
is an industry where there is seen a continuous deviation in consumer’s choice and preference

Technology has restored the faith of consumers in local stores as they remained operational even
during the peak of the pandemic and helped meet their needs. Technology has transformed the
small physical stores from pure brick and mortar entities to phygital‘stores. Leading technology
and retail giants have invested in transforming these stores directly or indirectly. Digital
integration of local shops not only provides insightful data about consumer trends, but also helps
companies understand the performance of their product, helping them strategize better (India
retailing Bureau, October 5, 2020). The power of modern tools and technologies is in the hands
of few large companies, these retailers are finding it difficult to grow their business more than
ever before. Big players are chugging away at their business month-after-month, year-after-year.
More retailers are gradually realizing the difference technology can bring to their business. These
folks are looking for technology providers who can help them grow their business, and also help
them with running it in a more efficient way. (Mohit Maheshwari, et retail)

Supermarkets in Tirunelveli have created several impacts on unorganized retail stores. Major
impacts are reduction in sales volume, reduction in profit and involving family members in the
business in order to avoid the recurring cost through the salary of workers. Due to the
commencement of Supermarkets near to the unorganized retail stores there is a reduction of
sales, profit, customer base and loyal customers. Day by day the unorganized retail stores are
losing the class of customers visiting their shop. These will lead to the slow death of the
unorganized retail stores. (Hamil, 2014)
While understanding this, we need to understand what this means at the core. Unorganized
Sector is a Sector consisting of all unincorporated private enterprises owned by individuals or
households engaged in the sale or production of goods and services operated on a proprietary or
partnership basis and with less than ten total workers. (Gurjar, 2016) It is a sector faced with
many challenges. Organized retailers see 'Competition from Unorganized Retail' as their biggest
challenge. Lack of Technology Adoption, Inefficient Supply Chain Management, Lack of
Infrastructure and Logistics, Understanding customers, High Cost of Operation, Scarcity of
Skilled Workforce, Price War, Frauds in Retail, Ever-increasing customer demand as major
challenges. Cultural Diversity, E-Retailing, Escalating land and rental prices, Power Supply
Problem in India, are considered as moderate challenges for Indian retailers. Complexity in Tax
12
Structure and Government Opposition to FDI seems to have least effect on the Indian retail
outlets. (Nagpal, 2017)

These challenges have repercussions. In the world of fast growing online shopping. Most of the
over flourishing retail shops in the last decade were closed and a very few are remaining in some
corners. it is so pathetic that the shopkeepers are suffering and started involving in some other
business. The government should take some steps to save the unorganized retail labor. (Devi,
2016) Indian retailers fail at a huge step when compared to retailers elsewhere which is stock
management. Stock administration is the main test that retailers face at the nearby store level and
additionally at the distribution center level. Abundance stock regularly prompts an expansion in
stock expenses, and afterward to lower benefits, so retailers like Pantaloons and Shoppers Stop
have IT frameworks set up for stock administration. Store network should be effectively
overseen in light of the fact that it directly affects the organization's bottom lines. (Kumar, 2018)

While several challenges are in the way for unorganized retailers. They can overcome it with the
right steps. This change of growth of the organized sector has come in the consumer due to
increased income, change in lifestyles and patterns of demography which are favorable. When
compared to the unorganized retail format most of the respondents had a good image about the
unorganized retailers and in future many of them are ready to prefer organized retailers. Most of
the customers are attracted to unorganized retail stores because of the variety and assortment of
products. Middle aged people and youngsters are mostly approaching unorganized retailers in
future.

These retailers should make strategies to retain their customers by providing quality goods and
services and they should also go for collaborations within the regional level then only they can
survive in the globally competitive market. (Rani, 2019) Through the right strategy, the
unorganized sector can turn organized. Following measure can be taken to solve the paradigm of
organized and unorganized retail
• Liberalization policy for domestic retailers to become organized retail.
• More credit facilities for rural unorganized stores to develop their stores.
• Proper regulatory body for unorganized retailers for establishing retail shops.
• Ceiling on prices by the govt. to control price level of different organized retailers against
13
 predatory prices.
• Educating rural people and improving their standard of living.
• So Indian retail requires a balanced strategy for organized and unorganized retail stores
that may be called as conversion of Unorganized retailing in organized Retailing.(Bajaj,
2013)

The main objective of this paper is to study the demographic differences in consumers’ buying
behavior of persons living in Madhya Pradesh and when they buy FMCG products. Hariharan.G.
(2008) in his study “profile and perception of retail consumers' ', analyzed the consumer’s
perception towards retail, in Palakkad. Visiting retail outlets has become a group activity. Most
of the shoppers are influenced as well as accompanied by colleagues, friends and relatives.
Majority of the people who visit do not shop at all. The hang around meet friends, do window –
shopping and spend time leisurely

Rathanyake (2008) studied in his research about “customer complaining Behavior in Retailing
'',proper understanding of the dynamics of customer complaining behavior support the retailer to
treat the customers who are not satisfied with the retail Experience. Suresh (2007) studied in his
research about Buying Behavior and promotion in Textile Retailing and concluded that increase
in turnover should be achieved by reducing the margin in this competitive era to survive in the
long run. Keep updates about the price fluctuations and new fashions in the supplier market.
Always be in a receptive mood to know the preference and taste of customers”

Tamilarasan.R. (2007) in his study focused to “A study on Retail store service Quality
Dimensions in select Retail stores”. This study after an in depth analysis of a variety of store
dimensions and services quality dimensions reveals that all these dimensions have to be
improved to earn a competitive edge and survive in the retail Business in view of the changing
and emerging retail scenario, in India with the possible advent of the MNC’s in the retail Indian
Market Scenario.

Verma and Madan (2011) in a study conducted in Indian context highlighted that retailers are
offering newer service dimensions to create unique shopping experiences for the customers.
14
However, whether consumers are able to perceive newer service dimensions and getting affected
for store patronage in new store formats or not, remains to be found out. They emphasized the
fact that Indian retail environment is going through a sea change due to the introduction of new
formats and opening up of retail industry, it becomes important to understand the store image
perceptions of consumers here. The study attempted to find out the key factors that are perceived
as important to Indian consumer in evaluation of a retail format. Paswan, Pineda and Ramirez
(2010) in a study conducted in Mexico investigated whether inux of large stores is inevitable, by
focusing on consumers' motivation for selecting a retail store, and the association between these
motivation dimensions and the shopping patronage. The results indicated that consumer's
preference for small stores is positively motivated by functional benefits and familiarity with
small stores; and negatively associated with the functional benefits offered by large stores. These
motivational dimensions were also found to be positively associated with the share of wallet
spent at small stores. It was found that gender exhibited mixed effect on preference for small
stores and the share of wallet. The study revealed that women feel that large stores provide better
functional benefits and support for the local economy. Mehrotra (2008) analyzed the conditions
of work (for example, hours of work, hazardous nature of work, safety conditions and wages
rates) in the prevailing labor market conditions, where there is excess supply of labor. The
unorganized sector workers themselves are fragmented and almost always not organized into
unions, where they suffer from access to imperfect information and are not fully aware of their
limited rights. To make it even more difficult, they are mostly illiterate or barely literate. If the
pre-requisites for improving their conditions of work do not exist, he suggested that the state
should focus its attention on improving the social protection for such workers, that is, social
assistance and social insurance. This implies that the state should focus on doing the do able.

Tazyn Rahman (2012) study revolved around the opportunities and challenges faced by
organized retail players in India. It was found that organized retailers see competition from the
unorganized sector as their biggest challenge, followed by competition between organized
retailers and the inefficiency of distribution channels, internal logistical problem and retail
shrinkage.

H. Gupta, N. Dubey and P. Pawan (2012) the broad objective of the study was to understand
consumer behavior towards organized and unorganized retail stores and to find out the
15
consumers satisfaction level from organized retail stores as well as unorganized 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.

Unorganized retailing is the most prolific and visible form of retailing in India while the
organized retailing constitutes only a very small percentage (3- 4%). The reasons as to why
Indian retailing is so fragmented or unorganized in nature lies in her entrenched poverty and the
fact that a large number of educated unemployed and superfluous labor takes refuge in retailing
in the face of joblessness and glaring poverty. India is one of the largest emerging markets, with
a population of over one billion. It is one of the largest economies in the world in terms of
purchasing power. Retailing in India is at a nascent stage of its evolution In India, the most of the
retail sector is unorganized. In India, the retail business contributes around 11 percent of GDP.
Of this, the organized retail sector accounts only for about 3 percent share, and the remaining
share is contributed by the unorganized sector which is mostly a family owned business in India.
The main challenge facing the organized sector is the competition from unorganized sector.
Unorganized retailing has been there in India for centuries, these are named as mom-pop stores.
The main advantage in unorganized retailing is consumer familiarity that runs from generation to
generation. It is a low cost structure; they are mostly operated by owners, has very low real estate
and labor costs and has low taxes to pay.

Unorganized retailing has been one of the easiest ways to generate self-employment, as it
requires limited investment in land, capital and labor. It is generally family run business, lack of
standardization and the retailers who are running this store they are lacking of education,
experience and exposure. This is one of the reasons why productivity of this sector is
approximately 4% that of the U.S. retail industry. Unorganized retail sector is still predominating
over organized sector in India, unorganized retail sector constituting 97% (twelve million) of
total trade, while organized trade accounts only for 3%.

Indian apparel industry which is the second largest contributor in the retail industry after food
16
and grocery is seeing some major shifts. Entry of international brands, changes in preferences
from non-branded to branded, the fast growing economy, large young consuming population in
the country has made India a highly lucrative market. India has the world’s largest youth
population, which is becoming fashion conscious owing to mass media and social media
penetration. This has opened unprecedented retail market opportunities. The promising growth
rate of 9.7 per cent makes the Indian fashion industry prominent in the retail sector. With a GDP
growth rate of 7 per cent, India has an edge over developed markets of the US, Europe and Japan
which are expected to grow at a rate of 2-3 per cent. Favorable trade policies and increased
penetration of organized retail among other factors contribute in making Indian fashion industry
attractive for investors.
Within the retail categories, apparel retail has demonstrated comparatively high receptivity
towards corporatized retail. High penetration of corporatized retail in apparel has also paved the
way to introduce more formal and systematic processes and procedures in operations,
procurement and distribution. As a consequence, apparel retail market has managed to harness
the advantages offered by modern management concepts leading to improved product offering,
better customer management and scientific supply chain management techniques. It is expected
that apparel retail will continue to witness deeper penetration of corporatized retail beyond the
major urban clusters and the increase in the demand of branded products.

The unorganized sector has a significant share, due to the prominence of ethnic wear in the
country. The share of the unorganized market is higher in the smaller tier two and tier three cities
due to its affordability. Consumers in these cities are even more price conscious given their
lower disposable incomes.

The Indian consumer base is very diverse and is made up of many ethnicities. Every region has
its own unique dressing styles, based on physical build, weather conditions and ethnic
backgrounds. These factors have also helped in the growth of regional apparel brands in the
country. Some prominent examples of regional brands with ethnic focus that have been doing
well recently include brands such as Meena Bazaar and Chhabra 555 in northern parts of the
country and brands such as RMKV Silks and Ramraj in the south. International players would be
best advised to invest in researching the regional needs of Indian consumers before launching
17
new products. The ABCDE of Indian consumers are Availability, Breadth of Assortment,
Convenience, Deals and Discounts, and Experience.
However, connecting with young dynamic Indian consumers continues to remain challenging for
apparel brands. As per Euromonitor International’s Consumers data, the median age of the
Indian population is 27 years, with around 77% of the population being younger than 45 as of
2015. These young consumers, on average, spend three to five hours a day online surfing social
media, blogs and online retailing channels. Social media, digital marketing and blogs are also
driving sales of store-based brands by increasing brand awareness. Hence, store-based retailers
will also use technology to understand their consumers. Social media is therefore a crucial
instrument in spreading brand awareness among consumers. Social media is uniting Bharat and
India online – bringing together rural and urban regions. Ethnic wear had been found more
specifically with local retailers when no had brand stepped into this business. Statistics prove
that 65 per cent of the market is still unidentified and the remaining 35 per cent consists of
organized/ known labels and well-known designers. It includes occasion wear, which is sold
through identifiable garment stores. Talking about the unorganized market and giving figures,
Mr Hemang Savla, Concept Head, Ethnic Formats, Future Group tells, “Presently, the
organized market in the ethnic wear industry is around Rs 2000 crore, while the unorganized
market is still large at around Rs 40,000 crore.”

18
 Chapter III. Research Objectives

Research Gap:

● No research has been conducted in recent times, after the covid-19 pandemic
happened, that studies the impact on unorganized fashion retail.
● No information in terms of retail behavior in India and mainly smaller cities has
been done.
● There are a lot of Challenges being faced by unorganized retailers but not much
information on how to tackle it and the right strategies to adopt.
● Digital integration of local shops can be studied further.
● Information available is mainly focused on the organized sector.
● Shift in between retail selling strategies and use of different platforms is not
studied.

Research Objectives:

Primary:

1. To determine the impact of COVID 19 on unorganized fashion retail sector

2. To study the shift towards online platforms and their effectiveness towards sales of
merchandise

Secondary:

1. To study the relation between use of social media and its impact on business of
unorganized fashion retailers.

2. To study the impact of use of ecommerce on business of unorganized fashion retailers.

3. To understand the brand value that can be created by retailers through online presence.

19
 Chapter IV: Research Methodology

Research Design:

1. Descriptive Research: This research technique is being used because not much is known
about the topic. Descriptive study will help in collecting and conducting the study needed
to carry out quantitative analysis of sales on websites and social media. This study will
help in observing the change happening in the Indian fashion retail sectors in terms of
their selling strategies. The study is trying to conduct sub categorical analysis, wherein
descriptive study will prove useful.

2. Cross Sectional: Cross sectional descriptive study will be carried out in order to
understand the different characteristics of retailers, in terms of use of websites and social
media. Since we want to study the efficiency of these online platforms as per use by
unorganized retailers, this technique will help in comparing the variables (as per use) at
the same time and by the same sample. It will form the relationship between the use of
online platforms and sales and compare among them.

Data Sources:

1. Primary: The primary data will be collected through online survey using Google Forms.
The study is being conducted as an observational one without causing any manipulation
in the variables. Information will be collected through:

i. Forms circulated through social media

ii. Direct interviews

iii. Store visit surveys

20
 2. Secondary: The secondary data will be collected to provide a general idea of the current
retail scenario. It will also help in understanding the way unorganized retailers are
functioning on online platforms by own observation. It will be collected from these
sources:

i. Research Journals/Papers

ii. Fashion journals, books, magazines and articles.

iii. Reports by consultancies.

Observation regarding online retailers‘ behavior on social media and websites will also prove as
information.

Questionnaire Design

The questionnaire was designed keeping in mind that retailers from unorganized sector are target
respondents. Language was kept simple. Questions were also divided into sections as per the use
of online selling platforms.

When needed, extra help was provided in filling the questionnaire.

Attached in Appendix 1

Sampling Design:

1. Sample size: In accordance with the reach available through in current situation, survey
sample size being taken is 150 units.
2. Sampling Frame: The sampling frame for our survey is through geographical basis.
Respondents from India are the frame.
3. Sampling element: The sampling element is Indian Unorganized fashion retailers who
have an online presence.

21
 4. Sampling Technique: Since our target respondents need to have specific particulars, we
are adopting Snowball sampling. This is to pass the survey from one possible respondent
to another. Also taking referrals from initial subjects to generate additional subjects.

Scope:

The scope of our study extends to Indian unorganized retailers ranging across various lines of
products including readymade sarees, dress material, suiting shirting, matching centre and
upholstery. The study is mainly focusing on retailers who have online presence. The information
will be collected primarily from online sources.

The study includes social media marketing use and strategies. It also provides information in
order to increase customer engagement and create a long-lasting impact of the product on the
consumers even after the COVID-19 pandemic ends. This study can be developed further to
study the effects of various marketing strategies on sales and customer satisfaction.

22
 Chapter V: Analysis and Interpretation

Tools Used

These are all of the methods employed to analyze the collected information and its statistical
analysis:

General Analysis: The data imported from questionnaires used to form graphical representation
as bar charts and pie diagrams used to analyze all retailer behavior and decision factors.

Descriptive statistics: They are used to describe the basic features of the data in a study. They
provide simple summaries about the sample and the measures. Together with simple graphics
analysis, they form the basis of virtually every quantitative analysis of data. Used for all common
questions.

Hypothesis Testing: Hypothesis testing is a statistical method that is used in making statistical
decisions using experimental data. Hypothesis Testing is basically an assumption that we make
about the population parameter.

Key terms:

● Null hypothesis: Null hypothesis is a statistical hypothesis that assumes that the
observation is due to a chance factor. Null hypothesis is denoted by; H0: μ1 = μ2, which
shows that there is no difference between the two population means.
● Alternative hypothesis: Contrary to the null hypothesis, the alternative hypothesis shows
that observations are the result of a real effect.
● Level of significance: Refers to the degree of significance in which we accept or reject
the null-hypothesis. 100% accuracy is not possible for accepting or rejecting a
hypothesis, so we therefore have selected a level of significance that is usually 5%.

23
Regression Analysis: Linear regression is the most basic and commonly used predictive
analysis. Regression estimates are used to describe data and to explain the relationship between
one dependent variable and one or more independent variables. At the center of the regression
analysis is the task of fitting a single line through a scatter plot. The simplest form with one
dependent and one independent variable is defined by the formula y = a + b*x.

There are three major uses for Regression Analysis: 1) causal analysis, 2) forecasting an effect,
3) trend forecasting. Regression analysis was used to find dependence or causal relationship
between one or more independent and one dependent variable.

Anova Analysis: Analysis of variance is a collection of statistical models and their associated
estimation procedures used to analyze the differences among group means in a sample. The one-
way analysis of variance (ANOVA) is used to determine whether there are any statistically
significant differences between the means of three or more independent (unrelated) groups. We
used it to test the hypothesis that we formed as per our objectives.

Cluster analysis: It is a class of techniques that are used to classify objects or cases into relative
groups called clusters. Cluster analysis is also called classification analysis or numerical
taxonomy. In cluster analysis, there is no prior information about the group or cluster
membership for any of the objects.

This was used to analyze the data given by the retailers and then classify them into clusters on
the basis of certain pre decided factors.

Factor analysis: It is a technique that is used to reduce a large number of variables into fewer
numbers of factors. This technique extracts maximum common variance from all variables and
puts them into a common score. As an index of all variables, we can use this score for further
analysis.

24
For the factors impacting the non use of online selling, the variables were many hence factor
analysis was used to compile them as per similar behavior.

General Data Analysis

Fig 4. Line of product

This demographic question was asked to know the product category of the respondents and to
further study which particular product line has more impact of Covid-19. From the obtained
results it can be seen that majority of respondents deal in Readymade, Sarees and Suiting &
shirting with Sarees and dress material being maximum at 32.7%.

25
 Fig 5. Age of Business

This question was asked to study the impact of Covid-19 on well settled businesses and the
newly opened once. From the responses gathered it can be seen that around 45% of the retail
outlets have been established since 11-20 years.

Fig 6. Online Selling

26
The secondary objective of this research (Fig 6) is to study whether retailers have opted Online
platform for their marketing and sales. The response gathered through this question clearly
conveys that 64.5% of the retailers are marketing and selling their products using online
platforms.

Fig 7. When started online

This question fulfils our primary objective to study the impact of Covid-19 on the unorganised
fashion retail sector. 58% of the responding retailers have started selling using online platforms
after the pandemic.

Fig 8. Platform of online selling

27
This question (Fig 8) was asked to further analyse about the popular online platform which
retailers prefer to sell their products. Nearly half of the respondents prefer social media platforms
to market and sell their products.

Fig 9. Promote Online

This question was for them who do not sell their products but promote their business on online
platforms. It was found that 40% and 35% of the respondents using Facebook and Whatsapp
respectively to promote their products online but nearly half of the respondents who don‘t sell
online also don‘t promote their products on these online platforms.

28
 Fig 10. Future online selling

This question was asked to study the future scope of online platforms for unorganised retailers to
market and sell their products online. Nearly 55% of the respondents who currently don‘t sell
using online platforms have proposed to sell their products online.

Fig 11. Use of social media

29
With this question the objective was to study the popularity of different social media platforms
which retailers operate on. It was found that whatsapp and facebook are the widely used social
media apps with engagement of around 88% and 75% respectively.

Fig 12. Effective social media

The objective behind this question was to study the effectiveness of different social media
platforms for retailers to sell their products online. Respondents have strongly agreed that
Whatsapp is the most effective social media platform for selling online with the highest rating
for 5, whereas for Facebook the ratings are equally divided from 3-5.

30
 Fig 13. Reason not selling on e-commerce

This question analyses the concern behind the retailers not selling their products on E-commerce
platforms. With the results it can be concluded that nearly 70% of the respondents not selling E-
commerce platforms are concerned about the costs involved in operating on E-commerce
platforms and around 67% don‘t operate due to its technical complexity.

31
 Fig 14. future e-commerce selling

With this question the future scope for the retailers to sell their products on E-commerce
platforms can be predicted. Nearly 50% of the respondents who sell online on social media
platforms but not on E-commerce ones have proposed to operate on these in near future.

Fig 15. suggest social media

As whatsapp is the most effective platform for selling products online, 60% of the respondents
have suggested same for the other retailers in their product line.

32
 Fig 16. e-commerce platform

This question was asked for the retailers who are selling their goods on E-commerce platforms to
know which specific platform they operate on. Amazon with the highest percent of choice stands
first with 63.2% whereas, Flipkart with 52.6% stands second.

Fig 17. effective e-commerce

33
This question was asked to know the most effective E-commerce platforms for the retailers. But
no clear picture can be inferred from the results.

Fig 18. not selling on social media

This question analyses the concern behind the retailers selling their products on E-commerce
platforms but not on social media. With the results it can be concluded that nearly 73% of the
respondents are concerned with Chances of malpractice on social media.

Fig 19. future social media selling

34
With this question the future scope for the retailers to sell their products on Social media
platforms can be predicted. Nearly 42% of the respondents who sell online on E-commerce
platforms but not on Social media ones have proposed to operate on these in near future.

Fig 20. suggest e-commerce

Majority of the retailers selling their goods on E-commerce platforms suggests Amazon and
Flipkart with about 31% and 36% respectively to other retailers dealing in the same product line.

35
Descriptive Analysis

Fig 21. descriptive analytics

Interpretation:

As per the data run through descriptive analysis, these are the findings:

● Most people sell online as found through mean variable. Later on this data, the different
users as per social media, ecommerce and both are also classified.

● Most businesses belonged from `10-20 years which means unorganized retailers have a
long lasting presence in the market. These are also retailers who have existed before
online platforms were present, hence they have gone to these online sectors now only.

● The most used social media platform is Whatsapp and Facebook as per the data. This
shows a familiarity with these mediums among unorganized retailers.

36
 ● Selling online was mainly done after the Covid-19 pandemic. Showing that there was an
impact of the pandemic on how unorganized fashion retailers behaved.

● As per inclination towards selling online, most inclined towards not preferring to do so.

● Both in general and in terms of selling on ecommerce platforms.

Hypothesis Testing

Hypothesis 1

H0: There is no impact of Covid-19 on the online shift of unorganized fashion retailers.

H1: There is an impact of Covid-19 on the online shift of unorganized fashion retailers.

37
Regression Analysis

Fig 22. Regression Summary

Interpretation

This table provides the R and R2 values. The R value represents the simple correlation and is
0.357 (the "R" Column), which indicates a moderate degree of correlation. The R2 value (the "R
Square" column) indicates how much of the total variation in the dependent variable Online
shift of unorganized retailers, can be explained by the independent variables, Impact of Covid-19
on business. In this case, 12.7% can be explained, which is relatively low.

38
 Fig 23. Anova Regression

Interpretation

This regression analysis table indicates that the regression model predicts the dependent variable
significantly well. The significance value is studied here to understand the impact of covid. This
indicates the statistical significance of the regression model that was run. Here, p which 0.003 <
0.005, which is less than 0.05, and indicates that, overall, the regression model statistically
significantly predicts the outcome variable (i.e., it is a good fit for the data).

39
Fig 24. Regression Coefficients

40
Interpretation:

If the coefficient of the independent variable X is positive, it indicates for every unit increase in
the independent variable, the dependent variable will increase by the value of the coefficient.
This also means that for every unit decrease in the independent variable, the dependent variable
will decrease by the value of the coefficient.

Hypothesis 2

H0: There is no significant relationship between age of the business and impact of Covid-19 on
unorganized fashion retail.

H1: There is a significant relationship between age of the business and impact of Covid-19.

Next page-

41
Fig 25. Anova analysis

42
Interpretation:

As the significant value is more than .05 H0 is rejected. Thus we can say that there is a
significant relationship between age of the business and impact of covid-19 on the unorganized
fashion retail industry.

All the different factors such as footfall, employee retention, supply, customer loyalty, capital,
expansion, financial burden, deadstock and newer products are stated as indicators of impact on
business of unorganized fashion retailers. All of these factors are impacted because of the age as
found through analysis.

Hypothesis 3

H0: There is no significant relationship between product line of the business and impact of
Covid-19 on unorganized fashion retailers.

H1: There is a significant relationship between the product line of the business and impact of
Covid-19 on unorganized fashion retailers.

Next Page

43
Fig 26. Anova analysis

44
Interpretation:

As the significant value is more than .05%, H0 is rejected. So here in our research we found out
that there is a significant relationship between the product line of the business and impact of
Covid-19 on unorganized fashion retailers.

All the different factors such as footfall, employee retention, supply, customer loyalty, capital,
expansion, financial burden, deadstock and newer products are stated as indicators of impact on
business of unorganized fashion retailers. All of these factors are impacted because of the
product line as found through analysis.

Hypothesis 4

H0: There is no significant relationship between choice of social media platform and business
operations.

H1: There is a significant relationship between choice of social media platform and business
operations.

Next Page

45
 Fig 27. Anova Analysis

Interpretation:

As the significant value is more than .05 H0 is rejected. Thus there is a significant relationship
between the choice of social media platform fashion retailers operate on and business operations.
All the different factors such as sales, customer base, awareness, engagement, accessibility of
audience and customer data analysis are stated as indicators of business operations. All of these
factors are impacted because of the choice of the social media platform as found through
analysis.

46
Hypothesis 5

H0: There is no significant relationship between choice of e-commerce platform and business
operations.

H1: There is a significant relationship between choice of e-commerce platform and business
operations.

Fig 28. Anova Analysis

47
Interpretation

As significant value is more than .05, H0 is rejected. Thus there is a significant relationship
between choice of e-commerce which fashion retailers operate on and business operations.

All the different factors such as sales, customer base, awareness, engagement, accessibility of
audience and customer data analysis are stated as indicators of business operations. All of these
factors are impacted because of the choice of the ecommerce platform as found through analysis.

Factor Analysis

This test of adequacy was conducted to check the variable validity for conducting a factor
analysis.

As per the results, the KMO value is more than 0.6 indicating a fairly adequate data sample that
can be further used for conducting the factor analysis. Hence further factor analysis is also
conducted.

48
Fig 29. Communalities Factors

49
 Fig 30. Variance Factor

Factor Lack of technology

1 know how 0.751

Fear of online fraud 0.761

variety in
merchandise 0.729

packaging cost 0.752

50
 customer returns 0.79

Factor lack of manpower 0.595

2
lack of knowledge 0.562

Low inventory 0.338

Factor Distribution network 0.667

3
Legal issues 0.619

Factor Competition 0.828

4
Customer service 0.902

Mode of payment 0.859

Transportation cost 0.847

Scope of trading area 0.857

Type of product 0.845

Extra spend 0.83

Fig 31. Factor Table

51
Interpretation:

On the basis of the closest variance values, 4 major factors were formed out of all the reasons for
not going online. With each closely grouped factor variable, all the characteristics displayed are
angled and indicate the final result.

In this case, the factor analysis summed up originally 18 variables in 4 factors (table no.31).
These two factors explained those factors which are reasons for not going online. We are
interested in all these factors. The reason of our interest is the existence of resemblance between
these factors and the categories of factors we made.

Next Page

52
Fig 32. Component Matrix

53
Interpretation

In table 32, the number of significant factors was determined by calculating the eigenvalue
(variance accounted by each factor). Factors with eigenvalues exceeding 1.0 were considered
significant following Kaiser's criterion.

In statistical analysis, when two or more predictors in the model are correlated and provide
redundant information about the response, this situation or problem is known as multi-
collinearity. Hence there is no problem of multi-collinearity. The principal component factoring
was then conducted, and factor rotation was performed through the varimax (orthogonal) rotation
procedure. Factor analysis follows its own procedure or criteria to summarize the
variables/indicators into the factors. In our case, the factor analysis summed up originally
18variables in 4factors (table no 32).

Cluster Analysis

Fig 33. Cluster summary

54
A useful integration of the three indices in a comprehensive cross-national comparison can be
achieved by employing hierarchical cluster analysis. In this analysis, factors of age of business,
product line of business and if they sell online. These are factors ranging across dimensions used
to find clusters of unorganized retailers that belong from similar demographics and about their
online behavior.

In this case, the cluster analysis is not used as a separate methodological approach, but rather as a
complementary method for validating and supporting previous results, as well as for providing a
better insight into the differences in online portal uses by different unorganized fashion retailers.

Hierarchical Clustering - Ward’s

Ward‘s method, or minimal increase of sum-of-squares (MISSQ), sometimes incorrectly called

"minimum variance" method. Proximity between two clusters is the magnitude by which the
summed square in their joint cluster will be greater than the combined summed square in these
two clusters:

12−(1+2) (Between two singleton objects this quantity = squared euclidean distance
/2.) The metaphor of this built of cluster is type. Intuitively, a type is a cloud more dense and
more concentric towards its middle, whereas marginal points are few and could be scattered
relatively freely. Because of the vastness of data and its irregular spread, Ward's Method is the
one that gave appropriate results

55
Fig 34. Dendogram

56
Interpretation:

8 major clusters can be seen forming in the figure above. This shows the shops that are paired
together on the basis of their age, product line and their online usage. On the basis of the number
of grouped variables, there are 5 significant clusters. And these clusters also are grouped along
the lines, to create 2 main clusters.

Cluster 1: It consists of shops like that are fairly new and have presence across certain online
platforms. This consists of Twinkle, Ragini, Panda and others that have similar characteristics as
stated through proximity.

Cluster 2: It consists of shops that are along the lines of higher quality goods and who have
recently joined online. This consists of Prakash, Linen club and others.

Cluster 3 and cluster 4: these have a similar tendency and also proximity. They both consist of
shops mainly dealing with ecommerce websites. This consists of Pari, choice rejoice and others.

Cluster 4: Consists of laxmi collections, meenakshi centre etc all of which have online presence
on whatsapp are not inclined in selling on social media.

Cluster 5: These are all mainly saree store which have operations on Facebook and some
ecommerce platforms who show positive impact of online operations.

57
 Chapter VI: Findings and Conclusions

1. It can be concluded that the majority of the retailers operate on both online and offline
platforms for marketing and selling their products. Also the sales and customer base have
been increased through operating on online platforms. Those who are not currently
selling online have proposed to start selling on online platforms in near future.

2. The major impact of Covid-19 on the fashion retail sector was decrease in footfall,
difficulty in employee retention and need of adding newer products like masks etc.

3. WhatsApp and Facebook are the most effective Social media platforms for the
unorganized retailers to sell their products.

4. Through exhibiting and selling their products online, retailers have agreed that their
customers have benefitted from getting a wide variety of products at reasonable rates with
fast home delivery.

5. Retailers who operated both on e-commerce and social media platforms generated larger
revenue and customer base in comparison to who did not.

As per the study, it was found a sizable portion of retailers do not operate online and there are
several reasons causing this type of product, scope of trading area, competition and extra costs to
be incurred being the prominent problem makers. Through our study, it was found that there is a
significant impact faced by unorganized fashion retailers because of the Covid-19 pandemic.
Many retailers have also gone online because of the pandemic while it's not directly related.
Depending upon the impact Covid-19 had on the business, it has led to some businesses shifting
online.

58
Our research found out that unorganized fashion retail has a potential growth on online platforms
in terms of loyalty, sales and customer base.

In terms of social media selling, WhatsApp and Facebook emerged as the most effective and
most used platforms and the use of these platforms also had a significant impact on business
success in terms of sales and customer base. Their reasons for not choosing social media came up
as a chance of fraud and technical complexity involved. Most retailers suggested they're not
interested in selling on social media in future as well.

In terms of ecommerce selling, amazon and Flipkart emerged as the most effective most used
platforms that also have significant impact on business operations of sales and customer base.
Retailers also showed no interest in e commerce because of legal issues, costs involved and
complexity. The future operations of these businesses was also uncertain.

For businesses who use both, social media emerged as more effective as per their spending.
These also showed high degrees of satisfaction and better customer service attributes. Overall
indicating online presence, be it on one or both as a favorable option for unorganized fashion
retailers in India.

The study lacked in terms of sample variance, further study should explore other regions of the
country and also could be conducted on a larger scale. The study was also restricted to only the
fashion retail sector, the same can be carried out for other sectors for a wider view of Covid and
online retailing in India. Being an unorganized sector study, not all data was supported by hard
facts making the analysis mostly based upon the responses and views of retailers.

59
 References

Bajaj, S. (2013, Oct). Policies which can Convert Unorganized Retailing in Organized Retailing.
International Journal of Innovations in Engineering and Technology, 3(1). http://ijiet.com/wp-
content/uploads/2017/07/48.pdf

Chheda, K. D. (2017, August Friday). An Overview of Unorganized Retail Sector in India.

ICI2TM, 2(1), 5. http://ici2tm.sinhgad.edu/pcproc/ICI2TM2017_P/data/IC17054.pdf

Devi, K. K. (2016, April). UNORGANIZED SECTOR PARTICULARLY FOCUS ONLY

RETAILERS: A STUDY ON ITS STRENGTH AND WEAKNESS. INDIAN JOURNAL OF
APPLIED RESEARCH, 6(4). https://www.worldwidejournals.com/indian-journal-of-applied-
research-(IJAR)/special_issues_pdf/April_2016_1461058753__05.pdf

Gurjar, O. (2016, Jun). Organized Retail Sector in India. International Journal of Recent
Research Aspects, 3(2). https://www.ijrra.net/Vol3issue2/IJRRA-03-02-11.pdf

Hamil, A. (2014, July). IMPACT OF SUPERMARKETS ON UNORGANIZED RETAIL.

IJRBM, 2(7), 37-56.

Kumar, D. S. (n.d.). THE SCOPE OF UNORGANIZED RETAIL SECTOR IN

KANYAKUMARI DISTRICT. MGR Educational and Research Institute.
https://www.bharathuniv.ac.in/colleges1/downloads/mba/THE%20SCOPE%20OF%20UNORG
ANIZED%20RETAIL%20SECTOR%20IN%20KANYAKUMARI%20DISTRICT.pdf

Nagpal, A. (2017, Sept). CHALLENGES FACED BY INDIAN ORGANIZED RETAIL

OUTLETS: A DESCRIPTIVE STUDY OF DELHI / NCR. International Journal of
Management and Applied Science, 3(9). http://www.iraj.in/journal/journal_file/journal_pdf/14-
407-151142216922-27.pdf

Rani, D. A. (2015). Apparel Retailing in India. Journal of Marketing and Consumer Research, 9.
https://core.ac.uk/download/pdf/234693863.pdf
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Rani, R. (2019). A Study On Problems In Unorganized Retail With Regards To Customer And
Retailer Perception. International Journal of Scientific Research and Review, 8(5).
http://www.dynamicpublisher.org/gallery/ijsrr-d-2400-may-2019-ebn-final.pdf

Retail Industry in India. (2020, december 31). https://www.ibef.org/. Retrieved 1 6, 2021, from
https://www.ibef.org/industry/retail-india.aspx
R.H>, R. (n.d.). AN OVERVIEW OF UNORGANIZED RETAIL SECTOR IN INDIA.
https://www.elkjournals.com/MasterAdmin/UploadFolder/6.%20AN%20OVERVIEW%20OF%
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Shukla, R. K., & Jain, R. K. (2013, June Tuesday). BUYERS’ PREFERENCES FOR
ORGANIZED AND UNORGANIZED APPAREL RETAIL STORES- A COMPARATIVE
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Tyagi, I., & Rani, A. (2015, June). Apparel Retailing in India. Journal of Marketing and
Consumer Research, 9(5), 6. https://core.ac.uk/download/pdf/234693863.pdf

61
 APPENDIX 1

Please fill the questionnaire based on the options provided.

1) Name of the business:

2) Please enter your title/position within the business:
3) What is the line of product your business deals in?

• Ready made

• Sarees and dress material

• Suiting and Shirting

• Matching Centre

• Upholstery

4) How old is your business?

• 0-10 years

• 11-20 years

• 21 - 40 years

• Above 40 years

5) In respect to impact of Covid-19 on your business. Please state your

agreement/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Footfall has
decreased

Employee Retention
has become difficult

62
 Shortage of Supply
(Supply chain issues)

Capital available has

decreased

Needing for newer

products has
increased (Masks etc)

Financial burden has

increased

Dead stock has

increased

Expansion Plans have

been halted

Customer Loyalty is
badly affected

6) Do you sell online?

• Yes

• No

(WHEN OPTED FOR NOT SELLING ONLINE)

7) What prevents you from selling your product on online platforms?

• Not applicable

• Lack of knowledge

• Lack of technology

63
 • Lack of manpower

• Fear of online frauds

• Time consuming

• Others
8) Will you start selling online in the near future? (in next 5years)

Not likely 1 2 3 4 5 Likely

(WHEN OPTED FOR SELLING ONLINE)

9) Did you start selling online before or after Covid-19 Pandemic?

Before

After

10) On which platform/s do you sell your products on?

Social Media

E-commerce

Both

64
 (WHEN OPTED FOR SOCIAL MEDIA)

11) Which social media platforms do you operate on?

WhatsApp

Facebook

Instagram

Telegram

Pinterest

Other

12) Which social media platform is the most effective for you? (1 being lowest 5 being highest)

1 2 3 4 5 Not
Applicable

WhatsApp

Facebook

Instagram

Telegram

Pinterest

Others

58
13) In regards with the impact of social media on your business. Please state your
agreement/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Sales has increased by using

social media

Customer base has increased by

using social media

Awareness has increased by

using social media

Engagement has
increased by using
social media

Better accessibility of target

audience

Analyzing customer behavior is

easier

14) In regards with the impact of social media on your business. Please state your
agreement/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Our customers get price

benefit

Our customers get easier

delivery

Our customers get easier

access

Our customers get wide

range of merchandise

59
 Better customer
relationship

Our customers get better

availability

15) Why are you not selling on E-commerce platforms?

• Costs involved

• Logistical Issues

• Supply Chain problems

• Legal and contractual issues

• Technical Complexity

• Lack of staff

• No trust on platforms

• Other

16) Will you start selling on E-commerce platforms in near future? (in next 5 years)
1 2 3 4 5
Not likely Likely

17) Which social media platform would you suggest to retailers in your product line?

• WhatsApp

• Facebook

• Instagram

• Pinterest

• Other

60
 (WHEN OPTED FOR E-COMMERCE)
18) Which E-commerce platform are you present on?
Amazon

Flipkart

Myntra

Ajio

Other

19) Which E-commerce platform is the most effective for you? (1 being lowest & 5 being
highest)

1 2 3 4 5 Not
Applicable

Amazon

Flipkart

Myntra

Ajio

Others

61
20) In regards with the impact of e-commerce on your business. Please state your
agreement/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Sales has increased by using

social media

Customer base has increased by

using social media

Awareness has increased by using

social media

Engagement has
increased by using
social media

Better accessibility of target

audience

Analyzing customer behavior is

easier

21) In regards with the impact of ecommerce on your business. Please state your agreement
/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Our customers get price

benefit

Our customers get easier

delivery

Our customers get easier

access

62
 Our customers get wide
range of merchandise

Better customer
relationship

Our customers get better

availability

22) Why are you not selling on Social media platforms?

• Technical complexity

• Information Clutter

• Chance of fraud and malpractice

• No safety in payments

• Photograph requirements

• Difficulty to grow

• Other

23) Will you start selling on social media platforms in near future? (in next 5 years)

Not likely Likely

1 2 3 4 5

24) Which E-commerce platform would you suggest to retailers in your product line?

Amazon

Flipkart

Myntra

Ajio

Other

63
 (WHEN OPTED FOR BOTH)

25) Which social media platforms do you operate on?

• WhatsApp

• Facebook

• Instagram

• Pinterest

• Other

26) Which social media platform is the most effective for you? (1 being lowest 5 being
highest)

1 2 3 4 5 Not
Applicable

WhatsApp

Facebook

Instagram

Pinterest

Others
 27) In regards with the impact of social media on your business. Please state your
agreement/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Sales has increased by using social

media

Customer base has increased by

using social media

Awareness has increased by using

social media

Engagement has
increased by using social
media

Better accessibility of target

audience

Analyzing customer behavior is

easier

28) In regards with the impact of social media on your business. Please state your
agreement/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Our customers get price benefit

Our customers get easier delivery

Our customers get easier access

Our customers get wide range of

merchandise

Better customer relationship

Our customers get better

availability

2
29) Which E-commerce platform are you present on?

• Amazon

• Flipkart

• Myntra

• Ajio

• Other

30) Which E-commerce platform is the most effective for you? (1 being lowest &
5 being highest)

1 2 3 4 5 Not
Applicable

Amazon

Flipkart

Myntra

Ajio

Others

3
 31) In regards with the impact of e-commerce on your business. Please state your
agreement/disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Sales has increased by using social

media

Customer base has increased by

using social media

Awareness has increased by using

social media

Engagement has increased

by using social media

Better accessibility of target audience

Analyzing customer behavior is

easier

32) In regards with the impact of ecommerce on your business. Please state your
agreement /disagreement to the following statements.

Strongly Agree Neutral Disagree Strongly

agree disagree

Our customers get price benefit

Our customers get easier delivery

Our customers get easier access

Our customers get wide range of

merchandise

Better customer relationship

Our customers get better

availability

4
33) Which platform would you suggest other retailers in your product line to use?

• E-commerce

• Social Media

• Both

• None

• Other