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Mini Project Report On Study On Changing
Mini Project Report On Study On Changing
Submitted to
DEPARTMENT OF COMMERCE
INTRODUCTION
Retailing is a distribution channel function, where one organisation buys
organized and unorganized sectors, Indian retail industry is one of the fastest
growing industries in India, especially over the last few years. Though initially the
retail industry in India was mostly unorganized, however with the change of taste
and preferences of consumers, the Industry is getting more popular these days and
fundamental base that’s why it’s the perfect time to enter into Indian Retail
Market. Indian Retail Market accounts for 22% of country’s GDP and it
to double in the next five years. Of this, organized retail –currently growing at a
retail sector is expected to grow at about 10% per annum with sales expected to
rise from $309 billion in 2006-07 to $496 billion in 2011-12. This paper focused
major players in retail industry and also highlights the challenges faced by the
sectors. The Indian retail sector is highly fragmented, with a major share of its
business is being run by unorganized retailers like the traditional family run stores
and corner stores. The organized retail however is at a very nascent stage, though
attempts are being made to increase its proportion bringing in a huge opportunity
Organized Retailing
Unorganized Retailing
→ Organized Retailing
that is, those who are registered for sales tax, income tax, etc. These include the
corporate-backed hypermarkets and retail chains, and also the privately owned
→ Unorganized Retailing
apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart
There are many sectors in retail industry in India and there are established in
various company at specific sectors.
Reliance Retail
Pantaloons
Shoppers Stop
3. Koutons:
4. Footwear
Reebok
Bata
5. Khadim’s:
Godrej Lifespace
Home Stop
Home Town
7. Electronics
eZone:
Viveks:
8. Catering services
Yum! Restaurants:
McDonald’s
9. Telecom
The Mobile Store:
MobileNXT:
10. Pharmaceuticals
Apollo Pharmacy
MedPlus:
Reliance Wellness
Himalaya Drugs
12. Jewellery
Gitanjali:
Tanishq:
Reliance Jewels
13. Timewear
Citizen:
Titan.
As we all know that Indian retain sector in growing day by day and
specially the organized retailing sector because after these study I have observe
that most of the people are moving towards the organized retailing now a days the
old kirana shopes are been changed to organized sector just because the public
demand is been changing and chaining and because of that the there is several
change in the market growing because in past the retail sector is full depends up
on the festival market but now a days the retail depends up on the offer and the
discount provided by the retailer for a certain period of time. So because of the
change in the taste of the customer the tradition of the retail sector is been
chaining. .
There are include the corporate-backed There are include the local kirana shops,
hypermarkets and retail chains, and also the owner-manned general stores, chemists,
privately owned large retail businesses. footwear shops, apparel shops, paan and
beedi (local betel leaf and tobacco) shops,
hand-cart hawkers, pavement vendors, etc
Multi storied malls and huge complexes Low cost retailing. These are highly
that offer a large variety of products in competitive outlets, with negligible rental
terms of quality, value for money and costs (unregistered kiosks or traditional
makes shopping a memorable experience. property), cheap workers (work is shared by
members of family) and low taxes and
overheads.
The ownership and management rest with The ownership and management rest with
two or more person. one person only
The organized stores are not having number The unorganized stores are having number
of options to cut their costs of options to cut their costs
The customersare want to change in This is one of the good reasons which
many shopping malls. the customer doesn't want to change
their old loyal kirana shop.
Literature review
→ According to Dholakia (1999),i the rationale for shopping is making physical visits
to a shopping site. It is considered as a household task as well as a form of
recreation, relaxation and entertainment. Shopping is also considered to have
the most positive attribute of being a leisure activity along with work (Dholakia,
1999).
→ Sinha & Banerjee (2004)ii studied the drivers of store choice in various product
categories, in the context of evolving retail industry in India and found that the
distinct store features as perceived by respondents with true motivations of
various consumers in patronizing various stores. Study suggests that consumers
of Indian unorganized retail market do not require the service paraphernalia
offered by many retailers. Store environment plays a vital role for store
patronage and repeat purchases which includes convenience, value for money
products, etc.
→ Backstrom & Johansson (2006)iii studied factors that influence consumers' in-
store experiences. In-store experiences are constituted by traditional values such
as the behavior of the personnel, a satisfactory selection of products, price and a
layout that facilitates the store visit.
→ Terblanche & Boshoff (2006)iv suggested that retailers will have to accept that it
is not only what they are marketing but also how it is done. The personal (face-
to-face) interaction between retail staff and shoppers is of critical importance.
→ Kalhan (2007)v studies the impact of organized retail on unorganized retail
shops. Major findings reveal that 70 % of unorganized retailers reported falling
sales. This fall in sales is due to superior shopping environment, convenience,
availability of variety, ambience of shop, and availability of parking space and
perception of quality of products sold in organized retail setup.
→ Goswami (2008)vi studied the shopping experiences in kirana stores and in
modern stores. The major findings suggest Kirana stores to improve or to enrich
shopping experiences. Kiranas also have to stay alert, try to upgrade and have to
improve on service quality while concentrating on innovation and efficiency.
→ Das & Kumar (2009)vii studied the impact of sales promotion on consumers
shopping experiences. A major finding reveals that keeping product satisfaction
constant, sales can be improved by enhancing shopping experience which
includes convenience of shopping, ease of locating products, easy check in and
checkouts, customer friendly sales people and customer friendly policies.
Secondly finding reveals that purchase decision for the same product under same
promotion at different stores may vary because difference in shopping
experiences provided by different stores. Further this study shows that
promotion plays a limited role on consumers buying behavior where only small
percentage of people are attracted to such sales promotion and wait for it. Study
lastly emphasizes on the importance of shopping experience (ease of shopping,
parking space, convenience etc.) for positively impacting consumer buying
behavior.
→ Goswami & Mishra (2009)viii seek to understand whether Indian consumers are
likely to move from traditional Kirana stores to large organized retailers while
shopping for groceries. The research finding reveals that customer patronage to
grocery stores was found to be positively related to location, helpful, trustworthy
salespeople, and home shopping, cleanliness, and offers, quality and negatively
related to travel convenience. Kiranas do well on location but poorly on
cleanliness, offers, quality, and helpful trustworthy salespeople. The converse is
true for organized retailers. Study also finds that Kiranas have major
disadvantages on all customer perception scores except location. These scores
being less important determinants of patronage compared with location, in the
short run kiranas may not be ousted out of customers' flavor. However, in the
long run if they do not work on these other factors, they would face oblivion.
Kiranas need to upgrade their facilities to be able to compete with the organized
retailers to provide consumers better shopping experiences, whereas organized
retailers which are expected to improve their location scores rapidly in the near
future will grow rapidly.
→ Inside store (2009)ix studied the shopping experiences at traditional Indian retail
stores. Major findings reveal that 70% of purchases are made at the point of
purchase, so store environment can impact the 70% of purchases which is one of
the important constituent of shopping experience in unorganized retail setup.
→ Mittal and Parashar (2010) x explained that irrespective of area, people prefer
grocery stores to be nearby, product assortment is important for grocery. Ghosh
& Srivastava (2010) in his research found that service quality has become vital for
service firms to pay attention due to increased competition.
According to the 10th Annual Global Retail Development Index (GRDI) of A.T. Kearney,
India is having a very strong growth fundamental base that’s why it’s the perfect time to
enter into Indian Retail Market. Indian Retail Market accounts for 22% of country’s GDP
and it contributes to 8% of the total employment. The total retail spending is estimated to
double in the next five years. Of this, organized retail –currently growing at a CAGR of
22%- is estimated to be 21% of total expenditure. The unorganized retail sector is expected
to grow at about 10% per annum with sales expected to rise from $309 billion in 2006-07
to $496 billion in 2011-12. This paper focused on changing face of Retail Industry,
organized or unorganized retail industry, major players in retail industry and also
highlights the challenges faced by the industry in near future.
India’s Retailing Boom has acquired further momentum, dynamism and vibrancy with
international players experimenting in the Indian market and the country’s existing giants
taking bold innovative steps to woo the consumer. At the same time, the early entrants are
redefining their strategies to stay competitive and suit the new market landscape.
The next few years are liking to witness rapid growth in the organized retailing sector with
several leading international players establishing their presence in India by adjusting their
formats to suit local tastes and buying behaviour while regional players have stepped up
their defences and are striving to gain edge over global players by using their knowledge of
local markets. Clearly the next wave of the retail boom is upon us. Retailing is one of the
pillars of the economy in India. Over the past few years, the retail sale in India is hovering
around 33-35% of GDP as compare to 20% in the US.
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, Indian retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. Now with growing market
demand, the industry is expected to grow at pace of 25-30% annually.
The Indian retail industry is currently growing at a great pace and is expected to go up to
US $ 833 billion by the year 2013. In the last four years consumer spending in India has
climbed up to 75%. In India though, organized retail accounts for app. 5-6% of total retail
revenues, however, with a young population, increasingdisposable income, changing life
styles and a robust economy India is set to emerge as one of the fastest growing organized
retail markets in the world.
Retailing is one of the biggest sectors and it is witnessing revolution in India. The new
entrant in retailing in India signifies the beginning of retail revolution. India's retail market
is expected to grow tremendously in next few years. According to AT Kearney, The
Windows of Opportunity shows thatRetailing in India was at opening stage in 1995 and
now it is in peaking stage in 2006. The origins of retailing in India can be traced back to
the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the
local people. Eventually the government supported the rural retail and many indigenous
franchise stores came up with the help of Khadi & Village Industries Commission. The
economy began to open up in the 1980s resulting in the change of retailing. The first few
companies tocome up with retail chains were in textile sector, for example, Bombay
Dyeing, S Kumar's, Raymond’s, etc. Later Titan launched retail showrooms in the
organized retail sector. With the passage of time new entrants moved on from
manufacturing to pure retailing.
Retail outlets such as Food world in FMCG, Planet M and Music world in Music,
Crossword in books entered the market before 1995. Shopping malls emerged in the urban
areas giving a world-class experience to the customers. Eventually hypermarkets and
supermarkets emerged. The evolution of the sector includes the continuous improvement in
the supply chain management, distribution channels, technology, back-end operations, etc.
this would finally lead to more of consolidation, mergers and acquisitions and huge
investments. India's retail market is expected to grow tremendously in next few years.
India shows US$330 billion retail market that is expected to grow 10% a year, with
modern retailing just beginning.
In India, the most of the retail sector is unorganized. The main challenge facing the
organized sector is the competition from unorganized sector. Unorganized retailing has
been there in India for centuries. 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, have very low real estate and labour costs and have low taxes
to pay. Organized retail business in India is very small but has tremendous scope.
No Of Responds Percentage
Bangalore based 85 61
Other 55 39
TOTAL 140 100
Other
Bangalore based
Interpretation: The above figure showing the data collected from the
responds shows that 61% of them are from Bangalore and 39% of them
are from outside Bangalore.
Responds Percentage
Organized Retail 90 65
Unorganized Retail 40 28
Depends/Not Fixed 10 7
TOTAL 140 100
Depends/Not Fixed
7%
Unorganized Retail
29%
Organized Retail
64%
Respond Percentage
Online 28 20
By phone 21 15
By mail/catalogue 14 10
In-person/in-store 70 50
Through a dealer 7 5
TOTAL 140 100
By mail/cata-
logue
10%
Respond Percentage
D-Mart 14 10
Big Bazar 42 30
Spinach 28 20
Reliance Fresh 35 25
other 21 15
TOTAL 140 100
Other
15% d-MART
10%
Big Bazar
31%
Reliance Fresh
26%
sainach
18%
Interpretation: The figure showing the from were people prefer to purchase
its shows that 31% of the people prefer to purchase from big bazaar, 26% of the
people prefer to purchase from reliance fresh, 18%of the people prefer to
purchase from sainach, 31% of the people prefer to purchase from big bazaar,
10% of the people prefer to purchase from d mart, 15%of the people prefer to
purchase from other.
Utensils 7 10 11 28
Oil 4 10 14
TOTAL 28 49 63 140
Figure showing how offen they shop:-
Frequent of shopping
Daily
20%
Monthy
45%
Weekly
35%
Responds Percentage
Price is less 15 10.71
Near house 14 10.00
Everything at one 21 15.00
place
Good Service 12 08.57
Good Quality 20 14.28
Long Relationship 14 10
Good Offers 10 07.15
Large Variety 11 07.85
Self Service 10 07.15
Overall experience 13 09.29
TOTAL 140 100
Format of retailing
Overall experience
9% Price is less
seif service 11%
7% Near house
Large Variety 10%
8%
Interpretation : The format retailing shows that 10.71% of the people shop because
of the price is less ,10% of the shop to near to there house ,15% of them shop from everything
get at one place,8.57% go for good service,14.28% of go for good quality, 14% go for the long
relationship, 7.85% go for the large variety, 7.15% of them go for the self service, 9.29% go
for overall experience.
FEMAIL
40%
MALE
60%
Responds Percentage
18 or under 21 15
19-35 55 40
36-50 39 28
50 or more 25 17
TOTAL 140 100
Age
60
50
40
Series 1
30
20
10
0
18 as under 19-35 36-50 50 or above
Interpretation: In these study we observed that under 18 there are 15% that
is 21, between the 19-35 there are 40% of that is 55 out of 140, between 36-50
there are 28% that is 39 of 140 , between 50 and above there are 17% that is 25
of 140.
Responds Percentage
Under 25000 pm. 21 15
25000-50000 42 30
50000-75000 35 25
75000-100000 28 20
100000 or More 14 10
TOTAL 140 100
Household Income
Series 1
42
35
28
21
14
Interpretation: The figure is showing the income status of the 140 responds
in which under 25k there are 21 that is 15%, between 25k-50k there are 42 that Is
30%, between 50k-75k there are 35 that is 25% ,between 75k-100k there are 28
that is 20% of total, and above 100k there are 14 people that is 10% of the total.
Responds Percentage
YES 102 85
NO 38 15
TOTAL 140 100
Figure showing what people prefer :-
Preferance
NO
27%
YES
73%
13. How would you rate organized retailing in term of store cleanliness ?
Responds Percentage
Excellent 54 38.6
Very good 43 30.7
Average 24 17.2
Fair 19 13.5
TOTAL 140 100.0
60
50
40
30
20
10
0
Excellent Very Good Average Fair
14. How would you rate organized retailing in term of Meat Quality/Freshness?
Responds Percentage
Excellent 43 30.8
Very good 38 27.15
Average 33 23.57
Fair. 26 18.57
TOTAL 140 100
Meat Quality
45
40
35
30
Series 1
25
20
15
10
5
0
Excellent Very Good Average Fair
Interpretation: The study says that the quality of the meat provided by the
organized retailer is 30.8% that is 43 people says quality is excellent,27.15 people
that is 38 of them says that quality is very good, 23.57% people that is 33 of them
says that quality is average and 18.57% of the that is 26 of them says that quality
is fair.
15. How would you rate organized retailing in term of Regular Prices ?
Responds Percentage
Excellent 28 20
Very good 37 26.42
Average 36 25.71
Fair. 39 27.87
TOTAL 140 100
Regular Pricing
40
35
30
25
20
15
10
5
0
Excellent Very Good Average Fair
Series 1
Interpretation: The study says that 20% of people that is 28 of them says
that pricing in excellent, 26.42% people that is 37 says that pricing is very good,
25.71 that is 36 people says that pricing is average and 27.87 that is 39 people
says that pricing is fair.
16. Kindly rate the below of an organized retail and unorganized retail based
upon your preference?
ORGANIZED UN-ORGANIZED
Everything at one place 3 4 2 1 1 0 1 2 1 3
Offers 7 5 7 5 4 2 1 2 2 1
Relationship 5 4 1 2 1 1 2 1 2 1
Ambience 1 4 5 2 2 1 1 1 2 1
Home Delivery 4 5 6 4 3 0 2 1 1 2
Faster 5 2 4 1 2 0 1 1 1 1
TOTAL 102 38
organized Un-Organized
1.6
1.2
Responds Percentage
Convenience – near 27 19.28
where I live
Items I normally buy are 21 15.00
all under one roof
Good customer service 23 16.43
Excellent brand name 14 10.00
Comfortable browsing 24 17.15
experience
know I can ask for 31 22.14
product advice
TOTAL 140 100.0
Series 1
30
20
10
0
ce f e e e e
i en r oo r vi c am e nc dvic
n i a
Axis Title en ne se d er t
onv ro er r an exp d uc
C e m ro
nd sto tb g
la l u cu llen wsin orp
re oo
d ce br
o kf
a G Ex le as
bu
y b an
ly o rta Ic
al f w
r m om kno
C
no
sI
em
It
50 54
47
40
39
30
20
10
0
Quality Brand Variety or choice
19. At what time you use to visit the for retail shopping ?
Responds Percentage
Morning 46 32.85
Afternoon 31 22.14
Evening 63 45.00
TOTAL 140 100.0
Time of visit
70
60
50
40
Axis Title
30
20
10
0
Morning Afternoon Evening
RESPONDS
73
72
71
70
Axis Title 69
68
67
66
65
64
YES NO
Interpretation: The study shows that 52.28% that is 73 out of the 140
are attracted to the offers and the discounts and remaining 47.72% that
is 67 out of the 140 are not attracted to the offers and the discounts.
Chapter 5
Findings
The data collected from the responds shows that 61% of them are from Bangalore and
39% of them are from outside Bangalore.
The recent purchase done by the consumer its shows that 50% of the people purchased
from personal/stores,20% of them purchased from online, 15% of them had purchased
from phone ,5% of them purchased through the mail/catalogue and 5% of them
purchased from them dealers .
The study shows 64%of the people are preferred to the organized retailing sector , 29%
of the preferred to the unorganized retailing and 7% of the people said it depends.
2
The result shows how offen they shop according to the study its shows that 20% of the
people shop daily ,35% of the people shop weekly and 45% of people shop monthly .
The format retailing shows that 10.71% of the people shop because of the price is
less ,10% of the shop to near to there house ,15% of them shop from everything get at
one place,8.57% go for good service,14.28% of go for good quality, 14% go for the long
relationship, 7.85% go for the large variety, 7.15% of them go for the self service, 9.29%
go for overall experience.
The data collection is showing the income status of the 140 responds in
which under 25k there are 21 that is 15%, between 25k-50k there are 42
that Is 30%, between 50k-75k there are 35 that is 25% ,between 75k-100k
there are 28 that is 20% of total, and above 100k there are 14 people that is
10% of the total. By these we understand that who have income 50k to 75k
they are more attracted to organized structure as compare to others.
The study shows that 73% that is 102 of the total will continue shopping in organized
retailing and remaining 27% that is 38 of the total feel they will not continue with the
organized retailing.
The study is showing the store cleanness has we analysis 38.6% that is 54 people are
telling excellent in term of cleanness, report shows that 30.7% that is 43 people tells very
good, 17.2%of people that is 24 says that stores are Average in term of cleaning and
13.5% people that is 19 of them tells that stores are fair in terms of cleaning.
The study says that the quality of the meat provided by the organized retailer is 30.8%
that is 43 people says quality is excellent,27.15 people that is 38 of them says that quality
is very good, 23.57% people that is 33 of them says that quality is average and 18.57% of
the that is 26 of them says that quality is fair.
The study says that 20% of people that is 28 of them says that pricing in excellent,
26.42% people that is 37 says that pricing is very good, 25.71 that is 36 people says that
pricing is average and 27.87 that is 39 people says that pricing is fair.
In these study we seen that 27 people go for convenience out of 140, the
21 people go for the item under one roof,23 of the will go for the good
consumer service, 14 of them prefer for the excellent brand name, 24 for
them will go for the comfortable browsing and 31 of them will go for the
know I can ask for product advice.
In this study it shows that 33.89% that is 47 out of 140 depends on the
Quality, 38.34% that is 54 out of the 140 prefer the brand and 27.77 that is
39 out of 140 prefer the variety or the choice.
In these showing the visit of the customer in the organized retailing sector
it shows that 32.85% that is 46 out of 140 visits in the morning, 22.14% that
is 31 out of the 140 visits in the afternoon and as the graph only shows that
45% of them that is 63 out of 140 visits in the evening
The study shows that 52.28% that is 73 out of the 140 are
attracted to the offers and the discounts and remaining 47.72%
that is 67 out of the 140 are not attracted to the offers and the
discounts.
Managerial Implications Be everywhere, do everything and never fail to astonish the customer. –
Macy’s Motto
Unorganized retailers should purchase variety of products from the single wholesaler to avail
adequate discounts so that they meet the cost expectations and needs of their customers.
The unorganized retailers should continuously improve their display to compete with the
organized sector.
The unorganized retailers should provide adequate self service facilities to the customers.
The unorganized retailers should offer cash discounts to customers on bulk purchases.
The unorganized retailers should offer attractive weekly or monthly schemes for
groceries and other items and promote them through leaflets or pamphlets. If they target
only “category killer” customers, it could help them to retain customers.
Unorganized retailers should make remarkable changes in their store ambience to retain
the existing customers and attract new customers with sophisticated facility and more
space.
The unorganized retailers should make a strategy to retain their customers by providing
quality goods and services because it is well said that “Quality is remembered long after
the price is forgotten.” - Gucci Family Slogan
They should also go for collaborations within the regional level so that they can survive
in this globally competitive world.
organized retailers should provide attractive offers to compete with the unorganized sector.
The organized retailers should offer lucrative schemes, discounts to generate costumers‟
stimulus.
The organized retailers should provide necessary arrangements for home delivery of goods.
Organized retailers have been adding value to their products through prices, services and offers
to attract and retain customers.
Organized retailers should organize efficient and effective loyalty programs. This could help in
providing recognition to the customers.
Organized retailers should make necessary arrangements for consumer complaint management
because customer complaints are the schoolbooks from which they could learn
Suggestion
If we see the un organized stores they should improve their quality of the
loose product.
In the un-organized stores the store man should use the hand gloves and
The organized stores improve there service it mean all variety should be
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