Theoretical aspects of

organised and unorganised

2.1 INTRODUCTION TO RETAIL INDUSTRY

Retailing is one of the largest industries in India the biggest sources of

employment in the country. It is the most active and attractive sector and it is going

through a transition phase not only in India but also worldwide.

2.1.1 Retailing

The Retailing is a distribution channel function, where one organization buys

products from supplying firms or manufactures products themselves, and then sells

these directly to consumers.

The word retail is derived from the French word retailer, which means to cut

off a piece or to break a bulk. Retail may be defined, as a ‘dealer or trader who sells

goods in small quantities or one who repeats or relates.’

Retailing thus may be understood as the final step in the distribution of

merchandise for consumption by the end consumers.

Kotler states that “Retailing includes all the activities involved in selling goods

or services to the final consumers for personal, non-business use. A retailer or retail

store is any business enterprise whose sales volume comes primarily from retailing.

Any organization selling to final consumers whether it is a manufacturer, wholesaler or

retailer – is doing retailing. It does not matter how the goods or services are sold (by

person, mail, telephone, vending machine, internet or where they are sold – in a store,

on the street or in the consumer’s home).”

2.1.2 Role of the retailer

A common thought which emerges from the definitions of retail mentioned in

the earlier section is that it is the retailer who is the final contact point with the

25
consumer in the market. A market may be termed as a physical place where buyers and

sellers gather to buy and sell goods. In today’s dynamic world, retailers exist in market

places in the physical environment like a retail store, and also in the digital market

space for those who shop online. It is necessary to understand that in the complex

world of trade today, retail would include not only goods but also services, which may

be provided to the end consumer. In an age where the customer is the king and

marketers are focusing on customer delight, retail may be redefined as the first point

of customer contact.

2.1.3 The retailer as a link between the producer and the consumer

The retailer is a link between the producer and the consumer and also a channel

member. Today, retail has emerged as a separate function by itself. Several reasons for

the same exist, the primary ones being the retailer’s proximity to the consumer and the

rise of consumerism. Growth of technology and the arrival of internet have made it

possible for business to develop across geographies at either business-to-business or

B2B and business-to-consumer or B2C levels. This has not only enhanced the

economies of scale available, but also made it easier to enter the retail market.

2.1.4 Challenges Faced by Retailers Worldwide

While it is understood by many retailers that retail expansion needs to happen,

the road towards global expansion is often not easy. Listed below are some of the key

challenges being faced by retailers across the globe.

The emergence of new markets: Asia, especially China and India are the

emerging market places. In the past, the sheer size of China and India did not

necessarily lead to their having an impact as a market. The technological,

transportation and industrial revolutions of the past two decades have changed

26
much of that. Increasing urbanization in both the markets has fast emerged as

an important factor in the rise of these nations as important emerging markets.

The empowered consumer: Retaining the consumer is far more difficult today

than it was a decade ago. Consumer lifestyles and demographics are changing

rapidly. Spending power is increasing and technology is aiding consumers to

make sound shopping decisions. Given the increased amount of choice in terms

of products and formats, consumers now demand more for less from the

shopping experience: more quality, choice, consistency, convenience, and

service, for less money, time, effort, and risk. Competition is not just on price,

but on multiple fronts.

Technology-enabled efficiencies: Technology has enabled business and

consumers to build efficiencies on the basis of the ability to receive and transmit

data at a fast speed. This information has today become critical for achieving

efficiencies in all aspects of retailing. In near future retailer-supplier

partnerships will depend on technology, substituting information for inventory

in the pipeline to reduce costs while improving productivity. Retailers will rely

on technology to establish links with consumers through electronic retailing and

customer relationship marketing.

The rise of the e-age: The emergence of internet retailing or e-tailing as is

popularly known has been a key driver of change in retail. The increase in the

number of internet users not only in the developed markets, but also globally

has placed new demands on retailers. Online shopping facilitated by auction

sites are the new realities of retail. Internet savvy consumers understand the

power to shop and buy on their own terms. Internet both enhances and

27
 competes with the store, i.e., the brick and mortar experience. Comparison-

shopping is a new reality of the e-age.

2.1.5 Retail as a Career

Retail is a people-centric industry, and is one industry which may simultaneously

expose you to many skills and disciplines. It offers many choices in terms of a career,

chief among them are:

Buying and Merchandising

Marketing

Store Operations

Sales

Finance

Human Resources

Technology and e-commerce

Visual Merchandising

Supply Chain Management and Logistics

2.1.6 Evolution of Retail in India

The origin 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 to come up

with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's,

Raymonds, 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.

The evolution of retailing in India can be better understood as:

28
! Early Eighties

'Retailing' in India was synonymous with peddlers, vegetable vendors,

neighborhood kirana stores (small grocery stores) or sole clothing and

consumer durable stores in a nearby town.

These retailers operated in a highly unstructured and fragmented

market. Very few retailers operated in more than one city.

! Before 1990

Organized retailing in India was led by few manufacturer owned retail

outlets, mainly from the textile industry, Ex: Bombay Dyeing,

Raymonds, S Kumar's, and Grasim.

Later, Titan successfully created an organized retailing concept and

established a series of showrooms for its premium watches

! Nineties:

Liberalization of the Indian economy led to the dilution of stringent

restrictions.

Entry of few multi-national players like Nanz into the Indian market.

Changing profile of the Indian consumers,

Increasing wages of the employees working in Greenfield sectors with

higher purchasing power.

Setting up of retail chains by domestic retailers like Cotton World

(Mumbai), Nirula's (Delhi) and the Viveks and Nilgiris in the South.

The latter half of the 1990s saw a fresh wave of entrants with a shift

from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha

and Nilgiris in food and FMCG; Planet M and Music World in music;

Crossword and Fountainhead in books.

29
1995 onwards saw an emergence of shopping centers, mainly in urban

areas, with facilities like car parking targeted to provide a complete

destination experience for all segments of society

Emergence of hyper and super markets trying to provide customer

with 3 V’s - Value, Variety and Volume.

Fig: 2.1 Evolution of Retailing in India

30
 Fig: 2.2 Formats of Retail in India

Source: Pradhan Swapna, Retailing Management p.28

The concept of retail as entertainment came to India with the advent of

Shopping malls. 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.

2.1.7 Indian Retailing – An Overview

Retailing is considered to be the largest private sector in India and moreover, it

is second to agriculture in terms of provision of employment. Indian retailing provides

employment to more than 4 crore people. The retail industry is divided into two sectors

namely, organised or formal and unorganised or informal. In simple terms, it could be

said that organised retailing is one in which the trading or merchandising is carried out

by licensed or authorized retailers who are registered for sales tax and other taxes. The

companies owned super markets, hyper markets; retail chains and other privately

owned retail stores or departmental stores come under this organised retailing. The

revenue, generated by these enterprises is accounted for by the Government. It is worth

to mention few brands and companies that are presently marching in the Indian

31
organised retailing. They are, namely Foodworld, Spencers daily, More super markets,

Big Bazaar, Hypercity, Shoppers stop, Khadims, Lifestyle, Pantaloons, Westside,

Trent, Reliance super, Reliance trends, Reliance footprints, and entertainment chains

like, Adlabs, Fame, PVR, Inox and Fun Republic. To spell out few Indian companies

that have invested a big money in Indian organised Retailing are namely, Reliance,

Future Group, Aditya Birla Group, TATA, and Bharti etc. Regarding the unorganised

retailing, it stands for 95% of the Indian retailing and is occupied by the sole-owner

managed general provision stores, paan shops, convenient stores, hand cart and

pavement vendors etc. In relation to the provision of employment, the organised sector

has employed 50 lakh people whereas, the unorganised has employed 3.5 crore people

in India. It is found that India has highest density of shops in the world (AC Nielson

and KSA Technopark, India). It is also estimated that the retail contributes about 10-

11% to the GDP of India. The value of the organised retail is Rs. 35,000 crores and of

the unorganised is Rs. 9,00,000 crores approximately.

The organised retailing is growing at a rate more than 30%. It implies that

slowly the unorganised segment is being converted into organised. Regarding the

investment, made by some of the Indian giants, it is learnt that Reliance has already

invested $3.4 billion and emerging as the largest contemporary Indian conglomerate;

Hyper city Retail of K.Raheja group plans to open up 55 hypermarkets before 2015;

Bharti enterprises plans to spend $5 billion by 2015 in their retail business. The present

state and future plans of companies in this Indian retail industry will certainly ensure an

abnormal growth rate than the present.

According to AT Kearney’s Annual Global Retail Development Index for 2010,

it is found in the annual study, made among 30 Countries based on their retail

32
investment attractiveness, India has been placed at third rank which is ahead of Brazil,

Saudi Arabia and others.

The Indian retail industry is divided into organized and unorganized 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 for prospective new players.

2.1.8 Key Drivers for Retail Growth

! Supply

Players are now moving to Tier II and Tier III cities to increase penetration and

explore untapped markets as Tier I cities have been explored enough and have reached

a saturation level.

! Demand

Healthy economic growth, changing demographic profile, increasing disposable

incomes,

changing consumer tastes and preferences are some of the key factors that are driving

and will continue to drive growth in the organised retail market in India.

! Barriers to entry

Reforms by India in opening up its economy have greatly improved trade

prospects, but major barriers still exist such as regulatory issues, supply chain

complexities, inefficient infrastructure, and automatic approval not being allowed for

foreign investment in retail. However, some of these issues may be tackled with

allowance of FDI in single and multi-brand retail.

33
 ! Bargaining power of suppliers

The bargaining power of suppliers varies depending upon the target segment,

the format followed, and products on offer. The unorganised sector has a dominant

position, still contributing above 90% to the total retail market. There are few players

who enjoy an edge over others on account of being established players and enjoying

brand distinction. Since it is a capital intensive industry, access to capital also plays an

important part for expansion in the space.

! Bargaining power of customers

High due to wide availability of choice. With FDI coming in, this is expected to

become stronger.

! Competition

High competition is characterised by many factors, including assortment,

products, price, quality, service, location, reputation, credit and availability of retail

space etc. New entrants (business houses and international players) including foreign

players are expected to further intensify the competition.

2.1.9 Challenges for Indian Retail

! Efficient Supply Chains

Highly fragmented supply chains coupled with infrastructure issues and the vast

geographical spread of the Indian market pose huge challenges to the retailers. Indian

retailers have to enhance their supply chains to succeed in the cost conscious market.

Segments such as food and grocery have to cope with very highly unorganised supply

chains. Also, the rising customer expectations would necessitate supply chains with

quick reaction times.

34
 ! Ability to penetrate rural market

The urban area has been the focus of organised retail which has led to increased

competition. Rural India is home to 72 crore consumers across 6 lakh villages. 17 % of

these villages account for 50 %14 The Next Urban Frontier: Twenty Cities to Watch-

NCAER Human Resource and Skill Requirements in the organised retail sector of the

rural population as well as 60 % of rural wealth. Hariyali Kisan Bazaars (DCM) and

Aadhars (Pantaloon-Godrej JV), ChoupalSagar (ITC), Kisan Sansars (Tata), Reliance

Fresh, and others such as the NayaYug Bazaar have already ventured into the retail

market.

! Leveraging Technology

The organised retail layers have to leverage IT and technology to sustain

business growth through innovation and differentiation. A numbers of retail players like

DLF Retail, Khadims, Diamex on Diamonds have expanded their SAP footprints15 to

simplify business processes, reduce costs and adapt to the changing industry landscape.

GPS and RFID technology can help in logistics and inventory management.

! Customised solutions

The Indian retail market is very heterogeneous in nature. The dynamics for

various segments change with the geography and other cultural factors. The challenge

for the retailer is to keep this heterogeneous nature of the target market in mind and to

balance it with other issues like economies of scale.

! Investing in retail brand (store brand)

A strong retail brand is a critical success factor. The retailers should invest in

brand building activities which would help them in attracting new customers as well as

retaining the existing ones. The strong retail brand will allow the retailers to push

through “private labels “which would strengthen their bottom line.

35
 ! Customer Relationship Management (CRM)

The retailers have to come up with innovative CRM activities to retain their

customer base and to add on to their brand value. CRM activities like loyalty programs

have been received well by the customers in the past.

ORGANISED VS UNORGANISED RETAILING

Source: From Tehelka Magazine, Vol 8, Issue 49, Dated 10 Dec 2011

2.1.10 Organised Retailing

Retail has become the largest source of employment and has deep penetration

into rural India. Retailing contributes to 10% of GDP and around 8% of the

employment. Retail sector is one of India’s fastest growing sectors with a 5%

compounded annual growth rate. It is expected that retail in India could be worth US$

175- 200 billion by 2016. The organized retail industry in India had not evolved till the

early 1990s. Until then the industry was dominated by the unorganized sector. It was a

seller’s market with a limited number of brands and little choice available to customers.

Lack of trained manpower, tax laws and government regulations, consumer awareness

and restrictions over entry of foreign player delayed the growth of organized retailing.

36
Organized retail chains comprise only 3% of the Indian market. Rest 97% market is

comprised of mom- and – pop type shops. Now the number of organized retail stores is

gradually increasing. According to ETIG (Economic Times Intelligence Group), the

size of the organized retail industry was about Rs. 160 billion in 2001-02. In 2005

budget Government has allowed 26% Foreign Direct Investment (FDI) in the retail

sector. Organized retailing is on continuous increase of its market share from the past.

Retailing can be categorized as of different sectors like food and groceries, clothing and

textiles, consumer durables, footwear, furniture and furnishing, catering services,

jewellery and watches, books, music and gifts, mobile handsets and others.

Fig: 2.3 Organised Retail Industry

Source: Saxena Ranjan,Marketing Management, Tata McGraw Hill Education Private

Limited, New Delhi, 2009, p 476

37
 Fig: 2.4 Organised Retail Industry

2.1.12 Growth Drivers of Modern Retail

There are a host of factors that are propelling the expansion of modern retail in

India, including the improving infrastructure, a move away from the socialistic pattern

of economy, better educational opportunities, and rising consumerism.

Over the last couple of decades, much has been written in the Indian media

about modern retailing, but the term has never been defined. FMCG companies have

begun to use the words “modern trade” to describe the industry. Here again, there is a

confusion. While a stand-alone supermarket chain in Mumbai gets treated as modern

trade, supermarkets with monthly sales of Rs 200 crore in Jalgaon or Jalna do not.

Numerous such examples are found throughout India. To the common man, this

distinction may matter little, except that modern trade sells things a little cheaper and

offers many discounts and schemes, but it falsifies national data about the true extent of

modern retail in the country.

Since many of the Indian retailers would sooner or later like themselves to be

recognised as modern retailers, they would want to know what exactly is modern

retailing. The US Bureau of Labor Statistics defines modern retailing as a retail chain

38
with 15 or more stores. In India, if a retailer follows a modern format, has a chain of

stores, uses technology like computers, and employs college graduates in his working

team, he can be said to be a modern retailer. Some may add one more point to this: the

owner should not look into the routine day-to-day affairs of the business, leaving these

to the professionals.

2.1.13 Listed below is some key drivers of growth in Indian modern retail:

! Infrastructure: Just five or six decades ago, connectivity was a big problem in

India. Forget about villages, even cities were not connected by road as there

were hardly any bridges straddling major rivers. Things have since changed and

are still changing fast. Express highways are being built and all cities and towns

got electrified long ago. Several states even claim that they have electrified

every village within their borders!

! Education: Until some decades ago, well over half of the Indian population

could not read and write. More than 50 percent of the districts in the country

had no colleges. There was not a single engineering or medical college in

several states and hardly one or two women colleges in each. But now, India

boasts of the biggest English-speaking population on earth.

! Industrialisation: India is the tenth biggest industrial country in the world.

Instead of importing, it now exports motorcycles, cars, watches, and a wide

range of industrial products.

! Communication: India today has the second-largest number of mobile phones

in the world, next only to China. SMS, emails, and fax are now the main mode

of communication.

! Media: Cable TV and hundreds of channels with news, views, and

entertainment have resulted in an information explosion in India. Even the

39
 poorest man living in a slum today owns a TV set. Telephone and TV are no

longer parameters of luxurious living. Now, hundreds of magazines are printed

in India in all languages and read by the middle class.

! Attitude: Today’s youth in the metros is having 10 to 20 pairs of dresses, half a

dozen pairs of footwear and perhaps as many T-shirts. Fast-food chains like

McDonald’s, KFC, and Pizza Hut are crowded with youngsters.

The result of all the above was a proliferation of small shops all over India

mainly selling food grains, pulses, cooking oil, spices, dry fruits, tea and a few brands

of toiletries and cosmetics. However, in the last decade or so, department stores and

malls have come up in all cities and towns of India and new ones are being built every

day.

Source: SC Misra, Growth Drivers of Modern Retail, Jan 28, 2014

40
2.1.14 The Major Factors Responsible for The Growth of Organised Retailing In

India are as Follow:

Organised retailing is a recent development. It is the outcome of socioeconomic

factors. India is standing on the threshold of retail revolution.

Retail Industry, one of the fastest changing and vibrant industries that, has

contributed to the economic growth of our country. Within a very short span of time,

Indian retail industry has become the most attractive, emerging retail market in the

world.

Healthy economic growth, changing demographic profile, increasing disposable

incomes, changing consumer tastes and preferences are some of the key factors that are

driving growth in the organised retail market in India.

2.1.15 Some of The Factors Responsible for The Growth of Organised Retailing

are as Under: Growth of Middle Class Consumers:

In India the number of middle class consumer is growing rapidly. With rising

consumer demand and greater disposable income has given opportunity of retail

industry to grow and prosper.

They expect quality products at decent prices. Modern retailers offer a wide

range of products and value added services to the customers. Hence this has resulted

into growth of organised retailing in India.

Growing consumerism would be a key driver for organized retail in India.

Rising incomes and improvements in infrastructure are enlarging consumer markets

and accelerating the convergence (meeting) of consumer tastes.

41
 ! Increase in the Number of Working Women:

Today the urban women are literate and qualified. They have to maintain a

balance between home and work. The purchasing habit of the working women is

different from the home maker.

They do not have sufficient time for leisure and they expect everything under

one roof. They prefer one-stop shopping Modern retail outlets therefore offers one

store retailing.

! Value for money:

Oganised retail deals in high volume and are able to enjoy economies of large

scale production and distribution. They eliminate intermediaries in distribution channel.

Organised retailers offer quality products at reasonable prices. Example: Big Bazaar

and Subhiksha. Opportunity for profit attracts more and more new business groups for

entering in to this sector.

! Emerging rural market:

Today the rural market in India is facing stiff competition in retail sector also.

The rural market in India is fast emerging as the rural consumers are becoming quality

conscious. Thus due to huge potential in rural retailing organised retailers are

developing new products and strategies to satisfy and serve rural customers. In India,

Retail industry is proving the country’s largest source of employment after agriculture,

which has the deepest penetration into rural India.

! Entry of corporate sector:

Large business tycoons such as Tata, Birla, and Reliance etc. have entered the

retail sector. They are in a position to provide quality products and entertainment. As

the corporate – the Piramals, the Tatas, the Rahejas, ITC, S.Kumar’s, RPG Enterprises,

42
and mega retailers- Crosswords, Shopper’s Stop, and Pantaloons race to revolutionize

the retailing sector.

! Entry of foreign retailers:

Indian retail sector is catching the interest of foreign retailers. Due to

liberalization multinationals have entered out country through joint ventures and

franchising. This further is responsible for boosting organised retailing.

! Technological impact:

Technology is one of the dynamic factors responsible for the growth of

organised retailing. Introduction of computerization, electronic media and marketing

information system have changed the face of retailing. Organized retailing in India has

a huge scope because of the vast market and the growing consciousness of the

consumer about product quality and services. One of the major technological

innovations in organised retailing has been the introduction of Bar Codes. With the

increasing use of technology and innovation retailers are selling their products online

with the help of Internet.

! Rise in income:

Increase in the literacy level has resulted into growth of income among the

population. Such growth has taken place not only in the cities but also in towns and

remote areas. As a result the increase in income has led to increase in demand for

better quality consumer goods. Rising income levels and education have contributed to

the evolution of new retail structure. Today, people are willing to try new things and

look different, which has increased spending habits among consumer.

! Media explosion:

There has been an explosion in media due to satellite television and internet.

Indian consumers are exposed to the lifestyle of countries. Their expectations for

43
quality products have risen and they are demanding more choice and money value

services and conveniences.

! Rise of consumerism:

With the emergence of consumerism, the retailer faces a more knowledgeable

and demanding consumer. As the business exist to satisfy consumer needs, the growing

consumer expectation has forced the retail organizations to change their format of retail

trade. Consumer demand, convenience, comfort, time, location etc. are the important

factors for the growth of organised retailing in India. The retail industry is divided into

organised and unorganised sectors. Organised retailing refers to trading activities

undertaken by licensed retailers, 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 large retail businesses. Unorganised retailing, on the other hand,

refers to the traditional formats of low-cost retailing, for example, the local kirana

shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart

and pavement vendors. It is important to understand how retailing works in our

economy, and what role it plays in the lives of its citizens, from a social as well as an

economic perspective. India still predominantly houses the traditional formats of

retailing, that is, the local kirana shop, paan/beedi shop, hardware stores, weekly haats,

convenience stores, and bazaars, which together form the bulk.

2.1.16 Major Organised Retailer in Indian Market

! Pantaloon Retail

The flagship company of Future Group, Pantaloons Retail operates over 16

million square feet of retail space, has over 1000 stores across 73 cities in India and

employs over 30,000 people. It can boast of launching the first hypermarket Big Bazaar

in India in 2001. The companies also operates in other retail segments such as - Food &

44
grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture bazaar,

collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts

(Depot), Health & Beauty care services (Star, Sitara andHealth village in the pipeline),

e-tailing (Futurbazaar.com), entertainment (Bowling co.) The turnover this year was

12500 crores.

! K Raheja Group

They forayed into retail with Shopper’s Stop, India’s first departmental store in

2001. It is the only retailer from India to become a member of the prestigious

Intercontinental Group of Departmental Stores (IGDS). They have signed a 50:50 joint

venture with the Nuance Group for Airport Retailing. Shoppers Stop has a national

presence, with over 2.05 million square feet area across 39 stores in 17 cities. It has

also introduced new formats in the market viz Home Shop – the exclusive home

furnishings, décor as well as furniture store and Hyper City– a premium shopping

destination for Foods, Home ware, Home Entertainment, Hi-Tech Appliances,

Furniture, Sports, Toys & Fashion. Other format of the company includes -- Crossword

Book Store, Mother care & Early Learning Centre (ELC), Estee Lauder group, Airport

Retailing, Time Zone Entertainment. The turnover this year was 1570 crores.

! Tata group

Established in 1998, Trent - one of the subsidiaries of Tata Group - operates

Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large

assortment of products at the lowest prices. In 2005, it acquired Landmark, India's

largest book and music retailer. Tata has also formed a subsidiary named Infiniti retail

which consists of Croma, a consumer electronics chain. Another subsidiary, Titan

Industries, owns brands like “Titan”, the watch of India and Tanishq, the jewellery

brand. Sales turnover was 197.13 crore in December 2010.

45
 ! RPG group

One of the first entrants into organised food & grocery retail with food world

stores in 1996 and then formed an alliance with Dairy farm International and launched

health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and

RPG has Spencer’s Hyper, Super, Daily and Express formats and Music World stores

across the country.

! Landmark group

Landmark Group was launched in 1998 in India; currently owning 100 stores

across various retail formats. The retail ventures of Landmark Group includes - Home

Centre, Centrepoint, Babyshop, Splash, Shoe Mart, Lifestyle, Max, Lifestyle

Department Stores, SPAR hypermarkets, Foodmark, Fun City, Fitness First, Citymax

India etc. It is a 3.8 billion dollar company.

! Bharti-Walmart

Bharti have signed a 50:50 percent joint venture agreement with Walmart’ in

which Wal-Mart will be taking care of cash & carry and Bharti will do the front-end.

Further they plan to invest US$ 7 bn in creating retail network in the country including

100 hypermarkets and several hundred small stores.

! Reliance

The company owns more than 560 Reliance Fresh stores and recently it has also

launched Reliance Mart Hypermart. The company further plans to launch its hypermart

in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana region. The turnover was

4500 crore for this year.

! AV Birla Group's

AV Birla Group's brand portfolio includes brands such as Louis Phillipe, Van

Heusen, Allen Solly, Peter England, Trouser town. Also, Madura garments is

46
subsidiary of Aditya Birla Nuvo Ltd. The recently acquired food and grocery chain of

south, Trineth, has further increased their number of store to 400 stores in the country.

The company also owns ‘More’ supermarkets and hypermarkets. Currently it runs 600

supermarkets and nine hypermarkets across India. The turnover this year was 1700

crores.

! Metro

Metro Cash & Carry, the first company to introduce cash and carry business,

started its operations in India in 2003 with two Distribution Centres in Bangalore.

Metro offers assortment of over 18,000 articles across food and non food at the best

wholesale prices. Currently Metro operates six cash and carry centres in Banglaore,

Hyderabad, Kolkata and Mumbai.

! Viveks Ltd

Viveks Limited is the largest consumer electronics and home appliances retail

chain in India, with 44 stores in south, covering a retail space area of over 1, 75, 000 sq.

ft and a turnover of over Rs. 400 crore. Its brand, Viveks, is now a household name.

The company plans to set up 50 more showrooms in South India.

2.1.17 Unorganised Retailing

Traditional or Unorganised retail outlets are normally street markets, counter

stores, kiosks and vendors, where the ownership and management rest with one person

only. This sector accounts for two thirds of the market and requires low skilled labor.

These are highly competitive outlets, with negligible rental costs (Unregistered kiosks

or traditional property), cheap workers (work is shared by members of family) and low

taxes and overheads.

47
 UNORGANISED RETAILING

Indian retail is dominated by a large number of small retailers consisting of the

local kirana shops, owner-manned general stores, chemists, footwear shops, apparel

shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart hawkers,

pavement vendors, etc. Which together make up the so-called “Unorganised retail” or

“Traditional retail”. The last few years have witnessed the entry of a number of

organised retailers opening stores in various modern formats in metros and other

important cities. Unorganised retailers normally do not pay taxes and most of them are

not even registered for sales tax, VAT, or Income tax. Unorganised retailing, on the

other hand, refers to the traditional formats of low-cost retailing, for example, hand cart

and pavement vendors and mobile vendors, the local kirana shops, owner manned

general stores, paan/beedi shops, convenience stores, hardware shop at the corner of

your street selling everything from bathroom fittings to paints and small construction

tools or the slightly more organized medical store and a host of other small retail

businesses in apparel, electronic, food etc.,

48
2.1.18 UNORGANISED RETAIL SECTOR IS DOMINATING IN INDIA:

Small-store (kirana) retailing has been one of the easiest ways to generate self-

employment, as it requires limited investment in land, capital and labour. It is generally

family run business, lack of standardization and the retailers who are running this store

lack 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%.

The Reasons for Unorganized Retail Sector Domination in India:

! In smaller towns and urban areas, there are many families who are traditionally

using these kirana shops/ 'mom and pop' stores offering a wide range of

merchandise mix. Generally these kirana shops are the family business of these

small retailers which they are running for more than one generation.

! These kiran shops are having their own efficient management system and with this

they are efficiently fulfilling the needs of the customer. This is one of the good

reasons why the customer doesn't want to change their old loyal kirana shop.

! A large number of working class in India is working on daily wage basis, at the end

of the day when they get their wage, they come to this small retail shop to purchase

wheat flour, rice etc for their supper. For them this the only place to have those food

items because purchase quantity is so small that no big retail store would entertain

this.

! Similarly there is another consumer class who are the seasonal workers. During

their unemployment period they use to purchase from this kirana store in credit and

when they get their salary they clear their dues. Now this type of credit facility is

49
 not available in corporate retail store, so this kirana stores are the only place for

them to fulfill their needs.

! Another reason might be the proximity of the store. It is the convenience store for

the customer. In every corner of the street an unorganized retail shop can be found

that is hardly a walking distance from the customer's house. Many times customers

prefer to shop from the nearby kirana shop rather than to drive to a long distance

organized retail stores.

! These unorganized stores are having a number of options to cut their costs. They

incur little to no real-estate costs because they generally operate from their

residences. Their labour cost is also low because the family members work in the

store. Also they use cheap child labour at very low rates.

As they are operating from their home they can pay for their utilities at residential rates.

Even they cannot pay their tax properly.

2.1.19 Opportunities and Challenges of Unorganized Retail Sector in India:

Opportunities:

" India’s booming economy is a major source of opportunity. It is the third largest

in the world in terms of purchasing power. India is the second fastest growing

major economy in the world.

" India's huge population has a per capita income of Rs 44,345.

" The proportionate increase in spending with earnings is another source of

opportunity.

" With the Indian economy now expected to grow at over 8% and with average

salary hikes of about 15%, manufacturers and retailers of consumer goods and

services can expect a major boost in consumption.

50
 " The Demography Dynamics are also favourable as approximately 60 per cent of

Indian population is below the age of 30.

" Increasing instances of Double Incomes in most families coupled with the rise

in spending power.

" Increased urbanization has led to higher customer density areas thus enabling

retailers to use lesser number of stores to target the same number of customers.

Aggregation of demand that occurs due to urbanization helps a retailer in

reaping the economies of scale.

" With increased automobile penetration and an overall improvement in the

transportation infrastructure, covering distances has become easier than before.

Now a customer can travel miles to reach a particular shop, if he or she sees

value in shopping from a particular location.

Challenges Which Are Faced By the Indian Unorganized Retail Sector:

Lack of best practice in inventory management and supply chain management.

Lack of standardization.

Stiff competition from organized retail sector.

Lack of knowledge, skills and training.

Consumers shifting towards organized retail markets.

Lack of government policies discouraging the unorganized retailers.

Lack of capital.

Others

Retail Formats in India:

Hyper Marts/ Super Markets: large self – servicing outlets offering products

from a variety of categories. Examples like Spencer’s, Big Bazaar.

51
 Mom-and –pop Stores: they are family owned business catering to small

sections; they are individually handled retail outlets and have a personal touch.

Departmental Stores: are general retail merchandisers offering quality

products and services. Examples like Ebony, Shopper’s Stop, Westside.

Convenience Stores: are located in residential areas with slightly higher prices

goods due to the convenience offered. Examples like in & Out, Safe, 6ten.

Shopping Malls: the biggest form of retail in India malls offer customers a mix

of all types of products and services including entertainment and food under a

single roof.

E-trailers: are retailers providing online buying and selling of products and

services.

Discount Stores: these are factory outlets that give discount on the MRP.

Examples like Subhiksha, Koutons, Nike, and Levis.

Vending: it is a relatively new entry in the retail sector. Here beverages, snacks

and other small items can be bought via vending machines.

Category Killers: small specialty stores that offers a variety of categories. They

are known as category killers as they focus on specific categories, such as

electronics and sporting goods. This is also known as Multi Brand Outlets or

MBO’s.

Specialty Stores: are retail chains dealing in specific categories and provide

deep assortment. Mumbai’s Crossword Book Store and RPG’s Music World is a

couple of examples. (Sunita Sikri, Ms. Dipu Wadhwa 2012).

2.1.20 Business Models in Retail

India is a country dominated by local and traditional retailers and business

models specific to Indian context are bound to emerge. This section discusses some of

52
the retail business models that have emerged and which are peculiar to the Indian

landscape. These are as:

2.1.21 Store Based Retailers

These operate at fixed point of sale locations. Their stores are located and

designed to attract a high volume of walk-in customers. In general, store based retailers

offer a wide variety of merchandise and use mass media advertising to attract

customers. These can be further classified on the basis of various parameters like:

I. Ownership

II. Strategy-mix

III. Service vs. Goods retail mix.

53
TYPES OF RETAIL FORMATS

(Source: ICFAI Text Book on Retail Management)

54
2.1.22 Customers Preference:

Customer preferences are defined as the individual tastes, as measured by

utility, of various bundles of goods. They permit the customer to rank these bundles of

goods according to the levels of utility they give the consumer. Customer preference in

India is almost changing and creating a tremendous potential for the retail industry to

look for innovative ideas and bring in new products with creative marketing approach

to tap the huge working population. New modern retailing concepts of western trends

has entered into the retail market in India; in the form of active shopping centers, multi-

storied malls and the huge complexes that offer shopping, entertainment and food all

under one roof are also called organized retail.

Understanding about customer preference is essential for retail managers

because it enables them to identify and target those customers who are most likely to

purchase and retailer can focus on explaining retail support with respect to various

elements like location of the store, frequency of customer to visit store and store choice

preference. The success of the organized retail store depends on the way the retailers

would create and deliver the value to the customer through their distinct retail formats.

The organized retail sector is all set to witness maximum number of large format malls

and branded retail stores in different cities of India, with everything from groceries and

vegetables to footwear, apparels, cosmetics, furnishings & home decors available under

one roof. Organized retail stores like super market, hyper market, malls are not merely

points of sales for different retailers but it is a place where several brands build their

equity in coming together. Their main purpose is to focus on the target audience and

increasing the footfalls in these retail formats. The organize retail formats are still in

nascent stages in India when compared to developed and other developing countries.

The retailing sector in India has undergone significant transformation in the past 10

55
years. For the current generation of customers, the meaning of shopping has changed

because the decision making is more complex and even more important for consumers

today than in the past. The changing consumer taste and preference, increasing

disposable income and the propensity to spend are some of the factors affecting the

changes in the retail scenario in India. Some of the factors that affect store choice and

attract customers towards shopping centre include space, ambience, entertainment and

convenience and moreover a range of product in a particular place. The growth of

shopping malls, retail chains and multi-brand outlets is evidence of consumer behavior

being favorable to the growing organized segment of the business.

2.1.23 Retailing in Tirunelveli District:

Tirunelveli is a city in Tamil Nadu state of southern India. It is the headquarters

of Tirunelveli District.It is located on the banks of the perennial Thamirabarani River,

75 km from Kanyakumari, the southernmost tip of India. The Thamirabarani contains

traces of copper, hence its name (Thamiram means copper in Tamil). Tirunelveli can be

easily reached from Madurai (4 hours) or Nagercoil (1 1/2 hrs). The city also goes by

the name Nellai. The district is known for its paddy fields. The name 'Tiru-Nel-Veli'

owes to a Hindu mythological story where Lord Shiva protected the paddy ('nel') by

creating a fence ('veli').

2.1.24 Organised Retailing in Tirunelveli:

! Nalli

Established in 1928, the brand name is synonymous with silk and has been a

leader in the textile and retail business for over eight decades. Attention to cultivating

vendor and customer relations has been at the helm of the Nalli management. In a

radical departure from convention, the company decided not to indulge in discount

selling, an unheard prospect in the 1950s. Its product offering varies from sarees to

56
fabrics, apparel and home furnishings. It also has a sizeable private label collection

such as costume jewellery and accessories.

! Vasanth and Co

Based in Chennai, the company is dealer of consumer electronics, home

appliances and mobile phones. Started in 1978, it has over 50 showrooms in almost

every town in Tamil Nadu and some in Pondicherry and Bangalore as well.

! Vivek and Co

Right from the very beginning, the company’s objective was to offer quality

products and services to people at affordable costs.

! UniverCell

Founded by Sathish Babu in November 1997, it is an example of how

innovation can bring success. It started as a Skycell Teleshop (now AirTel Connect)

selling post paid mobile connections. After studying the buying behaviour of the

customers and the market potential, he opened the first large format mobile retail store

in 2000, the first of its kind in South India.

! Bharat Matrimony

It is recognised as the most successful matrimony brand in the world and has

consistently topped traffic and usage ratings by ranking agencies. It has also been rated

as the most visited matrimony portal in the world. A recent Just Consult study revealed

that 80% of the country’s population uses Bharat Matrimony. It is the only matrimony

brand to be featured in the Limca Book of Records.

Pothys Supermarket

Margin Free Supermarket

Aryaas Supermarket

Spencer plaza

57
 Big Bazaar

Ramani Supermarket

2.1.25 Unorganised Retailing

! Convenience store

A convenience store is a small store that stocks a range of everyday items such

as groceries, snack foods, candy, toiletries, soft drinks, tobacco products, and

newspapers. They differ from general stores and village shops in that they are not in a

rural location and are used as a convenient supplement to larger stores. Although

larger, newer convenience stores may have quite a broad range of items, the selection is

still limited compared to supermarkets, and in many stores only 1 or 2 choices are

available. Convenience stores usually charge significantly higher prices than ordinary

grocery stores or Supermarkets, which they make up for with convenience by serving

more locations and having shorter cashier lines. Many convenience stores offer food

ready to eat, such as breakfast sandwiches and other breakfast food.

58
 REVIEW OF LITERATURE

2.2 INTRODUCTION

To be able to formulate the problem precisely, it seems logical to present a brief

review of the researches done on the problems what follow make no pretense of being

an exhaustive review of all investigation done on this problem, rather it has been

indicated in general way, all type of work done in this direction in India.

Pandey et al (2015)1 a study was conducted to know the preference of

consumers in Jalandhar towards organized retail sector. Study was conducted to assess

the important factors influencing the consumers’ buying decision towards organized

retail stores in Jalandhar, using the direct survey method.

Chakraborty et al (2014)2 rural sector in India is undergoing a rapid change.

Rural markets consisted major part of unorganized retails stores. But with the changing

global scenario, Indian rural market is also changing and has become a new destination

of retailing. Study attempts to discuss the recent Indian rural demography and the

present day situation of retailing in India, challenges faced by organized and

unorganized retailing in rural area. Primary data has been collected from rural villages

and described their changing want, value, desire and feelings on retail industry.

Somasekhar G et al (2014)3 another study was conducted on the consumers in

Chittor. The study conducted by considering 342 shoppers who shop at both the outlets.

The study reveals that Quality, one point shopping for all your needs and price (value

for money) as a reasons to visit and face-inconvenient location as the major problem in

visiting organized retail store in Chittor district.

Shandilya et al (2014)4 organized retail sector includes various numbers of

sub-sectors in it like jewellery, apparels, food etc. Initially food retailing was a family

59
owned business (they come under unorganized retail store type) but later it has gone

through a sea change. Now, the big corporate houses are in the business of food

retailing which provides many frill services with quality products. Study was attempted

to find the consumers’ preference for organized food retailing and unorganized food

retailing. The study focuses on the retail attributes which are considered while selecting

a retail shop by the consumers.

Tomar et al (2014)5 discriminate analysis is done to find out which factor

(store brand image, quality of merchandise, discount and special offer, merchandise

assortment, shopping convenience, and physical facilities) are relatively better in

discriminating between two groups (favorable attitude-unfavorable attitude). Also, the

pace of expansion of these organized stores has started to touch the tier II cities, besides

metros and mini-metros.

Singh et al (2014)6 the retailing sector has undergone significant transformation

in the past 10 years. Traditionally, retail sector had a large number of small-

unorganized retailers. However, in the past decade new concept of organized retailing

developed. Many foreign formats have also entered India through different routes such

as test marketing, franchising. Unfortunately, Indian organized retailers being new in

the organized retailing are less aware about the customer behavior and factors, which

influence Customer Preference of organized retailing. Study was conducted to know

how the factors affecting organized retailing differentiate between favorable and

unfavorable attitude towards organized retailing.

Tomar et al (2013)7 There are different categories of customers which need to

be considered. The number of working in India is increasing day by day and hence their

attitude towards organized cannot be ignored which prompted to study their attitude

towards organized retailing in India. Exploratory research was conducted; survey on

60
150 working women of Agra, Gwalior and National Capital Region was undertaken.

The survey was conducted at the various organized retail outlets. It was found that

organized retailers should work up on the delivery channels to increase the frequency

of visit of working women.

Mohd. Rumzi Taushif, Manisha Gupta, (2013)8 Retailers are increasingly

making use of various in-store influencers for converting browsers to spenders.

However, success depends on how the customers perceive these influencers. The

phenomenon of impulse purchasing has been studied in consumer research as well as

for example in psychology and economics since the 1950s. In brick-and-mortar

retailing, impulse purchases have been an important source of revenue for retailers.

This study attempted to investigate the relationship of various factors, with impulse

buying tendency of consumers in the Delhi region. This article empirically evaluates

the perception of the customers towards various in-store stimuli that is, price,

merchandise, promotion, displays and ambience, across stores located in Delhi.

MedhaKanetkar, (2013)9 Organized retailers actually work as a retail outlet

catering to varied needs of the customers. The purchasing pattern of the customer has

changed recent days. Customer’s buying behaviour is influenced by social factors, such

as the group to which the customers belong and social status. In a group, several

individuals may interact to influence the purchase decision. Change in consumption

pattern is due to outsourcing business per capita, income of middle age, population in

big cities is rising rapidly and easier access to credit. Retail shopping space is also

growing exponentially and has increased to 54 million square meters. The development

of organized shopping malls has literally been a revolution in India. Retailing is one of

the largest business activities in India and one of the largest sources of employment in

the country. Due to drastic change in the behavior of the consumer, in the view of

61
growing economy, earning capacity, less time and fast track life the emerging challenge

for the retail in India and in Nagpur city is to maintain the quality in competitive rate

structure. Data was collected from questionnaire filled up by the consumers visited to

organized retail shops. 400 consumers were selected by Random Sampling Method.

Introduction of organized retailing has not been able to replace traditional markets,

which are still popular among the pocket conscious people, but has definitely added a

new adventure to the shopping experience.

Monika Talreja, Dhiraj Jain, (2013)10 The customer’s perception is your

reality. –Kate Zabriskie through their research concluded that Retailing is one of the

largest sectors in the global economy and is going through an evolutionary stage in

India. Retail is currently a flourishing sector of the Indian economy. The Indian Retail

industry has grown at a 14.6% CAGR during FY07-12. This growth can be directly

credited to the emergent Indian economy as well as increase in Private Final

Consumption Expenditure (PFCE) and bring revolution in Indian peoples

consumption pattern. This tendency is expected to continue for at least the next two-

three decades, magnetizing huge attention from entrepreneurs, business heads, investors

as well as real estate owners and builders segments of the economy. Despite this

growth, the Indian retail industry is highly fragmented, with the organized retailing still

at a nascent stage which accounts for far less percentage than the unorganized retailing

of the total Indian retail market. It is estimated that organized retailing accounts for less

than 5% of today’s market, but is expected to develop between14% to 18% by 2015.

During FY07- 12, the organized retailing in India has grown at a CAGR of 26.4%;

higher that the total growth of Indian retailing. The sector is the largest source of

employment after agriculture, and has deep access into rural India generating more than

10 per cent of India’s GDP. This study aims to identify the factors influencing the

62
perception towards organized retailing from unorganized retailers. The primary data

was gathered by administering a prearranged questionnaire with 100 customers selected

purposively from Udaipur District. The data analysis of customer attitude towards

unorganized and organized retailers shows that there is a difference between the

consumers’ perception towards both organized retailers and unorganized retailers

regarding their store image, range of products, brand choices, price, store atmosphere,

credit availability, and shop proximity. The data has been collected with the help of

structured questionnaire containing close and open ended questions. Statistical software

and MS excel were extensively used for analyzing the data collected. The rationale of

the study is twofold First, to examine the shift in perception in the retail sector taking

place due to organized form of retailing.

Nair & Nair, (2013)11 in their study revealed that the perception of service

quality was influenced by various natures among various customers and some of the

general factors like personal interaction, physical aspects on which customer perception

remained constant and common.

Priya Vij, (2013)12 From this study concluded that Retail is currently the

flourishing sector of the Indian economy. This trend is expected to continue for at least

the next two- three decades, and it is attracting huge attention from all entrepreneurs,

business heads, investors as well as real estate owners and builders. Availability of

quality, retail space, wider availability of products and brand communication are some

of the factors that are driving the retail in India Retail sector is also supporting to create

huge employment while a new form of organized retail sector has emerged within the

retail industry and it gave speedy phase to Indian retail sector. The rationale of the

study is twofold: First, to examine the nature of changes in the retail sector taking place

due to organized form of retailing and implications of shift to this new form of

63
retailing. Secondly, this area has remained largely an unexplored part of research till

date especially in the Indian context. The broad objective of the study is to understand

consumer behavior towards organized and unorganized retail stores and to find out the

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.

B. Kusuma1, N.Durga Prasad, M.Srinivasa Rao, (2013)13 India is becoming

most favoured retail destination in the world. Today retail sector contributing 10% to

country’s GDP. Indian retail industry is ranked among the ten largest retail markets in

the world. The change of attitudes of Indian consumers and the emergence of organized

retail formats have transformed the face of retailing in India. Organized retailing offers

huge potential for future growth of retailing in India. This paper provides information

about the growth of retailing in India. And also focuses on the challenges faced by

organized retail sector in India. It also emphasizes on major players of retailers in India

and customer services provided by the retailers. This paper also deals with various

retail formats and the opportunities for the growth of retail industry in India and also

provides some suggestions to overcome the challenges.

Ekta Rani, (2013)14 in her research finds the Kirana stores are more likely to

provide services like free home delivery. Supermarkets have big names backing them

moreover, they have stronger advertising, probably on national or state level. At the

same time, there have been instances of Kirana stores selling at prives higher than the

MRP and tampering with the quantity of loose products.

Panneerselvam (2013)15 The food retail in India is largely unorganized and the

size of organized retail is merely 5%. At the same time, organised food retail has seen a

64
significant growth in the past few years with large scale investments made by Indian

corporate houses. Food Retail is not effective without the supply chain. Retail supply

chain is a contemporary and evolving field which is a culmination of two different

areas of management, namely, supply chain management and retailing. Even though

there are many refereed papers in the area of supply chain management and retailing,

there are not many research papers/articles in the area ofretail supply chain, especially

food retail. Scouring for research papers in the area of food retail supply chain with

reference to Indian context is a herculean task. In spite of the paucity of literature in the

specific field, a humble attempt is made to unearth the research papers/articles and is

presented in this paper. This paper shall help the researchers, academicians and other

enthusiasts in furthering the research in food retail and food retail supply chain.

Ameresha et al. (2012)16 explain the reason why a consumer chooses to

purchase certain products in the organised retail outlet. The work is mainly

concentrated on the purchasing behaviour for the organised retail outlets while giving

more importance to FMCG. He concluded that the main reason for a consumer to go to

organised retail outlet are price, products and location and also think exprnditure is also

increasing.

Urvashi Gupta, (2012)17 In their study indicated that the retail industry in India

is emerging as a one of the largest industries estimated to account for more than 10 per

cent of the country’s GDP and around 8 per cent of the employment. Its highly dynamic

and fast growing nature has put India on the threshold of a major shake-up to become

the next retail boom area. Despite global slow-down and economic recession faced by

most of the established as well as developing countries Indian economy has weathered

the storm showing a fast track come back on the pre-recession stage. Retail industry is

divided into unorganized and organized sectors. In India, unorganized retailing has

65
been predominantly in the form of local Kirana shops also called Mom-n-Pop stores,

owner/ manned general stores, paan/beedi shops, convenience stores, hand cart and

pavement vendors, etc. Organized retailing on the other hand refers to licensed

retailers, who are registered for sales tax, income tax, etc. including corporate-backed

hypermarkets and retail chains besides the privately owned large retail businesses. The

retail sector is expanding and modernizing rapidly in line with India’s economic growth

and recent Government of India’s initiatives. Modern retail sector is at the crossroads

where the growth of organized retailing and growth in the consumption by the Indian

population is going to take a higher growth trajectory. It is undergoing a major

transformation as entry of global players and watchful expansion by major Indian

retailers has opened new vistas of joint ventures, tie-ups and franchise offering new

formats, services, private labels, locations and recently to diverge from metros to

smaller towns, ArvindSinghal Chairman Technopak Advisors has rightly said that, “A

lot of international retailers and brands are most likely to look at India, as global

markets have stabilized and the Indian economy has proved to be better than most other

countries. With the changing retail scenario the consumers are bound to look beyond

traditional retail stores towards organized outlets may be with some reservations. This

necessitates study of the factors which influence the consumers to move towards the

organized retailing from unorganized one besides most prioritized attributes which

attract the consumers towards either of them. Jammu the winter capital of the state of

Jammu & Kashmir is on the threshold of entry of organized retail in a significant way

and accordingly requires study of consumer’s preferences related to unorganized and

organized retail outlets.

Nisha Rathore, (2012)18 In their study showed that the Retailing in India came

with evolutionary patterns from Kirana store to super market. This sector was un-

66
organized in the initial stage, and after that it is carried forward and now it is growing

as supermarket and hypermarket. The paper will depict the main drivers of the retail

revolution in India and how this revolution changes the buying behavior of the

customer, increase in disposable income of the middle class, infrastructure development

and changing customer choice. Organized Retailing is introduced in the last decade and

has emerged as one of the sunrise industries in India. The paper will mention the impact

of organized retailing on unorganized sector. The study will indicate how the consumer

will be benefited from organized retailers. The survey intends to analyze the consumer

behavior towards organized and unorganized retailing, their source of purchasing and

the factors which influences their mall purchasing in India

Abhinav, Rajesh Rathore1, (2012)19 In this research paper, take a peep into

the organized retail sector of India. It started making its presence felt nearly a decade

after the first lot of entrepreneurs set up shop. A brief introduction and evolution shows

how the organized retailing changed its gears over the period from Panwaladhukan to

chain stores across the length and breadth of India. The market size and related details

gives a statistical view of increasing market in a few major areas of retailing. The major

market players who enlivened the present caricature of retail sector are presented

briefly along with statistics. The changing scenarios of Indian consumers give a proof

to the potential opportunity in the retailing arena. SWOT and its subheads take you to

the crux of analysis into retail industry. Out of which we formulated the future

prospects. One major lifesaver of the Indian retailing is the advertising and promotional

strategies; which comes out with innovative ways to win consumers over and keep

them permanently happy. FDI in retail has been contentious issue and may face

resistance, given the perceived political scenario. FDI will be a defining moment for

Indian retail and how government policies a affect the retail industry is given briefly at

67
the end. In this research paper I have taken some samples from the Udaipur area only

and made some analysis on that. I have used chi square and ANOVA test to interpret

the result and to find the suggestions. The major purpose is to find the responses of the

consumers towards the organized and unorganized retailing.

Singh &Agarwal, (2012)20 revealed that customer’s preferences for grocery

shopping were gradually shifting from local kirana stores to organized convenience

stores. Brand choice and credit card facilities were the main determinants which

influenced preferences from kirana to organized retail. Payment through credit cards

increased purchases from organized retail store.

Gupta, (2012)21 concluded in her study that store attributes like convenient

operating hours and accessibility were the factors which lead to customer loyalty and

not store appearance. Similarly, product attributes like freshness of the product and

availability of products range according to the pocket were major determinant of

loyalty. It was also evident that even today Kiranas are preferred by customers because

of various reasons viz. convenient location, home delivery, personal relations with

shopkeeper, giving products on credit, payment in instalments.

Srivastava, (2012)22 in his study showed that the overall customers’ perception

across urban and suburban was not varied. The customers were ready to pay higher

prices for branded goods across the urban and suburban areas. They gave priority to

purchase grocery from nearby shops while for purchasing of apparel they liked to travel

some distance. The outcomes of the study showed that the exposure of marketing

strategy through electronic and print media made the customers more choosy and

knowledgeable.

Rathore et al (2012)23 Similar study was conducted for consumer’s preference

in the area of Udaipur. Chi square and ANOVA test were used to interpret the result

68
and to find the suggestions. The major purpose was to find the responses of the

consumers towards the organized and unorganized retailing.

Satish Kr. Singh, PratyushTripathi, (2012)24 The Retail sector of India is

now among top five fastest growing markets globally and by 2015 it is going to touch $

637 bn. Most of it is going to be through Modern retail i.e. through shopping malls,

which is expected to increase by 22% by 2015 and the number of malls is going to

touch a promising figure of 500 approximately by 2015. The total mall area available in

India is more than 900 lacssqft. The economic environment has changed and retailers

are not confident of developer’s ability to get enough foot all. That’s why no retailer

would like to be the first to test the water. He would like to wait to understand the

synergy with other tenants before stopping into a mall. Anchor tenants hesitation will

make life difficult for mall developers as they are already facing excess retail capacity.

Surajit Dey, Sameena Rafat, Puja Agarwal, (2012)25 Retail is a buzz word in

today’s changing business environment. Different industrial sectors are in the phase of

transition from conventional business models to innovative, market driven and

consumer centric models. In India retail is not a new word, however the emerging

formats of retailing are changing the entire scenario and posing tough challenges in

front of Indian retailers. They are now designing customized retail products and

services and targeting the untapped segment of the market. Presently, nearly 60% of the

population resides in rural India and their retail requirements are partially met by the

unorganized retail stores. This study is an attempt to explore the potential of rural retail

market of India, accessing their needs for products and brands. The study also aims at

developing a business model for the rural retail market in India

U. Dineshkumar, P.Vikkraman, (2012)26 Customer satisfaction is widely

recognized as a key pressure in the formation of consumers' future purchase intentions.

69
Satisfied customers are also likely to tell others of their favourable experiences and thus

engage in positive word of mouth advertising. The present study aims to investigate

customer satisfaction in the organized retail outlets in Erode city of Tamil Nadu state in

India. The objectives are to identify the determinants of customer satisfaction in the

organized retail outlets in Erode city, to identify the attitude and behavior of the

customers those who are purchasing in organized retail outlets, and to study about the

future prospects of organized retail outlets in the city. Customer satisfaction is a

significant subject for most marketers. A total of 200 questionnaires have been

randomly distributed to retail customers. Using descriptive statistics method, cross table

analysis, chi-square test and correlation method (to compare between different means)

the data collected is analyzed. The result of this analysis suggests the degree of

customer satisfaction in terms of services provided by organized retail outlets in Erode

Uma.k , Dhivya.R. , Chandrakumar.M, (2012)27 Food retailing in India is the

fastest growing segment in country’s fast paced retail sector. Amongst processed cereal

products in India, noodles constitute the largest segment in the processed food market

and have a share of about 45 per cent in terms of output. This study examines the

consumer buying behavior of noodles. The use of statistical tools such as ranking and

multidimensional scaling technique concludes that the availability of wide range of

products was the major factor influencing the respondents’ preference followed by

availability of quality products, discounts and offers, shopping convenience, store

image and post purchase satisfaction.

Vinod Kumar Bishnoi, Bharti and Nidhi Gupta, (2012)28 Indian economy

has transformed from an extensive controlled economy to a liberal market driven

economy. High-income opportunities, changing attitude towards saving, international

exposure and necessities of lifestyle are the key drivers for fast evolving Indian

70
consumer behaviour (KSA Technopark, 2006). Indian retail industry is witnessing a

paradigm shift as the sector is getting organized and consumers are seeking a one-stop

shopping place with convenience and entertainment. Professionally managed and

separately owned retail organizations are the face of today’s retail sector. India is

stepping into a new era of ‘Retail Chains’ from the traditional neighbourhood ‘Kirana

Store’. Economic growth, changing lifestyles, urbanization, women’s participation in

economic activities and the spread of IT are the some of the key factors for the growth

of the retail sector. It is the fastest growing sector of the economy with a compounded

annual growth rate of 46.64 per cent. The estimated worth of organized retail industry

is Rs. 350 bn, accounting for less than 3 per cent of the total retail market.

Meera Mathur, Sumbul Samma, (2012)29 Retailing is the largest private

industry in the world. It is also India's largest industry accounting for over 10% of the

country's GDP and around 8% of the employment. Customer relationship management

is an emerging tool that enables marketers to maintain their presence in the dynamic

marketing environment. In the city like Udaipur these organized retail store and firms

are concentrating and targeting the consumer from the different segments like rural,

urban, low, middle and high income segments etc. The research paper attempts to

evaluate the CRM practices of the retail stores in Udaipur city. CRM is highly

exercised in the industry like hospitality, services industry etc. but it is having equal

importance in the retail industry also. The results of this research paper shows that the

customers don't take a single second when it comes to change the preference and break

the loyalty for an organization, in such a situation it the CRM of the organization which

will compel the customers to visit the retail outlet again and again.

M. Ramakrishnan, Sudharani Ravindran, (2012)30 India witnessed

significant growth in the organized retail store format in the last 10 years. Since Indian

71
shoppers’ preference to organized retail setup is growing year on year, it is imperative

that the retailers should understand the service quality expectation of shoppers. The

purpose of this study is to test the applicability of Retail Service Quality Scale (RSQS)

developed by Dabholkar et al. in the South Indian Retail Stores, especially in Rural

India. In the study a sample of 250 shoppers from Department stores of Rural India was

surveyed to measure the validity and reliability of RSQS dimensions (Physical Aspects,

Personal Interaction, Problem Solving, Policy and Reliability). Confirmatory Factor

Analysis (CFA) using AMOS 18.0 was used to test the retail service quality scale factor

structure. The scores obtained from the analysis suggested a fit between the data and

the model.

Salam, Osman bin; Reddy. K. Raji, (2012)31 The lifestyle and profile of the

Indian consumer is going through a rapid transformation. The population of India is

young, energetic and full of enthusiasm. 50% of the Indian population is under the age

of 25. There has been a transition from price consideration to quality and design, as the

focus of the customer has changed. The upper and middle- class population of today

needs a feel good experience even if they have to spend a little more for that. People are

moving towards luxury and want to experiment with fashion and technology.

Sanjay Manocha, Anoop Pandey, (2012)32 The retail landscape in India is

changing rapidly and is being scrutinized by large scale investments by foreign and

domestic players. Market liberalization and changing consumer behaviour have sown

the seeds of a retail transformation. Indian retailing is growing fast and imparting the

consumer preferences across the country. Today retailing is largest contributing sector

to country's GDP i.e. 10% as compared to 8% in China, 6% in Brazil. Modern retailing

is capable of generating employment opportunities for 2.5 million people by 2010 in

various retail operations and over 10 million additional workforces in retail support

72
activities. Organized retail which presently account for only 4-6 percent of the total

market is likely to increase its share to over 30% by 2013.It offers huge potential for

growth in coming years. India is becoming most favoured retail destination in the

world.

Kameshwar Mishra, Abhinav Kumar Shandilya, (2012)33 Retailing is in

existence in one or another form since the formation of society. This study focuses on

the different attributes of organized retail outlet from customer view point. The

attributes are divided into Core and peripheral, depending upon the importance

customer lays to them. Based on the findings, the priority given to core and peripheral

attributes of the organized retailing is determined. The study is also aimed to find out

the expectation and the performance of the retail outlets in meeting their expectations.

Also, the attributes where there is a significant difference in the customer expectation

and performance of the retail outlets are highlighted. The demographic profile of the

customers visiting the retail outlets is also explored to have a better understanding of

their preferences

Sajid Alvi, Anwar Shaikh, Manisha Jagtap, (2012)34 The retail business has

acquired a great significance in terms of contribution to economy, generation of

employment, as well as expansion of marketing activity more so over to satisfy the

customer needs with minimum efforts on each part. Any organization selling to final

consumers whether it is a manufacturer, wholesaler or retailer- is doing retailing.

Occupational changes and expansion and penetration of media have caused a

significant change in the way the consumer lives and spends his money. Consumers

today see an exciting explosion of choices, new categories and new shopping options

and have increasing disposable income to fulfil their aspirations. They are increasingly

seeking convenience in shopping and want the shopping experience to be enjoyable.

73
Convenience of shopping and Store image are the major factors that influence the

consumers in their buying. The study focuses on academic significance considering the

new and emerging trends in the field of marketing, specially retailing. The marketing

managers shall know the changes and development in the field of retailing, new facets

of competition and as well as consumers response to innovations in marketing. It shall

also help the policy makers to decide as to how the supermarkets and big retail houses

are working in the present scenario.

Dalvi, Sayali Pataskar, (2012)35 Impulsive purchasing, generally known as a

consumer’s unplanned purchase is an important part of buyer behavior. The objective

of the study is to analyze the buying behaviour of the consumers’ of Big Bazaar, to

measure the level of satisfaction derived by the shoppers at Big Bazaar and to assess

the future relationship between the retailer and his customers. The study is based on the

primary data collected from Big Bazaar in Kolhapur City with the help of a structured

questionnaire. The findings of the study states that consumer impulsive buying

behaviour and customer satisfaction is linked with buying performance.

Swati Kewlani, Sandeep Singh, (2012)36 As India moves into modern retailing

with several changes with regard to its markets, brands and consumers, there are unique

challenges that a multinational company entering India has to cope up with, whether it

is a fast moving consumer goods company or a multinational retail chain like Tesco or

Wal-Mart. With the entry of new entrants like Pantaloon, Reliance, Trent and Bharti-

Wal-Mart in the organized retail market, the pressure is forcing retailers to work out

strategies that will help them emerge unscathed from the upcoming cutthroat

competition. In such intense competitive environment, retailing business is greatly

affected by the patronage behavior of consumers. Organized retailing in the form of

malls is poised to develop exponentially in India. Malls are transforming the landscape

74
of Indian retailing and consumers’ attitudes towards shopping. The upsurge of mall

activity poses a question of how much malls are responsible for generating sales and

consequently generating profits. This study examines the consumer preference

regarding shopping mall over small retailers in their purchases. This study finds the

consumer perception of perceived impact of the opening mega, or box, retailer on

locality owned/ operated small to medium sized retailer in Indore city. This research

athwart the general perception that only the moneyed people would like to make their

purchases from Shopping malls. Majority of the respondents find the shopping

experience with Malls as time consuming and prefer to shop at small retailers. This

response is cutting across all age and income group. Respondents agree that they go to

small retailers for purchase because of their long standing relations with them and the

response is independent of age and income group.

Sathish Chandra, Sunitha, (2012)37 The story of Indian Retail is very

complicated. About 40% of the country’s total GDP of $1 trillion comes from retail

sales to Indian consumers. The local unorganized stores account for more than 94% of

the total retail sales of around $400 billion. So the organized retail accounts for only

6% of total Retail sales. There are several challenges that Indian retailing has to face;

prominent amongst these are: real estate issues, capital availability, legal frame works,

human resource, and supply chain development and management. In spite of these

conditions, the faster growth of organized sector may be attributed to the changes in the

demographic structure and attitudes of the customers (fast life style changes) and

improved supply chains. However, the current meltdown in world markets has worried

all countries of the globe today. India is not an exception from it. The inflation or the

economic slowdown is adversely affecting the retail industry. With this sudden

development, consumers are gradually losing their interest in buying and availing

75
services. In this article, for more focus and terseness, orientation is through Food &

Grocery retailing in Organized and Unorganized sector is taken. Later the main effort

applied to focus on vital factors which are constantly encouraging the unorganized

retailing in Indian market.

Murugan, Rajalingam (2012)38 Found that Retailing is a prosperous industry

which presence in our day to day life, where the Retailers use to buy products or

services in bulk from the manufacturers & suppliers and redistribute the same to the

ultimate consumers in small quantities at the time of their requirements. In this aspect

retailing is an industry which alienated with both domestic and foreign business

vendors in the form of organized as well as unorganized method of supply. Due to the

recent penetration of organized retailers in various retail businesses made the existing

unorganized retailers to change their business strategies not only to survival in the

business but also for retaining the existing buyers in their respective businesses. The

penetration of organized retailers in India (both local as well as global suppliers

(Shortly known as “Glocal”) made the consumers to demand for quality product along

with astonishing value added services both from organized as well as unorganized

retailers, countries like India till date having the retailing system which are dominated

with more number of unorganized retailers do the business as in the form of

conventional stores (Kirana stores) deliver better services to consumers’ stands as the

stiff competitors for the organized retailers and at the same the emerging organized

retailers and the strategies employed by them also make the existing unorganized

retailers to choose for modern way of doing retail business. Because of the competition

revolving around both organized and unorganized retailers, the perception of

consumers about them also constantly changes based on the type of products being

dealt, pricing methodologies, delivery system and value added services in term of

76
customer relationship management (CRM). CRM is, as a process that will help bringing

together lots of pieces of information about customers, sales, marketing effectiveness,

responsiveness and market trends. It is a widely implemented strategy for managing a

company's interactions with customers, clients and sales prospects. It involves using

technology to organize, automate, and synchronize business processes principally sales

activities, and also those for marketing, customer service, and technical support. This

article tries to focus the Perception of Customers about Organized and Unorganized

Retailers at vellore city.

Soundararaj, (2012)39 One of the most important developments during the last

two decades is the notable growth of FDI in the global economic landscape. This

unprecedented growth of global FDI from 1990 around the world make FDI an

important and vital component of development strategy in both developed and

developing nations and the policies are designed in order to stimulate inflows of FDI.

Perhaps, FDI provides a win-win situation to both host and home countries as well. The

home countries take the advantage of vast market potential accelerated by industrial

growth, whereas host / targeted countries want to acquire technical know-how and

managerial skills and supplement domestic savings and foreign exchange. According to

AT Kearney s Annual Global Retail development Index for the year 2010, it is found

in the annual study, made among 30 Countries based on their retail investment

attractiveness, India has been placed at third rank which is next to China and Kuwait. It

is also mentioned that the Indian retail market is worth $410 billion as of now and only

5% sales are through organized retail whereas, the rest is in the unorganized retail. Such

a major unorganized segment of Indian retail could be perceived to be the opportunities

for domestic and international Companies. Moreover, it is estimated that the Indian

retail will grow very fast to become worth of $535 billion in 2013, with 10% from

77
organized retail due to the effect of growing middle class which will demand better

shopping environment and quality brands. The Indian Government has now allowed

100% FDI in the single-brand retail in addition to 100% FDI in the cash and carry B2B

/ wholesale segment that already exists. Till today, FDI in Indian multi-brand retail has

not been permitted due to the resistance from the opponents and the allies of the central

govt. Perhaps, the UPA government might take it up again after the five state assembly

elections that are scheduled between January 30, 2012 and March 03, 2012. This paper

primarily makes an attempt to critically evaluate whether allowing 100% FDI in Single-

brand retail of India is a boon or a bane.

Deepika Jhamb, Ravi Kiran, (2012)40 Purpose: The present paper tries to

understand the improvement in retail sector in India, especially the modern retail

formats, its attribute, type of goods and impact of consumers’ demography on choice of

emerging retail formats. Methodology: A self-structured questionnaire has been used

for collecting the data from 100 urban consumers of three major cities of Punjab i.e.

Jalandhar, Amritsar and Ludhiana. Stratified random sampling method has been used

for the study.

Sathyapriya P, Nagabhusana R, Silky Nanda, (2012)41 Organized retailing in

India contributes to 15 percent of the GDP (McKinsey 2007). It caters to changing life

style of the consumers especially, women in India. Small existing organized

supermarkets like Palamudhir Nizhayam, have capitalized on this need in India.

However, the reforms in retail sector for the flow of FDI proposed by the government

in November 2011, will pose a challenge for the small Indian retails as they have to

compete with giants like Walmart, Carrefour and Tesco. Existence of the small retail

firms will be favoured by personal relationship with the customers and their continued

satisfaction. Palamudhir Nizhayam is one such fruits and vegetables retail store started

78
in 1963 in Coimbatore, South India. Changing external environment compels this small

retail chain to understand their customers and plan their strategies for sustenance. This

study explores the customer satisfaction of retail services offered at Palazudhir

Nizhayam with the survey done with 120 customers in the stores. Factor analysis is

performed with the variables influencing customer satisfaction. This will help

marketers to understand their customers and enhance the services for existence in

competitive environment.

Piyush Kumar Sinha, Srikant Gokhale, Sujo Thomas, (2012)42 The Indian

retail industry is estimated to be $470 billion. The organized or modern retailing with

6% share stands at $26 billion. It is projected to reach US$ 1.3 trillion by 2018 with the

organized retail market estimated to grow at the compounded annual growth rate of

40% and reach US$107 billion by the year 2013. Entry of these retailers in different

formats, including online, has affected an irreversible change in consumer buying

habits and businesses related to serving these retailers. However, unlike many other

countries, India has its own unique character of size, geographical spread, cultural

diversity, and multiplicity of formats being introduced at quick succession. Retailers

also face the challenge of developing infrastructure, on their own or in cooperation with

the government. This paper attempts to explore the industry and evaluate the extent of

its impact on distribution and procurement networks and changing consumption pattern

in India.

Bhagwan Singh, Anjaney K. Pand, (2012)43 Present paper is a part of the

doctoral research study entitled “Trends in Retail Practices and Their Impact on

Traditional Retailing-Special Reference to Bhopal City”. The paper discusses various

studies undertaken with respect to retailing in India. Aspects like trends, consumer

perception, consumer behavior, service quality; customer satisfaction, Indian retail

79
market etc. are included in the paper. Various studies done by other researchers and

experts are analyzed to include common aspects of organized Vs traditional retailing. It

is basically aimed at to prepare a summarized report on the study of related literature

regarding the topic. Undertaken with the common aspects of retailing in India. It is

hoped that the paper may act as a reference source for the researchers and the

professionals.

Gupta Himan shu Dubey Neetu et al, (2012)44 in their study of the dynamics

of retail markets identified that unorganised retail to buy at wholesale prives fore

ventual retailing, thereby generating a handsome margin. Farmers too can benefit since

they can sell at lucrative prices and release the sale proceeds in a swift and transparent

manner. Once this cushion is provided, unorganised retail can have no grouse against

the government and even fit has, the government can ignore it. Being unorganised

retailing is a serious step there are still challenges for organising retailing in India.

Traditional retailing has been established in India for some centuries. It has a low cost

structure, mostly owner operated, has a negligible real estate and labour costs and little

ornotaxestopay. A consumer’s familiarity that runs from generation to generation is

one big advantage of the traditional retailing sector. In contrast, players in the

organised sector have big expenses to meet and yet have to keep prices low enough to

be able to compete with the traditional sector. Moreover, organised retailing also has to

cope with the middle class psychology that the bigger and brighter sales outlet is, the

more expensive it will be.

Vijaya Bandyopadhyaya, (2012)45 In India, organized retailing is a relatively

recent phenomenon. Slow but systematic liberalization of the retail sector, improved

buying power and changing consumer preferences, is attracting corporate investment in

80
the sector, and it may be expected that organized retailing will gain larger share of

market in the days to come.

Organized retailing in the food sector is expected to bring in substantial changes in

structure and modus operandi of existing food supply chains and would affect all

players in the supply chain starting from primary producers to end consumers. This

article discusses the retail scenario in India and explains why food retail deserves

special attention. It delineates the difference between supply chain of big corporate

retailers and the traditional food supply chain as witnessed in different countries. It

gives the Indian perspective of a typical food supply chain and aims to explore the

impact of organized retailers on other players in the chain, upstream, downstream and

at the same retail level. There are apprehensions of adverse effects on farmers and

traditional retail sector. The article tries to rationalize these apprehensions and provides

suggestions as to what may be done to protect the interests of traditional small players

in the chain.

Deepika Jhamb, Ravi Kiran, (2011)46 The Indian retail sector is witnessing

tremendous growth with the changing demographics and an increase in the quality of

life of urban people. Retail Sector is the most booming sector in the Indian economy.

With a growing economy, improving income dynamics, rising awareness, and a youth-

heavy customer base, India is well on its way to become one of the most prospective

markets for the domestic and global retailers. The main objective of this paper is to

strategically analyze the Indian retail Industry. The present paper identifies the drivers

which affect the growth of the Indian retail market, looks at the major factors affecting

the retail business and to carry out the SWOT analysis of organized retail in India. The

results of the study depict that infrastructure, economic growth and changing

demographics of consumers are the major driver of organized retail in India. The

81
location of the retail store, management style and adequate salaries to personnel

enhance the effectiveness of retail business and are important factors for retailers’

success.

Rajan Girdhar, (2011)47 More than sixty-five per cent of India’s population is

living in rural areas. With organized retail increasingly taking off in India, retailers are

fast penetrating rural markets with different models to serve the shoppers of rural and

semi-urban India with many innovative ideas like smaller size products that appeal to

this segment. This paper first studies some of the retailers who have already entered

these markets with rural supermarket format: Future group and Godrej’s joint venture

Aadhar, ITC’s Choupal Saagar, DCM’s Hariyali Kisaan Bazaar, Triveni Khushali

Bazaar and Mahindra & Mahindra’s Shubhlabh. Thereafter, this paper further suggests

the retailers through a comprehensive model to consider key elements and variables to

be successful in rural markets along with some of the opportunities and challenges for

retailers while entering country’s rural markets.

Anil N. Barbole, (2011)48 This study examines the impact of a customer buying

attitude on various grocery products in supermarket. A study conducted with staff

&customer, their attitude towards grocery shopping. The growing competition among

the retailers and the increased customer dissatisfaction among customer are reason for,

grocery retailers to strive for a higher understanding. On how customers evaluate

different retailers. According to different customers’ needs and wants they show

different shopping patterns. The different shopping patterns are evident, based on the

personalities and attitude of customer. More over due to the customer different

situations, personal taste and environment. Each customer develops unique shopping

style. Such decision making style provides information to understand different attitude

and behaviors of customer.

82
DeepikaJhamb and Ravi Kiran, (2011)49 This present study is an attempt to

understand the relationship between the choice of retail formats, based on products

attributes, store attributes, consumers’ demography and retail marketing strategies. The

outcome of the study reveals that consumers’ choice for modern retail formats vary as

their income level increases. Young consumers’ are more inclined to shop from modern

retail formats as compared to older ones. Consumers’ prefer modern retail formats due

to its significant product attributes like improved quality, variety of brands and

assortment of merchandise and store attributes like parking facility, trained sales

personnel and complete security. The retention strategies, promotional strategies,

growth and improvement strategies, pricing strategies and competitive strategies are the

major contributors for the growth of organized retailing and play an important role in

enhancing the sales of retail formats. Further, the study helps in designing a framework

for choice of modern retail formats from Consumers’ and Retailers’ Perspective

Sangeeta Mohanty, Chitra Sikaria, (2011)50 The dawn of 21st century has

been welcomed by a changing culture in India. It’s the change from the traditional

retailing to the organized or modern retailing. Organized retailing is the buzz word in

India in the 21st century. The Fact lies in the scope of the organized retail which forms

only 4% of the total Indian retail market. India has miles to go but it will cover very

briskly as per the various international studies. The overwhelming response towards the

organized retailing by the youth bears testimony to it. The youth are to be considered

just for the reason that the Indian population is a young population as approximately

60% of the total population is below 30 years of age. There are various reasons that

have lead to the change in the shift from traditional to modern. One of them being the

STORE AMBIENCE. The comfortable, happening, sophisticated calls the young mass.

83
This article is an attempt to study the importance of a good store ambience in organized

retailing.

vijayaGagandeepShmarma , Mandeep Mahendru , Sanjeet Singh, (2011)51

Purpose of this study is to check the effect of opening of the organized retail stores on

the unorganized retail, farmers and consumer. Another objective of my study is to find

that how much the economy of Punjab, affected by growing of retail sector. The study

revealed the changing patterns of the Indian retail industry with special reference to

Punjab as well as understands the impact of organized retail on the consumption or

shopping habits of the consumer in the state of Punjab the scope of the study is for new

retailer, who wants to invest in retail sector. This study tells them, what the growth rate

of retail sector is and what is the perception of the consumer towards the retail store.

This study helps government, as from this study govt. knows the growth of retail sector

and encourages the investment in this sector, which helps in economic growth. The data

is collected through the help of questioner filled from retailers as well as customers.

The statistical tools i.e. mean median, std. deviation, regression, kurtosis, skewness

used for the evaluation purpose. The study revealed that the Punjab retail sector is

changing now many retail investors open their retail store and running successfully and

some other big players are ready to invest in the retail sector in Punjab and the future of

organized retail is quite good in big cities but in the cities cognized retail not successful

to gain moment.

Hemant Syal, (2011)52 Retailing is the interface between the producer and the

individual consumer buying for personal consumption. This excludes direct interface

between the manufacturer and institutional buyers such as the government and other

bulk customers. A retailer is one who stocks the producer’s goods and is involved in the

act of selling it to the individual consumer, at a margin of profit. As such, retailing is

84
the last link that connects the individual consumer with the manufacturing and

distribution chain. Indian economy is growing by 8% a year, its stock market rose by

nearly 40% in 2005 and foreign investors are flooding in. There are about nine million

small grocery shops in India whichever way you measure it, business in India is

booming and as the economy grows so does India's middle class. It is estimated that 70

million Indians in a population of about 1 billion now earn a salary of $18,000 a year, a

figure that is set to rise to 140 million by 2011. Many of these people are looking for

more choice in where to spend their new-found wealth. The Indian retail sector is now

worth about $250bn (£140bn) a year, but it is heavily underdeveloped. Over 94% of the

market is made up of small, un-computerized family-run stores.

Well, the retail industry is divided into organized and unorganized sectors. Organized

retailing refers to trading activities undertaken by licensed retailers, 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 large retail businesses.

Unorganized retailing, on the other hand, refers to the traditional formats of low-cost

retailing, for example, the local kirana shops, owner manned general stores, paan/beedi

shops, convenience stores, hand cart and pavement vendors, etc.

Munjal, Kumar, & Narwal, (2011)53 through their research concluded that the

kirana shops’ being affected by malls is only a myth. He further concluded that in spite

of the available opportunities to the organized retail to grow in India these kirana shops

also were benefited from this growing economy.

Amrinder Singh, Mr.GautamBansal, (2011)54 Observed from their study

Retailing, one of the largest sectors in the global economy, is going through a transition

phase not only in India but the world over. For a long time, the corner grocery store

was the only choice available to the consumer, especially in the urban areas. This is

85
slowly giving way to international formats of retailing. In India, retailing has caught up

in a big way. Today one finds the presence of huge retail stores like Crossroads,

Shoppers Stop etc who are doing well. The Consumers today can shop for goods and

services in a wide variety of stores A variety of factors seem to influence the growth in

the retailing industry. Consumer Pull, however, seems to be the most important driving

factor behind the sustenance of the industry. In this context, in order to understand the

spending pattern of the consumers of various income groups an analysis of the monthly

purchase basket of the consumers surveyed indicated that the average monthly

household spend on food and grocery related items varied across income segments.

ICICIdirect.com - March 25, (2011)55 the Indian retail sector is expected to

see a transition from unorganized to the organized sector. The share of organized retail

is expected to increase from 6% (FY10) to 12.4% in FY14E. Growing purchasing

power of the middle class, increasing urbanization as well as population (28%) in the

median age group would fuel discretionary spends.

Ramanathan, et al (2011)56 in their study indicated that the Retailing is the

most active and attractive sector. Retailing industry has been present for many years in

our country. It is only the recent past that has witnessed so much dynamism in this

industry. The international retail store chains have caught the fancy of many travelers

abroad; however, the action hitherto is missing from the Indian business scene. The

emergence of retailing in India has more to do with the purchasing power of buyers,

especially of those who live in the post liberalization period. The retail industry offers

increasing economies of scale, with the aid of modern supply and distribution

management systems and solutions. The current retailing revolution has provided an

impetus from multiple sources. These 'revolutionaries' include many traditional and

conventional stores upgrading themselves to modern retailing, companies in

86
competitive environments are entering into the market directly to ensure exclusive

assortment for their products and services. Chain stores coming up to meet the needs of

the manufacturers, who do not fall into either of the above categories, is also an effect

of this. Attractiveness, accessibility and affordability seem to be the key offerings of

the retailing chain. Retailing is a kind of business activity, which offers products or

services in small quantities to the ultimate consumers, at a place where consumers

prefer to buy. Especially, in countries like India, till date, the unorganized retailers play

a predominant role in offering products or services of a different product (or) service

mix at the convenient location (Kirana Stores or Apana Bazar) with effective selling

and buyers' retention strategies. However, due to the recent changes in the field of

retailing, and with the entry of big domestic corporations as well as multinational and

foreign companies into the field of various retailing ventures (in the form of

professionally organized ways with the support of technologies and attractive

promotional cum selling programmes), the existing unorganized retailers turn their

existing business structure. The perception of consumers about both unorganized and

organized retailers keeps on changing dynamically. Most of the time, both organized

and unorganized retailers are in a dilemma regarding the perception of consumers and

hence, due to the unpredictable nature of the customers, both the type of retailers face

difficulty in realigning their business strategies. Because of this kind of issue prevailing

in today's retail markets; the researchers selected the present topic for their research

purpose.

Shishma Kushwaha, Mohender Kumar Gupta, (2011)57 in his study

described that the Perception is the process of attaining awareness or understanding of

the environment by organizing and interpreting sensory information. The same stimulus

(A stimulus is any unit of input to any of the senses) may be perceived differently by

87
different set of customers based on their unique personal and situational context.

Hence, the indifferent service offered at any retail stores may be perceived positively

by a certain set of customers due to the opportunity it provides them to look up the

product at leisure. However, another set of customers may perceive it negatively. In

India traditionally, the retail industry comprised of large, medium and small grocery

stores and drug stores which could be categorized as unorganized retailing. India’s

large youth population is driving the consumerism trend in country. Organized retail

business in India has entered in 1990s but become more popular after 2002 onwards

and organized retail stores become the part of middle class family from 2006 onwards.

The customers perceive these two retail sectors in different manners. The given

research paper studies factors affecting the customer perception in retail industry and

the customer perception in organized and unorganized retail sector. The paper also tries

to compare the customer perception in organized and unorganized retail sector.

M.Gurusamy, N.Prabha, (2011)58 this study on the retail industry, attempts to

rigorously analyze the factors which influence the consumers to move towards the

organized retailing from unorganized retailing. The study also helps the retailers by

revealing the facts regarding the most prioritized attributes of the retail stores which

attract the consumers towards them. Objectives of the Study are: to analyze the factors

which influence the consumers to prefer organized retailing from unorganized retailing;

to analyze the external forces which influence the choice of consumers and how these

forces can be accounted for in future; to ascertain how are organized retailers

perceived; to analysis the most favored retail attributes by consumers and how will they

change in future; The organized retailers must give importance to all the attributes like

variety, service, discount, mode of payment with special attention to variety of

products; the organized retailers must focus on additional facilities like Kids Park,

88
restaurant etc as additional facilities are the one which more fascinates the consumers;

consumers are looking for corporate image of the shop, flexibility, infrastructure, layout

and display, self service, after sale service and all other similar facilities and so

organized retailers must focus on all these areas. Satisfaction level about price in

organized formats is comparatively low and so it must be focused. It is also to be noted

that in the next level of cities, only departmental stores and supermarkets alone given

more priority in organized formats. This study will help the retailers to make an

analysis of them and understand where they stand, and in order to move forward in

what areas they must focus. It also helps them by providing consumers expectations

towards the organized formats so that they can make appropriate arrangements.

Ramanathan&hari, (2011)59 observed from their study that due to the recent

changes in the demographic system of consumers, and the awareness of quality

conscious consumption, consumers preferred to buy different products both from the

organized and unorganized retailers.

Gopal et al, (2011)60 examined the growth drivers and challenges of organised

retailing. The study exposed man power cannot be employed on an hourly basis as is

done in advanced countries. For the retail sector to thrive, grow and expand state laws

need to be amended and made less rigid. Similar is the case with the sales tax structure

with different states following different structures and slabs. Through the central

government introduced the concept of VAT (Value Added Tax) to do away with multi-

point taxes, not all states have adopted the same. The end result is that the customer

has to face the music by paying a higher price for the end product.

Sivaraman.P, (2010)61 from his study concluded that the impact of organized

retailers was clearly visible on the business of unorganized retailers in terms of sales,

profit and employment. Due to their financial infirmity these small retailers

89
continuously struggled to introduce changes in their existing retail practices. Some kind

of intervention was required for their future existence.

Marketing mastermind, (2010)62 Modern retailing can become truly

egalitarian and widespread in its reach, only when it can address the needs of this

segment of the population. In order to do this, it has to go back and take lessons from

the roots of organised retailing in India, which lies in the rural melas, traditional

shopping streets, cooperative stores and exclusive branded outlets of yesteryears.

Another study by Ali, Kapoor.,&Moorthy, (2010)63 in their study indicated

that consumers shopping behavior was influenced by their income and educational

level while gender and age had no significant impact on their behavior.

Satish and Raju, (2010)64 throws light on the major Indian retailers which

highly contribute to the retail sector in India. Pantaloon, Tata Group, RPG Group,

Reliance Group and A V Birla group are some of the major Indian retailers.

Hino, (2010)65 shared his observation about the emergence and expansion of

supermarkets that gradually decreased the market share of the traditional formats by

displacing them and the factors that helped supermarkets in gaining consumers favours

over the traditional stores are the ‘consumers economic ability’ and the ‘format output’.

The consumer has multiple options to choose- ranging from the shopkeeper to the most

sophisticated supermarkets, departmental stores, plazas and malls which provide the

latest and better quality products and it made India the top spot among the favored

retail destination as observed by Gupta, 2004, Jasola, 2007, and India Retail Report,

2009.

Praba Devi1 and Sellappan, (2009)66 the performance of the retailing sector

for the past few years is outstanding and witnesses a huge revamping exercise,

significantly contributed by the growth of the organized retailing. Rapid urbanization,

90
exposure to large number of foreign brands and changing lifestyle and preferences has

contributed to the growth of retailing in India. The quality of service that has been

perceived by the customers irrespective of the brand or make is what ultimately results

in a customer walking back to the store once again. The article provides insights into

the service quality prevalent in the retail stores as perceived by the customers and how

some of the factors are related with that of the socio economic factor. For the purpose

of study a sample of 170 was chosen on the basis of convenience at leading retail stores

in Chennai. A questionnaire on five scale rating was administered to collect the data by

way of personal interview. For the purpose of analysis and drawing inferences the

statistical tools used are Cronbanch Alpha, percentage analysis, Factor analysis,

ANOVA, inter correlation and regression. The six factors namely, reliability, matching

customer needs and products, customer handling, customer convenience, tangibles and

quality of staff were identified with the use of factor Analysis. Depending on the sex of

the customer ie male or female the way in which the customer is handled and the

quality of service varies. The higher customers perception on service quality at retail

stores will result in higher customer loyalty.

Goyal and Aggarwal, (2009)67 opine that In India, a consuming class is

emerging as are suit of increasing income levels and dual career families with high

disposable incomes. With retailer saying their presence in the market, it is important to

identify the target shoppers as well as the prime factors of enjoyment in shopping. The

results reveal that a majority of the consumers are pro shoppers, feeling enjoyment

while shopping. Their key interests include getting product ideas or meeting friends.

They also view shopping from emerging retail formats as a means of diversion to

alleviate depression or break the monotony of daily routine. In addition to this, they

also go shopping to have fun or just browse through the outlets.

91
 Dash et al., (2009)68 depict that growing middle class, large number of earning

youth customers, increase in spending, and improvement in infrastructure,

Liberalization of Indian economy and India’s booming economy is the various

opportunities for organized retailing in India. On the other hand, complexity of taxes,

lack of proper infrastructure and high cost of real estate are the hurdles which need to

remove for retail success in India. Enjoyable pleasant and attractive in store shopping

environment increases the chances of impulsive buying among consumers.

RNCOS (2009)69 Increasing trend of organized retailing will drive the growth

of convenience-store industry in the world. By 2011, Asia remains the fastest growing

convenience store market in the world as the major Asian retail markets registered

explosive growth in opening up of new convenience store. Changing consumer

preferences, lifestyle and rising income level, which is heavily influenced by economic

growth, remains the major driving force for c-store industry in the Asian region. as per

"Global Convenience Store Market Analysis".

Sarimul Islam Choudhury (2009)70 Organized retail in Coimbatore so far is a

high street story. Although Coimbatore is the second largest city in Tamil Nadu after

Chennai, but it is yet to get attention from large number of retailers the way other cities

in India have been receiving. The reason behind, according to the industry sources, is

that there is no real catalyst in the form of shopping mall to boost the retail growth in

the city. But this long wait has almost come to an end as the city will witness the

opening of two gigantic shopping malls during the early part of 2010. With the opening

of these two malls – Fun Republic and Brookfield Plaza – people in Coimbatore will

experience organized retail boom and find quality space for shopping and

entertainment.

92
 Sengupta A, (2008)71 discusses the birth of the first supermarket, Nilgiri’s

established in Bangalore in 1971. The emergence of modern retail business in India has

a history spanning over 30 years. The paper is on food and grocery retail, biggest in

India and the author tries to detail the drivers of revolution and growth focusing on the

role of manufacturers, retailers and consumers.

Mathew Joseph et al, (2008)72 Explained that the retail business, in India, is

estimated to grow at 13 per cent per annum from US$ 322 billion in 2006-07 to US$

590 billion in 2011-12. The unorganized retail sector is expected to grow at about 10

per cent per annum from US$ 309 billion 2006-07 to US$ 496 billion in 2011-12.

Organized retail which now constitutes a small four per cent of retail sector in 2006-07

is likely to grow at 45-50 per cent per annum and quadruple its share of total retail trade

to 16 per cent by 2011-12. The study, which was based on the largest ever survey of all

segments of the economy that could be affected by the entry of large corporates in the

retail business, has found that unorganized retailers in the vicinity of organized retailers

experienced a decline in sales and profit in the initial years of the entry of organized

retailers. The adverse impact, however, weakens over time. The study has indicated

how consumers and farmers benefit from organized retailers. The study has also

examined the impact on intermediaries and manufacturers. The results are indicative of

the mega-and-minimetro cities around a limited number of organized retail outlets.

Based on the results of the surveys, the study has made a number of specific policy

recommendations for regulating the interaction of large retailers with small suppliers

and for strengthening the competitive response of the unorganized retailers.

Joseph et al (2008)73 concluded that unorganized retailers in the locality of

organized retailers were adversely affected in terms of their volume of business and

profit. According to him with the emergence of organized outlets consumers gained

93
through the Indian Retail Sector Changing Demographics Dual Income Nuclear

Families Growth of Real-Estate Growing Consciousness Increase in FDIs Economic

Growth availability of better quality products, lower prices, one-stop shopping, choice

of additional brands and products, family shopping, and fresh stocks.

Mathew Joseph, (2008)74 in this study indicated that unorganized retailers in

the vicinity of organized retailers experienced a decline in their volume of business and

profit in the initial years after the entry of large organized retailers. The adverse impact

on sales and profit weakens over time. There was no evidence of a decline in overall

employment in the unorganized sector as a result of the entry of organized retailers.

There is some decline in employment in the West region which, however, also weakens

over time. The rate of closure of unorganized retail shops in gross terms is found to be

4.2 percent per annum which is much lower than the international rate of closure of

small businesses. The rate of closure on account of competition from organized retail

is lower still at 1.7 per cent per annum. There is competitive response from traditional

retailers through improved business practices and technology upgradation. A majority

of unorganized retailers is keen to stay in the business and compete, while also wanting

the next generation to continue likewise. Small retailers have been extending more

credit to attract and retain customers. However, only 12 percent of unorganized retailers

have access to institutional credit and 37 per cent felt the need for better access to

institutional credit and 37 per cent felt the need for better access to commercial bank

credit. Most unorganized retailers are committed to remaining independent and barely

10per cent preferred to become franchisees of organized retailers. to commercial bank

credit. Most unorganized retailers are committed to remaining independent and barely

10 per cent preferred to become franchisees of organized retailers.

94
 Mishra, (2008)75 expose that mall space, demography, rising young population,

availability of brands, rising retail finance, changing lifestyle, modern retail formats

and foreign direct investment are the strength sand opportunities for modern retail

model. On the other hand, real estate cost, improperly developed mall, lack of skilled

personnel, underdeveloped supply chain and taxation hurdles are the weaknesses and

threats for modern retail formats.

Halepete, (2008)76 India is expanding internationally due to saturation of

markets and challenges faced by international retailers. Partnership between Bharti and

Wal-Mart is one of the successful expansions of international retail in India.

Rajagopal, (2008), Thang et al., (2003), Srivastava, (2008)77 supported that

consumers choice of shopping malls over traditional market stores is influenced by

various factors like ambience, assortment, sales promotion schemes and in-store

services. The facility of one stop-shop had a positive response from the consumers,

who found it more convenient, time saving and satisfactory. The changing retail

structure has provided the consumers with more options in the form of formats and

services such as less travel time, large variety of products and quality products etc,

Ankush Sharma, Preeta Vyas,(2007)78 Indian organized retail industry is

poised for growth. Rapid state of change due to speedy technological developments,

changing competitive positions, varying consumer behaviour as well as their

expectations and liberalized regulatory environment is being observed in organized

retailing. Information is crucial to plan and control profitable retail businesses and it

can be an important source of competitive advantage so long as it is affordable and

readily available. DSS (Decision Support Systems) which provide timely and accurate

information can be viewed as an integrated entity providing management with the tools

and information to assist their decision making. The study, exploratory in nature plans

95
to adopt a case study approach to understand practices of organized retailers in grocery

sector regarding applications of various DSS tools. Conceptual overview of DSS is

undertaken by reviewing the literature. The study attempts to describe practices and

usage of DSS in operational decisions in grocery sector and managerial issues in design

and implementation of DSS.

Baseer and Laxmi Prabha, (2007)79 Organized retailing provides an ideal

shopping experience through consumer preference analysis, excellent ambience and

choice of merchandise. Changing lifestyles, strong income growth and favourable

demographics are the drivers for the fast growth of this sector. Rising income level,

education, acceptance of smart and credit cards and global exposure have an impact on

the Indian consumer’s shopping habits.

Sahani, (2007)80 Health and beauty care services, food and grocery,

entertainment and catering services, footwear and mobile phones, apparel and fashion

accessories and jewellery are the fastest growing organized retail categories. In food

and grocery retailing, the largest component of retail, only 1 per cent is organized; the

remaining 99 per cent is unorganized. Food and grocery has three sub categories:

branded FMCG products, dry and unprocessed grocery, fresh grocery and delicatessen.

Impact of the factors like availability of favourite brands, social status, buying

behaviour during discounts, influence of family and friends over the store and brand

choice, relationship between store and store brand, and consumer perception towards

store and national brands while shopping from a store, have not yet been gauged much

by marketers. Thus, this paper is an endeavour to understand and deliberate consumer

shopping behaviour towards organized food and grocery stores, so as to have a better

insight of consumers buying behaviour.

96
 Aggarwal, (2007)81 Highlights the emergence of organized retailing in India

and views the Catalytic effects of retail on Indian Economy. Employment generation,

Growth of real estate, Increase in disposable income and Development of retail

ancillary market are the various catalytic effects on Indian economy

Aggarwal, Bhardwaj et al., (2007)82 indicated that organized retail industry

will mean thousand of new jobs, increasing income level, standard of living, better

products, better shopping experience etc.

Koh, Kim, and Kim, (2006)83 The retail industry in India is largely

unorganized and predominantly consists of small, independent, owner-managed shops

that have dominated Indian retailing over the decades and are present in every village

and local community or street corner stores, addressing the needs of the population in

the area and being the point of contact with the consumer. There are about 12 million

retail outlets in the country; only about 4 per cent of them are larger than 500 sq. ft in

size.

Taneja (2006)84 conducted the study “Punjab to gain maximum from organized

retail”. In this study has find number of new opening of large retail malls in the Punjab

and also the average monthly consumption expenditure for the rural consumer in

Punjab. Major point of the discussion are nine new projects are scheduled to be

completed by the mid of 2007. Punjab to have 40 malls by 2010. Private consumption

expenditure in Punjab during 2004-05 stood at RS.61900 Crores, which is 33% of the

total private consumption expenditures of Rs.1866000 Crores. Average monthly

consumption expenditure for the rural consumers in Punjab is Rs 1022.05 much higher

than the national average of Rs 635.75 per person per month.

Survey (2006)85 on “UK-based OC & C Strategy Consultants” The

Consultants conducted a survey because organized retailing in India has new EI Dorado

97
even though government has unlocking its doors slowly. They surveyed that only 3

percent of India’s $215 billion retail sector is organized. Explosion of organized retail

formats like supermarkets and hypermarkets. Food is the largest retail segment in India

comprises two-thirds of all retail.

Singhal (2006)86 “Impending economic impact of a resurgent Indian retail

sector” An images retail forum has laid down some impact of large retailer on

traditional retailers. They said the retail sector Impact confined to perhaps 300,000 to

500,000 retailers across India largely in relatively small towns coming in direct range

of about 1000 Hypermarkets and about 3000 supermarkets by 2011. Overall, the

universe of traditional retailers will actually increase by 2011 and even by 2015.

Importance of traditional channel to become even more for established FMCG and

other consumer product companies. Most have weak business processes and IT

systems. Most have no real margin drivers in their business model that can enable them

to make exceptional investments in the immediate future.

Biyani (2005)87 report “Organized retail to cross INR 1000 Billion mark by

2010” covers major sectors like apparel footwear, jewellery, watches, food, consumer

electronics, mobile handsets and music & gifts says that within 7-10 years India will

become one of the 4th largest retail market in the world and a country wide network of

several 100 department stores and shopping malls across 100 plus cities will exist.

Sinha& Banerjee, (2004)88 in their study concluded that store convenience and

customer services positively influenced consumers store selection.

Solagaard & Hansen, (2003)89 identified several store attributes that were

considered important for the consumer’s evaluation of stores. These attributes were

merchandise, assortment, merchandise quality, personnel, store layout, accessibility,

cleanliness and atmosphere

98
 Mckinsey (2003)90 report on India says that organized retailing would increase

the efficiency and productivity of entire gamut of economic activities and would help in

achieving higher GDP growth at 6% the share of employment of retail is low even

when compared to Brazil (14%) and Poland (12%).

Mehta (2002)91 “Challenges of retailing in India” finds that the retailers in

India have to learn both the art and science of retailing by closely following how

retailers in other parts of the world are organizing, managing and copying up with new

challenges in an ever changing marketplace. Indian retailers must use innovative retail

formats to enhance shopping experience and try to understand the regional variations in

consumer attitudes to retailing. Retail marketing efforts have to improve in the

advertising, promotion and campaigns to attract customers, building loyalty by

identifying regular shoppers and offering benefits to them. Efficiently managing high-

value customers and monitoring customer needs constantly are some of the aspects

which Indian retailers need to focus upon on a more pro-active basis.

Narayan (2001)92 “Retailing Bringing Employment”. The retail sector can

generate huge employment opportunities and can lead to job-led economic growth. In

most major economies, services form the largest sector for creating employment. US

alone have over 12% of its employable workforce engaged in the retail sector. The

retail sector in India employs nearly 21 million people accounting for roughly 6.7% of

the total employments. However employment in organized retailing is still very low,

because of the small share of organized retail business in the total Indian retail trade.

The share of organized retailing in India is at around 2% is very low as compared to

80% in the U.S.A, 40% in Thailand or 20% in China thus leaving huge market potential

largely untapped.

99
 Popkowski et al., (2001), Lather et al., (2006), Gupta, (2007)93 study

uncovered six main indicators: viz., price, sales personnel, quality of merchandise,

assortment of merchandise, advertising services and convenience services that play key

role for retailers in choosing the type of retail formats that may help them to the

changing preferences of consumers.

Rajpal (2000)94 a senior consultant with retail research firm KSA Technopak

August. More and more corporate houses including large real estate companies are

coming into retail sector directly or indirectly, in the form of mall and shopping

complex. New formats like super markets and large discount and department stores

have started influencing the traditional looks of bookstores, furnishing stores and

chemist shops. The retail revolution apart from bringing in sweeping positive changes

in the quality of life in the metros and bigger towns is also bringing in slow changes in

lifestyle in the smaller towns of India.

Outlook (2000)95 shows that increasingly consumers prefer “All under one

roof” destination for shopping as well as eating out and entertainment. These findings

together indicate an excellent potential for a mall with the following features. A

superior well-managed leisure experience. Targeted at all members of the household.

Comprising of shopping, dinning and entertainment all under one roof. A wide range of

products and services. Proximity to homes,

Munshi (1999)96 “Heading towards India – retail”, said in India the retail sector

is the second largest employer after agriculture, although it is highly fragmented and

predominantly consists of small independent. There are over 12 million retail outlets in

India and organized retail trade is worth about Rs.1290000 crore. The country is

witnessing a period of boom in retail trade, mainly on account of a gradual increase in

the disposable incomes of the middle and upper-middle class households.

100
 Kaushik (1998)97 “Wholesalers to Retailers”. All activities involved in selling

goods or services directly to final consumers for the personal, non-business use.

Retailing is the final business in a distribution channel that links manufacturer with

consumers. Manufactures make products and sell them to retailers or wholesalers.

Wholesalers resell these products to retailers. While retailers resell products to

consumers. In this chain wholesalers satisfy retailers need. While directs their efforts to

satisfy retailer’s needs. While retailers directs their efforts to satisfying need to ultimate

consumers. All transactions in which the buyer intends to consume the product through

personal, family or household use. Retailing is a business in which individuals engaged

in the activity of selling products to final consumers.

101
Reference:

1. Pandey, Mithilesh, Verma, Rajesh, 2015. Factors Influencing the Buying

Behaviour of Consumers towards Organized Retail Stores in Jalandhar,

Punjab, IUP Journal of Marketing Management.

2. Chakraborty, Dhananjoy, 2014. A Journey towards Indian Rural Retailing,

International Journal of Retailing & Rural Business Perspectives.

3. Somasekhar, Saleem, G., 2014. Shopper’s Preferences and Problems: A

Study of Unorganized & Organized Retail Outlets in Chittor District of

Andhra Pradesh, International Journal of Retailing & Rural Business

Perspectives.

4. Shandilya, Abhinav K., 2014. Urban consumer’s preference for organized

and unorganized food retailing in the state of Jharkhand, India,

International Journal of Hospitality & Tourism Systems.

5. Tomar, Rohit Singh, Parihar, 2014. An Analysis of Favorable and

Unfavorable Attitude towards Organized Retailing: A Study Based on

Selected Factors, International Journal of Retailing & Rural Business

Perspectives.

6. Singh, Mandeep, Kaur, Harvinder, 2014. Retailing in India: Historical

Background and New Trends Asian, Journal of Research in Social Sciences

and Humanities.

7. Tomar, Rohit Singh, Parihar, 2013. Analyzing Attitude of Working Women

in India towards Organized and Unorganized Retailing, International

Journal of Retailing & Rural Business Perspectives.

8. Mohd. Rumzi Taushif, Manisha Gupta, 2013. A Study of factors affecting

Impulse Buying Behaviour of Consumers at Malls (Delhi), International

102
 Journal of Research and Development - A Management Review (IJRDMR),

2(2).

9. MedhaKanetkar, 2013. A Study of Impact and Effects on Consumers of

Organized Retailing in India, Proceeding of the International Conference on

Social Science Research, 1(8): 4-5

10. Monika Talreja, Dhiraj Jain, 2013. Changing Consumer Perceptions towards

Organized Retailing from Unorganized Retailing – An Empirical Analysis,

International Journal of Marketing, Financial Services & Management

Research 2 (6)

11. Nair & Nair, 2013. An analysis on customer perception towards service

quality variables in selected organized retail outlets, International Journal of

Management and Social Sciences Research (IJMSSR), II (1).

12. Priya Vij, 2013. The Study and the Analysis: An Impact of Organized Retail

on Unorganized Retail in India, EXCEL International Journal of

Multidisciplinary Management Studies EIJMMS, 3 (7).

13. Kusuma.B, Durga Prasad.N, Srinivasa Rao.M., 2013. A Study on Organized

Retailing and Its Challenges and Retail Customer services, IJBM.

14. Ekta Rani, 2013. Super Market vs Small Kirana Stores, ISRO Journal of

Business and Management (IOSR-JBM) e-ISSN 2278-487X, p-ISSN 2319-7668.

10 (1). Pp. 01-07

15. Panneerselvam, S., 2013. Food Retail and Retail Supply Chain in India –

Literature Review, International Journal of Research in IT, Management and

Engineering, 2 (3), pp 80

16. Amaresha M. and Dinakar G, 2012. A study on Buyer’s Behaviour in

organised retail outlet with special reference to Fast Moving Consumer

103
 Goods in Bangalore City, India, European Journal of social sciences, Euro

journals publishing, Inc. 201, 34 (4). Pp. 627-640.

17. Urvashi Gupta, 2012. Changing Consumer Preferences From Unorganized

Retailing Towards Organized Retailing: A Study in Jammu, Baddi

University of Emerging Sciences &Technology, Journal of Emerging

Knowledge on Emerging Markets,4.

18. Nisha Rathore,(2012). A Study on Consumer Behavior towards Organized

and Unorganized Retailing, 1(8): 65-69.

19. Abhinav, Rajesh Rathore1, 2012. Perception of Customers towards

Organized Retail Sector and Unorganized Retail Sector - An Empirical

Study in Udaipur City, International Journal of Retailing & Rural Business

Perspectives 1(8).

20. Singh. A., K., Agarwal, P., 2012. Study on shifting consumer preferences

from unorganized retailing to organized retailing in noida, Bookman

International Journal of Accounts, Economics & Business Management , 1 (2).

21. Gupta. U., 2012, Customer Loyalty towards Kiranas in Competitive

Environment; A Case study, International Journal of Marketing and

Technology, 2 (8): 249-268.

22. Srivastava, P., A., 2012, Customers Perception Regarding Purchase

Behavior towards Malls: A Study of Noida And Ghaziabad, Asian Journal

of Research in Marketing, 1 (1).

23. Abhinav, Rajesh Rathore1, 2012. Perception of Customers towards

Organized Retail Sector and Unorganized Retail Sector - An Empirical

Study in Udaipur City, International Journal of Retailing & Rural Business

Perspectives 1(8).

104
24. Satish, K., Singh, PratyushTripathi 2012. The Current Scenario of Organized

Retailing in India, Current Trends in Technology and Science, 1(3).

25. Surajit Dey, SameenaRafat, Puja Agarwal, 2012. Organized Retail in the

Rural Markets in India, IOSR Journal of Business and Management (IOSR-

JBM), 6(1):16-25

26. Dineshkumar, U., Vikkraman, P., 2012. Customers’ Satisfaction towards

Organized Retail Outlets in Erode City, IOSR Journal of Business and

Management (IOSRJBM), 3(4):34-40

27. Uma.k., Dhivya. R., Chandrakumar.M., 2012. A Study on Noodles Buying

Behaviour from Organized Retail Outlets in Coimbatore City, The

International Journal’s: Research Journal of Social Science & Management,

1(10)

28. Vinod Kumar Bishnoi, Bharti and Nidhi Gupta, Consumer Shopping

Behaviour in Organized Food and Grocery Stores: A Case Study of

National Capital Region, 3rd Iima Conference on Marketing Paradigms for

Emerging Economies

29. MeeraMathur, SumbulSamma, 2012. A Study on Customer Relationship

Management Practices in Selected Organised Retail Stores in Udaipur

City, Pacific Business Review - A Quarterly Refereed Journal.

30. . Ramakrishnan, M., Sudharani Ravindran, 2012. Measuring Retail Service

Quality using RSQS and Validating RSQS in the Context of South Indian

Retail Stores, European Journal of Social Sciences, 30(1):59-69

31. Salam, Osman bin, Reddy, K., Raji, 2012. Consumer behavior towards

organised retail stores A study at selected outlets at Andhra Pradesh,

Golden Research Thoughts, Academic Journal 1(8): 123

105
32. Sanjay Manocha, Anoop Pandey, 2012. Organized Retailing in India:

Challenges

and Opportunities, VSRD-IJBMR, 2 (3):106-80.

33. Kameshwar Mishra, Abhinav Kumar Shandilya, 2012. Study of Customer

Preferences to choose An Organised Retail Outlet - A Case Study of

Ranchi, IJMIE , 2(3).

34. Sajid Alvi, Anwar Shaikh, Manisha Jagtap, 2012. A Study of the Factors

Influencing the Buyer’s Decision to Buy a Particular Product With

Reference to Selected Supermarkets in Pune City, International Conference

on Advances in Computing and Management,

35. Dalvi, C., S., Sayali Pataskar, 2012. Impulsive Buying Behaviour at Big

Bazaar Kolhapur, Ninth AIMS International Conference on Management

January, 1-4

36. Swati Kewlani, Sandeep Singh, 2012. Small Retailers or Big Shopping Malls:

will Big Fishes Eat the Small, Radix International Journal of Research in

Social Science, (RIJS),1(2).

37. Sathish Chandra, P., Sunitha, G., 2012. Prospects of Un-organized Retailing

in India, Prospects of Un-organized Retailing in India, Thavan IJRMM ,1(2).

38. Murugan, M., Rajalingam, N., 2012. Study on Customer Perception towards

Organised and Unorganised Retailers in Vellore city, ZENITH International

Journal of Multidisciplinary Research, 2(9): 264-273.

39. Soundararaj, J.J., 2012. FDI in Single-Brand Retail of India- A Boon or a

Bane? EXCEL International Journal of Multidisciplinary Management Studies

2(5)

106
40. Deepika Jhamb, Ravi Kiran, 2012. Emerging Retail Formats and It’s

Attributes: An Insight to Convenient Shopping, Global Journal of

Management and Business Research, 12(2)

41. Sathyapriya P., Nagabhusana R., Silky Nanda, 2012. Customer Satisfaction Of

Retail Services offered in Palamudhir Nizhayam, International Journal of

Research in Finance & Marketing. IJRFM 2 (2).

42. Piyush Kumar Sinha, SrikantGokhale, Sujo Thomas, 2012. Development of

Modern Retailing in India: It’s Impacts on Distribution and Procurement

Networks and Changing Consumption Pattern, W.P. No. 2012-12-04

43. Bhagwan Singh, Anjaney, K., Pandey, 2012. A Literature Study on Trends in

Retail Practices and their Impact on Traditional Retailing in India,

International Journal of Management Research and Development

44. Gupta Himanshu, Dubey Neetu and Patani Pawan, 2012. Effect of Orgenissd

retail on Unorgenised retail in Indian retail market, Research Journal of

Management Sciences, 1(1), 7-13.

45. Vijaya Bandyopadhyaya, 2012. Organized Retail in India: Impact on Food

Supply Chains

46. Deepika Jhamb, Ravi Kiran, 2011. Organized retail in India, Asian Journal Of

Management Research 2 (1):264

47. Rajan girdhar, 2011. Organized Retailing in Rural India: the key Elements

of success for retailers, Opportunities and challenges, International Journal

of Business Management & Research (IJBMR), 1(2):68-89

48. Anil N. Barbole, 2011. The Study of Customer Buying Attitude Towards

Grocery Retailing Services in Super Markets in the City of Solapur, Global

Economic Research, I(2)

107
49. Deepika Jhamb, Ravi Kiran, 2011, Organized retail in India, Asian Journal Of

Management Research 2 (1):264

50. SangeetaMohanty, ChitraSikaria, 2011. Creating a Difference – The Store

Ambience in Modern Day Retailing, Global Journal of Management and

Business Research, 11(3).

51. GagandeepShmarma , MandeepMahendru , Sanjeet Singh, 2011. Impact of

Organized Retail on the Economy of Punjab, Global Journal of Management

and Business Research, 11(2).

52. Hemant Syal, 2011. Retailing in India-Future Perspective, International

Journal of Research in Finance & Marketing, (IJRFM), 1(8)

53. Munjal. A., Kumar. A., Narwal. P., 2011. International Journal of Engineering

& Management Sciences. 2(3), 156-162.

54. Amrinder Singh, GautamBansal, 2011. Impact of Organised Retail Outlets on

Unorganised Retailers, International Journal for Management Research 1(2).

109-151.

55. ICICIdirect.com - March 25, 2011 research report

56. V. Ramanathan, K. Hari, 2011. A Study on Consumer Perception about

Organized Vs Unorganized Retailers at Kanchipuram, Tamil Nadu, 41 (12)

57. ShishmaKushwaha, Mohender Kumar Gupta, 2011. Customer Perception in

Indian Retail Industry (A Comparative Study of Organised and

Unorganised Retail Industry), The International Journal’s Research Journal

of Economics and Business studies. 1,

58. Gurusamy,M., Prabha, N., 2011. A Study on Changing Consumer

Preferences towards Organized Retailing from Unorganized Retailing,

International Journal of Exclusive Management Research, 1(1).

108
59. Ramanathan, D., V., Hari. D., K., 2011. A Study on Consumer Perception

about Organised Vs Unorganised Retailers At kancipuram, Tamilnadu,

Indian Journal of Marketing, 11-23

60. Gopal, V., Suryanarayana, A., 2011. Growth Drivers and Challenges or

Organized Retailing in India. International Conference on Business and

Economics Research 1 (2011) IACSIT Press, Kuala Lumpur, Malaysia

61. Sivaraman, P., 2010.The future of unorganized retailing in Kanyakumari

district. Asian Journal of Management Research, 2(1), 434 - 442

62. Marketing Mastermind, 2010. Retail Business in India Revolution or

Evolution A perspective on the History and Modernisation of Retail

Business in India, pp 54-59

63. Ali. J., Kapoor. S., & Moorthy. J., 2010. Buying behavior of consumers for

food products in an emerging economy, British Food Journal 112(2): 109-

124.

64. Satish, D., Raju, V.,2010. The Growth of Indian Retail Industry, Advances

in Management, 3(7):15-19

65. Hino, 2010. Antecedents of supermarket formats` Adoption and usage: A

study in context of non-western customers, Journal of Retailing and

Consumer Services, 17(1):61-72.

66. Praba Devi, P., Sellappan, R., 2009. Service Quality at Retail Stores -

Customers’Perception, Journal of Management & Technology, 1(1):41–52.

67. Goyal, B., Aggarwal, M., 2009. Organized retailing in India- An empirical

study of appropriate formats and expected trends, Global journal of

Business Research, 3(2):77-83.

109
68. Dash, M., Chandy, S., 2009. A study on the challenges and opportunities

faced by organized retail players in Bangalore.

69. RNCOS (March 15, 2009/24-7 press releases)

70. Sarimul Islam Choudhury (Coimbatore: Gearing up for retail revolution 01

Jul 2009)

71. Sengupta, A., 2008. Emergence of modern Indian retail: an historical

perspective, International Journal of Retail & Distribution Management, 36

(9), pp. 689-700.

72. Mathew Joseph, Nirupama Soundararajan, Manisha Gupta, SanghamitraSahu,

2008, Impact of Organized Retailing on the Unorganized Sector, Indian

Council for Research on International Economic Relations,

73. Joseph. M., Soundararajan, N., Gupta, M., Sahu, S., 2008. Impact of

Organised Retailing on the Unorganised Sector, Indian Council For

Research On International Economic Relations (ICRIER). Working Paper No.

222,

74. Joseph Mathew, Nirupamasoundararajan, Manisha Gupta, and

SanghamitraSahu, 2008. Impact of Organised Retailing on Unorganised

Sector, Working paper ICRIER,

75. Mishra. S., 2008. New Retail Models in India: Strategic Perspective

Analysis, Journal of Marketing & Communication, 4(2):39-47.

76. Halepete, J., Seshadri, K.V., Park, S.,C., 2008. Wal-Mart in India: a success

or failure? International Journal of Retail and Distribution Management,

36(9):701-713.

77. Srivastava, R.,K., 2008. Changing retail scene in India, International Journal

of Retail and Distribution Management, 36(9):714-721.

110
78. Ankush Sharma, PreetaVyas, 2007. Indian organised Retail Sector, Indian

Institute of Management Ahmedabad.

79. Amatul Baseer and LaxmiPrabha, 2007. Prospects and Problems of Indian

Retailing, XXXVII (10): 26-33

80. Sahani, 2007. Consumer Buying Behaviour and Food Retailing, Marketing

Mastermind (December), 21–5.

81. Aggarwal, V. 2007. The Era of Retail Revolution: Contribution to

Economy, In Research in Management and Technology, Deep and Deep

Publication, pp 429-442.

82. Bhardwaj, 2007. Retail Revolution- Emerging Challenges and Issues,

Journal of IMS Group, 4(2):9-12.

83. Koh. C.E., Kim. H.J., Kim, E.Y., 2006. The Impact of RFID in Retail

Industry: Issues and Critical Success Factors, Journal of Shopping Center

Research, 13(1):101-117.

84. Taneja, 2006. India Retail Forum

85. Survey 2006. on UK-based OC & C strategy consultants

86. Singhal, 2006. Retailers revamp for more business, The Economic Times.

87. Kishore Biyani, 2005, Images Retail, Published By Amitabh Taneja, New

Delhi. 4 (3).

88. Sinha. P., Banerjee. A., 2004. Store Choice Behaviour in an Evolving

Market, Journal of Retail and Distribution Management, 32 (10):482-494.

89. Solagaard, S., Hansen, T., 2003. A Hierarchical Bayes Models of Choice

between Supermarket Formats, Journal of retailing and Customer Services,

10, 169-180.

90. Mckinsey, 2003. Retail and Retail Supply Chain Management

111
91. Mehta, 2002. Challenges of retailing in India

92. Narayan 2001 Retailing bringing employment

93. Popkowski. L., Peter, T., Timmermans. H., 2001. Experimental choice

analysis of shopping strategies. Journal of retailing, 77(4):493-509.

94. Rajpal, A., 2000. The Indian Consumer Landscape: Now and 396 Beyond.

Technopak Perspective, 1, 16-26. Retrieved from

http://www.technopak.com/Perspective/vol1/Reasons%20to%20be%20Cautiou

sly.pdf

95. Outlook 2000. http://www.outlookindia.com/magazine/story/talking-

shop/210157

96. Munishi 1999 “Heading towards India - retail”

www.publishingindia.com/GetBrochure.aspx?query...

97. Kaushik 1998 “Wholesalers to retailers”

112