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Department Of Business Administration
University of Lucknow
Ambrish Singh who not only inspired me to work on this project but also accepted to guide me. for granting the permission. Niraj Kumar (Professor of Department Of Business Administration University Of Lucknow. BY ALOK RANJAN BEENOO SINGH PRASHANT VERMA HARSH VERMA ROHIT VERMA MBA (Marketing) Group ‘C’ University of Lucknow .ACKOWNLEDGEMENT I am thankful to management to study the “Consumer perception about FDI in retail”. corporation and valuable information for competition of this project. No words are enough to thank Dr. Lucknow) and Mr. they always managed time to provide proper guidance. In spite of heavy responsibilities and busy schedules.
this will also lead to competition among Indian players.Around 70 per cent of the total households in India reside in the rural areas. Many semi-urban areas also witnesses entry of such organized retail outlets. entry of foreign retailers was restricted in Indian retail market because of the ban on Foreign Direct Investment in Indian Retail . where mostly traditional retail outlets. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. The growing dominance of multinational companies in the country's $200 billion retail business. more consumption and higher profit for the producer. The sector witnessed significant transformation in the past decade from small-unorganized family-owned retail formats to organized retailing. commonly called Kirana stores exist.Introduction India is in the midst of a retail boom. and triggered growth by outsourcing supplies domestically. foreign companies in certain categories can sell products through their own retail shops in the country. it should first restrict them to lifestyle products segment before permitting them to spread their wings into other areas like grocery marketing that has a direct impact on `Kirana stores'. The availability of standardized products has also boosted tourism in these countries. recently organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. FMCG Retail in India India is one of the largest emerging markets. Government of India has allowed FDI in retail of specific brand of products. FDI in retail industry FDI in retail industry means that foreign companies in certain categories can sell products through their own retail shop in the country. with a population of over one billion. it will be the consumers who stand to gain. However. On the other hand. Till now. Following this. raised exports. foreign direct investment (FDI) in pure retailing is not permitted under Indian law. With the growth in organized retailing. However. Poland and Thailand. This has resulted in lower prices to the consumer. Many international brands have entered the market. Indian business houses and manufacturers are setting up retail formats while real estate companies and venture capitalist are investing in retail infrastructure. operated by single person and runs on the basis of consumer familiarity with the owner. unorganized retailers are fast changing their business models. It is a very positive step and it will encourage international brands to set up shop in India. FDI in retail trade has forced the wholesalers and food processors to improve. had warned that any move to increase FDI in the retail sector would ruin the business of small and medium traders scattered over the country Organized retailers in India are opposing the entry of MNCs in retail trading because of their predatory pricing strategy that wipes out competition.'' This would not change the market dynamics immediately as it will take some time for these plans to fructify. At present. retailing is one of the few sectors where foreign direct investment (FDI) is not allowed at present. These are unorganized. FDI in retail sector has been a key driver of productivity growth in Brazil. when the Government decides to allow foreign players to enter the retail space.
India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. . But recently. policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. Consumer of Retail "Every man is a consumer. If we talk about young professional consumer then it means any consumers who are professionals and young . Objectives of Study The main objective was to know the perception about FDI in retail from young professional people who is going to contribute in growth of INDIA. as government has changed its policy and the cabinet has allowed 51 per cent FDI in single-brand retail. and needs to be rich" [Ralph Waldo EmersonWealth] Consumer means who consume any product and service in a certain time so any one can be become a consumer.. and ought to be a producer . From this study we are trying to find what they think about Indian future market and how the perceive to the FDI. The entry of major retailers in the country has raised passions among the politicians.Sector. the prospects of foreign players entering India became high.They have many buying behavior and they respond according to their behavior.. He is by constitution expensive.
DATA ANALYSIS and findings .
That means youth are taking more interest on FDI because in present era they are facing a lot of unemployment and FDI will increase employment in India.Respondent gender female 19% male 81% After completion of data analysis I found that 19% female respondent and 81 % male respondent was responded. which is approximately 55% of total respondent. . Respondent occupation In total 47 respondents there was 26 respondents was student.
Awareness about FDI in retail sector No 19% yes 81% According to above graph we are getting that out of total respondents 81% was aware about FDI in retail in India and 19 % was unaware about FDI. .INCOME LEVEL Out of total 47 respondent approx. Means people who have less income they are worried about FDI.10000/month. 49% respondent have there income level bellow Rs.
.Benefit from FDI NO 38% YES 62% Out of total respondent 38% respondents believe that there will be no benefit from FDI and 62% believe that there are some benefits from FDI in ratail. How FDI beneficial for consumer Approx 56% people thought that after allowing FDI in retail it will increase the quality of the product due to entrance of foreign company with new technology in India.
28 % people like to purchase from Indian company and 59% people like to purchase from both foreign and Indian company. . Reason for shopping from foreign company People who are purchasing goods from foreign company they believe that they provide us better quality product than Indian companies. There are some more reason behind purchasing goods from foreign company are like cheaper product and they are providing additional services also.Preference when go shopping 28% Indian company foreign company 59% 13% Both company Out of total respondent approximately 13% people prefer to purchase goods from foreign company.
Effect on local store/market 9% Yes No 91% Out of total respondent only 9% believe that there will be some effect on local store or market of FDI in Retail. Preference of retail organization during shopping 8% Yes No 92% There are only 8% people prefer to purchase product from retail organization and they give reason behind it that we can save a lot of time through purchasing from retail organization but majority of people are not preferring retail organization. And majority of people believe that FDI will not have any effect on local stores or markets. .
. Impact on former Will benefit Will not benefit can not say 39% 37% 24% According to my study we can see that 37% young professional say that it will be directly benefited any way in his life / future life. And 39 % say that it will not be benefited any way and 24 say we cannot say till it implemented in India.Frequency of retail shopping According to data there are 30% majority of the people goes retail shop during special events and once in weekly and 11% says that once in quarterly.
And 30% respondent say that it will not be benefited any way .Impact on other industries from FDI According to the study we find that 36% respondent say that FDI impact to the former directly and they will be benefited by the FDI in retail. SUMMARIZED RESULT The above findings collected through the sample of the young professional people of society shows that majority of people are supporting the FDI in retail. They are trying to mislead the people of India for their own profits.Where 34 % say can’t say till it implemented in India so they have no idea about where they will benefited or not. . There are some who for their own advantage are opposing the entry of foreign retailers into India.
CONCLUSION The future of foreign retail players is also uncertain like that of Indian retail players. The government which acts better than the one which does not. It is better to act and watch than not to act at all. . Apprehensions were raised on many such occasions in the past on virtually every measures of liberalization of Indian economy but most of the apprehensions proved wrong while many others come true.
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