Not for quotation or citation without the express permission of the authors

ISSN 0265 9778

Research Paper 2010/01

The old world of Kirana shops Vs new world of glitzy retailing ; a case study in an emerging market The Indian context

Dr. S. Ramesh Kumar Professor of Marketing - Marketing Area Indian Institute of Management Bangalore ( IIMB) Bannerghatta road, Bangalore 560076 India Phone: +91-80- 26993184 Email: rkumar@iimb.ernet.in & Ms. Radhika Vishvas Academic Intern Marketing Area (also pursuing Ph.D. at Kuvempu University, P.G. Center, Davanagere, India) Indian Institute of Management Bangalore ( IIMB) Bannerghatta road, Bangalore 560076 India Phone: +91-80-26993342 Email: radhikav@iimb.ernet.in

Disclaimer The opinions expressed in this research paper are the responsibility of the authors alone.
The authors would like to thank Indian Institute of Management Bangalore (IIMB), Bangalore, India for sponsoring this case study as a part of the institutes case development / research initiative.

The old world of Kirana shops Vs new world of glitzy retailing; a case study in an emerging market The Indian context

India
The demographics of India are remarkably diverse. India is the second most populous country in the world with a population of approximately 1.17 billion people1&2, which is almost one-sixth of the world's population. There are 638,596 villages (a unit of classification made for the rural areas by Census India, 2001 with a population of less than 3500) in the country that has 72.2 percent of the countrys population residing and predominantly employed in the agricultural activities3.

Changing economic developments coupled with the changing demographics (population migration from rural to urban areas) have lead to a noticeable change in the rural and urban classification in the country. According to The Registrar General and Census Commissioner of India, the term urban agglomeration is used to describe cities, which could range from metropolitan areas (cities with a population of over one million there are 26 such cities), to cities (population of over 100,000 about 300 such cities exist), to towns (less than population of 100,000, numbering over 3,500 such towns). A megalopolis is used to describe a metropolitan area with a population exceeding 10 million; in India, Mumbai, Delhi and Kolkata are megapolises. A metropolis in India means a city with a population exceeding four million which besides the three megalopolises include Bangalore and Chennai 4. Indias demographic profile is one of its major strengths. The 15-64 years age group make up for 63.6 percent of its population and it has an adolescent population (age group below years) of 31 percent. It has 91.3 million households earning between US $ 1,969 to US $ 4,3765. According National Council for Applied Economic Research (NCAER), 10.7 million households with an annual income of up to $23,000 reside in the smaller cities. The current small town boom also reflects Indias free market prosperity, powered by a healthy economic growth of 9.6 per cent for fiscal 2006-07. Increasing disposable 1

income across the country has fuelled the purchasing power of Indian consumers. The Indian spending trends has already taken Indias consumption to around $428.69 billion (in 2005), and it is expected to touch $ 1.76 trillion in 20256.

Indian Retailing Scenario

A historical perspective Retailing is not a new chapter in the business history of India. The existence of trade and commerce in India could be traced way back to history of beginning of India with the birth of Indus Valley Civilization, one of the largest among the four ancient urban civilizations of Egypt, Mesopotamia, India and China. The ancient cities Harappa and Mohenjo-Daro were traced trading cereals, vegetables, fruits, eggs, mutton, pork, potteries, cotton and woolen clothes, baked bricks, weapons for wars etc., 7. Indias ancient scriptures called Vedas considered trading activity to be the pillars of the society8. The Indian grocers (traders) were perhaps among the earliest in the world to acquire professional retailing skills9.

Following are some of the major traditional retail formats prevailing in the country:

Fairs: Fairs are annually conducted markets at one place on a specific auspicious day of the year. Fairs attract thousands of people from close-by geographical areas. The retailers participating in such fairs merchandize goods such as clothes, ornaments, spices, toys, sweets and other eatables (ready to eat), fruits, vegetables, and even live stocks (cattle, camels, goats etc.) etc.,

Shandies: Shandies are the regularly organized weekly markets that used to be held on a particular day of the week. The retailers and farmers with their goods/produces sell their offerings throughout the day. The pricing is not fixed and bargaining is quite common.

Village shopkeepers: They are the individual merchants who go about selling textiles, spices, ornamental items on a door to door basis. Such practices are prevalent in villages and semi-urban areas.

Public Distribution Shops (PDS): These shops are Government run chain of stores started under the Governments economic policy for ensuring availability 2

of food grains (such as wheat, rice), sugar and kerosene (a form of fuel) etc., to the public at affordable prices as well as for enhancing the food security for the poor
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(456 million or about 42 percent of the population earn about $1.25 per

day ).

Growth of retailing

India at the time of independence in 1947 was in the clutches of a vicious circle of poverty- characterized by very low per capita consumption and having one of the lowest income levels in the world. Retailing was focused more on the basic necessities rather than luxury12. In the fifties, there were only 0.25 million retail outlets in India 9. Even in the early 1960s, it was reported that there is not a single supermarket in all of India 13. It was for the first time in the Indian retailing history, a modern retail format of self service store Nilgiris was setup in 197114. In 1978 the country had just 2.335 million retail outlets stocking FMCGs, or 3.7 shops per 1000 persons. In 1997, the total number of shops, at 5.13 million, translated into 5.55 shops per 1000 customers. In 2005 the retail density was 10.51 shops per 1000 consumers15. There has been about a tenfold increase in the retailing density as a result of liberalization of the economy.

Kirana Stores are somewhat comparable to Mom and Pop shops of the west. But given the diversity of the Indian market, it may be difficult to carry a definition that will convey a degree of standardization. A Kirana store can normally a range from 25 to 400 Square feet with a range of product categories associated with the daily requirements of masses. These categories include branded or unbranded offerings like coffee, tea, biscuits, toffees, shampoos, soaps, hair-oils, grocery and edible oil (to name few categories) in addition to small quantities of rice and wheat. Some Kirana stores may also carry a few vegetables and fruits. Most of the millions of Kirana shops cater to mass market and hence carry offerings that have limited stock keeping units (SKUs) and low priced SKUs are popular among Kirana shops. Several of the Kirana shops also carry unbranded offerings that may be priced 20-30% lower than branded offerings but may have quality that is inferior to branded offerings (biscuits, edible oil, rice and washing powder are a few examples). Kirana shops predominantly deal with food and grocery merchandize . According to 3

KPMG, the food and grocery market in India was valued at US $ 236 billion in 2008. The food and grocery segment contributes about 60 per cent of the retail sales in India and comprises mostly of the unorganized sector 16. The Indian retailing industry is dominated by the Kirana stores
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and this unorganized

(as differently treated from modern retail format) retail trade has created nearly 39.5 million (nearly 9.2 % of countrys population) employment opportunities in the country
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. More than 80 percent of the retail outlets are run and managed by individual and
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family members

. Their very existence in the local neighbourhoods by itself acts as a

competitive advantage for the Kirana shops. In contrast modern retail outlets are not present in every locality of a large city. India has about 15 million retail outlets 19. In several non-urban markets of the country, the retailer has informal interactions with consumers and can even influence purchase/brand decisions. This aspect of Indian retailing culture has significant implications on the consumers perceptions of modern retailing versus Kirana shops.

Modern retailing formats the present context

In India, retail trade is primarily divided into two segments and they can be defined as follows21

Modern/Organized retailing: Any retail outlet chain (and not a one shop outlet/standalone) that is professionally managed, has accounting transparency (with proper usage of MIS and accounting standards) and organized supply chain management with centralized quality control and sourcing can be termed as organized retailing in India.

Unorganized retailing: Any retail outlet that is run locally by one owner or the caretaker of the shop. Such outlets generally lack technical and accounting standardization. Kirana shops are categorized under unorganized retailing.

The (organized) modern retailing in the country is expected to touch $30 billion by 2010 from the current $14 billion22.

Following are some of the modern retail formats prominent in the country:

Hypermarkets: These are large (20,000 Square feet plus) self-service stores selling a variety of products at discounted prices. Giant at Hyderabad (in the state of Andhra Pradesh) is an example of this format.

Supermarkets: These stores are located in key residential markets and malls. Some of the chains in this format are Foodworld, Nilgiris, Subhiksha, and Big Bazaar. Indian super markets are smaller than those in other countries, with sizes that are at least a fifth of a global chains selling area (3,000 4,000 Square Feet. versus 20,000-25,000 Square Feet).

Department Stores: These stores primarily sell non-food items such as apparel, footwear and household products. They stock multiple brands across product categories though some of them focus on their own store labels (e.g. Marks & Spencers St. Michael and Shoppers Stops Stop brands). Department stores are found on high streets and as anchor shops of shopping malls. Several department store chains have opened up in India such as Shoppers Stop, Westside, and Ebony.

Discount Store: It is a general merchandize retailer that offers a wide variety of merchandize with limited service and low prices. Margin-free shops operate in this format in India.

Wholesale Cash-and-Carry: The wholesale cash-and-carry operation is defined as any trading outlet where goods are sold at the wholesale rate for retailers and business to buy. The transactions are only for business purposes and not for personal consumption as in the case of retailing. Metro Cash & Carry GmbH of Germany has entered India in this format. 5

Factory Outlets: These are outlets run by the manufacturers themselves or by their franchisees known as factory outlets. These outlets are small, normally located on outskirts of towns where realty is cheaper or near their own factories. Brands are sold at a slightly cheaper rate than in a normal store. The merchandize consists of mainly assorted lots of styles that could be production overruns, quality rejects, returned merchandize, slow moving styles or bygone fads. International brands such as Adidas, Nike, Reebok and domestic brands such as Woodland, Globus, Welspun, Louis Philippe and Allen Solly are brands that have factory outlets. The organized sector commands just three to five percent of the total retail industry, and is valued at about $300 billion; this is expected to grow to $427 billion in 2010 and $637 billion in 201523.

Indian consumers shopping habits- some aspects that are linked to retailing
Most consumers shop daily Most consumers cook everyday without using Microwave or storing in refrigerators. Most consumers would like to touch and feel the product before buying it. Most consumers are highly price sensitive when it comes to fast moving consumer goods (FMCG). Most families have a budget for spending on basic necessities. Given the diversity of income flows, it may be a daily/weekly/monthly budget. Most consumers may alternate between branded and unbranded offering in several categories. Its not uncommon to find small Kirana shop owners providing monthly credit to their consumers. Such a facility with regard to modern retailing may be possible only with consumers using credit cards. Credit card penetration in the country is dismally low. Even in geographical areas where modern retailing exists, consumers normally mix their purchases between modern retailing formats and Kirana shops in neighbourhoods.

Some photographs of Indian traditional and modern retailing

Frontage of a Kirana Store

Frontage of a modern retail outlet

Merchandize display at a Kirana Store

Merchandize display in a modern retail outlet

The owner / shop keeper of the Kirana store interacts / transacts business with the consumer without the consumer being allowed inside the store.

Kirana shops Vs modern retail outlets focus of the case

This study attempts to provide conceptual insights into the comparison between the shoppers in a modern retail outlet and a Kirana type of outlet. The objective of the study is to highlight the importance of analyzing the retail strategies of Kirana type of outlets. Incidentally, such a perspective will also be useful to marketing managers managing modern retail outlets.

The required information for the case study was collected from 100 respondents. The respondents were 50 shoppers from Reliance Fresh (a modern retail outlet) and 50 from Shiny Provision Store (a Kirana store) located in BTM layout (a locality in the city of Bangalore). Reliance Freshs store area is in the range of 3000 3500 Square Feet and that of Shiny Provision Stores area is in the range of 600-1000 Square Feet. There are nearly 38 traditional Kirana stores in the vicinity of BTM layout and 11 are similar to Shiny Provision Store in size, SKUs and trading both vegetables/fruits along with groceries. Shiny Provision Store was selected for the study due to the following reasons.

1. Shiny Provision Store and Reliance Fresh are located in the main location of BTM lay out and situated two kilometers apart. (2 kilometer vicinity was considered for this study) 2. Shiny Provision Store stocks several kinds of groceries and fast moving consumer goods. It also has a mix of branded and unbranded offerings like a typical Kirana store. 3. Shiny carries several categories that are carried by Reliance Fresh. This ensures an appropriate comparison between Kirana store and a modern outlet in terms of consumers choice. 4. Shiny Provision Store provides door delivery service, mobile/phone order delivery in the neighbourhoods like a typical Kirana store.

Some of the assumptions that were made during the study are as given below: 10

1. Households in the 2 kilometer vicinity have more or less the same kind of demographic and lifestyle preferences. 2. Consumer loyalty (for purposes of choosing respondents): Those consumers who have bought monthly grocery for at least three times either from local Kirana or from Reliance Fresh are termed as loyal consumers for the purpose of this study.

The survey was conducted using a questionnaire with the following parts

Section I: Retail Store Image carried five different sub dimensions viz. Aesthetic Image (AI), Product/Brand Image (PI), Merchandising/Stocks/Variety (M), Store Service (SS), Store Personnel (SP). In turn each of these five sub dimensions carried different questions (Appendix 1) that were ranked on five point Likert scales, where higher the rating indicates the better. Section II: The questions related to demographics of the respondents were the focus of this section, which concerned the information such as name, age, sex, marital status, family size/type, income, education, and occupation details were the focus of this section. Section III: Carried questions on psychographics of the respondents and were clubbed together under three sub-headings such as Activities (A), Interests (I) and, Opinions (O).

Tables 1 to 4 provide information on relevant factors associated with this study area and the stores Reliance Fresh and Shiny Provision Store. The focus of the study is twodimensional: a) Several factors of retailing that contributed to the retail image (a modern retail format on a traditional Kirana outlet) b) The changing lifestyle of consumers that were reflected through activities (A) , interests (I) and opinions (O) (referred to as AIO)

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Table1: No. of households in the vicinity of 2 kilometer from Reliance Fresh and Shiny Provision Store Income range In INR <10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 >50,000 Total No. of Households 3000 2300 1100 900 700 500 8,500 voters) % of Households in BTM Layout 35 27 13 11 08 06 (34,500 100

Source: Mr. K. Devdas, Ex-corporator, Bangalore Mahanagara Palike, Ward No. 65(old) 136 (new), 2008 INR Indian Rupees 1 US$ is approximately equal to INR 48.

Table 2: Average monthly expenditure on groceries/vegetables/fruits Reliance Fresh Average monthly expenditure on groceries/Vegetables/fruits in INR/household 2000 3500 4600 4700 5600 7200 27600 Shiny Provision Store Average monthly expenditure on groceries/vegetables/fruits in INR/household 2000 3100 3300 3700 4900 6000 23000

Income range In INR

<10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 >50,000 Total

Source: From the field survey INR Indian Rupees 1 US$ is approximately equal to INR 48.

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Table 3: Consumer consumption pattern (based on average consumption of consumers)

Products

% of total Shiny Provision Store Reliance Fresh consumption Unbranded/Store Branded Unbranded/Store Branded brands % % brands % % 40 20 10 5 3 5 5 10 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 -

Rice Wheat Rawa Sugar Spices Oil Poha (Beaten rice) Raagi Total

Source: From the field survey

Table 4: Average percentages of expenditure on Groceries/ Vegetables/ Fruits as given by the respondents

Outlets Income range In INR

<10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 >50,000

Reliance Fresh Average % of monthly expenditure on groceries/vegetables/fruits out of the total retail (consumables) expenses 90 85 80 82 75 80

Shiny Provision Store Average % of monthly expenditure on groceries/vegetables/fruits out of the total retail (consumables) expenses
85 86 84 84 78 80

Source: From the field survey INR Indian Rupees 1 US$ is approximately equal to INR 48. Note: the table is to be read in the following manner; for example in the income range of < 10,000 INR, 90% of the monthly expenditure spent on groceries/vegetables/fruits as a part of total retail expenses on consumable goods. Apart from these expenses, consumers will also be spending on other retail expenses like personal care products/ cosmetics/ any other offering relevant to them in a retail outlet.

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Tables A1, A2 provide the average ratings of retail image of Reliance Fresh and Shiny Provision Store respectively. Tables B1, B2 provide the average ratings of psychographics (activities (A), interests (I) and opinions (O)) of the respondents of Reliance Fresh and Shiny Provision Store respectively.

Table A1: Reliance Fresh (Average ratings of Retail Image)

Income In INR <10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 >50,000 Total Aesthetic image (AI) 4.30 3.80 3.51 3.81 3.74 4.06 3.87 Product/brand image (PI) 4.33 3.38 3.25 3.75 3.58 3.42 3.62 Merchandising/ stocks/variety (M) 4.42 3.52 3.68 3.78 3.81 3.96 3.86 Store service (SS) 4.00 3.56 3.73 3.66 3.83 4.29 3.84 Store Personnel (SP) 3.78 3.89 3.83 3.92 3.62 3.89 3.82

Source: From the field survey

INR Indian Rupees 1 US$ is approximately equal to INR 48.

Table B1: Reliance Fresh (Average ratings of AIO)- Psychographics

Income in INR <10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 >50,000 Total Activities (A) 3.74 3.54 3.32 3.43 3.72 3.52 3.54 Interests (I) 3.87 3.57 3.44 3.38 3.61 3.81 3.61 Opinions (O) 3.78 3.60 3.47 3.61 3.69 3.77 3.65

Source: From the field survey

INR Indian Rupees 1 US$ is approximately equal to INR 48.

Table A2: Shiny Provision Store (Average ratings of Retail image)

Income In INR <10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 >50,000 Total Aesthetic image (AI) 3.00 3.12 2.90 2.96 3.76 3.08 3.14 Product/brand image (PI) 4.43 4.65 4.94 4.38 4.64 4.63 4.61 Merchandising/ stocks/variety (M) 3.39 3.21 2.97 3.53 3.18 3.44 3.29 Store service (SS) 3.29 3.34 2.39 3.34 3.61 3.75 3.29 Store Personnel (SP) 3.38 3.20 3.11 3.67 3.57 3.08 3.33 14

Source: From the field survey

INR Indian Rupees 1 US$ is approximately equal to INR 48

Table B2: Shiny Provision Store (Average ratings of AIO) - Psychographics

Income In INR <10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 >50,000 Total Activities (A) 3.24 3.11 2.93 3.19 3.67 3.03 3.19 Interests (I) 2.88 3.25 3.13 3.33 3.52 3.25 3.22 Opinions (O) 3.14 3.32 2.99 3.39 3.65 3.54 3.37

Source: From the field survey

INR Indian Rupees 1 US$ is approximately equal to INR 48.

Questions 1. Analyze the expenditure pattern of Reliance Fresh and Shiny Provision Store customers. 2. Discuss the retailing sale potential associated with the area of study in this case. 3. Analyze the image dimensions associated with both the outlets namely Reliance Fresh and Shiny Provision Store. 4. Analyze the psychographic ratings of consumers associated with both the outlets namely Reliance Fresh and Shiny Provision Store. 5. Using the answers to questions 1-5, what is the strategy that you will recommend for Shiny Provision Store? (Kirana stores Vs modern retail outlets is a typical issue in the Indian retailing sector)

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Appendix 1
Table A: Retail Image Dimensions Aesthetic Image (AI) Aesthetic Image /Physical settings/Display The store has a pleasant atmosphere. The store has an attractive layout. The store has informative advertising Its very easy to find the products in the shop Products in the shelves are messy The outlet has a well spaced merchandize The outlet has exhibited good displays all over The shop has attractive and informative displays Shop signage is very good Product/brand Image (PI) Product/Brand Image The store has well-known brands. The store has low quality products Merchandising/ stocks/variety (M) Merchandize /Stocks/Variety The store has an unlimited selection of products The store has both private and manufacturer brands I get better price by buying private labeled groceries. The store has exclusive product assortments Store Service (SS) Store service/billing/easy return The store has good service. Its easy to return the purchases The outlet has slow checkouts/billing One stop shop facility is given by my favourite retailer Store Personnel (SP) Store personnel/service/behavior The stores sales clerks are well-dressed. The store has knowledgeable sales clerks. The store has helpful sales clerks

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Table B: AIO Dimensions A-Activities cover the following dimensions Activities (A) When I shop, I tend to go with my friends Buying vegetables is on the top list of my routine shopping Activities I prefer watching TV than going for shopping I dont mind shopping groceries even on weekdays I normally shop in the evening time for groceries I get opinions and information about retail outlets and prices from my friends. I dont mind skipping going to a movie for shopping I spend a lot of time in cleaning groceries that I buy I buy vegetables on day to day basis I feel cleaned vegetables would save my cooking time I enjoy bargaining while shopping Sales promotions by the retailer interests me buy more I always read Point of purchase advertisements while shopping I dont mind traveling a kilometer extra for shopping at my favourite grocery shop I will save a lot of time if home delivery is provided by my retailer Loyalty programs interest me shop with a particular retailer I would choose a retailer who provides clean and convenient packaging of groceries I prefer to get Fresh stocks all the time from the retailer I prefer to get credit facility from my favourite retailer. I-Interests cover the following dimensions Interests (I) Shopping for me is more of entertainment from everyday routine I wish I could win some prize in event marketing that is conducted for the shoppers while shopping in the outlet I am excited to see the Radio Jockeys (RJs) and Television Jockeys (VJs) conducting some events in the shopping area. Friends / colleagues are the best shopping mates for me I prefer to spend as much time as possible while shopping Unplanned buy interests me as it makes me browse more New product arrival counter is what I always look at, in the outlet It makes me happy that my favourite retailers have started providing mobile recharge and electricity bill payment facilities. I am drawn to the retailer because he stocks ready-to-eat food Special offers by the marketers tempt me to buy more quantity Clear sign boards make my shopping easier Restrooms will enable me to spend more time shopping 17

I prefer to have a lot of assistance from the sales personnel while shopping I consider any kind of shopping as a choir (pleasing) I prefer to shop with different retailers for better offers that save my money O-opinion covers the following dimensions Opinions (O) I like shopping areas that have good lighting, space and a soothing environment. I look at the displays before buying new products Too many brands at the retailer confuse me I prefer to pay with cash for my shopping activities No availability of stocks make me chase the other outlets I shop vegetables along with groceries I would like to get credit card points on every shopping transaction In-shop announcements make me buy more The retailer should not compromise on quality of products Checkouts without queues will attract me to retailer I prefer the retailer whose billing does not have mistakes I feel modern retailer offers exclusive sales promotion offers I feel private label (retailers own brand) brands offer more value I would prefer to shop with the retailer who accepts credit cards I feel retailers cheat customers on sales promotional gifts Shopping with familiar retailers is less time consuming Going to a large department store is a waste of time as I do not get adequate returns. Shopping in a modern retail outlet gives me a thrill People shopping in modern stores are high-income people For me convenience means everything in shopping

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References
1. National commission on population http://populationcommission.nic.in/ downloaded on 28th July 2009 2. Wikipedia http://en.wikipedia.org/wiki/List_of_countries_by_population downloaded on 28th July 2009 3. http://censusindia.gov.in/Metadata/Metada.htm#2b down loaded on 24th July 2009 4. Joshi Dipta, (2007), Indian Cities coming of age http://www.ibef.org/download/URBAN_DEVELOPMENT.pdf down loaded on 24th july 2009) 5. Bijapurkar R (2007), We are like that only, Penguin Books, Pg.No: 83-93, 2007. 6. http://www.ibef.org/economy/consumermarket.aspx) downloaded on 14th October 2008. 7. http://india.gov.in/knowindia/ancient_history.php downloaded on 23rd July 2009 8. http://en.wikipedia.org/wiki/Demographics_of_India down loaded on 24th July 2009 9. Vedamani G. Gibson (2004), Retail Management- Functional Principles and practices, Second Edition revised, Publisher Jaico Publishing House, Mumbai, 2004. 10. http://fcamin.nic.in/dfpd/EventListing.asp?Section=PDS&id_pk=1&ParentID=0 down loaded on 24th July 2009) 11. http://timesofindia.indiatimes.com/India/Onethird_of_worlds_poor_in_India/articleshow/3409374.cms down loaded on 24th July 2009) 12. Sengupta Anirban (2008), Emergence of modern Indian retail: an historical perspective, International Journal of Retail and Distribution Management, Vol. 36, No: 9, 2008. 13. Westfall R and Boyd, H.W Jr (1960) Marketing in India, Journal of Marketing, Vol. 25 No.2. PP: 11-17. 14. http://www.nilgiris1905.com/history.php 15. Singhal Arvind (1999), A Strong Pillar of Indian Economy,www.ksatechnopak.com. 16. Chaterjee Purvita (2009), On a quest for value food and grocery retailers take a leaf out of the Kirana model to stick it out in recessionary tiems, Business Line, The Hindu, July 2, 2009, Pg.No: 3. 17. Jones, N., Lasserrre, P. and Gehlen, C. (2005), Mass retailing in Asia (A) the markets, INSEAD Case study, Paris, 02/2005 5261. 18. Iyengar Jayanthi (2004), China, India Confront the Wal-Markts, Online Asia times, www.atimes.com, January 31st 2004. 19. Ramesh Kumar S (2009), Consumer Behaviour and branding Concepts, readings and cases, Dorling Kindersley (India Pvt Ltd) Pearson Education (South Asia), Pg. No. 291. 20. Guruswamy Mohan (et al) (2005),FDI in Indias Retail Sector-More Bad than Good? Economic and Political Weekly, February 12. 2005, PP: 619-623. 21. Mukharjee Arpita & Patel Nitisha (2001), FDI in Retail Sector India, Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, GOI and ICRIER, New Delhi. 19

22. Joshi Dipta, (2007), Indian Cities coming of age http://www.ibef.org/download/URBAN_DEVELOPMENT.pdf down loaded on 24th july 2009) 23. http://arth.sulekha.com/blog/post/2008/04/organized-retail-in-india.htm

Other references that were used to conceptualize the study 1. Barr, Vilma (2006), Lighting Luxuries, Display & Design Ideas, 10499172, Dec2006, Vol. 18, Issue 12, Business Source Premier 2. Mary L. Joyce and David R. Lambert (1996), Memories of the way stores were and retail store image, International Journal of Retail & Distribution Management, Volume 24 Number 1 1996 pp. 2433. 3. Nicole Bailey, Charles S. Areni (2006). When a few minutes sound like a lifetime: Does atmospheric music expand or contract perceived time?, Journal of Retailing 82 (3, 2006) 189202. 4. Robert A. Peterson (1974-75), An Exploratory Investigation Of Mediating Factors In Retail Store Image Responses, Journal Of Retailing, 50, 4 (Winter 1974-75). 5. Stephen S. Porter and Cindy Claycomb(1997), The influence of brand recognition on retail store image, Journal Of Product & Brand Management, Vol. 6 No. 6, 1997 pp. 373-387 6. Sudas Roy and Paromita Goswami (2007), Psychographics and its Effect on Purchase Frequency - A Study of the College-goers of Kolkata, India, Decision, Vol. 34, No.1, January - June, 2007 7. Thomas E. DeCarlo (et al) (2007), Influence Of Image And Familiarity On Consumer Response To Negative Word-Of-Mouth Communication About Retail Entities, Journal of Marketing Theory and Practice, vol. 15, no. 1 (winter 2007), pp. 4151. 8. William D. Wells and Douglas J. Tigert (1971), Activities, Interests and Opinions, Volume 11, Number 4, August 1971.

Authors would like to thank Mr. P. Seshagiri Rao and Mr. P. Srinivasan Managing Partners, Franchise of Nilagiries of Rutun Enterprises for their support in providing the photographs of modern retail outlet and Mr. Anandan S. owner of Shiny Provision Store (Kirana) for providing support to the study.

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