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SERIAL No. 1. TITLE PAGE No. 5-14
Introduction to Indian Retail Industry
2. 3. Classification
Consumer Buying Behaviour
4. Organized vs Unorganized Retail
5. 6. Selection of the topic
Purpose and Significance of the study
7. 8. 9. Literature Review
31-34 35-36 37-43
Data analysis & Interpretation
10. 11 12 13 14
CHAPTER-10 Finding CHAPTER-11
44-45 46-47 48-50 51-54 55-56
CHAPTER – 1 Introduction to Indian retail industry
1. Introduction to Indian retail industry:
The sea of change can pull customers in many directions. It is our responsibility to light the way and take care of them… before the competition does. RETAILING Means “Re-tailing” to the customers so that they comeback. Retailing consists of all activities involved in selling goods and services to consumers for their personal, family, or household use. It covers sales of goods ranging from automobiles to apparel and food products, and services ranging from hair cutting to air travel and computer education. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity. The Indian retail story couldn't have been more different. India has approx 12 million retail stores, more than rest of the world put together. But the per capita square feet area under retail is just 2 sq.ft or 0.2 sq. meters with fragmented kirana stores being the predominant players. Retailing in India has remained in the unorganized sector and largely untouched by corporate. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores, hypermarkets, supermarkets and specialty stores across a range of categories. Modern retail formats have mushroomed in metros and mini-metros, in the last few years modern retail has also established its presence in the second rung cities. Thus, exposing the residents of these cities to shopping options, they have never experienced before. It has been forecasted that the share of modern retail will increase from 2 per cent currently, to about 15-20 per cent over the next decade. To begin with, retailers today will have to support the
large retail infrastructure in terms of Malls and Superstores that are being created. The challenge for leading retailers shall therefore shift from diverting demand to creating demand. With all the modern stores offering convenience in terms of an assortment of products, ambience, service and innovative products, the paradigm shall shift from competing with the kirana stores to an in-house demand creation. Relevant experiences from consumer goods companies, which have successfully crafted an explosion in demand in their sectors, through innovation, consumer driven strategies, will be head runner. Times are changing. With the GDP at an all time high and income levels shooting through the roof, the average Indian consumer has never had it so good. The propensity to consume has reached peaks that had never been scaled before. Credit cards are flashed with disdain and shopping baskets are getting bigger all the time. Here are some factors that indicate the potential of retail in India: • At 271 million, one of the largest consuming base in the world, forming 27% of the total population. • A high spending community below 45 years comprises 81 percent of the population. • A young population with 54% population below 25 years • Increased literacy from 44% in 1965 to 70% in 2003 • Increase in working women from 1.3 million in 1961 to 4.8 million in 1998. The first decade of modern retail in India has been characterized by a shift from traditional kirana shops to new formats including department stores, hypermarkets, supermarkets and specialty stores across a range of
categories. Modern retail formats have mushroomed in metros and minimetros. In the last few years, modern retail has also established its presence in the second-rung cities, exposing residents to shopping options like never before. However, even as modern retailers garner share from traditional channels, there is a larger role they would be required to play in boosting consumption levels.Figures suggest that the total turnover of the sector is around Rs 10 lakh crores, of which 4 percent is contributed by the organised sector. The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. The retail sector in developed countries was also highly fragmented at the beginning of the last century but emergence of large chains like Wall Mart, Sears, and McDonald’s led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shopper’s Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over the country. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which have become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively, as a result a great demand for real estate is being created. 1.1 Traditional Convenience Stores: Traditional convenience stores are too well established in India than to be wiped out and besides there is uniqueness in the traditional items that represent the sub-continent. The retail stores in India are essentially dominated by the unorganized sector or traditional stores. Infact the traditional stores have taken up 98 percent of the Indian retail market. Now stores run by families are primarily food based and the set up is as Kirana or the 'corner grocer' stores. Basically they provide high service with low prices. If the stores are not food based then the type of retail items available are local in nature. The traditional family run convenience stores can take pride in the fact that the Kirana is the most common outlet forms for the consumers. The tough
competition for convenience stores are coming from organized retail stores dealing in food items, like: • Apna Bazaar • Canteen stores • Food World • Subhiksha • Food Bazaar Convenience Stores are open for long hours and is one of the formats of the Indian retail stores that cater to basic needs of the consumer. A good example of such would be Convenio. These stores are found in both residential as well as commercial markets. The food products of traditional family run convenience stores are comprised of branded as well as non-branded items. The benefits of family run convenience stores is that they give importance to: • Personal touch • Facilities of credit • Quick home delivery • Non-food based stock comprises of multiple and varieties of local brands. The future of such stores as they face competition from organized sector, would depend on the following particulars: • Place and capacity • Diligent area coverage • Disciplined work schedule
• Managing turnover • Revenue from assets • Customer service and satisfaction The traditional family run convenience stores serves the purpose of the housewives who definitely wants to avoid traveling long distances to purchase daily needs. The convenience factor in terms of items, among people in general can be highlighted as below: • Groceries • Fruits • Drug Store • Necessary stationery As such traditional family run convenience stores are here to stay and cannot be oversized by the organized retail sector besides, it represents the variety of India.
1.2 Indian organized retail market: Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for about 10% to the country's GDP. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.5% of the total revenues.
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. Traditionally the retail industry in India was largely unorganized, comprising of drug stores, medium, and small grocery stores. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior. This change has come in the consumer due to increased income, changing lifestyles, and patterns of demography which are favorable. Now the consumer wants to shop at a place where he can get food, entertainment, and shopping all under one roof. This has given Indian organized retail market a major boost. Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture. A number of global retail giants such as Walmart, Carrefour, and Metro AG are also planning to set up shop in India. Indian organized retail market will definitely grow as a result of all this investments
Classifying Indian retail:
(A)Modern Format retailers 1) Supermarkets (Foodworld) 2) Hypermarkets (Big Bazaar) 3) Department Stores (Shoppers Stop) 4) Specialty Chains (Ikea) 5) Company Owned Company Operated (BP)
(B)Traditional Format Retailers: 1) Kiranas: Traditional Mom and Pop Stores 2) Kiosks 3) Street Markets 4) Exclusive /Multiple Brand Outlets
(C)Large Indian retailers 1. Hypermarket 1) Big Bazaar 2) Giants 4) Star II Department store 1) Lifestyle 2) Pantaloons 3) Piramyds III Entertainment 1) Fame Adlabs 2) Fun Republic 4) PVR
Chapter – 2 Classification of Indian retail sector
2. Classification of Indian retail sector:
a) FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector In comparison, super markets account for a small proportion of food sales in India, However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. b) HEALTH & BEAUTY PRODUCTS With growth in income levels, Indians have started spending more on health and beauty products .Here also small, single-outlet retailers dominate the market .However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products. C) CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time.
D) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. E) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. F) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. Today trend is the development of integrated retail cum Entertainment centers or shopping malls. An increasing number of retailers are focusing on malls now as opposed to stand-alone developments. While the number of shopping malls has seen a massive surge in the recent past in the metros and
their suburbs, the latest trend in this sector is the increasing focus on providing leisure activities such as multiplexes, facilities for kids' entertainment, eateries etc. within the mall premises. Customer less the time consumes and more entertainment with his family in malls because they within shopping mall number of retail shop and variety of products and selected the product they want. Good environment in mall. Less crowed and These are enclosed, air-conditioned, multi-level malls of at least 100,00 sq ft. Critical to these malls is the concept of the anchor, the key outlet or store around which other outlets cluster. The most popular Indian anchors include Shoppers' Stop, Globus, Pantaloon, Lifestyle and hypermarkets like Big Bazaar and Giant. Cinemas also often anchor malls. Driven by the lucrative tax breaks, the old single screen theatres are being divided into three-five smaller screens, as was done in the US, years ago. Example for wave and PVR.
Chapter – 3 Consumer behavior and retailing decisions
3. Consumer behavior and retailing decisions: Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a product or service. Consumer behavior involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, sociopsychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. Buyer behavior has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone.
Factors Affecting Consumer Buying Behavior
Consumer buying behavior is influenced by the major three factors: • Social Factors • Psychological Factors • Personal Factors.
A. Social Factors Social factors refer to forces that other people exert and which affect consumers’ purchase behavior. These social factors can include culture and subculture, roles and family, social class and reference groups.
B. Psychological Factors
These are internal to an individual and generate forces within that influence her/his purchase behavior. The major forces include motives, perception, learning, attitude and personality.
C. Personal Factors These include those aspects that are unique to a person and influence purchase behavior. These factors include demographic factors, lifestyle, and situational factors.
Consumer decision-making process generally involves five stages: Information Search Problem Recognition Purchase Action Alternative Evaluation Post purchase Actions
consumer Attribute affecting choice of format between organized and unorganized Retail
3.1 Retail outlet selection and brand selection: There are three fundamental patterns, which a consumer can follow and they could be: (I) Brand first, retail outlet second (ii) Retail outlet first, brand second
(iii) Brand and retail outlet simultaneously. A consumer wanting to buy a car may collect information on brands and purchase it from a retail outlet based on his perception of price offered or after sales service provided by the outlet (typically, search for information on brands is followed by retail outlet selection in durables). In certain product categories, especially where `category killers' exist, consumers may think of the retail outlet initially and then the brands (television, refrigerator and audio products retailed through outlets like Vivek and Co. in the South, could be an example). One more dimension may be to compare brands in the evoked set at retail outlets which also exist in an evoked set of their own. This is highly possible, especially in the Indian context where dealers develop a social relationship with consumers, especially in semi-urban and rural areas. Primary research could be used to discover the specific sequence involved in a situation of this kind. A `brand first' dimension may need feature-based advertising and a `retail outlet first' dimension may require a set of point-ofpurchase (POP) materials and special training to sales personnel to recognize the needs of consumers. Brand first and outlet second: The brand was probably thought of by the consumers because(i) the consumers may not have developed a relationship with any retailer which is strong enough to get into the `evoked retail set' or (ii) the brand has got into the evoked set because of advertising or positive word of mouth. Local advertising with the mention of brand names which have already got into the evoked set would enable consumers to be `pulled' to the outlet. Primary research may be required to identify the brands in the evoked set.
Chapter – 4 Organized vs Unorganized Retail
4. Organized vs Unorganized Retail:
In the developed economies, organized retail is in the range of 75-80 per cent of total retail, whereas in developing economies, the unorganized sector dominates the retail business. The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 2.2). Modern retail formats, such as hypermarkets, superstores, supermarkets, discount and convenience stores are widely present in the developed world, whereas such forms of retail outlets have only just begun to spread to developing countries in recent years. In developing countries, the retailing business continues to be dominated by family-run neighbourhood shops and open markets. As a consequence, wholesalers and distributors who carry products from industrial suppliers and agricultural producers to the independent familyowned shops and open markets remain a critical part of the supply chain in these countries.
Table 2.2: Share of Organized Retail in Selected Countries, 2006 CountryTotal Retail Sales (US$ bn) Share of Organized Retail (%)
USA Japan China United Kingdom France Germany India
2,983 1,182 785 475 436 421 322
85 66 20 80 80 80 4
Source: Planet Retail and Technopak Advisers Pvt. Ltd
Chapter - 5 Selection of Topic
5. Selection of Topic
This research project “Study on changing consumer preferences towards Organised retailing from un-organised retailing (Delhi /Noida)” is an attempt to find out the change in consumer’s purchasing behavior, which is shifting towards organized retailing like malls, shopping complexes etc from traditional kirana stores. Why Delhi and Noida: The malls and shopping complexes are building here at a high rate and a large number of population shifted towards this format of retailing so for my project Delhi and Noida are the appropriate places to go for the research analysis.
Chapter – 6 Purpose and Significance of the study
6. Purpose and Significance of the study:
Organized retail has started to spread its roots in the Indian market since past one decade and is gradually making mark among all sections of the society. This project report tries to explore the way organized retail has dramatically changed not only the Indian traditional retailing structure by also the consumption behavior. The consumption behavior was examined with the help of a structured questionnaire. The results show that, for consumers, the shopping mall or variant of organized retail format is the preferred type of retail store, due to convenience and variety. The Indian market has seen vast changes in political, economical and social environment, which has a great impact on consumption. With the Indian as well as international corporate entering into the Indian retail scenario the market has been divided between the traditional and the organized sector. The Indian retail scenario is presently facing the similar situations as the mom and pop stores in the developing nations faced at the emergence big box retailers. There are various issues that need to be addressed, like what would be future patterns of consumption, which formats of retail would be preferred by consumers and will the rise of organized retail affect the traditional retailers. This study will contributes to the understanding that consumers and retailers in most cases have different perceptions in relation to store image and shopping habits, justifying the need for consumer marketing research, which is important in helping retailers, implement in a real marketing orientation. The study will examines the choice of format the consumer has when he or she decides to buy a particular product and also describes the development of organized retail in the future, focusing on aspects with potential effect on
purchasing behavior among the consumers. The focus is on consumer expectations. The questions were formulated to capture the overall behavior of the consumers and with the help of the survey questionnaire the analyses was done. An attempt has been made to explore the way organized retail has dramatically changed not only the Indian traditional retailing structure but also the consumption behavior. To understand the impact and choice of retail format by the consumers a questionnaire will be used. Three questions were formulated in order to capture the overall purpose or objective of this section of the research: 1. 2. 3. What are the most favored retail attributes by consumers and how will How are the conventional and organized retailers perceived? What external forces influence the choice of consumers and how can they change in future?
these forces be accounted for in future?
Chapter – 7 Literature Review
7. Literature Review:
Mathew Joseph and Manisha Gupta_September 2008: The Indian retail sector is booming and modernizing rapidly in line with India’s economic growth. In this review the author talked about the impact of organized retailing on traditional retailing. With the increase in number of various formats for shopping like malls, departmental stores, hypermarkets etc the Indian consumer’s preferences are changing towards and that’s the reason foreign investors like the king of retail Wal-Mart also came into the Indian retail ground in collaboration with Bharti. There is a huge untapped market is present in India right now which contains a number of opportunities for retailers.
Sen-2000: Store Image and Consumer Shopping Habits: Indian Context: In India, some empirical studies provide important information about consumer behavior and its responses to the development of organized retail. Economical and social changes are major contributors for a growing fragmentation of consumers into multiple segments with different values and buying priorities. Consumers have become more pragmatic, educated and demanding, learning how to manage money and time more efficiently. The focus on low prices was gradually replaced by a value for money perspective. The study developed by ETIG (Economic Times Intelligence Group, 2002) confirms these tendencies. Concerning food, the most important attribute mentioned was quality, followed by price. Indian consumer has different reasons for preferring different store formats, either modern or traditional; Sen (2000) confirms this in the study undertaken in Indian context. He confirms that in the case of hypermarkets, the main
motives for preferences, in decreasing order are low prices, the possibility of buying everything in the same place and the general appearance of the store. Several investigations emphasize the possible coexistence of different store formats (Chandrasekhar, 2001) and others point out the relationship between the type of store and the type of products. These studies show that, while specialized and traditional stores are preferred for fresh products, hypermarkets are preferred for shopping in general, and also for frozen food, groceries and beverages. The purchase of perishables in hypermarkets is reduced. Radhakrishnan, 2003: Traditional Retailers Perceptions about Organized Retail As already mentioned, organized retail has deeply changed the Indian commercial structure. However, it is not exclusively responsible, as other changes (economical, social and cultural ones) have occurred simultaneously. Concerning the more direct effects of organized retail on different types of commerce, it is possible to verify that the major impact is felt on traditional retail and, in particular, on the food sector. The impact of organized retail is also significant on other types of retail, namely toys, stationery goods and household appliances; moreover, it is probable that competition gets more intense in other sectors, such as clothing and furniture.
RNCOS (March 15, 2009/24-7 press releases): 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".
Chapter-8 Sampling Design
8. Sampling Design:
1. Sampling unit Respondents of (few malls)
2. Size of sample 100 respondents 3. Sample Method Random Sampling 4. Types of questionnaire Close ended 8.1 Type of Data: Data type collected for analysis is PRIMARY i.e. data has been observed and recorded by the researchers for the first time to their knowledge. Data collected through journals, newspapers & internet is SECONDARY type. 8.2 Method of data collection: This study is a research which utilizes interrogation and observation method for data collection. Secondary data was obtained from intensive analysis & observation. The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those which have already been collected by some one else and which have already been passed through the statistical process. Method employed to collect data is Questionnaire. This is a simple survey conducted by filling in questionnaire from the people who visit malls. 8.3 Collection of the Primary data: As this study is of descriptive type, the primary data has been collected through Questionnaire.
Chapter-9 Analysis of Data
9. Analysis of Data: Data collected through questionnaire is being processed .This processed data is: a. Age wise distribution: A) <20 B) 20-29 C) 30-39 D) >40
[ 12 RESPONDENTS ] [ 45 RESPONDENTS ] [25 RESPONDENTS ] [18 RESPONDENTS]
On the basis of above respondents the figures shows that maximum respondents i.e. 45 out of 100 are young age people. It means maximum no of customers belongs to young age group.
b. Gender wise distribution: A) MALE [ 58 RESPONDENTS ] B) FEMALE [ 42 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents i.e. 58 out of 100 are males. It means maximum no of customers are male in malls due to family responsibility.
c. Education wise distribution: A) HIGH SCHOOL B) LESS THAN GRADUATION C) GRADUATION D) POST GRADUATION [ 08 RESPONDENTS] [ 12 RESPONDENTS ] [ 32 RESPONDENTS ] [ 32 RESPONDENTS ]
E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents i.e. 32 out of 100 are graduates and 32 out of 100 are post graduate. It means maximum no of customers are educated and aware about retail store.
d. Income wise distribution: A) LESS THAN Rs 20,000 [ 28 RESPONDENTS ] B) BETWEEN Rs 30,000 TO 40,000 [ 48 RESPONDENTS ] C) BETWEEN Rs 40,001 TO 50,000 [ 20 RESPONDENTS ] D) MORE THAN Rs 50,000
[ 12 RESPONDENTS ]
On the basis of above respondents the figures shows that maximum respondents i.e. 48 out of 100 are having monthly income between Rs 30,000 to 40,000. It means maximum no of customers are belonging to upper middle class.
1) Which type of place do you visit frequently for your shopping needs? a) Supermarket [ 80 Respondents] b) Wholesaler [ 8 Respondents] c) Local Stores [ 12 Respondents]
On the basis of above respondents the figures shows that maximum respondents i.e. 80 out of 100 are agree that they frequently visit
shopping mall for their shopping needs. It means maximum no of customer are preferred Shopping Malls for purchasing.
2) From where would you prefer to buy products? a) Single brand store b) Multi brand store c) Factory outlets d) Local Big Retail Store
[ 24 Respondents] [ 60 Respondents] [ 4 Respondents] [ 12 Respondents]
i.e. 60 out of 100 are preferred multi branded store for shopping. It means maximum no of customers are time conscious and desire for many brand under one roof.
3) Which one from malls/ Local Stores (kirana store) is more convenient for all your shopping needs? a) Malls b) Local stores
[ 72 Respondents] [ 28 Respondents]
i.e. 72 out of 100 are preferred shopping in malls for all their shopping needs. It means maximum no of customers are feels good in shopping for their needs in malls because they can get everything from there under one roof.
4) What are the prime factors for shopping in malls? a) Variety in product.
b) Serviceability c) Discounts d) Mode of payment e) All
[ 100 Respondents]
i.e. 100 out of 100 are preferred shopping in malls because of the various factors which make the whole shopping experience good.
5) What are the prime factors for shopping in kirana stores? a) Emergency buying b) For grocery items only c) Discounts d) Serviceability • i.e. People preferred shopping from kirana stores just when they need something urgent and grocery items only. It shows the limited shopping experience one customer have with these stores. 6) What influences your buying selections? a) Availability of range c) Availability of size f) Brand name 1st OPTION 2nd OPTION 3rd OPTION 4th OPTION 30 20 30 8 10 22 32 25 10 13 20 18 15 14 33 16 17 19 32 16 b) Reasonable price e) Customer service [ 65 Respondants] [35 Respondants]
12 13 11 36 28
• On the basis of above respondents the figures shows that maximum respondents are attracted towards the Store due to this rankingCUSTOMER SERVICE, BRAND, PRICE, RANGE, SIZE It means maximum no of customers are prefer to the Malls for customer service. 7) What do you look for in a product during your purchase? a) Price b) Brand Name [60 Respondents] [ 12 Respondents]
c) Customer Service [ 16 Respondents] d) Variety available [12 Respondents] • i.e. 60 out of 100 preferred price during their purchasing. It means maximum no of customers are price conscious so maximum customers belongs to middle class. 8) When do you prefer to shop Most in Store? a) During Sale c) During Discount d) When required
[ 18 Respondents] [ 24 Respondents] [4 Respondents]
b) During Fresh season stock [54 Respondents]
On the basis of above respondents the figures shows that maximum respondents i.e. 60 out of 100 are prefer shopping during fresh season
stock. It means maximum no of customers did not compromise quality with discount and offers. 9) How frequently you visit the Store (wherever you go for the shopping)? a) <1 month b) 1-3 month c) 1-6 month d) 1 year
[ 60 Respondents] [ 28 Respondents] [ 4 Respondents] [ 8 Respondents]
On the basis of above respondents the figures shows that maximum respondents i.e. 60 out of 100 are visited the store with in one month. It means maximum no of customers are visiting the store monthly.
10) What more fascinates you at shopping in malls? a) Membership Card b) Discount Mailers c) Parking Facility d) Lucky draw offer [ 28 Respondents] [ 20 Respondents] [ 30 Respondents] [ 22 Respondents]
• On the basis of above respondents the figures shows that there are almost same numbers of respondents agrees for all the facilities provided by malls. It means every respondent is inclined towards the facilities provided by malls.
10. Findings • Customer’s preferences for grocery shopping are gradually shifting from local kirana stores to organized convenience stores. • Age is one of the most important factors responsible for the changing preference of customers. • Payment through credit cards is increasing purchases from convenience store.
Brand Choice of customers is changing and this is also influencing shift from kirana to convenience store. . Maximum no of customers belongs to young age group. responsibility.
• Maximum no of customers are male in malls due to family • It means maximum no of customers having nucleur family. • Maximum no of customers are educated and aware about retail store. • Maximum no of customers are belonging to upper middle class.
Maximum no of customer are preferred Shopping Malls for purchasing.
• Maximum no of customers are time conscious and desire for many brand under one roof. • Maximum no of customers are price conscious so maximum customers belongs to middle class. • Maximum no of customers did not compromise quality with discount and offers.
Every report has its pros and cons so mine also have some limitations. They can be pointed as: • Sample size restricted to 100 only which was very less according total population.
• The responses given by respondents were not always accurate because the respondents gave the response according to their understanding.
• Survey is a time consuming process but the time to collect the data for research was very less.
• Sometimes the respondents are not willing to fill the and hence the resultant may not be correct.
The past 4-5 years have seen increasing activity in retailing. And, various business houses have already planned for few investments in the coming 2-3 years. And though the retailers will have to face increasingly demanding customers, and intensely competitive rivals, more investments will keep flow in. And the share of organized sector will grow rapidly. retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants.. 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. More and more corporate houses including large real estate companies are coming into the retail business, directly or indirectly, in the form of mall and shopping center builders and managers. 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. Increase in literacy, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. Lastly I want to conclude my project in some points The customers are attracting towards shopping malls & retail outlets.
The shopping malls & retail outlets are targeting to middle class customers because the purchasing power of this class is rapidly growing as well as the class is also growing. The young generation is fashion & show-off conscious so retail outlets are mainly focused on them.
Most of the family wants to purchase from big showrooms and malls
because there are no bargaining system so the have a trust that there is no cheating.
The main strength of most of the retail outlets are providing attractive offers to attract customers. Big retail stores are running customer loyalty programmes which has increased profits and no. of customers.
Questionnaire on Consumer’s changing Buying Behavior. I am a student of Apeejay School of Management and am working on a project “Study on changing consumer preferences towards Organised retailing from unorganised retailing”. I request you to spare a while to help fill, this questionnaire, needed for the project assigned to me as a part of my curriculum. a. Age wise distribution: A) <20 B) 20-29 C) 30-39 D) >40 b. Gender wise distribution: A) MALE B) FEMALE c. Education wise distribution: A) HIGH SCHOOL B) LESS THAN GRADUATION C) GRADUATION D) POST GRADUATION E) PROFESIONAL QUALIFICATION
d. Income wise distribution: A) LESS THAN Rs 20,000 B) BETWEEN Rs 30,000 TO 40,000
C) BETWEEN Rs 40,001 TO 50,000 D) MORE THAN Rs 50,000 1) Which type of place do you visit frequently for your shopping needs? a) Supermarket b) Wholesaler c) Local Stores 2) From where would you prefer to buy products? a) Single brand store b) Multi brand store c) Factory outlets d) Local Big Retail Store 3) Which one from malls/ Local Stores (kirana store) is more convenient for all your shopping needs ? a) Malls b) Local stores 4) What are the prime factors for shopping in malls? d) Variety in product. e) Serviceability f) Discounts g) Mode of payment h) All 5) What are the prime factors for shopping in kirana stores? a) Emergency buying b) For grocery items only c) Discounts d) Serviceability
6) What influences your buying selections? a) Availability of range c) Availability of size f) Brand name 7) What do you look for in a product during your purchase? a) Price b) Brand Name c) Customer Service d) Variety available 8) When do you prefer to shop Most in Store? a) During Sale b) During Fresh season stock c) During Discount d) When required 9) How frequently you visit the Store (wherever you go for the shopping)? a) <1 month b) 1-3 month c) 1-6 month d) 1 year 10) What more fascinates you at shopping in malls? a) Membership Card b) Discount Mailers c) Parking Facility d) Lucky draw offer b) Reasonable price e) Customer service
Goswami. P and Mishra. M, 2009, Would Indian consumers move from kirana store to organized Retailers when shopping for groceries, Asia Pacific Journal of Marketing and Logistics, Vol. 20, No. 1 ICRIER journal paper, September 2008 http://ssrn.com/abstract=994238 BOOKS:Marketing Management. ----Kotler & Keller Marketing Management in Indian Perspective ----V. S. Ramaswamy & S. Namakumari Retail management ---Levy & Weitzs WEBSITES:www.emraldinsight/1355-5855.htm www.Fibre2fashion.com/industry-article www.tataretail.com www.retailindia.net www.retailyatra.com www.retailbiz.com www.aboutus.com www.businessworld.in