Theoretical aspects

of organised and
unorganised retailing and
review of
literature
 CHAPTER II

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
 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
 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:
 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.

 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

 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
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
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.

  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.

  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.

  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.
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

 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
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

 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

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.

  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,
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
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 &
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.

  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
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.

 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.,

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
 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.

  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.

  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
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.

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
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
  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.

 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
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
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

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

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

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
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
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-
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
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

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.
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
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
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
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.
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

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

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
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

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
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

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
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
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.

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.

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
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
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

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
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,
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
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,

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.
 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.

 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
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.
 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
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.

 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
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

 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.

 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.
 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.

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