Area Selection

• Shoppers from BTM layout in Bangalore were selected

• The respondents were 50 shoppers from Reliance Fresh (a modern
retail outlet) and 50 from Shiny Provision Store (a kirana store)
located in BTM Layout
• There were nearly 38 traditional kirana stores in the vicinity of BTM
Layout and 11 were similar to Shiny Provision Store in size, SKUs and
the trading of both vegetables and fruits along with groceries
Impact of modern retailing on kirana
customers
• Reliance store outscored Shiny on Aesthetic Image
• Atmosphere
• Attractive layout
• Advertising
• Well placed product
• Spacing
• More variety of products attracts more customer at Reliance
• Better service causes surge in the number of customer
• High earning customers preferred Reliance over Kirana
• Lack of branded product at kirana causes customer to switch to Reliance
• Changing shopping pattern i.e. working class preferring bulk shopping on weekends at
the Reliance where they find other refreshing activities and offers
 No. of Households
% of households in BTM Layout
6
8

In Vicinity of Stores 11
35

• More than One third of the household belong to 13

income group of less than INR 10,000

• A major chunk of household(62%) belong to 27

income group of less than INR 20,000 <10,000 10,000-20,000 20,000-30,000

30,000-40,000 40,000-50,000 >50,000

• Only 6% household had income of more than INR

50,000
Total Amount Spent

Total Amount Spent

10000
9000
8000
7000

• Amount spent o Reliance fresh was 34288.24 and 6000

5000
that of Shiny store was 28072.98 4000
3000
• Maximum Amount was spent by people with 2000
1000
household income more than INR 50,000 0
<10,000 10,000- 20,000- 30,000- 40,000- >50,000
20,000 30,000 40,000 50,000

Total Amount spent Reliance Fresh Total Amount spent Shiny Provision Store
 Average Monthly Expenditure on
Groceries/ Fruits/ Vegetables

•The expenditure from income range less than 10,000

is very less for both the outlets
•The maximum expenditure is done by people in the
income range of more than INR 50,000
•There is a positive correlation between income range
and amount spend on the products
•All the household spent more on Reliance fresh than % expenditure % expenditure
on Shiny Provision Store Income range in INR
Reliance Shiny provision
store
•The total amount spent on Reliance fresh is more
than on Shiny Provision store <10,000 7.25% 8.70%
•As the maximum expenditure are coming from 10,000-20,000 12.68% 13.48%
household f higher income range, they should target
20,000-30,000 16.67% 14.35%
those household o further increase their share
30,000-40,000 17.03% 16.09%
•Also as number of households are maximum for
household less than INR 20,000, reasons should be 40,000-50,000 20.29% 21.30%
found out on how to improve this
>50,000 26.09% 26.09%
Total 1 1
 • From the table consumers going to a modern retail like Reliance fresh are buying

CONSUMER
Branded products, whereas consumers going to shiny provision stores are electing
unbranded products

CONSUMPTION
• For products like spices and Poha(beaten rice) customer from both store prefer
unbranded product.

PATTERN
• When it comes to whet and oil brand plays a major role in the shiny provision store also
• The perception of public plays a part when they buy product from a Reliance store and
Shiny Provision store

Products % of total Reliance Fresh Shiny Provision Store

consumption
    Branded Unbranded/store Branded Unbranded/store
% brands % % brands %
Rice 40 100     100
Wheat 20 100   100 -
Rawa 10 100   - 100
Sugar 5 100   - 100
Spices 3 - 100 - 100
Oil 5 100   100 -
Poha (beaten rice) 5 - 100 - 100
Raagi 10 100   - 100
Total 100        
Expenditure on
Groceries/Vegetables/Fruits
as given by the Respondents
Outlet
Amount spent on Other things Amount spent on Other things in % of
  total

• In Reliance Fresh as the   Shiny Provision

Reliance Fresh Store Reliance Fresh Shiny Provision Store
household income is <10,000
increasing people are buying 222.2222222 352.9411765 3.32% 6.96%
10,000-
less groceries and more of 20,000 617.6470588 504.6511628 9.23% 9.95%
other goods 20,000-
30,000 1150 628.5714286 17.19% 12.39%
• This trend in Shiny provision 30,000-
store is similar but the 40,000 1031.707317 704.7619048 15.43% 13.89%
percentage change is not that 40,000-
much and on a average 82% 50,000 1866.666667 1382.051282 27.91% 27.24%
people spend on groceries >50,000 1800 1500 26.91% 29.57%
out of total expenditure. Total 6688.243265 5072.976955 100.00% 100.00%