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International Journal of Management (IJM)

Volume 7, Issue 4, May–June 2016, pp.01–16, Article ID: IJM_07_04_001

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ISSN Print: 0976-6502 and ISSN Online: 0976-6510

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A STUDY OF ECONOMICAL IMPACT OF

ENTRY OF ORGANIZED RETAILERS ON

UNORGANIZED RETAILERS WITH

SPECIAL REFERENCE TO MAHARASHTRA

STATE

Swati Vijay

Assistant Professor

Department of Management Studies,

Sinhgad College of Engineering, Pune–MS

ABSTRACT

This research work deals with the major implications of modern retailing

in Maharashtra state with main objectives to find out economical impact and

employment impact on unorganized business, manufacturers, intermediaries

due the entry of organized retailers when there is FDI in organized retail in

Maharahstra

Only four categories of products like A) Clothing, textile, fashion

accessories B ) Home appliances, Electronic, electrical equipments C) Food-

Grocery, D) Books, Music, Gifts are considered for study. For the study,

Geographically Maharashtra state is divided into six regions viz. Mumbai,

Nashik, Pune, Aurangabad, Amravati, Nagpur. The study is based on data

collected from organized retailers, unorganized retailers, Consumers,

intermediaries, manufacturers from all 6 regions of Maharashtra. The retail

store formats considered for the study are Supermarkets, Hypermarkets and

Discount Stores.

Segment wise - region wise – year wise data is collected and compiled

using questionnaires, interview method for calculating results. The data

analysis covers region wise and segment wise economical impact, employment

scenario, local business trends, customer perceptions. At the end, the study

also tries to bring out impact of technology and on line mode of transactions

on customers and retailers.

With the stringent competition around & in spite of facing financial

constraints, majority of unorganized retailers do not see Loss of sale,

Reduction in sale, Reduction in their staff and loss of customers. Various

satisfaction factors considered by customers for buying at organized and

unorganized retail stores are discussed separately. Segment wise – region

Swati Vijay


wise and year wise findings are stated separately for organized and

unorganized retailers ,manufacturers and intermediaries and customers..

Indian Retail sector is dominated by unorganized retailers. The entry of

organized retailer will improve infrastructure, technology, supply chain giving

consumer experience of buying products at lower prices. The frontend and

backend operations related to retail industry will increase employment

opportunities.

Key words: Economical Impact, Employment Impact, Organised Retailers,

Unorganized Retailers, Customer Perceptions, Local Business Trends

Cite this Article: Swati Vijay. A study of Economical impact of Entry of

organized retailers on unorganized retailers with special reference to

Maharashtra state. International Journal of Management, 7(4), 2016, pp. 01–

16.

http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=7&IType=4

INTRODUCTION

In recent times, The Indian retail industry is expanding and diversifying across the

country, thereby boosting the demand in good service to the customers as well. The

Indian retail industry has come of age and the demand for modern shopping centers

and shopping complexes, which offer shopping, food and entertainment under one

roof, is on the rise. A sizeable market of young working population, hefty pay-

packets, increase in the number of nuclear families in urban areas, higher disposable

income, growing consumer aspirations, western influences and rising demand for

luxury items are few of the factors that have spurred the growth of organised retail in

India. Earlier research in this area stated that unorganised retailers, manufacturers and

intermediaries have started feeling the competitive impact of organized retail through

both price and payment pressures. With this steep competition it is necessary to find

out impact of organised retailers on unorganised retailers, manufacturers, their

employees, customers and intermediaries.

Indian retail industry is divided into Organised retailing and Unorganised

retailing. Organised retailing includes corporate backed Hyper market, Supermarkets,

Departmental stores, Cash and Carry stores. Unorganised retailing is traditional

formats of low cost retailing Local Kirana shops, General stores, pavement vendors,

Fruits, vegetable and Food stores.

According to A T Kearney report (2011), organized retail accounts for 7% of

India’s roughly $435 billion retail market and is expected to reach 20% by 2020. India

is treated as a high potential market with accelerated retail market growth of 15 to 20

percent expected in the coming 5 years, supported by a GDP growth of 6 to 7 percent.

SIGNIFICANCE AND IMPORTANCE OF STUDY

Mukherjee et. al. (2011) found that the share of retail trade in GDP is approximately

11-12 per cent. In 2010, the Indian retail market was valued at $435 billion, of which

the share of organised or modern retail was 7 per cent i.e. $30.05 billion. The sector is

expected to grow to 20 per cent by 2020 (A.T. Kearney , 2011). Supporting

Government policies, FDI in retail, growing income and higher consumption pattern

of middle class wooing big retailers to open their outlets in India. (Handa & Grover,

2012) stated that by 2016-17 Indian Retail Business size will be US$1011bn which

was US$322 bn in 2006-07. This shows that Indian Retail Business Market is

A study of Economical impact of Entry of organized retailers on unorganized retailers with

special reference to Maharashtra state


growing. Kumar P. (2013) in stated that food and grocery retailing is estimated to

contribute to around 50% (Rs 3500-4000 billion) of the total sales from retailing.

It is necessary to find out whether such trends will continue in future. In a

competitive environment Manufacturers, intermediaries and employees are also

observing changes and feeling the impact when organised and unorganised businesses

are competing with each other. It is observed that customers buy from organised as

well as unorganized retail stores.

Intermediaries and manufacturers are feeling the competitive impact of organized

retailing. The retailing industry is generating huge employment opportunities in the all

functional areas viz. Store Operations, Merchandising, Purchase, Logistics,

Marketing, Publicity, Accounting and control. Singhal (2010) analysed that an

estimated 90+ million jobs will be created over the next five years, of which almost

50 per cent are expected to be in the services sector (45 million).

With new policy on the flow of FDI is expected to be more in infrastructure

development. Supporting to central government policies of FDI in organised retail,

Maharashtra has given nod for FDI in organised retail in state.

STATEMENT OF PROBLEM

In past few years cities in Maharashtra observed growth of organized retailers. Many

people expressed the concern having negative impact of organised retailers on

unorganized retailers. Hence the researcher has decided to find out “Economical

Impact of Entry of organized retailers on unorganized retailers in Maharashtra

state”.

Objectives of Study

Following objectives are stated for research work

1. To find out impact on unorganized business due to the entry of organized retailers

2. To assess the impact on employment and income in both organised and unorganised

retail sector

3. To study impact on consumers, intermediaries, manufacturers and farmers due to

entry of organised retailers

4. To study the increasing or decreasing trend in local business activity

Limitations of Study

Data analysis is based on the responses given by respondents

Only four categories of product like clothing and fashion , electronics and electrical,

food and grocery and books music & gifts are considered for study

No distinction is made with foreign and domestic organized retailers and

manufacturers based on their size of stores, capacity and income. Cash and Carry type

of Organised Retailers are not considered for this study

RESEARCH METHODOLOGY

The researcher has used descriptive research design method and stratified sampling

method. Within a strata, random sampling method to collect the samples. The

population for the study is organised and unorganised retailers, manufacturers and

intermediaries, Employees and consumers of retailers in Maharashtra. The samples

are collected from six geographical regions of Maharashtra viz. Mumbai, Nashik,

Pune, Aurangabad, Amravati, Nagpur. In each region The retailers are divided into 4

Swati Vijay


segments which are A ) Clothing, textile and fashion accessories B) Home appliances,

Electronic and electrical equipments C) Food and Grocery D) Books , Music, Gifts.

The following table describes the samples taken from each region and segments.

Sample size of Organised and Unorganised retailers, Manufacturers,

Intermediaries

Sr

No Category

No of

regions

Sample

from

Segment A

Sample from

Segment B

Sample

from

Segment C

Sample

from

Segment D

Total

sample

1

Unorganised retailers 6 8 8 8 8 192

2 Manufacturers 6 2 2 2 2 48

3 Intermediaries 6 2 2 2 2 48

4 Organised retailers 6 4 4 4 4 96

Sample size of Employees and consumers

Sr. No Type No. of retail outlets Number of samples Total

1 Employees of Organised 96 3 288

2 Employees of Unorganised 192 2 384

3 Consumers 98 10 980

Questionnaires, Observations, and Interview methods tools are used for collecting

primary data. The secondary data is collected by analyzing International and National

journals, articles from books, magazines and newspapers, websites and various

government policies.

LITERATURE REVIEW

Many research work identified benefits earned by consumers, government, small scale

industries and also to unorganized retail sector. Mishra & Dash (2008) analysed that

Organised retail has changed not only the Indian traditional retailing structure but also

the consumption behavior. In the article (Singh & Bose, 2011) identified that in India

with nearly 80 percent of the market controlled by tiny family-run shops. Organised

retail makes up only 6 percent of the market. John, Clark and Hojong (cited in Manju

& Malik, 2012) found out that helpfulness of sales person, friendliness, quality level,

merchandise selection and exchange, value for money, location of store etc are used

to measure customer satisfaction.

A research outline of PwC Research (2011) stated that the 700 million Indians

residing in rural India are an opportunity that retailers cannot ignore. India has a large

population of middle-class of 75 million households or 300 million individuals.

Joseph et al.(2008 ) in their study did not find any adverse impact of organized retail

on intermediaries. Manju & Malik, (2012) highlighted that as majority visitors are of

young group and their needs to taken into account while deciding market strategy. A




T Kearney report (2013) analysed that high operating costs, low bargaining power

with vendors, heavy discounting to improve sales have affected profits and expansion

plans.

Janardan (2014) discussed the need to optimize their supply chains and item

management processes. A study by Raut & Dash (2011) analyzed various major

factors that define consumer buying behavior like accessibility factors. Similar

findings are revealed by (Srivastava & Matta, 2012 ). Clement & Kodimela (2011)

examined the factors that influence the customers switching behavior to organized

retail. According to Sorescu. et al (2011), Retailers are often directly engaged with

large number of end consumers which creates opportunity and challenges for building

stronger relations with their customer base. Prabha Devi & Sellappan (2009) focused

on impact of service quality at retail stores. The quality services that are considered to

satisfy customers today may be different tomorrow.

Dubinsky, Skinner & Steven (1984) examined relationships among perceived job

characteristics, job satisfaction, motivation, organizational commitment, role

perceptions, and job performance of retail salespeople. Coelho, Augusto & Lages

(2011) identifies indirect effect of job complexity & work relationships on creativity.

They tried to find out impact of contextual factors on front line managers. According

to report on Skill Development (FICCI Report, 2010), there will be huge demand of

skilled manpower in shop floor executive, back store operations and merchandising.

Sahoo & Das (2011)

discussed about employee empowerment for competitive

advantage. Mukherjee & Goyal (2012) explores that increments in the organised retail

outlets are linked to the performance of the employees, while in the unorganised retail

outlets they are linked to employee’s years of experience. According to the

(Economic Survey 2013, 2013) , The traditional retailers are giving a strong

competition to organised retailers and the decision to permit foreign retailers to open

stores in the country will not affect small players in India.

IMAP Report (2010) highlighted that increase in global online population and

localization strategy promotes online retail spending. This increases cross border

online purchases. The study by Maki & Kokko (2012) identifies impact of automated

processes in retail on customers. Maheshwari (2004) stated that infrastructure such as

power, transport and telecommunication and water supply are important for economic

growth.

DATA ANALYSIS

The data analysis comprises of 3 different sections based on the objectives of the

research work. which are

Direct and indirect economic impact on unorganized business

Impact on employment and income in both organized and unorganized retail sector

Increasing and decreasing trend in local business activities

Impact on unorganised retailers

Swati Vijay


Figure 1 Year wise-Region wise - Segment wise Monthly income of unorganised retailers

The results from the above graph states that the monthly income of retailers from

Mumbai and Pune is higher than other regions where as it is lower for the retailers

from Aurangabad and Amravati. In all regions, for every year, the unorganised

retailer’s monthly income from the Food and Grocery segment is highest compared to

other segments.

The following figure 2 indicates opinion of unorganised retailers. The opinion of

retailers is collected in the scale of 1 to 5. 1 being low and 5 depicts high. The study

indicates that in spite of facing financial constraints, majority of unorganized retailers

do not see loss of sale, reduction in sale, reduction in their staff and loss of customers.

They have sensed little impact on prices of products due to increased competition.

0

10000

20000

30000

40000

50000

60000

2012

-201

3

2011

-201

2

2010

-201

1

2012

-201

3

2011

-201

2

2010

-201

1

2012

-201

3

2011

-201

2

2010

-201

1

2012

-201

3

2011

-201

2

2010

-201

1

2012

-201

3

2011

-201

2

2010

-201

1

2012

-201

3

2011

-201

2

2010

-201

1

Monthly income

Monthly income

Monthly income

Monthly income

Monthly income

Monthly income

Amravati Aurangabad Mumbai Nagpur Nashik Pune

Cloth,Textile

Electronics & Home appliances

Food & Grocery

Books Music Gifts




Figure 2 Opinion of unorganised retailers in Maharashtra state as whole about the impact of

organised retailers on their business

Figure 3 Changes required in business strategies of Unorganised Retailers (in percentage)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

RESPONSE = 1

RESPONSE = 2

RESPONSE = 3

RESPONSE = 4

RESPONSE = 5

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Lo

w c

ost

an

d g

oo

d q

ua

lity

Dis

co

un

t o

ffers

Sch

em

es

Ho

me d

eli

verly

Co

nvin

ien

t ti

min

g

Aft

er S

ale

s se

rvic

e

Ava

ila

bil

ity o

f va

rie

ties

Att

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cti

ve p

ack

ing

s

Bett

er d

isp

lay o

f it

em

s

So

dex

o c

ou

pen

s

Bra

nd

na

me

Pro

per q

ty o

f g

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pro

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eig

hin

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decrea

sin

g o

verh

ea

ds

qu

ali

ty w

ith

va

rie

ty

Ma

inta

in n

ea

tness

an

d c

lea

nli

ness

Pricing strategies Distribution

strategies

Promotion strategies Product strategies

Every Time Some Times Never

Swati Vijay


To stay competitive in changing environment all the unorganised retailers from all

the regions have expressed desire to bring changes in their business by following

methods: Adding space and infrastructure and furniture for proper display of items,

Adding new products in their business by keeping variety of items with proper quality

and quantity, Improving quality of service, Improving customer relationship, Giving

the facilities of different mode of payments.

Figure 4 Last three years Segment wise Year wise employment Organised Retail in

Maharashtra

Figure 5 Total Number of Employees Division wise – Year wise in organised retail

It is observed that there is increase in employment due to steady expansion of new

organised retail outlets in all segments. Liberalised Government policies and

regulations, increased FDI in organised retail sector is making it easy for retailers to

start new retail outlets at various places. There by increasing employment

opportunities in this sector.

0

500

1000

1500

2000

2500

3000

3500

Cloth Electronics and Home appliances

Food and Grocery

Gift and fashion jwellery

2012 - 2013

2011 - 2012

206

494

2214

598 512

2192

150

416

1944

532 426

1918

132 134

1840

486 398

1474

2012 - 2013 2011 - 2012 2010 - 2011




It is found out from the above graph that Pune and Mumbai region have highest

employment in all three years and the total number of employees are increasing every

year. While Amaravati and Aurangabad Divisions lagging due to less infrastructure

development.

Electronic and Home appliances segment has more employment compared to other

segments but require work force having technical skills.

Table 1 Segment wise and skill wise employees presently working

Product

Category Full Time

Skilled Part Time

Skilled

% of Part

time skilled

employees

Full Time

Un Skilled Part Time

Un Skilled

% of Part

time

Unskilled

employees

Cloth and Textile 1248 42 3.26% 168 78 31.71%

Electronics and

Home appliances 832 22 2.58% 176 52 22.81%

Food and Grocery 2644 44 1.64% 298 128 30.05%

Books, Music &

Gifts 292 0 0.00% 66 26 28.26%

It is very clear from the table that maximum Full time skilled employees are

working in Food and Grocery segment and maximum part time unskilled employees

are working in cloth and textile segment. Over all in all the segments percentage of

employees working as part time skilled is minimum Books, Music and Gift segment

has less number of employees working compared to other segments

Figure 6 Availability of requirements of personals in various sub sectors of organised retail

sector

Sales has maximum requirement even if it is having highest trained persons

available. Customer care, Infrastructure, Technology has 4 to 7% requirements of

trained employees. Marketing and promotion has 14% requirement of employees.

Position and Skill requirement also changes due to Type of store, Types of customers

visiting the stores, Nature and price of product, Complexity and technical nature of

products

Infrastructure 6% Logistics

4% Store management 5%

Technology 5%

Sales 56%

Purchase 2%

Support System 1%

Marketing and Promotions

14%

Customer care 7%

Swati Vijay


Figure 7 Opinion of employees from organised retail sector

It is inferred from the above graph that while working with organised retailer

85.86% employees experience that there are more number of opportunities for

employment and 69.66% employees find promotion prospects. 83.11% employees

receive product or position specific training.

84.48% employees observes that there are regular increments in salary. 74.48% also

feel proper leave structure is followed.

Majority observes good work environment and work culture and find change in

availability of basic facilities provided to employees. They also observe change in life

style

Table 2 Comparison of Employment in Organised and Unorganised Retail sector Table

Employment Scenario in organised

retailers Employment Scenario in unorganised retailers

There is 15 to 20% increase in employment in

last three years in all levels of management in

organised retailers

Food and Grocery segment has maximum

employment opportunities followed by cloth

and textile industry.

The sector has observed 10 to 13 % of increase in

employment in last three years. Generally

employees joining the unorganized retail sector do

not leave their jobs due to minimal qualification

(High school or less).

Majority of organised retailers give regular

increments to employees. Increments are

based on performance

There is very less increase in the salary of

employee over last three years. Many times there

are no increments given. Variation in salaries are

found from region to region.

Majority of them have separate HR

department.

Employees performance is appraised through

proper appraisal procedures.. Majority

retailers give Bonus & extra allowances and

provident fund and increment

Majority of employees in this sector do not get

Provident Fund, Health allowance and other

allowances. Many employees are not sure about

increments. Employees generally receive Bonus of

10 to 15% of their salary during festival time once

in a year. There is no proper leave structure but

employees do get annual leave.

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00 Ans = 1

Ans= 2

Ans = 3

Ans = 4

Ans = 5




Figure 8 Region wise Percentage increase in number of persons working in unorganised

retailers

Mumbai and Pune regions have shown higher percentage increase in the years 2011-

12 and 2012-13. Other regions have shown average percentage increase 6% to 6.9%

in both the years. The figures are really significant to infer that there in increase in

number of persons working either as a family members or hired persons from out

side.

Intermediaries activities associated with organized retailers are more in the region

Mumbai, Pune, Aurangabad and Nagpur due to availability of more number of

organized retail outlets. Majority of intermediaries from all the segment feel increase

in employment. Measurable increase in employment is observed in Electronic and

Home appliances segment..

Seasonal fluctuations, discount schemes, offers on products and good shopping

experience increased number of customers visiting to organised retail outlet. This has

increased demand of products there by showing increased trends in local business

activities

Figure 9 Segment wise opinion of intermediaries receiving benefits due to organised retailers

(shown in percentage)

It is significant from the graph that Food and Grocery segment intermediaries

higher demand and increase in employment compare to other segments. Over all

Amravati Aurangabad Mumbai Nagpur Nashik Pune

6.90 5.88

9.68

6.45 5.88

8.57

3.57

6.25 6.90 6.90 6.25 6.06

% increase in no of persons working in the shop 2012-2013

% increase in no of persons working in the shop 2011-2012

Large demand and Efficiency

Reasonable prices

Threat of Competition

Increase in employement

Increased use of tecnology

83.33 83.33 75.00

91.67 100.00

91.67

75.00 83.33

91.67 100.00 100.00

83.33 83.33

100.00 91.67

75.00 66.67 66.67

83.33

66.67

Cloth Electronics & Home appliances Food and Grocery Books, Gifts

Swati Vijay


analysis states that majority of intermediaries from all the segments are receiving

benefits due to emergence of organised retailers. There is increase in economical local

activities like buying, selling, transporting, renting etc due to increase in number of

organised and unorganised retailers in all the segments in all the regions.

Impact on manufacturing industry

Figure 10 Impact on manufacturers.

It is pointed out from the above graph that 52.38% manufacturers receive training on

various aspects. Due to advance training and adoption of new technology 85.72 %

manufacturers experience reduction in wastages and 90.47% manufacturers sense

reduction in losses. This has helped 76.19% manufacturers to increase productivity

76.19% manufacturers feel increase in demand and 90.48% manufacturers sense

increase in profit. Due to the growth in the business 61.91 found increase in

employment. 71.43% manufacturers have increased investment in their production.

It is found out that 95.24% manufacturers have adopted better supply chain and

distribution channel and 71.43% manufacturers have started working on brand and

quality of products.

Almost all the manufacturers adopted better supply chain and distribution channel to

reach to customers with quality products hence they are working more on brands. The

overall discussion reveal that manufacturing activities are increasing basic economic

activities of local businesses such as buying, selling, investing, increase in

employment etc. So by getting associated with organised retailers there is upward

trend in local business activities.

Impact on customers

It is found out from the research work that reliability of products, brand name,

performance of sales person, quality product and service, price margin, offers and

discounts, parking facility, loyalty and membership cards, mode of payment, after

sales service, internet shopping, attractive schemes are few prime factors which attract

customers to organised retail stores. Due to lay out and ambience, skillful staff,

facilities available at organised retail stores, customers get quality buying experience.

0.00

20.00

40.00

60.00

80.00

ANS = 1

ANS = 2

ANS = 3

ANS = 4

ANS = 5




The customers prefer to buy from unorganised retail stores due to convenient

location, extended facility of home deliver, fresh stock, buying grocery items, credit

facility. Customer is able to bargain while buying products from unorganised retail

stores. Customers are satisfied with early opening and late closing of unorganised

retail stores. Customers are happy with honest dealing of unorganised retailer. But

they are dissatisfied with the lay out and ambience of store, knowledge of salesman,

neat and clean outlook of sales person. Customers do not find basic facilities, parking

facility at unorganised retail stores.

Notion of savings from organised retail

Figure 11 Region wise monthly savings from Organised Retail Outlets

The notion of savings done by consumer while purchasing depends on how much

money he/she spends monthly in organised retail stores. 30 to 35% customers in all

the regions observed that they are able to save Rs.500 to 1000/- per month of their

purchase. 32% to 40% customers experience Rs. 1000 to 3000/- savings from

organised retail stores. 15% to 18% customers observed savings of Rs. 3000 to 5000

while making purchases at organised retail stores. Very few countable customers who

purchase costly items like furniture or home appliances observed Rs. 5000 to 10000/-

savings.

FINDINGS AND RECOMMENDATIONS

After studying and analysing data the following conclusions are drawn. Impact on

unorganised retailers

There is gradual increase in monthly income of all unorganised retailers from all segments in all regions. It varies with the type of segments and life style

and standard of living in the regions. The monthly income from Mumbai and

Pune region is higher than other regions.

In spite of facing financial constraints, majority of unorganized retailers do not see Loss of sale, Reduction in sale, Reduction in their staff and loss of

customers. With the stringent competition around, unorganized retailers are

trying to change their Pricing, Distribution, Promotion and Product strategies

giving emphasize more on Quality with variety and customer satisfaction and

their retention.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Rs. 0- 500 Rs. 500- 1000 Rs. 1000-3000

Rs. 3000-5000

Rs. 5000-10000

Per

cen

tage

of

cust

om

ers

Nagpur

Mumbai

Nashik

Aurangabad

Amravati

Pune

Swati Vijay


There are no rules and policies regarding recruiting the employees in unorganised retail sector. Bonus/ increment in salary is sole prerogative of the

owner. Majority of employees working in all the segments other than

electronic and home appliances segment are unskilled as they are recruited as

either helpers or technicians.

Employment in organised retail sector

It is observed that in every division of Maharashtra there is definite increase

in employment during last three years. Pune and Mumbai division has highest

employment compared to other divisions. Maximum Full time and part time

skilled employees are working in Food and Grocery segment.

Sales has maximum requirement even if it is having highest trained persons available.

Majority of organised retailers from all the segments follow proper HR practices.

Impact on manufacturing and local business activities

It is observed that job opportunities for all categories of jobs are available in Logistics, Warehouse and Core Production sub sectors in manufacturing

industry.

Majority of intermediaries found increase in employment due to increase in

business activities after getting associated with organised retailers.

Increase in economical local activities like buying, selling, transporting, renting etc due to increase in number of organised and unorganised retailers

in all the segments in all the regions.

Impact on customers

Many customers prefer more than one type of retail store format for buying their needs. Satisfaction factors considered by customers for buying at

organised retailers are skillful professional staff, every thing at one place,

Basic facilities, good parking facility, Quality product and service, variety in

product, methods of payment, attractive schemes , internet shopping and

effective complaint handling system

Satisfaction factors considered by customers for buying at unorganised

retailers are reliability of product, Fresh stock, home delivery, convenient

timimgs of store, easy product return policy, credit facility and bargaining

power.

Major Recommendations To stay competitive and retain customers, unorganised retailers should keep

quality products with more number of varieties with reasonable prices and also

announce promotional schemes for their business and make various types of

payment mode available to their customers.

The unorganised retailers should understand the importance of customer

relationship management, train their employees accordingly and adopt

innovative techniques to retain customers. They should give emphasis more on

neat and clean look of their workers and neatness and cleanliness of business

place.

They should also try to adopt technology in their business which will ensure proper weighing, supply of fresh products and proper billing and less wastages




of items. They should possess skills of accurate inventory management and

supply chain management to avoid various losses.

Unorganised retailers should extend all kinds of employment benefits to their employees and register themselves for paying taxes.

Government should ensure that the growth of unorganised retailers will take

place with the help and support of organised retailers. This will enhance local

business activities and economic activities in the region.

Organised retailers should open more outlets in Amravati and Aurangabad regions to enhance economic activities in these areas.

CONCLUSION

The Indian retail industry is expanding and diversifying across the country. The

economical impact is found out by analysing income and employment in both

organised, unorganised retailers and manufacturers. The trends in local business

activities is studied by carrying out year wise, segment wise and region wise analysis.

The entry of organized retailer will improve infrastructure, technology, supply chain

giving consumer experience of buying products at lower prices and employment

opportunities. At the end, the study also tries to understands various satisfaction

factors with respect to his buying at organised or unorganised retail stores, savings

from organised and unorganised retail outlets and their preference of buying

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