retail project update

8/2/2019 Retail Project Update

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Project Report

On

ShoppersPreferences for Shopping Mall

A project undertaken towards the Partial fulfillment in the degree inPost Graduate Diploma in Management

Submitted to:

Prof. Nimit Chowdhary

Submitted By:

Md. Safdar KhanPGDM-Services

Roll No-1073028Session 2007-09

INDIAN INSTITUTE OF TOURISM AND TRAVELMANAGEMENT, GWALIOR


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1. Certificate Evidence..32. Acknowledgement.43. Executive Summary...54. Introduction75. Retail Formats in the Indian Retail Industry126. Market share and growth of retail segments17

7. Rural Retailing.238. Challenges for Organized Retailing in India...259. Data Collection......26

10. Conclusion...35

11. Annexure..36

12. Bibliography.38


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CERTIFICATE OF APPROVAL

This is to certify that project report entitled Shoppers Preferences for

Shopping Mall being submitted by MD.SAFDAR KHAN to Indian

Institute of Tourism and Travel Management, Gwalior, towards partial

fulfillment of the requirement of Post Graduate Diploma in Management is

the original bona-fide work carried out by him under my supervision and

guidance.

Dr. Nimit Chowdhary

FACULTY, IITTM

GWALIOR


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ACKNOWLEDGEMENT

A formal statement of acknowledgement will hardly meet the ends of the

justice in the matter of expression of my deeply felt sincere and allegiant

gratitude to all those who encouraged me and helped me during my study

It gives me immense pleasure, to express my unfeigned and sincere thanks

and gratitude to my supervisor Dr. Nimit Chowdhary for his valuable

guidance sustained, encouragement and constructive critic at every stage of

work, without which it would have never been accomplished.

I acknowledge with thanks the unsolicited cooperation and help provided by

the library and staff of IITTM, Gwalior. I owe special thanks for the help

and support received from the faculty of Institute and colleagues.


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EXECUTIVE SUMMARY

This project titled Shoppers Preferences for Shopping Mallis an effort towards

determining the variables and Factors that is perceived by the shoppers.

This study has been conducted keeping in sight the exponential growth and

modernization of the retail scenario in India. With over 12 million retail outlets in

India and 80% of them being run by family businesses, the India retail is highly

unorganized. In fact the penetration of organized retail in India currently stands at

a mere 3%. But the average growth rate for the organized sector has been 32%

which is 4 times the average growth rate of 8% from the unorganized sector.

With the rise of the Indian middle classes and the consumers demanding lifestyle

products and viewing shopping as an experience rather than a necessity, the

growth opportunities for organized retail in India are immense. Despite the

changing consumption pattern, rising incomes and liberalization of the FDI

policies, one of the main reasons for the current and expected growth of the

organized retail sector in India is the countrys demographic advantage with 54%

of Indians being under the age of 25.

India has been ranked No. 1 by GRDI (Global Retail Development Index) for the

year 2006. With companies like Reliance Industries Limited, Wal-Mart, ITC etc.

entering the retail scenario, the competition is gradually becoming fierce andglobal retailers are flocking to India to grab their share of the pie.


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This report presents the scenario of organized retailing in India and the various

challenges it had overcome and is still faced with. It also cites the strides thissector has made in the forms of new ventures, mergers and acquisitions etc. The

data presented here has been collected from primary and secondary sources.

This report also includes a small research study on why consumers prefer

shopping at malls and how the concept of experiential marketing is gaining a lot of

head way. This study has been undertaken keeping in mind that malls have been

the key driver for the growth of the organized retail in India. The study alsoportrays how consumers prefer organized or unorganized retailers depending on

the type of the product they are going to purchase. This study can help any mall in

improving its ratings as it also talks about what factors motivate the consumers to

go to the malls and what are their complaints against the malls. This report can be

useful for any company wanting to study or foray into the organized retail scenario

in India.


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INTRODUCTION

India has been a nation ofDukandaars with 12 million retail outlets, it has seen

more retail shops than anywhere else in the world. Retailing it is said is in our

blood as a shopkeeper as well as a shopper. But things have been changing in

our country, the way shopping is done, the way retail is getting modernized and

organized, and the way everyone is looking at and is involved in this industry. The

business of retail in India has seen significant changes in the last few years. We

have seen the emergence of new formats and the application of global concepts

and constructs albeit with modifications to suit the Indian environment.

The first question that needs to be answered before we proceed any further is:

What is retail? The word retail is derived from the French word retaillier, which

means to cut off a piece or to break bulk. A retailer may be defined as a dealer or

trader who sells goods in small quantities or as one who repeats or relates.

Retailing can hence be considered as the last stage in the movement of goods or

services to the consumer. In a nutshell, any firm that sells products to the final

consumer is performing the function of retailing.


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FACTORS RESPONSIBLE FOR DEVELOPMENT OF RETAIL IN

INDIA

The factors responsible for the development of the retail sector in India can be

broadly summarized as follows:

Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes. Looking at income

classification, the National Council of Applied Economic Research (NCAER)

classified approximately 50% of the Indian population as low income in 1994- 95;

this is expected to decline to 17.8% by 2006-07.

Liberalization of the Indian economy which has led to the opening up of the

market for consumer goods has helped the MNC brands like Kellogs, Unilever,

Nestle, etc. to make significant inroads into the vast consumer market by offering

a wide range of choices to the Indian consumers.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic,

etc.

The internet revolution is making the Indian consumer more accessible to the

growing influences of domestic and foreign retail chains. Reach of satellite T.V.

channels is helping in creating awareness about global products for local markets.

This young population, which is technology-savvy, watch more than 50 TV

satellite channels, and display the highest propensity to spend, will immensely

contribute to the growth of the retail sector in the country.


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The major objective of this study is to gain an insight into the current state and

development of the Shoppers Preferences for Shopping Mall in India.

Other objectives include:

1. To analyze the reasons behind the growth of organized retailing in India2. To explore the various methods and business models via which foreign

companies can enter the Indian retail sector

3. To understand the challenges being faced by the organized Indian retailsector

4. To ascertain the reasons behind the fast gaining popularity of shoppingmalls

5. To understand the motivating forces pulling the consumers to shoppingmalls

6. To find out the product segments for which consumers prefer organized orunorganized retailers


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Market features

Large and growing market of 1 billion people of which 300 million aremiddle class consumers.

India offers a vibrant market of youth and vigor with 54% of populationbelow 25 years of age. These young people will work harder, earn more and

demand more from the market and thereby sustaining growth in the long-

term.

The domestic demand is expected to double over the ten-year period from1998 to 2007. The number of households with "high income" is expected to

increase by 60% in the next four years to 44 million households.


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Economy:

The fundamentals of the Indian economy have become strong andsustainable. The macro-economic indicators are at present the best in the

history of independent India with high growth, foreign exchange reserves,

and foreign investment and robust increase in exports and low inflation and

interest rates.

India is the second fastest growing economy of the world at present.

A unique feature of the transition of the Indian economy has been highgrowth with stability. The Indian economy has proved its strength and

resilience when there have been crises in other parts of the world including

in Asia in recent years.

India is the sixth largest foreign exchange holder in the world. This isremarkable considering the fact that the Foreign Exchange reserves went

under US$ 1 billion in 1991 before the economic reforms started. This

comfortable situation has facilitated further relaxation of foreign exchange

restrictions and a gradual move towards greater capital account

convertibility.


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FORMS OF RETAILING

Modern retailing has entered India in form of sprawling malls and huge complexesoffering shopping, entertainment, leisure to the consumer as the retailers

experiment with a variety of formats, from discount stores to supermarkets to

hypermarkets to specialty chains. However, kiranas still continue to score over

modern formats primarily due to the convenience factor.

Traditionally, the small store (kirana) retailing has been one of the easiest ways to

generate self-employment, as it requires minimum investments in terms of land,

labour and capital. These stores are not affected by the modern retailing as it is

still considered very convenient to shop. In order to keep pace with the modern

formats, kiranas have now started providing more value-added services like

stocking ready to cook vegetables and other fresh produce. They also provide

services like credit, phone service, home delivery etc.

The organized retailing has helped in promoting several niche categories such as

packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory

products and convenience and health foods, which are generally not found in the

local kirana stores. Looking at the vast opportunity in this sector, big players like

Reliance and K Rahejas has announced its plans to become the country's largest

modern retainers by establishing a chain of stores across all major cities.


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1. HYPERMARKET

A hypermarket is a superstore which combines a supermarket and adepartment store. The result is a gigantic retail facility which carries an

enormous range of products under one roof, including full lines of

groceries and general merchandise. Among the retail formats,

hypermarkets are expected to fuel retail growth as food and grocery

stores account for 76 per cent of consumer expenditure.

There are currently only 25 hypermarkets in India and are owned by 4retail companies. The biggest hypermarket is Pantaloons Big Bazaar at

Phoenix Mills, Mumbai which has sales of $20million every year.

2. SUPERMARKET

A supermarket is a store that sells a wide variety of goods including

food and alcohol (where permitted), medicine, clothes, and other

household products that are consumed regularly. It is often part of a

chain that owns or controls (sometimes by franchise) other supermarkets

located in the same or other towns; this increases the opportunities for

economies of scale. The chains themselves are often supplied from the

distribution centers of a larger business. Pantaloon Retail's Food Bazaar

is the largest supermarket operator in India in terms of value.


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3. DEPARTMENT STOREA department store is a retail establishment which specializes in selling

a wide range of products without a single predominant merchandiseline. Department stores usually sell products including apparel,

furniture, appliances, electronics, and additionally select other lines of

products such as paint, hardware, toiletries, cosmetics, photographic

equipment, jewellery, toys, and sporting goods. Certain department

stores are further classified as discount department stores.

4. CONVENIENCE STOREA convenience store is a small store or shop, generally accessible or

local. They are often located alongside busy roads, or at gas/petrol

stations. This can take the form of gas stations supplementing their

income with retail outlets, or convenience stores adding gas to the list of

goods that they offer. Railway stations also often have convenience

stores.

SPECIALTY STORES

Specialty stores are small stores which specialize in a specific range of

merchandise and related items. The pricing policy is generally in the

medium to high range, depending on factors like the type and

exclusivity of merchandise and ownership, that is, whether they are

owner operated or a chain operation which has the advantage of bulk

purchasing and centralized warehousing system. They differ from

department stores and supermarkets which carry a wide range of

merchandise.
http://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Train_stationhttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Train_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_station


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5. E-TAILINGE-tailing refers to retailing over the internet. Thus an E-tailer is a B2C

business that executes a transaction with the final consumer. E-tailerscan be pure play businesses like Amazon.com or businesses that have

evolved from a legacy business, Dell.com. E-tailing is a subset of e-

commerce. Pantaloon Retail India Limited (PRIL) has taken on E-

tailing in India by its interactive and user friendly online portal of

www.futurebazaar.com. Fabmart is considered the leader in the area of

e-tailing in India.

6. MALLMall can refer to a shopping mall, which is a place where a collection of

shops all adjoin a pedestrian area, or an exclusively pedestrian street,

that allows shoppers to walk without interference from vehicle traffic. A

shopping mall (or simply mall), shopping center, or shopping arcade is a

building or set of buildings that contain stores, with interconnecting

walkways enabling visitors to easily walk from store to store.

Over the last 2-3 years, the Indian consumer market has seen a

significant growth in the number of modern-day shopping centers,

popularly known as malls. There is an increased demand for quality

retail space from a varied segment of large-format retailers and brands,

which include food and apparel chains, consumer durables and

multiplex operators. Shopping-centre development has attracted real-

estate developers and corporate houses across cities in India.
http://www.futurebazaar.com/http://en.wikipedia.org/wiki/Retailing#Shops_and_Storeshttp://en.wikipedia.org/wiki/Retailing#Shops_and_Storeshttp://www.futurebazaar.com/


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RETAIL SEGMENTS


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1. FOOD AND GROCERY

There are large number and variety of retailers in the food-retailingsector. Traditional types of retailers, who operate small single-outlet

businesses mainly using family labour, dominate this sector .In

comparison, super markets account for a small proportion of food sales

in India. However the growth rate of super market sales has been

significant in recent years because greater numbers of higher income

Indians prefer to shop at super markets due to higher standards of

hygiene and attractive ambience.

Food and grocery ($154 million) constitutes 41% of private

consumption expenditure and 77% of total retail sales. However 99% of

this segment is unorganized. But there seems to be tremendous growth

potential in terms of supermarkets, hypermarkets and discount chains.

The food business in India is largely unorganized adding up to barely

Rs. 40,000 crore, with other large players adding another 50% to that.

The All India food consumption is close to Rs. 900,000 crore, with the

total urban consumption being around Rs.330,000 crore. This means

that aggregate revenues of large food players is currently only 5% of the

total Indian market, and around 15-20% of total urban food

consumption. Most food is sold in the local `wet' market, vendors,

roadside push cart sellers or tiny kirana stores.


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2. CLOTHINGNumerous clothing and footwear shops in shopping centers and marketsoperate all over India. Traditional outlets stock a limited range of cheap

and popular items; in contrast, modern clothing and footwear stores

have modern products and attractive displays to lure customers.

However, with rapid urbanization, and changing patterns of consumer

tastes and preferences, it is unlikely that the traditional outlets will

survive the test of time.

Apparel is the second most organized retail segment and growth is

expected here as well due to the rigorous branding activities by apparel

retailers. Department stores are also on an expansion spree with almost

all major brands including Shoppers' Stop, Westside and Globus

drawing up aggressive plans to open more outlets. The ready-mades and

western outfits are growing at 40-45% annually, as the market teems up

with international brands and new entrants entering this segment

creating an Rs.500 crore market for the premium grooming segment.

The past few years has seen the sector aligning itself with global trends

with retailing companies like Shoppers' stop and Crossroads entering

the fray to entice the middle class.

3. FOOTWEARFootwear is the most organized retail segment in India and is dominated

by local players like Liberty and the multinational retailer Bata. Foreign

companies such as Adidas and Nike etc. have entered India through the

franchise route.


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4. HOME FURNISHINGSmall retailers again dominate this sector. Despite the large size of this

market, very few large and modern retailers have established specializedstores for these products. However there is considerable potential for the

entry or expansion of specialized retail chains in the country.

5. DURABLE GOODSThe Indian durable goods sector has seen the entry of a large number of

foreign companies during the post liberalization period. A greatervariety of consumer electronic items and household appliances became

available to the Indian customer. Intense competition among companies

to sell their brands provided a strong impetus to the growth for retailers

doing business in this sector.

The growth in this segment will be in proportion to the rising income

and standard of living of the urban population. With the growth of

middle-class families, home textiles and electronics/consumer durables

are increasingly becoming a means to demonstrate prosperity while at

the same time creating a comfortable home environment. The consumer

durables market can be stratified into consumer electronics comprising

of TV sets, audio systems, VCD players and others; and appliances like

washing machines, microwave ovens, air conditioners (A/Cs). The

existing size of this sector stands at an estimated USD 4.5 Billion with

organized retailing being at 5%. Finally, credit friendliness, drop in

interest rates and easy availability of finance have changed mindsets in

this segment.


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6. BOOKS AND MUSICIncreasing household incomes due to better economic opportunities

have encouraged consumer expenditure on leisure and personal goods inthe country. There are specialized retailers for each category of products

(books, music products, etc.) in this sector. Another prominent feature

of this sector is popularity of franchising agreements between

established manufacturers and retailers.

The size of the Indian music industry, as per this Images-KSA Study, is

estimated at Rs.1100 crore of which about 36 percent is consumed bythe pirated market and organized music retailing constitutes about 14

percent, equivalent to Rs.150 crore.

The book industry is estimated at over Rs. 3,000 crore out of which

organized retail accounts for only 7% (at Rs.210 crore). This segment is

seen to be emerging with text and curriculum books accounting to about

50% of the total sales.

7. GEMS AND JEWELLERYThe gems and jewellery market is the key emerging area, accounting for

a high proportion of retail spends. India is the largest consumer of gold

in the world with an estimated annual consumption of 1000 tonnes,

considering actual imports and recycled gold. The market for jewellery

is estimated as upwards of Rs. 65,000 crores.


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Top 10 Retailers in India (2009)

Rank Company/Name Retail Outlets Store Types

Number

of

Outlets

Turnover,

Mio $

1 Bata Bata Textiles 1,600 152

2 Pantaloon Retail

Food Bazar,

Pantaloons,

Big Bazaar

Supermarkets,

Hypermarkets,

Department stores

60 149

3 RPG Group

Foodworld,

Spencer,

Health &

Glow

Supermarkets,

Hypermarkets,

Health and Beauty

150 123

4 Shoppers StopShoppers

StopDepartment stores 17 113

5 Lifestyle Lifestyle Department stores 7 62

6Subhiksha

Trading ServicesSubhiksha

Supermarkets,

Health and Beauty183 61

7 Raymond Raymond Textiles 304 59

8 Apollo HospitalsApollo

PharmacyHealth and Beauty 135 47

9 Madura Garments

Madura

Garments Textiles 300 45

10 Viveks

Viveks,

Jainsons,

Premier

Electronics 51 44


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RURAL RETAILING

More than half of retail market in India is in the rural areas (55%); although shareof urban market is increasing by almost 5% every 8-10 years 14. Accommodating

almost two-third of the country's consumers and generating almost half of the

national income, the rural India offers tremendous opportunities for organized

retailers which many companies have failed to access. According to the study

conducted by NCEAR, the number of `lower middle income' group in rural areas

is almost double as compared to the urban areas, having a large consuming class

with 41% of the Indian middle class and 58% of the total disposable income.

A look at the demographics reveals that the highest income levels households in

the rural areas are 1.6 million as compared to 2.3 million in urban areas. It has also

been forecasted that the middle and the higher income households are expected to

grow to 111 million by 2007 from the current levels of 80 million. Thus, it can be

said that with 128 million households, the rural population is nearly three times the

urban. This vast demand base and size offers a huge opportunity that MNCs

cannot afford to ignore.

In order to meet with this rapid growth in demand the government has shown its

concern by providing an induction of Rs.140 billion and Rs. 300 billion in the

rural sector through its development schemes in the Seventh and the Eight plan

respectively. The large players like ITC, HLL, BPCL are realizing the potential of

this sector and are seen experimenting with new ways to tap this segment.


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Next in line, HLL came up with Project Shakti in late 2000 to sell its products

through women self-help groups who operate like a direct-to-home team of saleswomen in inaccessible areas where HLL's conventional sales system does not

reach. Another step to tap the rural market was `Operation Bharat' wherein low-

priced sample packets of toothpastes, fairness creams, Clinic Plus shampoos and

Ponds face creams to 20mn households.

As a part of their rural strategy, BPCL introduced Rural Marketing Vehicles

(RMVs) that move from village and village and filling cylinders on the spot forrural consumers keeping in mind the low-income of the rural population. The

Company also introduced a smaller size cylinder to reduce both the initial deposit

cost as well as the recurring refill cost.

Rural retailing also gained momentum with Godrej growing stronger through its

Adhaar initiative. Clearly, with 70 per cent of the population in rural areas, mainly

consisting of farmers, retailers have realised that this is the fastest way forward -

be it ITC's E-Choupal initiative or DCM Consolidated's Hariyali Stores. Reliance's

retail venture too is targeting this segment and has plans to spend a large part of its

Rs 550-crore investment here.


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CHALLENGES FOR ORGANIZED RETAIL IN INDIA

The industry is facing a severe shortage of talented professionals,especially at the middle-management level.

Most Indian retail players are under serious pressure to make their supplychains more efficient in order to deliver the levels of quality and service

that consumers are demanding. Long intermediation chains would increase

the costs by 15%.

Lack of adequate infrastructure with respect to roads, electricity, coldchains and ports has further led to the impediment of a pan-India network

of suppliers. Due to these constraints, retail chains have to resort to

multiple vendors for their requirements, thereby, raising costs and prices.

The available talent pool does not back retail sector as the sector has onlyrecently emerged from its nascent phase. Further, retailing is yet to

become a preferred career option for most of India's educated class that has

chosen sectors like IT, BPO and financial services.

The retail sector does not have 'industry' status yet making it difficult forretailers to raise finance from banks to fund their expansion plans.

Government restrictions on the FDI are leading to an absence of foreignplayers resulting into limited exposure to best practices.


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OBJECTIVES

The main objective of this study is to understand the reasons behind why

Shoppers preferences for Shopping Mall and thus explaining how malls have

made a significant contribution in the increased share of organized retail in India.

SCOPE OF THE STUDY

The scope of the study has been restricted to the Gwalior. The study has been

carried on with consumers of all ages.

SOURCES OF DATA

The data has been collected from Primary sources through personal interviews of

the consumers via a structured questionnaire.

SAMPLING

Samples were drawn from consumers living in the NCR region. Judgmental and

convenient sampling techniques were used.

The sample size for the consumers is 100.

DATA COLLECTION

Data was collected from the sample consumers using a structured questionnaire

and also via unstructured interviews.


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Motivating Factors Expanded Definition/ExamplesNumber of Different Kinds

of Stores

Number of different clothing, shoe, food, music

stores, etc.

Friendliness Level Whether the mall feels friendly and welcoming

Number of Cool Mall

Stores

Whether the mall stores are hip, trendy, fashionable,

etc.

Mall Interior Design

(provides aestheticexperiences)

Mall colors, sitting areas, lighting, decorations, etc.

Entertainment Experiences Whether the mall has movie theaters, live music

shows, fashion shows, etc.

Sport/Play Experiences

(provides Escapist experi-

ences)

Whether the mall has a bowling alley, games arcade

etc.


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DATA PRESENTATION

Frequency of visiting a shopping mall

Frequency of Mall Visits

0

10

20

30

40

50

60

70

80

90

100

Weekly Fortnightly Monthly Once every few

months

Never

Time

Percentage

ofPeo

ple


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Average time spent by the consumers at the mall per visit

Time Spent at The Mall

0

10

20

30

40

50

60

70

80

90

100

About 1 hour About 2 hours About 3 hours More than 3 hours

Time

Percentage

ofPe

ople


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Various reasons why people visit a shopping mall

Reasons for Visiting Malls

0

10

20

30

40

50

60

70

80

90

100

Shopping Entertainment (movies) Food Sports/Games (bowling

alley, games arcade etc.)

Various factors

Percentage

ofPe

ople


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What motivates people to go to a shopping mall

Motivating Factors for Visiting the Mall

0

10

20

30

40

50

60

70

80

90

100

Number of Different

Kinds of Stores

(variety of products

and services)

Time saving (one

stop shop)

Mall Interior Design

(sitting, lighting etc.)

Entertainment

Experiences (movie

theaters, live shows

etc.)

Games/Sports

Experiences (bowling

alley, games arcade

etc.)

Motivators

Percentage

of

People


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Drawbacks consumers associate with going to shopping malls

Drawbacks Associated with Malls

0

10

20

30

40

50

60

70

80

90

100

High parking charges Time taken in

transportation to reach a

mall

Price of products Other

Drawbacks

Percentage

ofPeople


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Income distribution table of the sample of consumersIncome Distribution of Sample

0

10

20

30

40

50

60

70

80

90

100

Less than Rs. 20,000 Rs. 25,000 Rs. 40,000 Rs. 40,000 Rs. 60,000 More than Rs. 60,000

Income

Percentage

ofPe

ople


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FINDINGS

The data collected shows that majority of the people go to malls for shopping and

entertainment in the form of movies.

Now, the major motivating factor that drives people to the malls is the availability

of a variety of stores in one location and the amount of time saved by the

consumers by shopping at a place that caters to almost all their needs.

Entertainment also comes as a good source of motivation for the consumers to go

to the malls.

The very fact that 83% of the interviewed consumers would rather shop at a mall

than an independent store speaks of the popularity of malls with the consumers.

This finding is supported by the fact that people are motivated to come to a mall

mainly because of all sorts of stores being accessible easily at one place.

During the interviews, an unstructured approach was also followed from which it

was found that:

Consumers like to go to the mall mainly on weekends forentertainment and shopping

Consumers go to the mall to gain knowledge about all kinds ofproducts so that they can male an informed decision

Almost all the consumers said they would not go through the trouble of traveling

all the way to the mall for a small and petty purchase.

All this portrays that malls are leading the growth of organized retail in India and

with the continuous and extremely fast paced growth of malls; it is highly likely

that the share of organized retail in India will go still higher.


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It has been found and demonstrated in this study that organized retail in India is on

a fast paced road to success. This statement is corroborated by the opening up of

the Indian economy to FDI and the onset of Reliance Retail and the eagerly

awaited and dreaded onset of Walmart. It took China and Brazil almost 30 years to

bring up their organized retail and make it more popular and acceptable than

unorganized retail. For India the journey has begun and will take considerable

time before the organized retail share can come in the same proximity as that of

unorganized. The main reason for the parity between the shares of the 2 is the

price and the distance factor. Especially for food and food products, consumers

trust the unorganized retailers to give them a better deal than the organized. Alsothe kirana stores are easily reachable and have a more personal form of customer

relationship management than the organized sector which is not as personal due to

its wide client base. But slowly and steadily the organized retail in India is and

will continue to increase its share in the market and gain acceptability with the

consumers.


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ANNEXURE

1. How often do you visit a mall? Weekly Fortnightly Monthly Once every few months Never

2. How much time on an average, do you spend per visit to the mall? Less than 30 minutes One hour Two hours More than two hours

3. For what purpose do you go to a mall for? Shopping Entertainment (movies) Food Sports/Games (bowling alley, games arcade etc.)

4. What motivates you to go to the mall? Number of different kinds of Stores (variety of products and services) Time saving (one stop shop) Mall interior design (sitting, lighting etc.) Entertainment experiences (movie theaters, live shows etc.) Games/Sports experiences (bowling alley, games arcade etc.)

5. Do you prefer to shop at a mall or at independent stores? Mall

Independent stores

6. What drawbacks do you associate with going to malls? High parking charges Time taken in transportation to reach a mall Price of products Other_________________


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7. For purchasing the flowing items would you rather go to a mall (organizedretailer) or a local shop (unorganized retailer)?

PRODUCT

ORGANIZED

RETAILER

UNORGANIZED

RETAILER

Food and grocery Clothes Books and Music Durables Home Furnishing Footwear Jewellery Medicines Beauty products

8. Name: Mr/Miss/Mrs ___________________________

9. Age:Less than 19 1925 2635 3550 Over 50

10.Monthly income: Less than Rs. 20,000 Rs. 25,000Rs. 40,000

Rs. 40,000Rs. 60,000 More than Rs. 60,000

THANK YOU


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Emerging Market Priorities for Global Retailers, Global RetailDevelopment Index (2008)

The retail rush (2008), Financial Times Information Limited Gilbert, D (2007) Retail Marketing Management, Pearson Education, New

Delhi

Pradhan,S.(2007)Retailing Management, Tata McGraw Hill, New Delhi In retail, wins are at back-end (2008), Financial Times Information

Limited

Opportunity India: Retail, (2007) Sector M2 Communications Ltd. Retail Scenario in India: Unlimited Opportunity, (2007) Confederation

of Indian Industries

Consumer markets in India - the next big thing, (2007) KPMG analysis www.marketingprofs.com www.google.com
http://www.marketingprofs.com/http://www.marketingprofs.com/

retail project update

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