“A Project report on organized Retail in India “

ARYA COLLEGE OF Engineering & IT

2008-2010

Submitted By Submitted To AMIT KAUSHIKAMIT KAUSHIK R.P.Sharma

MBA 2 nd SEM (ROLL NO- 03 )

CONTENTS

INDIA RETAILING INDUSTRY AN INTRODUCTION

INDIA RETAILING INDUSTRY

THE BIRTH OF INDIAN RETAILING

ORGANISED RETAILING IN INDIA - AN OVERVIEW

RETAILING IN 1990S 

CURRENT SIZE OF ORGANIZED RETAIL

EMERGENCE OF DISCOUNT FORMATS

ENTRY OF INTERNATIONAL PLAYERS

MALL DEVELOPMENT:

IMPROVEMENT IN RETAIL OPERATING EFFICIENCIES

IMPROVING PROFITABILITY AND RETAIL REVENUES

INDUSTRY IN INVESTMENT PHASE

RETAILING IN INDIA

INDIAN RETAIL – WHERE IT STANDSFIVE REASONS WHY INDIAN ORGANIZED RETAIL IS AT THE BRINK OF REVOLUTION

INDIA RETAILING INDUSTRY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

REVIEW OF LITERATURE

INDIA RETAILING INDUSTRY

The Next big story

“Changing Face of Retail and Its Implication on Consumer Behaviour –An In Depth Study of Jaipur City”.

INTRODUCTION

By the turn of the 20th century, the face of the Indian retailing industry had changed significantly. The retailing industry, which, until the early 1990s, was dominated by the unorganized sector, witnessed a rapid growth in the organized sector with the entry of corporate groups such as Tata , RPG, ITC and Bennett Coleman & Company into the retailing market.With the liberalization and growth of the Indian economy since the early 1990s, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the

number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption.

The Birth of Indian Retailing

Organised Retailing in India - An Overview

ORGANISED retailing in India is gaining wider acceptance. The development of the organised retail sector, during the last decade, has begun to change the face of retailing, especially, in the major metros of the country. Experiences in the developed and developing countries prove that performance of organised retail is strongly linked to the performance of the economy as a whole. 

This is mainly on account of the reach and penetration of this business and its scientific approach in dealing with customers and their needs. In spite of the positive prospects of this industry, Indian retailing faces some major hurdles which have stymied its growth. Early signs of organised retail were visible even in the 1970s when Nilgiris (food), Viveks (consumer durables) and Nallis (sarees) started their operations. However, as a result of the roadblocks, the industry remained in a rudimentary stage. 

While these retailers gave the necessary ambience to customers, little effort was made to introduce world-class customer care practices and improve operating efficiencies. Moreover, most of these modern developments were restricted to south India, which is still regarded as a “Mecca of Indian Retail”.

Retailing in 1990s 

On account of the liberalization drive in the 1990s, several structural and demographic changes that are taking place are helping the industry to grow. The GDP has grown by 6.6 per cent in the last decade resulting in increased income levels and higher purchasing power for the population. Increasing literacy levels, increasing number of working women, increasing urbanization, higher international travel by Indian population and

Increasing media penetration has raised aspiration levels of the population, resulting in demand for better shopping experience and larger variety of goods. 

India has close to 54 per cent of population below the age of 25, which translates into higher prospects for increased consumption levels in the future. Finally, interest rates have also declined in the past few years further propelling the consumption demand.

These factors were the key drivers for the retail wave in the country. Notable among the early entrants were players like Shoppers Stop, Pantaloon, Ebony, Foodworld, Subhiksha,

etc. 

Initially, the growth in organized retail was very slow and concentrated mainly in metros, with south India holding its ground as the pioneer in organized retail growth, on account of the low cost of real estate. Due to the high investments required in the early stages and the fact that real estate was the key deciding factor for success of stores, real estate developers have been the major players in the industry.

In the early 1990s, as the players were lower down on the learning curve many faltered in their models, and growth of the industry remained slow. The second half of 1990s saw several players making losses and exiting from the business. 

The worst for the industry were 2000 and 2001, as the stock market downturn, which reduced customer confidence and spending, had a direct impact on the performance of the industry. The industry recovered starting 2002. 

It now appears the efforts and learning’s of the players in the last decade are beginning to pay off; the organized retail industry has established firm roots and is beginning to grow.

Current size of organized retail The total private final consumption expenditure of India stood at Rs 15 lakh crore in 2001-02. Of this, close to 65 per cent is spent on goods and services bought off the shelf. Currently, the Indian retail industry is estimated to be close to Rs 9 lakh crore and the market estimates the size of the organised retail industry at close to Rs 17,500 crore accounting for close to 2 per cent of the overall retail industry. Emergence of discount formats:

Larger discount formats, popularly known as hypermarkets, are now emerging as major competitors to both unorganized and organized retailers. Penetration of organised retail into the lower strata of income groups and consumer demand for increased value-for-money has improved the prospects of these formats. These formats span across the entire range of merchandise categories. Big Bazaar, promoted by Pantaloon and Giant, promoted by the RPG Group, are examples of this format.

Entry of international players:

A large number of international retailers have evinced interest in India, despite the absence of favorable government policy for foreign players. 

A number of the major brands have entered the country through licensing agreements with Indian players to capitalize on the opportunities available in the sector.

Mall development:

Modern malls made their entry into India in the late 1990s, with the establishment of Crossroads in Mumbai and Ansals Plaza, DLF in gurgaon & Delhi. By early 2001, several mall projects were announced.

According to market estimates, close to 10 million sq. ft. of mall space is being developed across several cities in the country, of which 8 million sq. ft. is expected to be operational by end of 2005. 

With this, rentals for retail properties have shown a marked decline, which has brought down the break-even levels of the retail projects. Moreover, retailers would now have access to retail-specific properties, which will increase their efficiencies.

Improvement in retail operating efficiencies:

Besides the macro factors, which have aided in retail growth, the existing players have also taken steps to improve the internal operations of their businesses. Most players have implemented ERP and planning support systems. 

Awareness of consumer behaviour patterns has also increased on account of regular market studies done by these players. Existing players have started implementing world-class retail practices in merchandise planning, customer service and store layouts.

The impact of these positive steps is already visible in the performance of the companies. However, Fitch believes that players still lag behind in adopting efficient supply chain practices. While a part of this has been on account of the lack of proper infrastructure, a large part is also due to the basic inertia and haphazard initiatives taken by the companies. Fitch believes that there is tremendous scope for cost savings and improvements on the operational front, where retailers can reap huge benefits in the future.

Improving profitability and retail revenues:

The improvement in operational efficiencies, in spite of its existing drawbacks, has resulted in turnaround and growth of most of the existing players. For example, after losses of close to Rs 22 crore losses in FY01, Shoppers Stop made a profit of Rs 14 lakh

in FY02 on an aggregate turnover of close to Rs 250 crore. In FY03, profits further increased to Rs 10.5 crore, on aggregate turnover of Rs 300 crore. 

Similarly, Westside, owned by Tatas, has reported profits of Rs 16 crore on aggregate turnover of Rs 120 crore in FY03. Pantaloon, one of the oldest players in the industry, has reported profits of Rs 7.8 crore on aggregate turnover of Rs 290 crore in first nine months of FY03. The major players in the industry are now achieving turnover levels, which are more resistant to the cycles in the industry. Improvement in profitability is expected to improve the credit profile of the players in the industry. 

Industry in investment phase:

Since most of the retail operations are gaining momentum and the hurdles to growth are increasingly being addressed, the industry has now entered the investment phase. Fitch estimates that the industry as a whole will add close to one mn sq. ft. every year. At an average investment of Rs 2,400 per sq. ft., this would mean an investment of Rs 240 crore investments per annum over the next few years. 

In addition, basic infrastructure like parking, real estate, etc., would require over Rs 100 crore investments per annum. However, given the nascent stage of the industry, most of these investments would be in the form of equity.

A few cues can be taken from other emerging markets, where retail industry has taken shape in the last couple of decades. Fitch’s study of other emerging markets shows that it takes 10-12 years for the organised industry to achieve 10 per cent to 12 per cent market share. 

Most of the emerging markets, like Thailand, Indonesia, China and Malaysia, which saw an emergence of organised retail in the 1980s, have now achieved between 20 per cent to 40 per cent market shares. However, for India to achieve a similar level of penetration, it would have to overcome key roadblocks like lack of FDI approval, complex taxation and infrastructure bottlenecks. 

While some of these hurdles are easy to remove, others are politically sensitive issues and might take several years to get addressed. As a result, Fitch believes that the growth in organised retailing in India might not be as rapid as it has been in other emerging

markets. This would mean that the industry would continue to remain in an investment stage for longer time compared to other emerging markets.

Key hurdles to be addressed:

Fitch believes that some of the key hurdles to growth, like lack of FDI approval and multiplicity of taxes are expected to remain in the short to medium term. Other constraints, like lack of infrastructure facilities, retail manpower and supply chain

bottlenecks would be solved over the next few years. These would propel growth rates from the current levels.

Key conclusions: 

The industry is in an investment phase.Some of the basic ingredients required for the industry to grow are now available, though certain hurdles still exist.

Thus, the industry is poised for the next phase of rapid growth and improving profitability, which will improve company valuations and reduce overall operational risks.

Conclusion

Fitch believes that the retail industry is poised for growth over the next few decades. The industry is in an investment mode and would require substantial funds for expansion and growth. Lack of “industry status” and ban on FDI are major hurdles to growth.

On the operations front, the players are now starting to employ global retail practices. However, it would take sometime before players are able to bring their supply chain infrastructure in line with the world class standards, to maximize benefit. Besides, the retailers would need to do substantial work on the front-end of their business models,

which involves implementation of practices and processes for efficient customer management techniques and linking them to the merchandise and supply chain planning systems of the company. Lack of trained manpower and infrastructure constraints prevents them from taking advantage.On the financial front, 2002 saw players starting to turn profitable. However, past losses coupled with low profitability on account of the need to meet changing business challenges to arrive at the right retail models, lack of sufficient knowledge about the consumer behaviour and several external constraints, will continue to put pressure on these businesses.

Fitch believes that many of the players, who have survived the tumultuous period of the last two years, may be able to harness the benefits of scale and size in the years to come. As these players grow into national chains, they will be able to take advantage of the synergies in supply chain, which will help them reduce costs and offer higher value to the customers. 

This would help them achieve higher organic growth, with reduced reliance on external funds. These players will, thus, emerge as strong credits, thus mitigating, to a substantial

degree, the format and operations risks associated with them in the initial stage of their businesses. However, until these companies transform themselves — from being small regional chains to large, geographically well-distributed national chains — the inherent format and operations risks along with the financial risk would be key factors influencing their credit ratings.

Retailing in India

Total Consumer Spend in the Year 03-04 – INR 9300 billion ( USD 375 billion) growing over 5% annually Retail sales – 55% at INR 280 billion (USD 205 billion) Organised Retail – Only 3% but growing at 30% Organised retail to cross INR 1000 billion mark by 2010 INR 200 billion investment in the pipeline Top 6 cities account for 66% of total organized retailing. Overwhelming acceptance of modern retail formats.

INDIAN RETAIL – WHERE IT STANDS

Five Reasons why Indian Organized Retail is at the brink of Revolution

Scalable and Profitable Retail Models are well established for most of the

Categories. Rapid Evolution of New-age Young Indian Consumers.

Retail Space is no more a constraint for growth.

Partnering among Brands, retailers, franchisees, investors and malls.

India is on the radar of Global Retailers Suppliers.

Looking Ahead

Many strong regional and national players emerging across formats and product categories Most of these players are now geared to expand far more rapidly than the initial years of starting up Most have regained / improved profitability after going through their respective learning curves 

Malls in India

INDIA RETAIL BY 2006-07

50 million sq ft of quality space under development 7 major cities to account for 41 million sq ft development 300 malls, shopping canters and multiplexes under construction To open 35 hypermarkets, 325 large department stores, 1500 supermarkets and over 10,000 new outlets

To add US $ 10 billion of business to organised retail. The presentation of India Retail Report 2005 required a yearlong interaction with over 1000 companies representing the entire gamut of manufacturing, retailing and the services sector that had direct or indirect impact on consumer spending. The study required a thorough understanding of the world market, major players, strategies and emerging trends and the evolution of Indian retail across multiple segments.

INDIA RETAILING INDUSTRY

Zoom…

The hectic construction and renovation activity in Metros' bazaars is the precursor to the emergence of India's one of the biggest industry:

Organized Retailing.

Historical reasons for the absence of retailing not withstanding, the industry (to borrow from Andy Groove) is at an inflection point. Issues like Govt. policies, land market distortions, 'cheap' being the key word and indigenous small stores, of-course needs to be circumvented. Still there are lot of other things waiting to give a thrust to the industry on a tangential zoom. In this report we try to argue in favor of the industry, factors which will make it happen, players which are likely to succeed and the overall dynamics.

The opportunity

In the absence of structured data and the contradictory figures one should try to understand the potential and the size of Organized retailing with right perspective. We are using the top down approach starting with the GDP and market size vis a vis Global Markets and the size of the various industries.

GDP Growth

Changing Demography

India: A service Economy

Income: Rs10,000+ per month

How Low is Low per Capita Income

India is the fourth largest economy in World with 2000 GDP at USD1797bn (PPP wise). In absolute terms though India stands at 17th position (USD360bn). But with the high GDP growth rate (5% expected 2002) India will soon surpass countries like Netherlands, Australia, South Korea and will rival Mexico. In the period from 1994-95 to 2002-03 India's GDP CAGR will be 6.6%, one of the highest in world. With the slowdown in American and European economies the growth only becomes more pronounced.

RELIANCE FRESH TO OPEN NEW 5 STORES IN JAIPUR

`Reliance Fresh` retail stores in Jaipur from tomorrow, after opening its maiden store in Hyderabad last month, report agency sources.

Jaipur has been chosen as the next destination for opening of these farm fresh stores after its launch in Hyderabad, mainly because the infrastructure required to start the stores have been put in place quickly and efficiently in Rajasthan.

Reliance will open five stores in Jaipur this week, which will stock 125 varieties of fruits and vegetables at a time.

All seasonal fruits and vegetables will be available including puja flowers.

The company siad that 30% of fruits and vegetables for the stores in Rajasthan will be sourced from within the state, especially from Alwar, while the rest would be obtained from all over the country.

President and chief executive (food business), Gunendar Kapur, said the retail scene in India is totally fragmented and Reliance Retail is to be the most organised and admired retail company in India.

He said that the complete farm-to-fork project cycle initiated by the RIL is part of its agricultural initiative and is unlikely to harm the small-time vegetable vendor.

RIL feels India`s retail growth, which is now worth USD 300 billion, could grow up to USD 427 billion in the next four years.

RELIANCE RETAIL LAUNCHES JAIPURS FIRST SET OF FIVE PILOT RELIANCE FRESH STORES

Reliance Retail Ltd today unveiled its first set of pilot stores in the Pink City - Jaipur. Reliance Fresh, the first of the formats from Reliance Retail will be opened up for consumers from the morning of 15th of December. The five pilot Reliance Fresh stores will be rolled out at Khatipura, Vijaypath — Mansarover, Shastri Nagar, Ram Gunj Chopar and Jawahar Nagar and have an area of about 2000 to 3500 sq. ft. The stores will have an average of about 20 trained sales associates attending to the customers in each store. The Reliance Fresh stores will carry fresh fruits

Reliance Fresh Shopping Mall Khatipura near Jai Bhawani Colony

Reliance Fresh Shopping Mall Khatipura near Jai Bhawani Colony is a location in Jaipur in India. If you have seen Reliance Fresh Shopping Mall Khatipura near Jai Bhawani Colony , then write us a review comment or your experience about this site in Jaipur. This site is to provide information to visitors to this place. Your comment about Reliance Fresh Shopping Mall Khatipura near Jai Bhawani Colony is important to us. Please provide you comment / review / article on Reliance Fresh Shopping Mall Khatipura near Jai Bhawani Colony in Jaipur below. Rajasthan is the first launch in North India. With this launch, Reliance Retail has 22 stores in Hyderabad and Jaipur.

Piramyd Retail announces launch of outlet in Jaipur

Piramyd will blend fashion with culture. The store will be spread over 50,000 square feet on three floors,” Bipin Gurnani, chief executive officer, Piramyd, said.

The offering at the store will include branded-merchandise in the lifestyle and fashion segments in men's wear, women's wear, kid’s wear, home fashion and lifestyle accessories,” he said, adding, “the store would showcase over 300 brands, of which around 10 would be our labels.”

The retail scene, which evolved in metros some time ago, is now catching up in tier II towns and Jaipur reflects this phenomenon,” Gurnani said.

Report says economic slowdown affecting organized retail in India

According to the 'Indian Retail: Time to change lanes' report by global consultancy KPMG, the ongoing recession has taken a major toll on the dissemination of India's organized retail - with the country's retail sales growth falling drastically to 11 percent in December 2008 from the 2007 figures of 34 percent.

The study also revealed that India's investment flow in organized retailing, which was expected to touch $25-billion over the next five-year period, is showing signs of a slowdown. No wonder then that in the present scenario, factors like store rationalization, regionalization,

working capital management, cost optimization and manpower resizing are foremost among the "top of mind" concerns for the retailers.

The KPMG report also mentioned that about an unfavorable impact on Indian retailers in spheres such as availability of working capital; cost of finance; advertising expenditure; and store and headcount expansion. Nevertheless, the study also conceived the current scenario as an immense opportunity for the retailers to become cost competitive, take the maximum-possible benefit from the availability of real estate in bargain basement price; and spread out into tier II and III towns.

Acknowledging that the retail sector is suffering a blow from the liquidity crunch, KPMG national industry director Ramesh Srinivas, said: "Slowing sales resulting in lower inventory turnover and increasing working capital requirements to fuel growth have resulted in liquidity pressures for many domestic retailers."

The country on the other hand stands as an emerging market at the 11th position thanks to old socialist policies. The above model shows the country's standing on various parameters.High growth rate combined with a population of 1bn+, second only to China, makes India a hot destination for anybody interested in selling its products, poor infrastructure and low per capita income notwithstanding. India is the second biggest producer of Wheat, Rice, Sugar, Vegetables, has some of the biggest mines in world for many minerals and to top it all has the people to consume all that. The population and

resources combined translates into a huge domestic market and phenomenal export opportunities in the light of declining population growth rates (CAGR 1.44% 1999-2010). The strengthening service economy (46.4% GDP share in FY00 compared to 43.6% in FY96) in the country and the expectation of additional 7mn job creation by 2008 in IT and IT enabled services makes it a market worth a look. India with its diverse culture and varied economic classes has 75mn people earning above Rs10,000 per month presenting a target market for anybody interested in selling branded shirts and packed staple food. The 75mn figure is nearly equal to the population of Germany and higher then U.K., France, Italy or South. Korea. Of course the high figure itself doesn’t make India attractive since the variation in per capita disposable income is phenomenal, but the sheer numbers with the capacity to buy a basket of goods 60-70% similar to the people in other countries, though less pronounced in quality, does. India also rates favorably in terms of population structure. Paul Krugman, one of the first to predict East Asian Crisis identified the population structure as one of the key reasons for the high growth rates of South East Asian Economies. India too is going through the sea change in terms of the percentage of population entering the workforce (High growth of labor force at 2.48% vis a vis population growth of 1.57%. With population growth rate declining and the life expectancy increasing India's young population will be 63% of its population by the year 2012 as compared to 53% in Year 1997. Combined with increasing literacy, women entering workforce and increasing employment vistas Economically Active Population too will witness a huge growth from current 32-35%. The figure stands at 50% for U.S, 56% for China and 54% for Japan. The shift will give a great boost to disposable incomes.

Lower per capita incomes are not 'The Hindrance' keeping the Indians chaste from the invasions of Malls. China with above 20% organized retailing market share doesn't have much higher retail sales then India. India's USD198/annum retail sales aren't far behind China's USD272. Besides one school of economists has their reservation over the datacoming out of China.

India: What sells

High VolumesLow ValueDispersed, unstructured and fragmentedBut is the war lost?The market size for all the goods of consumer's basket is higher then mostof the economies in world at least in terms of volumes if not dollar value.The total market in major categories is stated below.

OBJECTIVES

To Study the Consumption Pattern of the Consumer due to Change in Retail Trends

Change in Retail Market by Entering of Big Retail Houses in Retail Segment

To Study the Future scenario of Retailing

SCOPE OF THE STUDY

It is restricted to the jaipur City and it deals with only the “Changing Face of Retail and Its Implication on Consumer Behaviour”

REVIEW OF LITERATURE

The changing face of retail sector 

Jaipur, March 20Consumers of today are more inclined towards specialised formats of retail outlets like hypermarkets, super bazaars, shopping malls etc. where they get different variety of products under one roof rather than typical Kiryana stores. It is quite imperative that in such a fast paced shift, more and more companies are coming up with different formats of their retail outlets, specially discount stores, department stores, hypermarkets etc. either individually or in collaboration with foreign partners.

A recent research conducted by Sandhir Sharma and Gautam Bansal of the Punjab College of Technical Education (PCTE) here reveals that Indian companies had already

started taking initiative in this line. Reliance is planning to go for expansion in the retail sector in the coming years, Vishal mega Mart retail chain is planning to set up 80 more stores at an investment of Rs 480 crore in the next financial year. On the same lines, Birlas have decided to roll out its retail business with in the next seven to eight months and is likely to develop the business of its own rather than in collaboration with any foreign partners.

The researchers said in spite of the fact that the government was still not clear regarding the decision of allowing foreign players in huge and potential Indian markets, the sector was buzzing with both domestic and foreign players who were trying to make their presence felt. Players like Wal-Mart had already tied up with the Bharti group to enter into retail markets, though they were not coming at the front end operations but definitely it would help Bharti in gaining the logistical, storage efficiencies, which were important functional areas of retail operations for gaining competitive advantage.

Sharma and Bansal said the majority of retailers still felt that karyana and small stores would not be suppressed at any cost as India had a huge market with people from different segments, class, income groups of society so the need and importance for these traditional stores would remain there. According to statistics available, 70 per cent of the Indian consumers was from middle and lower income groups and they preferred to shop from karyana stores rather than going into big shopping malls. It was only the upper strata (20-25 per cent) of society which would be attracted towards these big formats of retailing.

The experts in the field say that if the foreign players wanted to tap a major chunk of the Indian consumer they had to come to the level of karyana stores as had been done by various domestic players. But one thing was sure that what ever happens it would change the shopping styles of Indian consumers. Indian consumer was definitely going to

respond well to these changes. Biggest challenge the retailers would face would be the availability of space for opening their outlets.

However, 98 per cent of the retail is in the unorganised sector. But in recent years, RPG, Pantaloon, ITC and Ebony have entered the retail sector in a big way. Walmart, world’s largest retailing company, has also shown keen interest to invest in this sector, but the government has only allowed it to set up its subsidiary for sourcing material for other countries.

Dr Arpita Mukherjee, co-author of the report “Foreign Direct Investment in Retail Sector: India” claimed that even though FDI was not allowed in retailing, foreign players had entered the Indian market through various loopholes in the regulations.

She said the government should open the retail sector in a phased manner over three to five years. “It should also ensure that existing franchisees are not affected and foreign companies do not indulge in predatory pricing,” she said.

The report has recommended that any opening up of the FDI regime should be gradual to give the domestic industry enough time to adjust to the changes. “The FDI should first be allowed in relatively less sensitive sectors such as garments, lifestyle products, consumer durable, houseware and entertainment (books and music). Once the market starts adjusting then it could be allowed in certain sensitive sectors like food and grocery,” she said.

"Booming Retail Sector in India”, India is one of the most attractive destinations for retailers from all across the globe. Thanks to the entry of corporate, changing consumer behavior & lifestyle, increasing influence of western culture and rising significantly to the growth of the overall retail sector,income, the Indian retail industry has seen phenomenal growth in the last five years (2001-2006) and organized retailing has finally emerged from the shadows of unorganized retailing and is contributing

- Organized retail market in India is expected to reach US$ 50 Billion mark by 2011. - Number of shopping malls is expected to increase at a CAGR of more than 18.9% from 2007 to 2015. - Rural market is projected to dominate the retail industry landscape in India by 2012 with total market    share of above 50%.- Organized retailing of mobile handset and accessories is expected to reach close to Rs. 5000 Crore

   by 2010. - Driven by the expanding retail market, third party logistic market is forecasted to reach US$ 20 Billion    by 2011. - Apparel, along with food and grocery, will lead the organized retailing in India.

Retail Sector in India

Retail and real estate are the two booming sectors of India in the present times. And if industry experts are

to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of

India’s largest industries, has presently emerged as one of the most dynamic and fast paced industries of

our times with several players entering the market. Accounting for over 10 per cent of the country’s GDP and

around eight per cent of the employment retailing in India is gradually inching its way toward becoming the

next boom industry.

As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and

huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has

altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This

has also contributed to large scale investments in the real estate sector with major national and global

players investing in developing the infrastructure and construction of the retailing business. The trends that

are driving the growth of the retail sector in India are

Low share of organized retailing

Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items

Another credible factor in the prospects

of the retail sector in India is the

increase in the young working

population. In India, hefty pay-packets,

nuclear families in urban areas, along

with increasing working-women

population and emerging opportunities

in the services sector. These key

factors have been the growth drivers of

the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel &

Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure

and many more. With this the retail sector in India is witnessing a rejuvenation as traditional markets make

way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.

The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in

large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer

behind in the race. If development plans till 2007 is studied it shows the projection of 220 shopping malls,

with 139 malls in metros and the remaining 81 in the Tier II cities.  The government of states like Delhi and

National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development

thus increasing the availability of land for retail space; thus making NCR render to 50% of the malls in India.

India is being seen as a potential

goldmine for retail investors from over

the world and latest research has rated

India as the top destination for retailers

for an attractive emerging retail market.

India’s vast middle class and its almost

untapped retail industry are key

attractions for global retail giants

wanting to enter newer markets. Even

though India has well over 5 million retail outlets, the country sorely lacks anything that can resemble a

retailing industry in the modern sense of the term. This presents international retailing specialists with a

great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five

years driven by changing lifestyles, burgeoning income and favorable demographic outline.

Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. This will not only favor the retail sector develop in terms of design concept, construction quality and providing modern amenities but will also help in creating a consumer-friendly environment. Retail industry in India is at the crossroads but the future of the consumer markets is promising as the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations in India. And this upsurge in the retail industry has made India a promising destination for retail investors and at the same time has impelled investments in the real estate sector. As foreign investors cautiously test the Indian Markets for investments in the retail sector, local companies and joint ventures are expected to be more advantageously positioned than the purely foreign ones in the evolving India's organized retailing industry.

SWOT Analysis Big Bazaar-Pantaloons

Big Bazaar-Pantaloons: Big Bazaar, a division of Pantaloon Retail (India) Ltd is already India's biggest retailer. In the year 2003-04, it had revenue of Rs 658.31 crores & by 2010; it is targeting revenue of Rs 8,800 Crore.

A SWOT analysis of the Indian organized retail industry is presented below:

Strength:

1. Retailing is a " technology-intensive" industry. It is technology that will help the organized retailers to score over the unorganized retailers. Successful organized retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart pioneered the concept of building competitive advantage through distribution & information systems in the retailing industry. They introduced two innovative logistics techniques ? cross-docking and EDI (electronic data interchange).

2. On an average a super market stocks up to 5000 SKU's against a few hundreds stocked with an average unorganized retailer.

Weakness:

1. Less Conversion level : Despite high footfalls, the conversion ratio has been very low in the retail outlets in a mall as compared to the standalone counter parts. It is seen that actual conversions of footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a high street store of retail chain has an average conversion of about 50-60%. As a result, a stand-alone store has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a ROI of 8-10%.

2. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.

Opportunity :

1. The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore people under the age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing segment.

2. Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010.

3. Percolating down : In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. While the metros have already been exploited, the focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%.

4. Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which provides farm related inputs & services. The Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with the required knowledge for effective use of the same to the farmers. Pepsi on the other hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes.

Threats :

1. If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover.

2. Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping.

India Retail Report 2005

\

The retail market in the country is expected to be worth over Rs 18,10,000 crore by 2010. And organised retail is likely to exceed Rs 2,30,000 crore (at constant prices), at about 13% of the pie, according to India Retail Report (2009 edition).RS Roy, editorial director, India Retail Report 2009 said, “Our research estimates the Indian retail market in 2007 at Rs 13,30,000 crore, growing annually at 10.8%. The share of organised Retail in 2007 was estimated to be only 5.9%, or Rs 78,300 crore. Modern retail witnessed a growth rate of 42.4% in 2007 and we envisage it to maintain a faster growth rate over the next three years. Increase in consumer spending is and will push the economy into a growth-and-liberalisation mode.”In the overall retail pie, food and grocery was the dominant category with 59.5% share, valued at Rs 7,92,000 crore, followed by clothing and accessories with a 9.9% share at Rs 1,31,300 crore. Interestingly, out-of-home food (catering) services (Rs 71,300 crore) has overtaken jewellery (Rs 69,400 crore) as the third-largest retail category, with a 5.4% market share. Consumer durables (Rs 57,500 crore) is the fifth-largest retail category, followed by health and pharmaceuticals (Rs 48,800 crore), entertainment (Rs 45,600 crore), furniture, furnishings and kitchenware (Rs 45,500 crore), mobiles and accessories (Rs 27,200 crore), leisure retail (Rs 16,400 crore), footwear (Rs 16,000 crore), health and beauty care services (Rs 4,600 crore) and watches and eyewear (Rs 4,400 crore), in the order.In organised retailing, however, clothing and fashion accessories is the largest category with a market share of 38.1%, at Rs 29,800 crore, followed by food and grocery with 11.5% (Rs 9,000 crore), footwear 9.9% (Rs 7,750 crore) and consumer durables 9.1% (Rs 7,100 crore). Timewear (48.9%) and Footwear (48.4%) are the most organised of all retail categories, followed by clothing & fashion accessories (22.7%).At 25.6% year-on-year, the fastest-growing segment in the overall pie in 2007 was mobile and accessories

followed by out-of-home food (catering) services (25.1%) and books, music & gifts leisure category (23.3%). In organised retail, however, the fastest growth was recorded in the tiny health and beauty care services category at Rs 660 crore, which grew 65%. The second-fastest-growing organised retail category was entertainment (53.8%), followed by the mobile phones and accessories (55.2%) and food and grocery retail (55.2%.At constant prices, growth in the fashion and accessories retail category, both in the overall market and the organised retail segment, have been consistently positive since 2004: while the overall market grew 12.8% in 2007, the organised segment grew 35.5%.In jewellery retail, the overall market growth was higher in 2007 (9.6%) as compared with the previous year (9.2%) but growth in organised retail was slightly lower (31%).The overall market growth in the timewear category has declined from 10.7% in 2005 to 9.7% in 2006 and further to 8.9% in 2007. However, growth in organised retail was higher in 2007 (16.6%, as against 14.8% in 2006). Footwear retail, the overall market as well as organised segment, grew faster year after year, but growth in 2007 has been remarkable. The overall market grew 12% in 2007 as against 9.2% in 2006, while the organised segment grew 42.3% and 36.4%, respectively. Growth in the health and beauty care has been optimistic, though the organised segment growth of 57.5% in 2007 was slightly lower as compared with 59.1% in 2006. In the furnishings and furniture retail category, the overall market grew at 7% in 2007 as against 3.2% in 2006 - thanks to the housing sector boom. The organised segment also grew faster at 29.7% in 2007 as against 23.1% the previous year. At constant prices, the overall food and grocery retail market grew slightly higher at 2.3% in 2007 as compared with 2.2% in the two previous years. The report suggests that the organised retail segment in this category is simmering in the true sense - a 50% growth in 2007 as against 42.9% in 2006, and lot more fireworks can be expected going ahead. Valued at Rs 9,000 crore, this organised market constitutes barely 1.1% of the total food and grocery retail market

Organised retail to cross Rs 1000 billion mark by 2010 - I

Indian organised retail is on the brink of a revolution says the Images-KSA India Retail Report 2005

The retailing industry in India estimated at Rs 9300 billion (2003-04) is expected to grow at 5% p.a. and the organized retailing is well on its way to become a Rs 350 billion market by 2005 according to INDIA RETAIL REPORT 2005 : An IMAGES-KSA Technopak study released at the KSA Retail Summit 2005 by Mr Kishore Biyani, managing director of Pantaloon Retail, India’s largest retailer. “The size of the organized retailing market stood at Rs 280 billion in 2004, thereby, making up a mere 3% of the total retailing market. Moving forward, organized retailing is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1000 billion by 2010. Further, its contribution to total retailing sales is likely to rise to 9% by the end of the decade,” said Mr Arvind Singhal, chairman, KSA Technopak.

Briefing on the report Mr R S Roy, editorial director, IMAGES group said that the presentation of India Retail Report 2005 required a yearlong interaction with over 1000 companies representing the entire gamut of manufacturing, retailing and the services sector that had direct or indirect impact on consumer spending. The study required a thorough understanding of the world market, major players, strategies and emerging trends and the evolution of Indian retail across multiple segments.

“Supported with the findings of various research reports of IMAGES and KSA Consumer Outlook study the India Retail Report 2005 presents size, strengths and scope with performance of key players in each segment and explores new emerging segments that have potential for new and existing players,” said Mr Roy.

According to Mr Amitabh Taneja, group head, IMAGES & director, International Council of shopping Centres (ICSC - India) and Indian Retail School, currently the fashion sector in India commands a lion’s share in the country’s organised retail pie. This is in line with the retail evolution in other parts of the world, where fashion led the retail development in the early stages of evolution and was followed by other categories like food & grocery, durables etc. The report covers major sectors like apparel, footwear & sportswear, jewellery, watches, health & beauty (including services), food & grocery, consumer electronics, mobile handsets & peripherals, books, music & gifts, home, entertainment, and oil.

Detailing reasons why Indian organized retail is at the brink of revolution the IMAGES-KSA report says that the last few years have seen rapid transformation in many areas and setting scalable and profitable retail models across categories. Indian consumers are rapidly evolving and accepting modern formats overwhelmingly. Retail space is no more a constraint for growth. India is on the radar of global retailers and suppliers/brands worldwide are willing to partner with retailers here.

Further, large Indian corporate groups like Tata, Reliance, Raheja, ITC, Bombay Dyeing, Murugappa & Piramal groups etc and also foreign investors and private equity players are firming up plans to identify investment opportunities in the Indian retail sector. The quantum of investments is likely to sky-rocket as the inherent attractiveness of the segment lures more and more investors to earn large profits. Investments into the sector are estimated at Rs 20-25 billion in the next 2-3 years, and over Rs 200 billion by end of 2010.

Stocks in the retail sector are also becoming increasingly attractive from an investor’s point of view. Successful development of value based concepts as well as development of retail space in smaller cities and towns shall drive the organized retail into the next levels of cities. Retailers have responded to this phenomenon by introducing contemporary retail formats such as hypermarkets and supermarkets in the new pockets of growth. Prominent ‘tier-II’ cities and towns which are witnessing a pick-up in activity include Surat, Lucknow, Dehradun, Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar, Varanasi and Ludhiana among others. With consumption in metros already being exploited, manufacturers and retailers of products such as personal computers, mobile phones, automobiles, consumer durables, financial services etc are increasingly targeting consumers in tier II cities and towns. In addition, petro-retailing efforts of petroleum giants scattered through out the country’s landscape have also ensured that smaller towns are also exposed to modern retailing formats. On the supply side, mall development activity in the small towns is also picking up at a rapid pace, thereby, creating quality space for retailers to fulfill their aggressive expansion plans. Thus, the ‘retail boom’, 85% of which has so far been concentrated in the metros is beginning to percolate down to

smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%.

Favorable demographic and psychographic changes relating to India’s consumer class, international exposure, availability of increasing quality retail space, wider availability of products and brand communication are some of the factors that are driving the retail in India. Over the last few years, many international retailers have entered the Indian market on the strength of rising affluence levels of the young Indian population along with the heightened awareness of global brands and international shopping experiences and the increased availability of retail real estate space. Development of India as a sourcing hub shall further make India as an attractive retail opportunity for the global retailers. Retailers like Wal-Mart, GAP, Tesco, JC Penney, H&M, Karstadt-Quelle etc stepping up their sourcing requirements from India and moving from third-party buying offices to establishing their own wholly owned/wholly managed sourcing & buying offices shall further make India as n attractive retail opportunity for the global players.

Organized Retail In India06-05-2008

Purushottam Kumar

The Indian organized retail industry is valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. Retail Market India today is the second fastest growing economy of the world after China. Indian economy will grow larger than Britain's by 2022, Japan by 2032 and by 2050 will become the second largest economy of the world after China. Indian market has become the most lucrative market for retail investment in the world. Some of the factors which have contributed to the growth of organized retail in India are: increase in the purchasing power of Indians, rapid urbanization, increase in the number of working women, large number of working young population.

Today people look for better quality product at cheap rate, better service, better ambience for shopping and better shopping experience. Organized retail promises to provide all these. The Industry The various formats of organized retail are: Hypermarkets: They store products of multiple brands comprising food items and non-food items. Supermarkets: These are self service stores selling food and personal care products. E.g.: Subhiksha. Departmental stores: Retails branded goods in non-food categories. E.g.: Shoppers Stop. Specialty Chains : These stores focuses on a branded product or a product category. E.g.: Bata Convenience stores: These are small self service outlet located in crowded urban area. Malls: A huge enclosures which has different retail formats. e.g.: Nucleus Key players in organised retail are: Pantaloon Retail: It was started by Kishore Biyani- India's largest retailer. The various formats of pantaloon retail are: Pantaloons,

Big Bazaar, Food Bazaar, Central etc. RPG Retail: Its various formats are: Food World, Music World, Health & Glow, Spencer's Tata Retail (known as TRENT): Its various formats are: CromaWestsideStar India Bazaar K Raheja Corp. Group: Shoppers' Stop, Hypercity, Crossword, InOrbit Mall Reliance Retail Job Opportunities: Retail accounts for 8% employment in the country. In the next 2 years the sector is set to provide 2.5 lakh job opportunities.

The types of jobs available in retail are: Retail sales, Store management, Stock management, Supply chain management, warehousing and operations. In organised retail the frontliners like shop floor executives, sales executives etc are in great demand. The frontliners have to directly communicate with the customers. The other jobs are for store managers, store planners, cashiers, stockists, logistics, operations, distribution, marketing, finance, HR, IT etc. Good communication skill, high interpersonal skills, convincing power, positive attitude and ability to handle stress is a prerequisite for these jobs. Fresh graduates who want to make career in retail can easily fill these jobs. Stock planners, Operations, logistics, cashiers have to deal with the numbers daily. Besides having good communication skills they also require numerical and analytical ability.

Bharati retail is planning to invest $2.5bn by 2015 which will create employment opportunity for 60,000 people. Bharti Resources, a learning and development solutions subsidiary of Bharti Group, has tied-up with Global Retail School (GRS) to groom graduates and undergraduates in retail management and other sectors. They will provide 3-month and 6-month certificate courses for Rs 30,000 and Rs 15,000 respectively in Retail Sales and Marketing, Retail Visual Merchandising and Space Planning, Retail Supply Chain Management, for creating frontend manpower professionals. Indeed it is a fact that organised retail in India is all set to grow at an stupendous pace.

Organised Retail in India : The Next Growth Frontier

Only players who can aggressively scale-up operations can target a Rs. 40,000 Cr retailbusiness in India by 2015 says Pankaj GuptaIndia, like Britain, is also a nation of shopkeepers. With over 12 mn retail outlets, Indiahas one of the highest densities of retail outlets in the world with one retail outlet for ~90persons. No wonder India is the ninth largest retail market in the world with annual retailsales of ~USD 215 Bn in 2005. However, the share of organized trade in India iscurrently very low estimated at just Rs. 35,000 Cr. in 2005 (Rs. 28,000 in 2004). Thisaccounts for less than 4% of the total retail trade in the country.Organised Trade: India An Under Developed MarketOrganised trade in India is highly under-developed as compared with other emergingmarkets in Asia, Latin America and Eastern Europe and developed markets like the US.Country% Share of

Rapid income growth : Consumers have greater ability to spend.Increasing Urbanization : Larger urban population which values convenience coupledwith higher propensity of the urban consumer to spendGrowing young population : Growth of post liberalization maturing population with thewillingness to spend (attitude)Tendency to spend now v/s save earlier. Consumers willing to borrow for currentconsumptionOrganised Retail Market in India : Size of OpportunityGoing forward, TSMG projects that in the next 10 years, the overall retail market in Indiais likely to grow at a CAGR of 5.5% (at constant prices) to 1,677,000 Cr in 2015. Theorganized retail market is expected to grow much faster at a CAGR of 21.8% (atconstant prices) to Rs. 246,000 Cr by 2015 thereby constituting ~15% of the overall retailsales. Based on our projections, the top 5 organized retail categories by 2015 would befood, grocery & general merchandise, apparel, durables, food service and homeimprovement.Organised Retail Market in India (Rs. Cr.)Where is the opportunity?Retailers inspired by the Walmart story of growth in small town America are tempted tofocus on smaller towns and villages in India. However, a careful analysis of the townstrata-wise population, population growth, migration trends and consumer spendanalysis reveals a very different picture for India.As per our estimates, the share of the 35 towns with current population greater than 1mn in the overall population of India would grow much faster from 10.2% today to reach14.4% by 2025. Simultaneously, the share of these towns in the overall retail marketwould grow from 21% today to 40% by 2025.Within these top 35 towns, an estimated 70-80% of trade could be in the organizedsector.In summary, the retail market is the next growth frontier for corporate India. It offers anopportunity for a large player to build a Rs. 40,000 Cr retail business spanning multiplecategories by 2015 (at current prices). Compared to this, the revenue of the largestIndian retailer Pantaloon was only Rs 1085 Cr in 2005. No wonder large domesticbusiness houses and international retailers have expressed keen interest to enter theretail sector in India. However, to capitalize on the opportunity, a player needs to beaggressive in its outlook and build scale quickly.

Organized Retail in Rural India

India, like Britain, is also a nation of shopkeepers. With over 12 mn retail outlets, India has one of the highest densities of retail outlets in the world with one retail outlet for ~90 persons. Retailers inspired by the Walmart story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a careful analysis of the town strata-wise population, population growth, migration trends and consumer spend analysis reveals a very different picture for India.

After a long spell of shortages, which shackled consumer buying for decades, retail is becoming India's new mantra. The Sanskrit word "mantra" is not just "hymn" or "slogan"; it embraces aspiration and encompasses new India's way of life. While the retailing industry itself has been present through history in our country, it is only the recent past that has witnessed so much dynamism.

We have entered the 21st century at a time when the demography of our population is changing significantly to drive organized retail growth. India now has a large young working population with a median age of 24. The number of nuclear families in urban areas is growing fast. Then there is the increase in working women population. Add to these the emerging opportunities in the service sector. Lifestyle habits are shifting from austerity to complete self-indulgence and Indians are now unapologetic about spending lavishly on non-essential goods such as luxury watches, cars, and hi-tech products.

India can be said to have entered the second phase of retail growth when there is high-speed growth.

There are retail chains like Tata's Westside, Pantaloon's Big Bazaar and Rahejas' Shoppers' Stop, to name a few, along with global players such as McDonald's and Benetton, trying to tap country's vast potential. Bringing all these under one roof are mega malls such as Lifestyle, Fun Republic and Big Bazaar. Now, top names in international malls such as Marks and Spencer and Mango are also eying the Indian market. It is only later that the retailing scene will move to the other phases when the fruits of rapid growth will result in economies of scale and greater efficiency leading finally to consolidation through mergers and acquisitions. Thus, retailing in India has a very long haul ahead.

RESEARCH METHODOLOGY

MEANING OF RESEARCH

Research refers to a search for knowledge. It can also be defined as a scientific and systematic search for relevant information on a topic. Intact it is an art of scientific investigation. Research methodology is prepared to describe not only the research procedure and method adopted for the achievement of the project but also the logic behind the use of this method so that the result can be capable of being evaluated by the others; its main aim is keep the research on the right track. It includes research design, sampling procedure, and method of data collection and analysis procedure pertaining to the act.

SURVEY METHOD:

The Survey Method was selected to obtain the needed information by asking the questions to the respondents through the Questionnaire developed, and passed by Prof Incharge Aman preet Singh Brar. As per Prof Incharge this method was the suitable for the Project. Surveys are generally conducted both in qualitative and quantitative researches. After decision about the sampling, the questionnaire was designed and the respondents were contacted to answer the questions. This process of getting answers is known as interviewing. Two significant factors affects the effectiveness of a survey method is:

1. Wording of questionnaire (It must be such that it extract desired information accurately and unbiased.)

2. Ability and willingness of the respondent to give accurate and unbiased information.

SOURCE OF DATA COLLECTION 

Data or information is important tool for success of the study; moreover it reduces uncertainty in decision-making process. In order to make meaningful research a suitable methodology has been adopted. Both primary and secondary sources have been used in order to collect vital information about the respective study. 

PRIMARY SOURCE

Maximum data collected in this study is primary data, which is collected through survey

through Questionnaire.

 

SECONDARY SOURCE

In this study the secondary data is collected through Internet sites, Book, Journals, Newspaper. 

SAMPLING TECHNIQUE

A sample of 100 respondents was chosen based on Random Sampling Technique.

 

RANDOM SAMPLING TECHNIQUE

In this sampling technique each and every unit of the universe has the same chance of being included in the sample. The selection of the units depends upon the element of chance and it is not affected by the investigator's bias. A sample is considered a simple random one of its members are drawn in such a way that each observation of the universe has an equal chance of being included in the sample and every possible combination of observations in the universe is the same chance of being included. 

QUESTIONNAIRE

A questionnaire is a set of questions relating to the enquiry. I have used the structured type of questionnaire in which I have used one type of questions: CLOSE ENDED QUESTION

 

In this type of questions there are limited choices to respondent. The respondents have to

Choose the answer from the choices given.

 ANALYSIS OF DATA

  The analysis of the data through light on the different aspects of the survey work. For the analysis worktables are used to describe the response to the various questions asked to the individuals during survey. The number of responses to a given question is shown in it. Based on these tables, bar charts and graphs are made for the ease of understanding and to make things more clear.

MARKETING RESEARCH

Marketing research is the systematic design, collection, analysis a reporting of data and

findings relevant to a specific marketing situation facing the company.

Marketing research process

Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Present the findings in Report

Make decisions

ANALYSIS AND INTERPRETATION

1. What is your family income rupee in lakhs? (Per annum)

Family Income

15%

31%

12%

42%0.5 to1

1 to 2

2 to 3

3 and more

Interpretation:-

In Ludhiana city majority of people who goes to retail outlets are belong to the categories of Rs.3 lakhs and more. These people in percentage are 42%.

Second highest income group is comes under the category of Rs.1 to 2 lakhs.

Third highest income group is comes under the category of Rs. .5 to 1 lakhs.

Forth highest income group is comes under the category of Rs. 2 to 3 lakhs.

2. How much income you spend on Retail outlets?

37

26

1316

8

00

10

20

30

40

No. of respondents

Percentage of income

Part of income spend on retail outlets

no.of respondents 37 26 13 16 8 0

10% to 15% to 20% to 25% to 50% to 75%

Interpretation:-

In ludhiana city 37% people spend, 10% to 15% of their Income on retail outlets.

26% people spend, 15 to 20% of their income on retail outlets.

13% people spend, 20% to 25% of their income on retail outlets.

16% people spend, 25% to 50% of their income on retail outlets and so on…….

3 . Are you aware about the Retail outlets in your city

yes93%

no7%

yes

no

Interpretation:-

In the Ludhiana city the people who goes to retail outlets aware the concept about the retail outlets.

According to research 93% people are aware about the retail.

4. Have you ever visited in any of these Retail outlets?

Visit in Retail Outlets

77

37

67

24

8063

0102030405060708090

Name of retail outlets

No

. o

f re

sp

on

de

nts

Series1

Interpretation:-

According to the survey majority of people are aware about the concept of Retail outlets.

Most of the people have visited in different Retail outlets people says they are know about all the retail outlets like Vishal Mega Mart, Ebony, Ansal Plaza, Elite’s Arcade, Subhiksha. But 80 people say they have visited the Vishal Mega Mart, 63 people say they have visited to Ebony, 77 people says they have visited Ansal Plaza and so on………….

5. Do you prefer to buy from Retail outlets?

Preference Of customer

79%

21%

yes

no

Interpretation:-

Different people have different perception about the retail but the people who go to retail outlets in between 79% people are like prefer to purchase from the retail outlets.

Remaining 21% people goes to retail outlets to see the new trends, for entertainments.

6. How frequently you visit there?

How Frequently customer visit In Retail Outlets

5%

19%

15%

31%

7%

23%

Daily

Once a week

Twice a week

Once a month

Twice a month

More than that

Interpretation:-

Most of people like to go for Retail outlets once in the month and these people like to go on generally on Sunday or holidays. Percentages of these people are 31%.

Then the people like twice a month the Percentages of these people are 23%.

19% people goes to retail outlets once a week, 15% people goes to retail outlets twice a week and so……..

7. From where you make the regular purchase?

Interpretation:-

S1

Wholesaler 32

Retail Outlets 67

Company Outlets 37

Any others 41

Customer Regular Purchase

No of user

Series1 32 67 37 41

WholesalerRetail outlets

Company outlets

Any others

According to research study 67% people says they like to purchase from retail outlets regularly and 37% people prefer to purchase from company outlets, 32% from wholesaler and 41% people prefer to purchase from small retail shops.

8. Do you think that by purchasing from Retail outlets reduce duplicacy?

Reduction of duplication

11

43

26

15

5

0

10

20

30

40

50

Factors

No

.of

res

po

nd

en

ts

Series1

Series1 11 43 26 15 5

Strongly Agree

AgreeNeither

Agree Nor Disagree

Strongly DisAgree

Interpretation:-

According to research, People rate factors on the matter of reduction in Duplicacy, the factors which are strongly agree, agree, neither agree nor disagree,

disagree, strongly disagree in which 43% people are agree, 26% are neither agree nor disagree, 15% people are disagree and 11% people are strongly agree.

9. What do you like the most about the Retail outlets?(Please give the rank from 1 to 8)

Preference.

Weitage

Factor’s

Ist

8

IInd

7

IIIrd

6

IVth

5

Vth

4

VIth

3

VIIth

2

VIIIth

1

Total Mean Rank

Latest Trend 28 16 16 8 16 8 8 0 576 5.76 IInd

Branded product 12 40 12 12 8 16 0 0 588 5.88 Ist

Quality Product 24 12 24 0 12 12 12 4 532 5.32 IIIrd

Infrastructure 20 4 4 24 16 16 12 4 472 4.72 IVth

Services 0 8 16 12 20 16 8 20 376 3.76 VIth

Window

Shopping

8 4 16 8 4 4 16 40 328 3.28 VIIIth

Family

Shopping

4 0 4 16 20 12 36 8 332 3.32 VIIth

Time Saving 4 16 8 20 4 16 8 24 396 3.96 Vth

Mean:- ∑ Total number of respondents / Sample size. Interpretation:-

According to survey about what people like most about the retail outlets. I have asked the people to give the rank according to their liking about the Retail.

In statement I included Eight factors which are Latest trend, Branded product, Quality product, Infrastructure, Services, Window shopping, Family shopping and Time saving.

According to the survey the respondents given first preference to the Branded product as compare to the Quality product, Infrastructure, Services, Window shopping, Family shopping and Time saving and given second preference to the Latest trend as compare to the Quality product, Infrastructure, Services, Window shopping, Family shopping and Time saving. I have given the higher rating to the first preference rating as 8 and second preference as 7 and third preference as 6 and so on…. Then I have multiplied these rating to their preference and got total rating. Then I have divide the Total by the total number of respondents (100) and I got the mean value and then given the rank. I gave the first rank to the Branded

product which is having highest mean value and second rank to the Latest Trend and third rank to the Quality product and so on…………..

10. What do you think about the pricing of Retail outlets?

Pricing of retail outlets

5

17

42

26

10

0

10

20

30

40

50

Factors

No

.of

res

po

nd

en

ts

Series1

Series1 5 17 42 26 10

Very poor Poor Average Good Very good

Interpretation:-

According to research, thinking of People about the pricing of retail outlets, the factors very poor, poor, average, good, very good in which 42% people have average, 26% have a good ,10% people have very good, 17% people have poor and 5% people says very poor.

11. Are you satisfied with the services provided by them?

Satisfaction level

19

51

1611

3

0

10

20

30

40

50

60

Factors

No

. of

resp

on

den

ts

Series1

Series1 19 51 16 11 3

Highly satisfied Neither Dissatisfie Highly

Interpretation:-

According to research, People rate their satisfaction level with the factors which are Highly satisfied, Satisfied, Neither satisfied nor dissatisfied, Dissatisfied, highly dissatisfied in which 51% people are Satisfied the service provided by the retail outlets, 19% people are saying they are highly satisfied with the service,16%people are neither satisfied nor dissatisfied, 11% people are dissatisfied the service and 3% people are highly dissatisfied the service.

12. Which factor do you most consider while purchasing the domestic needs? (Please give the rank from 1 to 7)

Preference.

Weitage

Factor’s

Ist

7

IInd

6

IIIrd

5

IVth

4

Vth

3

VIth

2

VIIth

1

Total Mean Rank

Convenience 8 20 24 32 8 4 4 468 4.68 Ist

Location 8 16 20 20 24 12 0 428 4.28 IVth

Discount And Sale 12 12 12 8 24 24 8 376 3.76 VIth

Credit Option 0 8 8 8 16 16 44 244 2.44 VIIth

Product

Availability

12 24 12 28 0 20 4 444 4.44 IIIrd

Branded Product 36 8 16 0 16 8 16 460 4.60 IInd

More reasonable

price

24 12 8 4 12 16 24 388 3.88 Vth

Mean:- ∑ Total number of respondents / Sample size.

Interpretation:-

In the Question I have try to cover all the factors which generally people consider while purchase the domestic needs.

In statement I included seven factors which are Convenience, Location, Discount And Sale, Credit Option, Product Availability, Branded product and More reasonable Price.

According to the survey the respondents given first preference at the time of

purchasing domestic needs to the Convenience as compare to the Location,

Discount And Sale, Credit Option, Product Availability, Branded product and

More reasonable Price and given second preference to the Branded Product as

compare to the Location, Discount And Sale, Credit Option, Product Availability

and More reasonable Price..

13. Future of Retail outlets in Jaipur is bright?

Interpretation:-

People of jaipur says the future of Retail outlets is bright in jaipur they excited to know that their are other big industry house are entered in retail business very shortly like reliance is coming in retail segment with the name of “Reliance Fresh”, Tata, Bharti are yet to come. Bharti is coming in retail segment with the tie up world largest Retail Company Wallmart, pantaloon,Bigbazaar.

Future of retail outlets

0

10

20

30

40

50

60

Factors

No

. of

resp

on

de

nts

Series1

Series1 58 22 10 7 3

Strongly Agree Neither Disagree Strongly

According to research, the factors strongly agree, agree, neither agree nor disagree, disagree, strongly disagree, in which 58% people are agree, 22% are Strongly agree ,10% people are neither agree nor disagree, 7% people are disagree and 3% people are strongly disagree regarding the future of retail outlets.

CONCLUSION

The name of the project “Changing face of retail and its implication on consumer behaviour”. I did my research study in Ludhiana city and people who are visit to Retail outlets and having the knowledge about retail outlets are included in sample and the sample size is100 deliberately taken by me.

I selected the people randomly and its include all age group which goes to retail outlets in this research study I included all the age group to reduce the biasness.

I conclude that people like to visit the retail outlets most probably at the end of weekend and holidays. A person who regularly goes to retail outlets is generally purchase from retail outlets and most of the people are agree that purchasing from retail outlets reduce duplicacy.

Retail outlets provide better price for quality product.

According to the survey the response of the people regarding service that retail outlets provide average quality services.

People like to purchase the branded product and these retail outlets provide the different branded product according to the requirement of customers.

Most of the people like to purchase their domestic needs according to there convenience.

LIMITATION

Although I have made my best efforts to get as accurate data as possible but even then the

data used in this report is subjected to some limitations and these limitations.

USE OF MAGAZINES AND ANNUAL REPORTS:

The various publications magazines have been used to get the information but

sometimes the information that is presented may be inadequate.

INADEQUATE KNOWLEDGE:

Customers don’t have sufficient knowledge about the services provided by retail

outlets so that they may give wrong information also

CHANCES OF HUMAN ERROR

Some respondents have not given the proper answers, they are not aware of the

objectives undertaken for research purposes.

TIME CONSTRAINT

Time has also affected the research due to less availability of number of days; sur

vey was conducted in few days.

LACK OF CO-OPERATION OF SOME RESPONDENTS

Some Respondents do not properly Cooperated for giving answers the basic

reason they are giving for non cooperation was non-availability of time.

“Changing face of retail and its implication on consumer behaviour”.

QUESTIONNAIRE

NAME ______________________________

ADDRESS ______________________________ ______________________________

1. What is your family income rupee in lakhs? (Per annum)

0.5 to 1 ( ) 1 to 2 ( )2 to 3 ( ) 3 and more ( )

2. How much income you spend on Retail outlets?

10% to 15% ( ) 15% to 20% ( ) 20% to 25% ( ) 25% to 50% ( ) 50% to 75% ( ) 75% and above ( )

3. Are you aware about the Retail outlets in your city? Yes ( ) No ( )

4. Have you ever visited in any of these Retail outlets?

Vishal Mega Mart ( ) Ebony ( ) Ansal plaza ( ) Elite’s Arcade ( ) Subhiksha ( ) Others ____________________

5. Do you prefer to buy from Retail outlets?

Yes ( ) No ( )

6. How frequently you visit there?

Daily ( ) Once a week ( ) Twice a week ( ) Once a month ( ) Twice a Month ( ) More than that ( )

7. From where you make the regular purchase? Wholesaler ( ) Retail outlets ( ) Company outlets ( ) Any others __________________

8. Do you think that by purchasing from Retail outlets reduce duplicacy?

Strongly agree ( ) Agree ( ) Neither agree nor disagree ( )Disagree ( ) Strongly disagree ( )

9. What do you like the most about the Retail outlets?(Please give the rank from 1 to 8)

Latest trend ( ) Branded product ( ) Quality product ( ) Infrastructure ( ) Services ( ) Window shopping ( )Family shopping ( ) Time saving ( )

10. What do you think about the pricing of Retail outlets?

Very poor ( ) Poor ( ) Average ( )Good ( ) very Good ( )

11. Are you satisfied with the services provided by Retail outlets?

Strongly agree ( ) Agree ( ) Neither agree nor disagree ( )Disagree ( ) Strongly disagree ( )

12. Which factor do you most consider while purchasing the domestic needs? (Please give the rank from 1 to 7)

Convenience ( ) Location ( ) Discount & Sale ( )Credit Option ( ) Product availability ( ) Branded product ( )More reasonable price ( )

13. Future of Retail outlets in Ludhiana is bright?Strongly agree ( ) Agree ( ) Neither agree nor disagree ( )Disagree ( ) Strongly disagree ( )

BIBLIOGRAPHY

Institute of Productivity and Management. January- June 2005, Journal of IPM Meerut, volume 5, number 1

Indian Journal of Marketing. May 2006, Volume XXXVI, number 5

David J. Luck, Ronald S. Rubin 2001, Marketing Research, new Delhi, Prentice Hall of India Pvt. Ltd.