AMITY

UNIVERSITY
GROWTH OF INDIAN RETAIL SECTOR &CONSUMER PERCEPTION-AN INSIGHT
This Dissertation work completed in partial fulfillment of the requirements for the Post Graduation Degree in Marketing and International Business

FACULTY GUIDE: Dr. MEGHNA SHARMA

PRESENTED BY: MEGHA RAKHEGA MBA IB (EVE)

AMITY INTERNATIONAL BUSINESS SCHOOL

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ACKNOWLEDGEMENT

The journey of thousand miles begins with a single step. This dissertation project is my first step towards practical knowledge. There is always a sense of gratitude, which is expressed to others for the support they render during all phases of life. I really wish to express my gratitude towards all those who have guided and been helpful during my dissertation project.

I would also like to express my sincere gratitude to my dissertation supervisor Dr MEGHNA SHARMA, for her continuous support and guidance for this project without which this research would not have been possible. Her advice and support made all the difference to my work and gave it the form it has

MEGHA RAKHEGA MBA IB ( EVE

DECLARATION

I hereby declare that the Research titled Growth of Indian Retail Sector & Consumer Perception An Insight is the result of individual efforts and has been completed under the guidance of Ms. MEGHNA SHARMA (Faculty),

The finding and interpretation in the report are based on the data collected by me and the report is not a reproduction of any other project submitted for similar purposes.

TABLE OF CONTENT 1. Executive Summary 2. Introduction 3. Research methodology 4. Critical review of literature 5. Issue related to FDI in India 6. Technology used in retail 7.Promotional measures in retail 8. Branded FMCG 9.Challenges before retail sector in India 10. Recommendation & Suggestion 11. Finding & Analysis 12. Conclusion 13. Bibliography 14. References 15. Questionnaire

CHAPTER- 1 EXECUTIVE SUMMARY The retail sector in India is most growing sector. In India many large player comes in this sector some of them are Reliance ,Wall mart, Tata etc. It comes possible due to foreign direct investment(FDI). The year 2006 marked the beginning of the 'retail revolution' through the entry of big names such as Reliance with the announcement of huge investments. But what really grabbed attention was Bharti Group's announcement of its tieup with the world's largest retail chain, Wal-Mart. The most recent noteworthy development was the announcement of the Bharti-Wal-Mart joint venture. This deal is likely to reinforce confidence levels and will be viewed as a positive move by foreign retailers. In fact, it is likely to propel retailers to move faster into India. The entry of Wal-Mart could result in more structured deals within a regulatory framework of the Government's policy. International retailers know they cannot afford to not have operations in India. They are viewing the market with much interest and with the current regulatory framework, have put strategies on hold," said Mr N. V. Sivakumar, Leader - Retail and Consumer Practice, PricewaterhouseCoopers. The objective of the study is to understand the retail industry of India as a whole and see the industry in the perspective of emerging Indian Economy. Moreover the study aims at understanding the opportunities for various firms in this fast growing sector of India.

The study will focus on the growth of retail industry particularly in the fast growing economy of India. It will further put light on the changing dressing, eating, spending habit of Indian consumers, which has brought shopping mall culture in the country. Moreover it will focus on the growing opportunities for domestic companies as well as for foreign companies. Analysts expects the Indian retail growth process to take a decade since there is a large population of one billion that needs to be slowly reached and this population is spread across six hundred thousand villages. The large urban population of India is about three hundred million and spread across about a couple of hundred large cities and smaller towns. Organized retail is expected to home in on this proportion first in the next five to ten years. At present most of the large retail activity and brand building is focussed on about twenty Indian cities, each of which has a population of one million.

CHAPTER -2 INTRODUCTION

INTRODUCTION
OBJECTIVE OF THE RESEARCH:

The objective of the study is to understand the retail industry of India as a whole and see the industry in the perspective of emerging Indian Economy. Moreover the study aims at understanding the opportunities for various firms in this fast growing sector of India and we also examine that what are the perception of consumers regarded to this Industry.

SCOPE OF THE STUDY:

The study will focus on the growth of retail industry particularly in the fast growing economy of India. It will further put light on the consumer perception & their changing dressing, eating, spending habit of Indian consumers, which has brought shopping mall culture in the country. Moreover it will focus on the growing opportunities for domestic companies as well as for foreign companies.

CHAPTER-3
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question.

R e se a rc h P ro je c t S te p s

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INTRODUCTION

This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings, which are also dealt with and lead to a logical deduction towards the analysis and results. RESEARCH DESIGN

I propose to first conduct a intensive secondary research to understand the full impact and implication of the retail industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are :

Defining the information need. Design the exploratory, descriptive and causal research. Follow each step one by one and conclude the research.

RESEARCH PROCESS The research process has four distinct yet interrelated steps for research analysis It has a logical and hierarchical ordering: Determination of information research problem. D evelopment of appropriate research design. Execution of research design. 11

 C ommunication of results. Each step is viewed as a separate process that includes a combination of task , step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing.

EXPLORATORY RESEARCH The data I used for exploratory research was Primary Data Secondary data

PRIMARY DATA New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. Primary data is basically collected by getting questionnaire filled by the respondents.

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SECONDARY DATA Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. Data that have already been collected and published for another research project (other than the one at hand). There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation. Data that have already been collected for some purpose other than the current study. Researching information which has already been published. Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company or the U.S. government. Published, already available data that comes from preexisting sets of information, like medical records, vital statistics, prior research studies and archival data. DATA COLLECTION Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personally administered.

The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the

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people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the consumer durable products etc. The data was collected by interacting with 108 respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of house wives, students, business men, professionals etc. the required information was collected by directly interacting with these respondents.

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE TARGET POPULATION It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclusions about. In an ideal situation, the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling

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SAMPLE SIZE I have targeted 108 people in the age group above 18 years for the purpose of the research. The sample size is influenced by the target population. The target population represents the Noida regions.The people were from different professional backgrounds. SAMPLING TECHNIQUE Simple random sampling technique has been used to select the sample. In this sampling technique we select the respondents randomly.

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CHAPTER-4
CRITICAL REVIEW OF THE LITERATURE

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CRITICAL REVIEW OF THE LITERATURE

RETAIL SECTOR: AN INTRODUCTION SIZE India is one of the ten largest retail markets in the world Retail sales were $206 billion in 2007, over 28% of GDP Organised Retail constitutes only 4.5% of total retail sales - about $6.4 billion p.a. However organised retail has been growing at over 24% p.a in the last 5 years STRUCTURE The Indian Retail sector is highly fragmented: mostly owner-run Mom and Pop outlets .Over 12 million retail outlets Average outlet size < 500 sq.ft There are a few medium sized Indian retail chains like Pantaloon, Shoppers Stop, Foodworld (RPG Group) and Westside (Tata Group) - all growing rapidly Mainly in the apparel and food & grocery segments Dairy Farm, Metro, Shoprite and Marks & Spencer are the only major international retail chains in India: Each has a marginal presence through either franchisee or wholesale formats

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POLICY 100% FDI is allowed in Cash and Carry Wholesale formats. Franchisee arrangements are also permitted in retail trade. FDI upto 51% is permissible in the retail trade of single brand products Top Players in the Retail Industry Players Pantaloon Retail RPG Retail Shoppers Stop Lifestyle International Viveks Ltd. Trent (Tata) OUTLOOK The overall retail market is expected to grow three-fold in the next 10 years from $206 billion today to about $660 billion by 2015 India is expected to be among the top 5 retail markets in the world in 10 years Organised retail is expected to grow rapidly to reach $100 billion by 2015 Likely to account for 12-15% of total retail sales by 2015 POTENTIAL The high growth projected in domestic retail demand will be fuelled by The migration of population to higher income segments with increasing per Revenue Space s 150 135 100 53 46 38 1,000,000 590,000 740,000 325,000 150,000 270,000 Format F&G, Specialty F&G, Specialty Specialty Retail Specialty Retail Consumer Durables F&G, Specialty

Note: Revenues in ($ million ), Space: Sq. ft.

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capita incomes An increase in urbanization Changing consumer attitudes especially the increasing use of credit cards The growth of the population in the 20 to 49 years age band There is retail opportunity in most product categories and for all types of formats Food and Grocery: The largest category; largely unorganized today Home Improvement and Consumer Durables: Over 20% p.a. CAGR estimated in the next 10 years Apparel and Eating Out: 13% p.a. CAGR projected over 10 years Opportunities for investment in supply chain infrastructure: Cold chain and logistics India also has significant potential to emerge as a sourcing base for a wide variety of goods for international retail companies Many international retailers including Wal-Mart, GAP, JC Penney etc. are already procuring from India

RETAIL SECTOR : IN 2007

Indian retailing industry has seen phenomenal growth in the last five years (2001-2006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian 19

retail sector. RNCOS India Retail Sector Analysis (2006-2007) report helps clients to analyze the opportunities and factors critical to the success of retail industry in India. Key Findings - Organized retail will form 10% of total retailing by the end of this decade (2010). - From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53% per annum. - Cultural and regional differences in India are the biggest challenges in front of retailers. This factor deters the retailers in India from adopting a single retail format. - Hypermarket is emerging as the most favorable format for the time being in India. - The arrival of multinationals will further push the growth of hypermarket format, as it is the best way to compete with unorganized retailing in India. India represents an economic opportunity on a massive scale, both as a global base and as a domestic market. Indian Retail sector consists of small familyowned stores, located in residential areas, with a shop floor of less than 500 square feet. At present the organized sector accounts for only 2 to 4% of the total market although this is expected to rise by 20 to 25% on YOY basis. Retail growth in the coming five years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing consumer credit will also help in boosting consumer demand. The structure of retailing will also develop rapidly. Shopping malls are becoming increasingly common in large cities, and announced development plans project

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at least 150 new shopping malls by 2008. The number of department stores is growing much faster than overall retail, at an annual 24%. Supermarkets have been taking an increasing share of general food and grocery trade over the last two decades. However, Distribution continues to improve, but it still remains a major inefficiency. Poor quality of infrastructure, coupled with poor quality of the distribution sector, results in logistics costs that are very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high level. Distribution and marketing is a huge cost in Indian consumer markets. Its a lot easier to cut manufacturing costs than it is to cut distribution and marketing costs. Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in recent years, while retailing currently remains closed to FDI. However, the Indian government has indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It has allowed 51% FDI in single brand retail. The next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that will not be for long. Indian companies know Indian markets better, but foreign players will come in and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming struggle.

RETAIL VALUE PROPOSITIONS: The value proposition that retail offers to a consumer is easy availability of the desired product in the desired size at the desired time.

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RETAILING IN INDIA KEY POINTS: Total Consumer Spend in the Year 06-07 - INR 9800 billion (USD 375 billion) growing over 5.5% annually Retail sales - 58% at INR 280 billion (USD 205 billion) Organised Retail - Only 4% but growing at 8.5% Organised retail to cross INR 1000 billion mark by 2010.

TRENDS AFFECTING INDIAN RETAIL INDUSTRY: Changing age profile & Disintegration of joint family: India is believed to have an average age of 24 years for its population as against 36 years for the USA and 30 years for China. A younger population tends to have higher aspirations and spends more as it enters the earning phase. Growing disposable income: More Indian households are getting added to the consuming class with the growth in income levels. Also, with declining interest rates, the aversion of domestic consumers to taking loans is also fast disappearing. Globalization: Growing media penetration is leading to a convergence of aspirations of various classes of consumers, bridging the rural-urban divide. The modern consumer cannot be satisfied by any product or service that is lesser in quality than the best offered in any other place on the globe. 22

Till 1980s, India knew only kirana stores. Things started to change slowly after that, with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim opening their company owned outlets. Later on, Titan, maker of premium watches, successfully created an organized retailing concept in India by establishing a series of elegant showrooms.

ORGANIZED RETAILING:
Only 4 per cent of the retail trade in India belonged to organised retail. It covered items such as apparel, grocery, music, electronics, automobiles and financial services. This is inconsequential compared to 20 per cent in China, 40 per cent in Thailand and 80 per cent in the United States. The emergence of organised retail in India is, moreover, so far restricted to the top 15 cities. The strength of organised retailing lies in the ability to source directly from the manufacturers due to increased bargaining power achieved through large-scale operation. Organised retail chains can get bulk discounts on large purchases and reduce cost by eliminating middlemen and by reducing the supply chain. However, the potential benefits of lower prices is not evident in the early stages because modern retailing tends to concentrate on the upper segment of the market where consumers are willing to pay higher prices for convenience and a superior shopping environment. Organised retailing is often run on the principle of franchising. The franchiser allows a local businessman, a franchisee, to set up a retail outlet using its name and methods as a joint venture on a 50:50 paid up capital basis. The franchiser

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also provides training, equipment, quality control and national advertising. In exchange, it receives fees and a share of profits. Organised retailing, moreover, has multiple formats like discounters, hypermarkets, convenience stores, and small outlets and warehouse clubs. The special advantages of organised retailing is:

Enhancing quality through skilled processing, grading and delivery of goods.

Lower price through better expertise in managing back-end activities such as sourcing and inventory management as well as the ability to strengthen the front-end functions of merchandising, promotions and customer services.

Creating a level playing field for small and medium enterprises vis--vis the large manufacturers.

Higher productivity per worker and better job opportunities.

The growth of organised retailing is thus expected to lead to value migration from wholesale trade to retail trade. Total Retail (in billion INR) Organized Retail (in billion INR) % Share of Organized Retail 1999 7000 50 0.70% 2002 8250 150 1.80% 2007 11000 450 4.5%

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.

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 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.

RETAIL FORMAT:
Broadly, the organized retail sector can be divided into 2 segments:

In-store Retailers: Operate through fixed point of sale outlets located and designed to attract a high volume of walk-in customers. Also referred to as brick-and mortar format.

Non-store Retailers: Reach out to the customers at their homes or offices through direct selling, tale marketing and e-commerce.

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Major formats of In-store retailers have been listed in Table below: FORMAT Branded Stores DESCRIPTION Exclusive showrooms either owned or franchised out by a manufacturer. Specialty Stores (Multi- Focus on a specific Brand) consumer need, carry most of the brands Department Stores available Large stores having a wide variety of products, organized into different departments, such as clothing, house wares, toys, etc. Supermarkets Extremely large selfservices retail outlets. Discount Stores Stores offering discounts on the retail price through selling high volumes and reaping the economies of scale. One stop shop catering to varied consumer needs. Low prices VALUE PROPOSITION Complete range available for a given brand, Certified product quality Greater choice to the consumer, comparison between brands possible. One stop shop catering to varied consumer needs, service as differentiator.

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Hyper-mart

Convenience Stores Shopping Malls

Larger than a Supermarket, sometimes with a warehouse appearance, generally located in quieter parts of city Small self-service formats located in crowded urban areas. An enclosure having different formats of instore retailers all under one roof

Low prices, vast choice available including services as cafeterias.

Convenient location and extended operating hours. Variety of shops available close to each other.

Of the Top-200 Global Retailers, 21% of retailers fall in the specialty stores category, followed by 18% in supermarket, 12% in department and 9% each in hypermarket and discount stores. RETAIL FORMATS IN INDIA: Indian retail formats can be classified into two distinct categories: (1) Traditional (2) Modern Traditional Formats include: Kiranas: Traditional Mom and Pop Stores Street Markets Kiosks Exclusive / Multiple Brand Outlets

Modern Formats include: -

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Supermarkets such as Food world Hypermarkets such as Big Bazaar, Giant, Shop rite, Star Company Owned / Operated such as Bata, Sony Department stores such as Shoppers stop, Lifestyle, Pantaloons, Pyramids, Trent

INDIAN RETAIL ESTATE BY 2007 :

From 95 currently operational shopping centres with approximately 22million sq.ft space, India to have over 375 shopping centres/ Malls covering over 90 million sq.ft quality retail space by 2007 end

50 hypermarkets, 305 large department stores, 1500 supermarkets and over 10,000 new outlets under construction

Additional Retail space to add INR 300 billion of business to organised retail.

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CHAPTER - 5
ISSUES RELATED TO FDI IN RETAIL IN INDIA

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ISSUES RELATED TO FDI IN RETAIL IN INDIA

Traditionally, the retailing sector in India has been characterised by the presence of a large number of small, unorganised retailers, popularly referred to as mom-and-pop shops or kirana stores. The unorganised sector still dominates the retail sector, with the organised sector accounting for only 3%. Retailing is one of the few sectors where foreign direct investment (FDI) is not allowed. But India is emerging as an attractive destination for FDI in retailing, evoking considerable protest from trading associations and other stakeholders. The government announced a partial opening of the sector by announcing 51% FDI in single-brand retailing last week. Closer Look at some of the issues related to FDI in retailing. Was the retailing sector never opened to FDI? Prior to 1997, there were no regulations restricting the entry of foreign players. Nanz and Spencers are two major companies who were granted permission to sell products directly to customers. In 1997, it was decided that FDI would not be allowed for mere trading as it would lead to the outflow of foreign exchange, drive out the unorganized retailers from business and increase unemployment.

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Do other countries allow FDI in retailing?

India is one of the few countries where FDI is not allowed in retailing. Almost all major developed and developing countries have allowed it. Some have imposed restrictions such as minimum capital requirements, sourcing conditions, investment in supply chain, etc, while others have opened the sector in a phased manner to allow domestic retailers to adjust to the changes. Will opening the sector result in loss of jobs? Its an aspect thats been greatly debated. Theres a view that modern trade will unleash opportunities such as non-agricultural employment and better quality of living for the existing agricultural society. Others say that by reducing the number of intermediaries, middlemen etc, organised retailing will lead to some job displacement. But this, they insist, will be compensated for by creation of jobs in allied sectors such as the food processing industries. Currently, the retail industry is the second largest employer, after agriculture, and it is estimated that the sector has the potential to create eight million jobs.

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Will FDI in retail adversely impact kirana stores?

At present, mom-and-pop stores cater to 97% of the total market. They have unique advantages, like indigenous processes, skills in retaining customers, proximity, convenience and services. However, global retailers investing in new markets have not hampered local retailers. In China, Carrefour, the largest foreign retailer, has 68 hypermarkets and Wal-Mart 47. Despite this, domestic competitors hold more than 90% of the market. In India, of the 12 million retail outlets, only about 3.5 million are in urban areas, where organised retail is likely to be restricted to. So only about 3% (about one lakh) of the outlets in the midmarket range would be potentially affected. Has FDI restriction acted as an entry barrier? Not really. Many foreign players have entered the Indian market through different routes. But the restriction has resulted in an uncertain regulatory environment and prevented business expansion of both domestic organised retailers and foreign retailers. What are the other routes of entry? Foreign players can enter the Indian trading sector through routes like manufacturing and local sourcing; franchising; test- marketing; wholesale cashand-carry; distribution and through special permission. Franchising is the most preferred mode through which foreign players have entered the Indian market. Fast-food chains like Pizza Hut, McDonalds and brands such as Lacoste, 32

Mango, Nike etc ,have entered the Indian market through this route. Similarly, companies such as Swarovski and Hugo Boss have set up distribution offices in India and these offices supply products, which the company imports to local Indian retailers. In the case of test-marketing, FIPB allows foreign companies to test-market products for a two-year period. Direct selling companies like Amway and Oriflame entered the Indian market through this route.

What is single-brand retailing?

While the finer guidelines as to what constitutes single-brand retailing are yet to come, its likely that under this route, retailers would deal with a single brand catering to a select clientele. Though such a classification does not exist anywhere in the world, in India such a decision was taken as a first step towards opening up the sector and also to probably allay the apprehensions of those who have been opposing FDI in retail.

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CHAPTER-6
TECHNOLOGY USED IN RETAIL

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Technology Used in Retail

Over the years as the consumer demand increased and the retailers geared up to meet this increase, technology evolved rapidly to support this growth. The hardware and software tools that have now become almost essential for retailing can be into 3 broad categories. Customer Interfacing Systems Bar Coding and Scanners Point of sale systems use scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. In a matter of seconds, the items in the cart are hit with laser beams and scanned. All that the consumer has to do is to pay for the goods. Payment Payment through credit cards has become quite widespread and this enables a fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. Rather than manually process a cheque, the retailer voids it and hands it back to the consumer along with a receipt, having digitally captured and stored the image of the cheque, which makes the process very fast. 35

Internet Internet is also rapidly evolving as a customer interface, removing the need of a consumer physically visiting the store.

Operation Support Systems ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better. CRM Systems The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. This, along with the various available CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses.

Advanced Planning and Scheduling Systems

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APS systems can provide improved control across the supply chain, all the way from raw material suppliers right through to the retail shelf. These APS packages complement existing (but often limited) ERP packages. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. Leading manufactures, distributors and retailers and considering APS packages such as those from i2, Manugistics, Bann, MerciaLincs and Stirling-Douglas.

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CHAPTER - 7
PROMOTIONAL MEASURES IN RETAIL SECTOR AND ITS EFFECTS

Promotional Measures In Retail Sector And Its Effects

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As competition heats up in Indian retail, major retailers are attracting more customers through quirky "event packages"/attractions or price promotions. Customers are encouraged to celebrate a special occasion with a celebrity as well as to spend money in the stores. It comprises specifications for a marketing operation that is limited in time and that is meant to draw increased attention to the enterprise (the retail outlet or the retail chain) in its sales market or the influencing trading area. As a rule, it has a sales-promoting effect.

Setting objectives The launch of promotional activity for a store requires creative handling of one of the above ways of handling retail promotions. The most important factor to be considered for retail promotion is the objective for promotion. If Food World advertises that it has got the IR 8/20 rice at one of the lowest prices in the town, the objective is to use the destination category of the retail grocery store to attract greater store traffic. Promotions that increase footfalls and therefore improve store traffic may result in a competing stores loyal customers to visit and even try non-promoted merchandise. At the same time it would increase store inter-visit time for the regular loyal store customers. Retail promotion objectives can be store specific or product specific but the intended result is something that has to be explicitly borne in mind while formulating a promotion plan. There is a need to review the same after the promotion. Shopper reaction

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The consumer perspective of retail promotion is also crucial in formulating promotions. Purchase event feedback is one of the crucial elements of the understanding of retail promotion. This concept means monitoring if the promotion enhances or detracts consumers from future brand purchase probabilities compared to non-promotion. In order to understand this concept, one should look at a key theory in psychology as applied to consumer behavior, the self-perception theory. Self-perception theory as attributed to the deal prone consumer, results in questioning by the consumer - 'Did I buy the product because of brand preference/ promotion?' The answer to this question by a majority of the consumers of your store determines the nature of promotion to be undertaken by the store. If for example Shoppers Stop has through its customer relationship management software a clear idea of the nature of customers especially on deal prone-ness, it can decide what to emphasize in its promotion. The decision to be taken is whether it is the store/brand or the promotion/deal that would act as the primary reinforcement. The nature of promotion needs to adapt according to the understanding of consumer behaviour. In this effort, we would also be able to clearly track brand loyal as well as store loyal consumers behavioral effects of the consumer, when a promotion is on are reflected in the nature of buying and therefore implications for the retail outlet. Category purchase timing, brand choice, and purchase quantity are the three major dimensions that

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one has to track in order to see the effect of sales promotion. Category purchase timing refers to the decision by the consumer to alter the regular purchase cycle for the product. If Atta is bought once in a fortnight, does she buy Atta earlier because of promotion? Brand choice refers to the decision on being brand loyal inspite of a promotion on a comparable competitive substitute brand. Would a consumer change from Captain Cook to Tata salt because of promotion? Purchase quantity is a very important variable to monitor as it is directly related to the nature of consumption. This common effect of a promotion on a product or a brand is reflected in stockpiling. For example, buying a five-litre edible oil jar cheaper and storing the same for longer future use. Lets take the example of a specialty coffee outlet selling different brands of coffee. If we decompose the effect of sales promotion we may look, at lets say, contribution of the three dimensions in the following manner brand switching (84 percent), purchase acceleration (14 percent), and stockpiling (2 percent). This decomposition may be used to compare the effectiveness of alternative promotional offerings and to determine the most suitable and effective promotion. Putting together the facts that sales promotions generate dramatic immediate sales increases and that brand switching accounts for a large percentage of this increase, we can conclude that sales promotions are strongly associated with brand switching. If promotion increases a brand's sales by 100 units, how many units come from other brands and how many units are due to

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category expansion, i.e. shifts in the timing and/or amounts of purchase. If three-fourths of the sales effect were due to other brands, retailers might conclude that promotional activities provide little benefit. That is, unless promoted items provide higher margins, the vast majority of the effect would simply be a reallocation of expenditures by households across items within a category. Manufacturers/national brand marketers might conclude that most of the effect increases competition between brands and would not support promotions. Therefore, stockpiling and/or consumption increases appear to be the dominant sources to look for sales effects due to temporary price cuts. Cannibalization of future sales through stockpiling is an important consideration in the assessment of the effectiveness of sales promotions. In some product categories like beverages (Eg. soft drinks) a substantial component of the primary demand increase may represent enhanced consumption. One may drink more of Coke/Pepsi because of a price cut. But in other categories (like house cleaning liquids), households are unlikely to accelerate consumption. In these cases the effect of sales promotion may just result in changed inventory management by households.

Price/brand promotion It has been proved by extensive research in the West that price promotions are detrimental whereas non-price promotions are

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neutral/positive. Price promotion of national brands erodes the loyalty of the national brands & therefore helps the private labels/ store labels to gain market share. While looking at it from store's viewpoint, the chain of causation could be - Price promotion would lead to loss of national brand loyalty, which would trigger greater trade allowances and therefore increase in store profit. However, the question of store image and loyalty are important. Discount stores like Margin Free shop could afford to continuously involve in price promotion whereas others cannot. Reaction from competitors is another aspect that should be guarded against. The conflict of promotion of store brands compared to the national brands would become a matter of concern in the future in India. Many retailers see the benefits of developing store loyalty as it can easily extend to store brands. There are very few store brands in India competing with large brands. However, for store brands, studies in the US have found that non-price promotions have a more favorable long term effect on store profit compared to price promotion.

43

CHAPTER-8
THE BRANDED FMCG: BOTH CONSUMERS AND RETAILERS CHOICE

44

THE BRANDED FMCG: BOTH CONSUMERS AND RETAILERS CHOICE

One of the first tasks that any retailer does before starting shop is deciding on the product mix at the store. This is not a one-time process and is refined over a period of time based on the point-of-sales data, market research and by observing trends in consumer behavior. To make this task simpler for the food & grocery retailers, on the top 100 FMCG brands in the country and published . The survey relies on data provided by AC Nielsen Retail Audit for the twelve months ended August 2004 except for cigarettes and carbonated soft drinks, where the figures based on market intelligence The popular cigarette brands i.e.( Gold flakes,Wills Navy Cut), three soft drinks i.e.(Pepsi, Thums up, Coco Cola), two biscuit brands i.e.(Britannia, Parle), two detergents i.e.(Nirma, Wheel) and one oral care brand i.e. (Colgate) make up the top 10 FMCG brands in India. The top 10 brands between them tote up Rs 15,230 crore (US $ 3.2 billion) and account for no less than 37 per cent of the sales of the top 100 FMCG brands in this survey, which total Rs 39,144 crore. If the Indian market for FMCGs is estimated at Rs 90,000 crore, then these ten brands contribute nearly 14 per cent of sales and the top 100 brands contribute about half of the total sales. Of the 10 brands, seven brands are owned by MNCs, three by Indian companies. That's not all, there are some other interesting trends: 62 of the top 100 brands as studied by AC Nielsen are owned by MNCs, the balance by 45

Indian companies. By value, MNC brands hold 70 per cent of total top 100 sales or Rs 27,470 corer (US $5.8 billion). Fifteen companies own these 62 brands, and not surprisingly, 27 of these are owned by one company - Hindustan Lever. The number three brand is Pepsi at Rs 1,740 core. At number four comes Thums Up, ahead of Coca-Cola, its parent's flagship brand. Britannia takes the fifth place, with its slew of products, aggressive advertising and its `health' platform for biscuits. Colgate is at number six, followed by Nirma (7) , CocaCola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. For the first time, Brand Equity presents estimates - after talking to reliable industry experts and senior officials of the companies concerned - that gives you a sense of the annual sales of soft drinks in India. Brand Pepsi at Number 3 (Rs 1,740 corer) includes the Rs 94-crore new variant Pepsi A-Ha. Thums Up at fourth position (Rs 1,350 corer) and Coca-Cola at eight (Rs 1,030 corer) dominate the list, as expected. Mirinda ranks 20 (Rs 540 crore), Limca is at 18 (Rs 600 crore), followed by Fanta at 30 (Rs 400 crore), 7-Up at 53 (Rs 210 crore) and Maaza at 84 (Rs 127 crore). It's interesting that the Indian brands Thums Up and Limca, which have been familiar to consumers for many years, rank in the top 100 right next to their MNC owners. The Indian soft drink market seems to be operating along global lines, with the entry of MNC players causing heightened market activity, advertising, sponsorships, mergers along with buy-outs of local suppliers. Figures for PepsiCo's brands are based on consumer spends and a weighted

46

mean retail price, while Coca-Cola India's brands are ranked on gross revenue excluding sales tax. The extent of HLL's dominance of the Indian FMCG market is also clear. The 27 HLL brands are worth Rs 9,243 crore and account for 25 per cent of the top 100 brand sales. But HLL has just one brand in the Top 10: Wheel with sales of Rs 814 crore, though a further 17 brands do make the top 50. Nirma dominates in its own way. Ranked seventh amongst India's largest brands, with sales of Rs 1,182 crore (US $240 million), its position is testimony to Karsanbhai Patel's strategy of value for money. The company today claims Nirma's user base exceeds 400 million people, a number even a global leaders would envy. Nirma has another of its brands in the top 100: Nima, ranked 23, with sales of Rs 459 corer. The consolidated Tata brands - Tata Tea and Tata Salt - rank at number 14 with sales of Rs 646 chore, which includes the tea and salt brands. Category movers Personal care, cigarettes and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands. In value terms, these 35 brands rake in 50% ( Rs 19,707 corer) of the total sales of Rs 39,144 corer of the top 100 FMCG brands. The personal care category has the largest number of brands - 21 - in it. Heavy weights such as Lux, Lifebuoy, Fair and Lovely, Vicks, Ponds all clubbed in it.

47

CHAPTER-9
CHALLENGES BEFORE RETAIL SECTOR IN INDIA

48

Challenges Before Retail Sector In India :

Government restrictions on FDI: Organised retailing in India is yet to get an industry status. The consequence is quite obvious. 100% Foreign Direct Investment (FDI) is not permitted in retailing in India. Ownership of retail chains is allowed only to the extent of 49%. The Food World chain is one such venture, with an ownership pattern of 51:49 between RPG and Dairy Farm International, Hong Kong. Foreign players can enter the wholesale sector , in the cash and carry format. The Metro chain has recently entered the country as a cash and carry outlet. A branch has been opened in Bangalore and a second would be opened very soon in the same city. The fear that the small-scale retailers will be displaced is delaying the FDI approvals. On the other hand, without the FDI sector is deprived of access to foreign technologies that is imperative for faster growth. The Government has allowed FDI in direct marketing, but has reservations about extending it to the retail sector Retailing is a technologyRetailing is a technology- intensive industry. Under the liberalized regime of the WTO the Protected nature of an industry may do more harm than good. In the short-run the Government may succeed in protecting the domestic industry, but in the long run we would be loosing too many opportunities and technological innovations. This, in addition would also block any attempt by the domestic industry to become competitive internationally.

Lack of a uniform tax : The country requires a uniform tax system for the organized retailing. The lack of this stands as an obstruction to the setting up of

49

a truly national chain. The present chains, in spite of claiming to be national chains are restricted to certain regions of the country. Players are confined to state barriers. Since retailing is essentially a business of supplying commodities to locations far from production units, a differential tax system in different states is surely turning to be a hindrance to faster development of this Industry. A central tax system becomes more imperative in a country like India where, the regional disparity in production of commodities is high.

Lack of adequate infrastructure: Players are forced to set up their own infrastructure, as there are few independent logistics solution providers. Entrepreneurs to invest in infrastructure development for different stages of the supply chain are also limited.

Dominance of the unorganized Sector : The Unorganized has dominance over the Organized sector in India, especially because of the low investment needs. In India Organized retailing is only 2% of total retailing of worth US$ 180 billion. This is playing at multiple levels For instance, the reason for low number of discount stores in India is effect of the dominance of the unorganized sector The manufacturers have high bargaining power in the pricing of products as a result of this small scale of operation of retailers. The lobbying by the unorganized sector is also the main reason for the Government Of Indias restrictions on 100% FDI in retailing in the country. 50

Low operational size : The number of retail outlets in India is more than number of outlets in most of the other countries, small size retail outlets dominate the Indian scene. 96% of outlets are lesser than 500 sq ft. The retail chains of India are also smaller than those in the developed countries. For instance, the superstore food chain, Food World is having only 52 outlets whereas Carrefour Promodes has 8800 stores in 26 countries. The volume of sales in Indian retailing is very low, which is only $180 billion. Even the largest players have a turn over of only US $ 140 million, which is very small by the global standards. India with second largest population in the World and a fast growing economy has huge untapped potential of organized retailing, which is not given its due weightage by the government. Labour employment problems : Organized retailing is a 24 X 7 active business. However, this is much restricted currently in India because of ladour rules and regulations. The sector is unable to employ retail staff on contract basis. This makes it difficult to efficiently manage employee schedules especially for 365-day operations. The industry has to take special clearance for extended working hours and even seven days working from the Labour department. However, in the recent budget government has relaxed norms on employment of contract labour, which is expected to benefit the industry.

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CHAPTER-10
FINDINGS & ANALYSIS

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FINDINGS & ANALYSIS ANALYSIS OF CONSUMER PERCEPTION

1.Do you prefer to purchase from retail organization.

70 60 50 40 30 20 10 0 NO YES

Interpretation: As we have seen from the above column chart that the 65 percent of respondents say yes and only 35 percent say no, because they belongs to lower income category and can not afford.

2. How many retail organization you know of your city?

15

10 Less than 2 25 2 to 3 3 to 4 m ore than 4

50

Interpretation: As we have seen from the above pie chart that the 10 percent of respondents can name only one retail organization name 25

53

percent can name 2 to three name 50 percent can name 3 to 4 name and rest can name more four name.

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4.How many time you usually go for purchase?

10

20

Never Tw o Tim es Four Tim es More

40 30

Interpretation: As we have seen from the above pie chart that the 10 percent of respondents never go for purchase because they can not afford.40 percent usually go 2 times in a month for purchase ,30 percent usually go 4 times for purchase and 20 percent go more than four times in a month for purchase.

5. Do you make plan before your purchasing from retail shop.

YES NO NO, 35, 35%

YES, 65, 65%

Interpretation: As we have seen from the above pie chart that the 60 percent say yes i.e they make plan for their purchase and rest of them purchase atrandomly.

55

6. Are you satisfied with your purchasing every time.

NO, 35, 35%

YES, 65, 65% YES NO

Interpretation: As we have seen from the above pie chart that the 65 percent of respondents are satisfies with their purchasing and rest of them means 35 percent are not satisfy. 7. What characteristics attract you to purchase? Pie 1, [i. Five star environment ii. Product line iii. Customer support iv. Convenience] Only Ist, 10, 10% Pie 1, Pie 1, Ist & all, 40, Iind, 40% 22,
Only Ist Ist & Iind Ist,Iind & IIIrd Pie 1, all Ist,Iin d& IIIrd, Interpretation: As we have seen from the above pie chart that the 10 percent

of respondents only attracted by Ist,22% are attracted by Ist & IInd option, 28% are attracted by Ist,IInd & IIIrd option and rest of them are attracted by all feature of retail. 56

8. Will you suggest other person to purchase from retail organization.

NO 22%

YES NO

YES 78%

Interpretation: As we have seen from the above pie chart that the 22 percent of people will never suggest other person to purchase from retail shop because of their bed experience but 78% of person will suggest other person to purchase from retail shop because they are extremely satisfied.

10. Retails shops is which type of place for purchasing? According to your perception. C't Say 5%
Best Good C't Say

Good 35% Best 60%

Interpretation: As we have seen from the above pie chart 60% of people percept that the retails are best place for purchasing 35% percept that it is good place and 5% can not say anything.

57

CHAPTER-11
RECOMMENDATION

58

RECOMMENDATIONS FOR FACING CHALLENGES

FDI IN RETAIL: EVOLVING AN INDIA-SPECIFIC MODEL Opinions on FDI were divided at the IFF symposium. The Government of India would be wise not to open the doors to foreign retail too wide as it is better to develop India's own modern retail model than give away the businesses to global retailers like Wal-Mart and Tesco. selective approach in allowing FDI, which could be directed towards:

Mall Development Shopping Centre development and management Luxury retailing Lifestyle brand retailing Lifestyle products and brands manufactured in India

INDUSTRY STATUS TO RETAIL: The wish list of retailers included setting up single window clearance and the demand for according industry status to retail was high on their agenda. B.S. Nagesh earlier said, "Indian retail has no parentage in the Government of India. We do not know which Ministry to report to. The Government should grant us industry status." To this, Kamal Nath replied: The Retail sector is already in a position whereby it can decide which ministry it wishes to adopt, rather than asking the government to

59

adopt retail as an industry. Your industry is in the departure lounge ready to take off and I assure you that the Indian government will give it the boarding card.

Quoting from the Images-KSA Retail Report contained in the IMAGES YEAR BOOK 2005 which Kamal Nath released on the occasion, he said of the estimated Rs.930,000-crore ('03-'04) retail industry, organised retailing accounted for a mere Rs.28,000 crore, just 3 percent of the total market. This figure stands against 85 percent (organised retail) in the US and hence the need to plan differently, he explained. the Retail Report 2007 that sizes up the total Indian market, organised retail, various sectors and scope therein, and size and performance of key players. These two studies establish benchmark figures for the Government and industry to work on. REVITALISING A BRAND: Retail brands, big and small, face ups and downs in their performance graph, which is more a relative term depending heavily on the performance of the competitors. And with modern day markets getting innovative to the fore, retailers have to constantly devise strategies to revitalise their brand so as to regain their market share. Anna Pretty, Wedgwood, UK, described one such success turnaround, the challenges faced by Wedgwood (a store established in 1758 in UK) and the solutions it devised to survive the competition.

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From product, layout, store interiors, packaging to communication and greetings, everything at Wedgwood was re-designed to create an interest in the modern consumer who has much wider options when it comes to shopping, Anna said. First of all it was considered necessary to effect changes in the retail and design aspect. A new image was imparted to the store, followed by reintroducing of the core merchandise with special focus on quantities and packaging. Then new products and categories were introduced with the aim of presenting a whole range a complete lifestyle offer so as to revive interest of the today's generation. All this was not easy task for this store with 250 years of history.

Then we felt the need to create a feeling for the customer to make him or her walk in to Wedgwood store and want to stay there, Anna Pretty said. The emphasis was clearly to offer old wine in a new glass and at the same time introducing new product categories like non-ceramics, jewellery and showpieces like picture frames and greetings. Materials were the same but had a new style, she said. The same company, with same values had a new focus. The focus being: Everything must say Wedgwood. GAINING A COMPETITIVE EDGE: It's the people who build brands, not blind advertising; and to be successful, it's absolutely necessary to create the buzz amongst the high profile customers, echoed the success mantra from International marketer of the Year Bob Pritchard, CEO, Mkt. Force One, Inc., USA. Bob, who carries with him 30 years

61

of marketing experience and an unmatched oratory skill, started his inspiring IFF Fashion-Retail Conclave presentation on Positioning and Brand Equity-How to Gain a Competitive Edge with the compliment that India is a country of fantastic opportunity and tremendous promise.

While outright discarding the significance of traditional factors like Customer satisfaction, High Quality sales and Store Loyalty, Bob said it is the Vision, Commitment and Enthusiasm of retailers and marketers that actually drives businesses. He said, 95 percent of the factors such as product, price, customer and brand awareness fail; 92 percent of the customers find like products interchangeable; and 62 percent of the satisfied customers never repurchase from the same store. What really counts in today's world is Equity, which stands for: Emotional experience Perception Service Experience Media Experience Feedback from friends On-line experience Perception of one's corporate citizenship While spelling out some of the unique fundamental factors that help achieve Brand Equity, modern-day retailers ought to focus on:

62

 Creating emotional experience Selling emotional benefits Effective communications Collecting knowledge of the customers Differentiating from the market Positioning statement Added value and service, and Thinking out of the box PLANNING MALLS THE CORRECT WAY: Malls being the modern-era retail destinations, a good part of the IFF seminar was devoted to detailed presentation and discussion on various facets of mall planning and management. Amit Bagaria, Chairman, Asipac Project Consulting Services, one of the leading mall planners in India, presented an in-depth knowledge on how mall developers need to work on their projects so as to uphold the best international standards.

The foremost task was to have a detailed business plan, based on the company's targets and constraints, Amit Bagaria said. This would include Tenancy mix, Support services, Required infrastructure, Estimated project cost, and Estimation of revenue and operating expenditure. The second stage was that of Design conforming to the Plan as Design always ought to come only after everything is planned in advance, taking care of the projected average and peak footfalls (PAPF) and Average duration of visit (ADOV), said Bagaria. Keeping in mind the above a mall planner has to think of 63

the number and types of parking, vertical circulation, washroom facilities, food court sizes, R&R reas, etc. The developer also needs to look at the critical factors, which are generally overlooked, like Selecting the best mall planner and architects and Coordination between the involved role players like planners, structural engineers, leisure consultants etc, he emphasized. Bagaria spoke at length about the differences between the Indian and International Architectural Processes, about what all goes in to the Conceptual, Schematic and Functional design stages and about what all expertise is required for On-site construction management. His conclusion was that the prevalent process in India is more time consuming than the international model, which considerably reduces the construction time, thereby making it more viable. SECRETS TO SUCCESSFUL MALL OPERATIONS: Experience and expertise flowed as Walter Kleinschmit, Principal R2E (Retail & Real Estate) Consultants and former general manager, Kingdom Centre (Riyadh, Saudi Arabia) presented his 10 Rules To Obtain Sustainable Returns from Malls. It is challenging to get customers and it is so very easy to lose them, after so much energy spent that situation needs to be avoided, Walter said and added, Development and Operation, both processes take place throughout life of project.

64

The major factors affecting the success graph of malls, the doctrines that work to keep the money flowing, were listed as follows:

1. Planning: Understanding the mission, converting it to objectives that are met through tactical decisions, and working with the given limitations;

2. Branding:The brand conveys the value proposition, which is the differentiating factor, occupying a distinct position in the mind of the client/ consumer;

3. Marketing: Facilitates generating footfalls and increasing the conversion rate;

4. Promotion: Concentrates on increasing footfalls or conversion rates, often a short term response to tenant requirement;

5. Leasing & Lease Renewals: Location being the most important aspect of any Mall, this factor requires a lot of careful understanding;

6. Maintenance: The main stress was laid on the following trivial looking aspects like: - Baby Changing Station - Level Sidewalk - Garbage Removal Clean Walls etc;

7. Security: A Sense of Well Being, No Hassles (Little Risk, Great Place to 65

take your family), - Not to scare away those who pay your salary;

8. Hospitality: A frame of mind of the management and a guiding principle behind Maintenance and Security that add value to customers, like - Concierge Service, - Valet parking, - Courteously Shopping Bags (Means of Good Advertising), - Informative Directory (can generate revenue), etc;

9. Records Keeping the records straight is effective both in terms of store operation and customer service; and

10. Do it again and again, but better.

66

CHAPTER-12
CONCLUSION

67

CONCLUSION
The Indian retail sector is witnessing tremendous growth with the changing demographics and an increase in the quality of life of urban people. At this moment, it is still premature to say that the Indian retail market will replicate the success stories of names such as Walt-Mart Stores, Sainsbury and Tesco but at least the winds are blowing in the direction of growth.

Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multistoreyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.

The Indian consumer is dressing up, eating, spending, like never before. And helping him look good , ready to eat, leather products are the hugely successful brands. Quick to adapt to current trends and the latest in fashion and completely in sync with customers' wants, these highly versatile brands have 68

given a bold new shape to whether the ready-to-wear apparel industry, leather industry, Gems and Jewellery Industry Indian consumer is showing an

increasing fascination for branded wear, ornaments, leather products. The reasons are clear - one, the increased disposable income of Indian households and two, the fast paced changes in the leather, apparel, food industries. Today's customers are fussier than ever before - they are more aware of current trends, are totally in sync with the latest in fashion and demand the best products as well as service at an affordable price.

To encash this growing and changed demand of Indian consumers, many garment manufacturing companies are opening up their retail outlets. Companies like Raymond, Levis, Pantaloon, Ebony, John Player, Lifestyle, Shoppers Stop, TCNS Clothing, Spykar, Pizza Hut, Mc Donald, DTC Diamond, Tanishq( A TATA product)etc. already have their retail stores at various part of the country.

As the sector is growing many foreign companies are eying to enter into the retail market and specially in the apparel sector. It was difficult for them to directly enter into Indian retail sector earlier, but now as the FDI in the sector has been allowed up to 51% it has opened up the sector for the foreign companies to set up their business .

69

CHAPTER-13
BIBLIOGRAPHY

70

BIBLIOGRAPHY
PRIMARY DATA QUESTIONAIRE

NEWSPAPER & MAGAZINES:

The Economic Times The Financial Express Business Standard

BOOKS:

Retail Marketing Sullivan & Adcock Retail Management (A Strategic Approach) Barry Berman & Joel R. Evans

71

CHAPTER-14
QUESTIONNAIRE

72

QUESTIONNAIRE
1.Do you prefer to purchase from retail organization. Yes No

2. How many retail organization you know of your city? a. Less than 2 b. 2 to 3 c. 3 to 4 d. more than 4

3.Write the name according to preference of retail shop. ---------------------------------------------------------------------------------------------------------------------------------------------------------

4. How many time you usually go for purchase? A. Less then two times or never B. Two times in a month 73

C. Four times in a month D. More then four times

5. Do you make plan before your purchasing from retail shop. Yes No

6. Are you satisfied with your purchasing every time. Yes No

7. What characteristics attract you to purchase? [i. Five star environment ii. Product line iii. Customer support iv. Convenience] A only 1. B 1 & 2. C 1,2 & 3. D All 8. Will you suggest other person to purchase from retail organization. Yes No

9. Write some points of your satisfaction and dissatisfaction. Reason for satisfaction:

74

_________________________ _________________________ _________________________

Reason for dissatisfaction: __________________________ __________________________ __________________________

10. Retails shops is which type of place for purchasing? According to your perception. Best good can not say

Thanks
Name : _________________________ Sex :______ Age :__________ Ph._________________

Address________________________________________________ ___________________________________________________ Place_______________ Date

75