Research Title

Impact of Malls on Small or Medium Sized Retailers In Mumbai : A Study Of North East Mumbai
Abstract Indian Retail Scenario at Glance Objectives of the Study Research Methodology

Analyses of Impact of Organized Retail (O.R) sector on small retailers

Major Findings of the study Conclusions

Abstract
This Paper attempts to study and analyze the impact of malls on local retailers dealing with Ready to wear Cloth Merchandise, Wooden Merchandise and Electronic items- in North East Mumbai.
Small Retailers:

-Most of the clientele belong to existing customer base -Creation of new customer base is not at all on their marketing agenda -Concentration is on personalized customer touch -Mass marketing not the area of interest, yet.
Modern Retailers:

-Practices modern as well as aggressive marketing strategies -Prime goal to woo and expand the customer base steadily. Automation, professional human resource management are some other areas which were neglected as un important for a long time by traditional retail sector in general and now need to be looked into in the competitive era of 21st century.

Indian Retail Scenario at Glance

The Indian retail market, over the last decade, has shown greater acceptance for organized retailing formats. Rapid urbanization, changes in shopping pattern, demographic dividend and pro-active measures by the Government are abetting the growth of the retail sector in India. Sector Highlights: Indian retail sector accounts for 14% of the country's GDP and contributes to 7% of total employment India retail market is dominated by the unorganized sector. More than 90% of retailing in India fall into the unorganized sector The top five companies in retail hold a combined market share of less than 2%. The Indian retail market has been ranked by AT Kearney's eighth annual Global Retail Development Index (GRDI), in 2009 as the most attractive emerging market for investment in the retail sector. More than 80% of the retail sector in the country is concentrated in the large cities. A study reveals that among the more than 20 locations, for organized retail in India, Mumbai was found to be the most preferred

Indian Retail Scenario at Glance

Key Players in Indian Retail Sector:
AV Birla Group
Trent is a subsidiary of the Tata group; Also includes Westside, Croma.

Landmark Group Lifestyle International is their international brand

business.
K Raheja Corp Group Reliance has more than 300 Reliance Fresh stores Pantaloon

Objectives of the Study

To study and analyze the impact of malls Organized Retailing on local retailers dealing with,

Ready to wear Cloth Merchandise, Wooden Merchandise Electronic items

Research Methodology
Research Design

The study undertaken aims at describing impact of malls on local retailers in suburbs of Mumbai in select product categories. The descriptive as well as diagnostic design was found to be appropriate for the purpose of the study.

Sample Design

The population or universe for the study covers North East Mumbai covering Mulund, Bhandup, Kanjurmarg, Vikhroli and Ghatkopar areas of this region. Sampling unit include independent respondent in the defined Category. Convenience sampling method was used for eliciting the responses from different components of the study. As per the official data supplied by Municipal Corporation of Greater Mumbai during the study, total number of small retail shops registered in the selected area of study as on 31.3.2010 under Mumbai Shops and Establishment Act, 1948 are ready to wear Cloth Merchandise338, Furniture- 183, and Electronics 194.

Analyses of Impact of Organized Retail (O.R) sector on small retailers

General impact of organized retailers on small retailers

An attempt was made by the researcher to find out general opinion of the trading community on the perceived impact of various formats of organized retailers on small retailers. The respondents were also asked to mention the degree of impact on the local traders. The analyses of the data are presented as under:

General Impact of O.R. (Organized Retailers) on small retailers Table No. of Shops 1 Sr. No. Impact of O.R. Response in %
1 Yes, very much impacted 2 Yes, Moderately 3 Not at all Total 82 82 6 170 48.2 48.2 3.5 100

Source: Compiled from Primary data

Analyses of Impact of Organized Retail (O.R) sector on small retailers

Specific impact of organized retailers on small retailers on products

under the study (sales and profit)

- Impact of O.R. on Average Annual Sales of small retailers

A Table depicted below give detailed idea about the depth of impact of O.R on sales in the three product categories under study
Impact of Organized Retailers on Average Annual Sales of Small Retailers
Sr. No. Impact of O.R. Response in % Ready to Wear Wooden Cloth Merchandise Merchandise 3 3 1 0 12 19 10 10 31 89 4 0 1 0 6 4 6 1 18 40 Electronics Goods 1 0 0 0 5 13 12 5 5 41

1 Increase in Sales 2 3 4 5 Decrease in Sales 6 7 8 9 No Change Total

Up to 10% Between 10 - 20 Between 20 -40 Above 40% Up to 10% Between 10 - 20 Between 20 -40 Above 40%

Source: Compiled from primary data

Analyses of Impact of Organized Retail (O.R) sector on small retailers

Table 2-A, and Table 2-B, & 2-C depicts the Impact of the organized retailers on Average Annual Sales of small retailers both 2 in the context of Table B Impact of Organized Retailers on Average Annual Sales of Small Retailers the product & area wise as appended:
Table 2 A Impact of Organized Retailers on Average Annual Sales of Small Retailers (Product wise & Area wise)
Sr. No. 1 2 3 4 5 6 7 8 9 No Change Total Decrease in sales Impact of O.R. Increase in sales

(Product wise & Area wise) Wooden Merchandise

VIK H 0 0 0 0 1 0 0 0 10 11 GHA T 1 0 0 0 3 1 0 2 3 10 Tota l 3 3 1 0 12 19 10 10 31 89
Table 2 C

Ready to wear Cloth Merchandise

Response in % Up to 10% Between 10 - 20 Between 20 -40 Above 40% Up to 10% Between 10 - 20 Between 20 -40 Above 40% MU L 0 1 1 0 7 10 8 8 6 41 BHA N 1 2 0 0 0 8 2 0 5 18 KN G 1 0 0 0 1 0 0 0 7 9

Sr. No. 1 2 3 4 5 6 7 8 9

Impact of O.R. Increase in sales

Response in % Up to 10% Between 10 - 20 Between 20 -40 Above 40%

MU L 0 0 1 0 2 1 4 0 2 10

BHA N 2 0 0 0 3 2 2 1 3 13

KN G 1 0 0 0 0 1 0 0 1 3

VIK H 0 0 0 0 0 0 0 0 2 2

GHA T 1 0 0 0 1 0 0 0 10 12

Tota l 4 0 1 0 6 4 6 1 18 40

Decrease in sales

Up to 10% Between 10 - 20 Between 20 -40 Above 40%

No Change Total

Source: Compiled from primary data

Source: Compiled from primary data

Impact of Organized Retailers on Average Annual Sales of Small Retailers (Product wise & Area wise) Electronic Goods
Sr. No. 1 2 3 4 5 6 7 8 9 No Change Total Decrease in sales Impact of O.R. Increase in sales Response in % Up to 10% Between 10 - 20 Between 20 -40 Above 40% Up to 10% Between 10 - 20 Between 20 -40 Above 40% MU L 0 0 0 0 0 6 5 1 2 14 BHA N 0 0 0 0 1 3 3 1 2 10 KN G 0 0 0 0 2 0 0 0 1 3 VIK H 1 0 0 0 2 0 1 2 0 6 GHA T 0 0 0 0 0 4 3 1 0 8 Tota l 1 0 0 0 5 13 12 5 5 41

Source: Compiled from primary data

Analyses of Impact of Organized Retail (O.R) sector on small retailers

Impact of O.R. on Average Annual Profit of small retailers

Profit is another important parameter to gauge the impact of the emergence of modern retail culture on small retailers. For the purpose of analyses, impact on the profit is considered both in totality as well as product and area wise. The analysis is presented herewith.
Impact of Organized Retailers on Average Annual Profits of Small Retailers
Sr. No. Impact of O.R. Response in % Ready to Wear Wooden Electronics Cloth Merchandise Merchandise Goods 3 3 1 0 12 19 10 10 31 89 4 0 1 0 6 4 6 1 18 40 1 0 0 0 5 13 12 5 5 41

1 Increase in Sales 2 3 4 5 Decrease in Sales 6 7 8 9 No Change Total

Up to 10% Between 10 - 20 Between 20 -40 Above 40% Up to 10% Between 10 - 20 Between 20 -40 Above 40%

Source: Compiled from Primary data

Analyses of Impact of Organized Retail (O.R) sector on small retailers

Table 3-A, and Table 3-B, & 3-C depicts the Impact of the organized retailers on Average Annual Sales of small retailers both in the context of the product & area wise as appended:
Table 3 A

Table 3 B

Impact of Organized Retailers on Average Annual Profits of Small Retailers (Product wise & Area wise)

Impact of Organized Retailers on Average Annual Profit of Small Retailers (Product wise & Area wise) Wooden Merchandise

Ready to wear Cloth Merchandise

Response in % Up to 10% Between 10 - 20 Between 20 -40 Above 40% MU L 0 1 1 0 7 10 8 8 6 41 BHA N 1 2 0 0 0 8 2 0 5 18 KN G 1 0 0 0 1 0 0 0 7 9 VIK H 0 0 0 0 1 0 0 0 10 11 GHA T 1 0 0 0 3 1 0 2 3 10 Tota l 3 3 1 0 12 19 10 10 31 89

Sr. No. 1 2 3 4 5 6 7 8 9

Impact of O.R. Increase in sales

Sr. No. 1 2 3 4 5 6 7 8 9

Impact of O.R. Increase in sales

Response in % Up to 10% Between 10 - 20 Between 20 -40 Above 40%

MU L 0 0 1 0 2 1 4 0 2 10

BHA N 2 0 0 0 3 2 2 1 3 13

KN G 1 0 0 0 0 1 0 0 1 3

VIK H 0 0 0 0 0 0 0 0 2 2

GHA T 1 0 0 0 1 0 0 0 10 12

Tota l 4 0 1 0 6 4 6 1 18 40

Decrease in sales

Up to 10% Between 10 - 20 Between 20 -40 Above 40%

Decrease in sales

Up to 10% Between 10 - 20 Between 20 -40 Above 40%

No Change Total

No Change Total

Source: Compiled from primary data

Source: Compiled from primary data

Table 3 C Impact of Organized Retailers on Average Annual Profits of Small Retailers (Product wise & Area wise) Electronic Goods
Sr. No. Impact of O.R. 1 Increase in sales 2 3 4 5 Decrease in sales 6 7 8 9 No Change Total Response in % Up to 10% Between 10 - 20 Between 20 -40 Above 40% Up to 10% Between 10 - 20 Between 20 -40 Above 40% MU L 0 0 0 0 0 6 5 1 2 14 BHA N 0 0 0 0 1 3 3 1 2 10 KN G 0 0 0 0 2 0 0 0 1 3 VIK H 1 0 0 0 2 0 1 2 0 6 GHA T 0 0 0 0 0 4 3 1 0 8 Tota l 1 0 0 0 5 13 12 5 5 41

Major Findings of the study

Business of local retailers in North East Mumbais all selected 5 areas is

affected in terms of sales and profit in all three product categories, though the degree of impact differs area wise and product wise. In Ready to Wear Cloths & Furniture category, the impact is unevenly spread area wise whereas in Electronic goods the impact is felt throughout the North East Mumbai. Business of small retailers in the suburb of Mulund is majorly affected in all three select product categories, followed by other two suburbs, namely Bhandup and Ghatkopar. These are the suburbs where more density of all formats of organized retail is found. Among all suburbs, small traders in Kanjurmarg, have witnessed less impact of organized retail due to unique demographic composition and the distance of OR formats. As far as Vikhroli is concerned, small retailers dealing with electronic products are affected due to the entry of specialty retail chains. As there are no malls or specialty retail chains in other two product categories, small local retailers are less affected. Local retailers are shedding their age old practices and are reformulating

Major Findings of the study

Continued..
Local retailers are shedding their age old practices and are reformulating

business strategies to retain their customers.

Local Retailers in Ready to Wear Cloths category need to be very alert

and innovate themselves as the customers in all age groups are getting attracted to modern retailers due to their irresistible appeal.
Increasing and clear preference of young consumers towards modern

retailers due to aggressive branding

Small retailers may have tough times ahead if Indian government goes

ahead with its plan of opening up of consumer durables sector for FDI

Conclusions
The paper focuses on the impact of organized retail industry on small retailers dealing with selected Merchandise in Selected suburbs of Mumbai, and following can be concluded from the study: Organized retail sector is all set to establish its footprints in selected suburbs. The effect of O.R. is spread on diverse sections of traders. Instead the awareness about changing retail scenario, traditional retailers are still dependent upon conventional methods for conducting their business. Creation is not at all on the marketing agenda of Small retailers as most of them still concentrate on personalized customer touch rather than mass marketing. On the other hand, modern follow modern as well as aggressive marketing strategies. Automation, professional human resource management are some other areas which were neglected as un important for a long time by traditional retail sector in general and now need to be looked into in the competitive

Thank You!