A STUDY ON

IMPACT OF ORGANISED RETAIL ON UNORGANISED RETAIL STORES.

Need for the study:
Organized retail in India has the potential to add over Rs 2,00,000 crores ($45 billion) business by the Year 2010 generating employment for some 2.5 million people in various retail operations and over 10 million additional workforce in retail support activities including contract production & processing, supply chain & logistics, retail real estate development & management etc.

After leading the IT bandwagon, India is poised to grow as a Retail hub. It is imperative to sustain the modernization of the retail sector and dispel the myth that the game is big Vs small or traditional Vs modern or organized Vs unorganized or local Vs foreign. What is needed is to create an appropriate environment to propel retail where all benefit. This study on IMPACT OF ORGANISED RETAIL ON UNORGANISED RETAIL INDUSTRY focuses on the factors impacting the shift towards organized retail stores from un-organized retail stores.

Objectives of the study:

1. To Analyze the Growth Of Retail Sector of India. 2. To study the perception of unorganized retail over organized retail store. 3. To study the effect of organized retail store over unorganized retail store.

Scope of the study:

This study deals with the factors which deal with the impact of organized retail on unorganized sector. This study also gives insights of the necessary actions to be taken by the unorganized retailers during this shift of retail industry from unorganized to organized sector. The study focuses on the role of Income groups on the customer preference towards organized retail stores.

Factors considered for the study:

S No
1 2 3 4 5 6 7 8 9 10

Factors Shopping Ambience. Single point of purchase. Payment options. Credit facility. Discounts and offers. Variety of products. Promotion. Availability of organized retail stores at nearest locations. Home delivery. Customer retention Strategies.

Hypotheses:
H01. There is a significant difference in effect of organized retail stores on different types unorganized retail store. (i.e., unorganized retail type specific)

H02. There is an association between class of people and preference in retail choice (organized or unorganized)

Data sources:
Primary data sources: A survey with schedules is taken up for 200 retail outlets as a primary source of data for this study Secondary data sources: Publications/Surveys, Journals and survey reports on customer behavior and also published articles and forecasts of reputed organizations are studied which would help me to understand and explain various concepts like modern methods of retailing and the future of Indian retail industry.

Methodology:
The data will be collected from a sample of 100 retailers who are interest in responding for the study is considered .The sample will be stratified according to the existence of retail formats such as pan shops, Kirana stores, retail cloth stores, medical shops etc proportionately. The study will be conducted in and around of Hyderabad based on Stratified Random sampling.

The samples are stratified as below:

Retailer type Apparel shop Chemists Footwear General Stores Kirana stores Stationary stores Electronics Pavement vendors 50 20 25 20 25 20 20 20 Sample size

Statistical tools used for analysis: Factor analysis is used to find out the factors of organized retail which impact the unorganized retail are analyzed. Chi-square analysis is used to test the hypothesis to bring out key factors that influence the unorganized retail industry. Limitations of the study:
1. 30 days was the period of study which was not sufficient to approach all retailers according to schedules. 2. As the study is taken up in Hyderabad, the retailers who are accessible are only considered for the research considering them to represent the whole Indian market.

Questionnaire
Name of the shop Location

1. In which type of business you are engaged in? Local kirana shop ( ) Hand-craft hawker General Stores Chemists General store 2. Are you a Retailer ( ) wholesaler ( ( ( ) ) ) Pavement vendor Apparel shop Footwear shop

( ( ( (

) ) ) )

3. Do you think there is an effect on your business due to organized retail Stores? Yes ( ) No ( )

4. Which class of people do you think would always prefer to go to organized retail store regularly? 1. Lower 3. Upper 5. All ( ( ( ) ) ) [Link] [Link], Middle ( ( ) )

5. Organized retail stores provide facility like shopping ambience, friendly outlet, single Point of purchase did it affect your business? Yes ( ) No ( )

6. Below stated factors are effecting your business the most? .Rate the below factors according to the order of impact on your business from 1, 2,3,4,5. Rate5 if strongly agree. Rate 4 if agree. Rate 3 if neutral. Rate 2 if Disagree. Rates 1 if strongly disagree.

S No
1 2 3 4 5 6 7 8 9 10

Factors
Shopping Ambience. Single point of purchase. Payment options. Credit facility. Discounts and offers. Variety of products. Promotion. Availability of organized retail stores at nearest locations. Home delivery. Customer retention Strategies.
5

Rating Points
4 3 2 1

7. Global brands like Spencer, Reliance Fresh, Wall-mart and More are acquiring your Market? Strongly agree Normal Strongly Disagree ( ( ( ) ) ) Agree Disagree ( ( ) )

8. Which class of people generally visits to your store?(depending on average monthly bill of customer) 1. Lower 3. Upper 5. All ( ( ( ) ) ) [Link] [Link], Middle ( ) ( )

9. Do you provide variety of choices in products to customer? Yes ( ) No ( )

10. Do you provide credit facilities to your loyal customer? Yes ( ) No ( )

11. Which of the following services do you think attracts more customers to your store? 1. Home Delivery ( ) 4. Online shopping ( ) 2. Membership cards 3. Discount facility ( ( ) ) 5. Hospitality of Our Staff ( )

12. Which type of product provides you more profit in your shop? 1. Confectionary 2. Cloth/materials 3. Stationary 7. Drugs 9. Lighting equipment 11. Ready-mades 13. Shoe ( ( ( ( ( ( ( ) ) ) ` ) ) ) ) 4. Kirana Items 5. Processed food 6. Vegetables 8. Lifesaving drugs 10. Consumer durables [Link] ( ( ( ( ( ( ) ) ) ) ) )

13. Express your opinion towards organized retail shop? 14. Any suggestions regarding the study? .

THANK YOU

Communalities Initial shopping ambience Single point purchase Payment options Credit facility Discoounts and offers Variety of products Promotion Availability of store at the nearest Home Delivery Customer retention strategies Extraction Method: Principal Component Analysis. 1.000 1.000 .428 .674 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .843 .575 .676 .819 .797 .645 .674 .710

Total Variance Explained Component Total 1 2 3 4 5

dimension0

Initial Eigen values % of Variance 23.731 18.963 15.611 10.110 9.371 8.244 5.287 4.406 2.646 1.632 Cumulative % 23.731 42.693 58.304 68.414 77.785 86.029 91.316 95.722 98.368 100.000

Extraction Sums of Squared Loadings Total 2.373 1.896 1.561 1.011 % of Variance 23.731 18.963 15.611 10.110 Cumulative % 23.731 42.693 58.304 68.414

2.373 1.896 1.561 1.011 .937 .824 .529 .441 .265 .163

6 7 8 9 10

Extraction Method: Principal Component Analysis.

Component Matrix

Component 1 shopping ambience Single point purchase Payment options Credit facility Discoounts and offers Variety of products Promotion Availability of store at the nearest Home Delivery Customer retention strategies Extraction Method: Principal Component Analysis. a. 4 components extracted. -.489 .331 -.259 .149 .262 .465 -.230 -.570 .305 .478 .503 .456 -.531 2 -.084 .566 .432 -.755 3 .433 .068 .467 -.200 -.053 -.049 .575 -.699 4

.745
-.145 .138 -.021 .055 -.083 .077 .145

.713
.117 -.001 .448

.789
-.581 -.016