organised & unorganized retailing in jaipur

[A Comparative study of Organised & Unorganised retailing in jaipur] 2015-16

PREFACE

Indian retail which is composed of organized and unorganized retail contributes

10 per cent to Indian GDP. It also highlights segment analysis, growth factors,

retail formats, SWOT analysis, FDI policy, and green retailing and ICT tools used

by Indian retailers. Service quality which covers different perspectives on quality,

total perceived quality, determinants of service quality, service quality

measurements is also very crucial. The retail service quality scale (RSQS) which

is regarded as an alternative to SERVQUAL for measuring retail service quality is

defined here. Customer Loyalty- different phases of loyalty, different behavioral

intentions, factors affecting customer loyalty and obstacles to loyalty are

discussed which also the impact of service quality on customer loyalty in a retail

environment.

The objectives of this research Specifies the problem, need for the study,

significance of the study and structural content of the research. Research is

designed to investigate the relationship among service quality, demographic

Characteristics, customer loyalty and repurchase intentions in organized retail.

This research complements and adds to previous research by expanding the study

of service quality on customer behavioral intentions in apparel retail, a sector that

has been under-researched. The present work will unearth that superior

performance on the most important retail service quality dimension will add to

favorable behavioral intentions and bring down unfavorable intentions.


ACKNOWLEDGEMENT

First of all I would like to thank the almighty God the most beneficent and most merciful, who has provided me the courage and health to complete our work. Secondly, to our Director, Prof. D.S. BHATIA sir of SBM SIILAS Campus, Jaipur National University for giving kind permission for conducting survey for understanding of actual research work.

With my deepest gratitude to my supervisor Ms. Khushboo Solanki for here encouragement, motivation and help throughout the dissertation work, without his support it would be difficult to complete the work in limited time period. My special thanks to all faculty members of SBM SIILAS Campus, JAIPUR NATIONAL UNIVERSITY who helped me a lot in data analysis.

I would like to acknowledge my family back home that have supported me and encouraged me for my work. I full heartily appreciate to our little family of friends in Jaipur.

Last but not least I would like to thank all the respondents (Consumers) who participated in my survey and JNU, Jaipur fellow students and to those who have directly and indirectly supported me.

Surjit Jha


Declaration by the Student

I hereby declare that the survey report was conducted with requirements of the Organized and unorganized retailers in Jaipur and finished by me. I assure that this report is unique and has not been copied or reproduce from any other resources.

Date:- April(2016) Surjit JhaPlace:- Jaipur BBA IVth Sem


TABLE OF CONTENT

S.No

TITLE Pg.No

1. Executive Summary 1-2

2. Industry Profile 3

Organised Retail Stores 4

Unorganised Retail stores 5

3. Research Methodology 6

1. Objective of the study 7

2. Type of Research 7

3. Method of Data Collection 7

4. Universe & Sample size 7

5. Sample Design 7

6. Data Collection Techniques 8

7. Tools for Data Analysis 8

8. Scope of the Study 8

9. Limitations of the Study 8

4. Analysis & Interpretation 9

5. Conclusions & Findings 28

Conclusions 29

Findings 29

6. Bibliography 30


7. Questionnaires 31

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1


SUMMARY:-

The Indian Retail Industry is divided into organized and unorganized retail. The Indian retail sector is highly fragmented with 95 percentage of its business being dominated by unorganized retailers like traditional family run stores. The unorganized retail sector has continued to grow at about 10 percent per annum with sales rising from $ 309 billion in the year 2006-07 to $ 496 billion in the year 2011-12. The unorganized retail sector employs about 33 million people in India.The penetration of organized retail is only 5 percent.

But according to McKiensey & Company Report titled “The Great Indian Bazaar: Organized Retail Comes of Age in India”, organized retail in India is expected to increase from 5 percent of total market in the year 2008 to 14 to 15 percent and reach US $ 450 billion by the year 2015. The major contributors to move from traditional outlet to organized retail were higher disposable income, increasing number of malls, change in consumption pattern, and increase in usage of credit card.

The major formats available in Indian retail industry are hypermarket, supermarket, malls, discount stores and e-retailing. The major players in Indian organized retail industry are future group, K.Raheja group, Tata, Bharti group and so on. High attrition rate, retail theft, poor supply chain networks are some of the challenges faced by Indian retail industry.

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ORGANIZED RETAIL STORES

The organized retailing is one of the growing selling based patterns in the market. Organized retail store are those stores where an individual can fulfill his entire requirement under one shed. This type of retailing is taking growth in the economy because consumer does not wish to buy the commodity from a scattered place. These can be illustrated as under:-

Big Baazar→ It is the largest hypermarket chain in India, founded in 2001. It provide no. of schemes like Wednesday bazaar, maha-bachat, etc,

Reliance Mart→ It is the subsidiary co. of Reliance Industry founded in 2006. The company’s outlet provides vegetables, fruits, flowers, clothing, electronic, etc.

Vishal Mega Mart→ It has a strong presence in retailing of readymade garment and a large variety of FMCG products. Founded in 2001 in Kolkata.

ShopperStop→ It is an Indian retailing co. founded in 1991 in Andheri Mumbai. It retails in clothing, accessories, cosmetics, health and beauty products, home furnishing, etc

Fab-India→ It is India’s largest private platform for products that are made from traditional tech., skill and hand based based processes. Founded in 1976 in New Delhi.

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RETAIL STORES

The unorganized retail stores are one of biggest source of employment in

India. Unorganized retail stores are those types of stores in which only a

particular type of product or same categories of products are available. These

are seen at everywhere when go in the city, town or village. These are

generally owned and by a single individual. In today’s scenario it is the

backbone in the supply chain through which consumer gets their products.

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3.1 OBJECTIVES

3.2 TYPE OF RESEARCH

It is a DESCRIPTIVE RESEARCH because this type of research comprises of

surveys and facts findings. The main purpose of this research does description of

state of affairs (Organized & Unorganized retailing in Jaipur) already exists.

3.3 METHODS OF DATA COLLECTION

3.4 UNIVERSE & SAMPLE SIZE

Universe→ The universe consists of all the organized and unorganized retailers

situated in the Jaipur city

Sample→ For the study a sample of 40 retail stores has been selected on the basis

of random sampling for the purpose of the research.

3.5 SAMPLE DESIGN

For the study RANDOM SAMPLING technique method has been applied on the

basis of suitability for the availability of information and which has a substantial

share in the market so as to give more accurate picture of the organized and

unorganized retailing in Jaipur.

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3.6 DATA COLLECTION TECHNIQUES

The data for the study has been collected through applying the following techniques: “Questionnaires” and “Internet”.

3.7 TOOLS FOR DATA ANALYSIS

Tools used by me for complete analysis of data includes:- Pie-Charts Bar-graphs

3.8 SCOPE OF STUDY

Organized retailing will: (i) Promote quality employment; (ii) Improve business process practices;(iii) Spur investments in support industries; and(v) Enable the modernization of the fragmented traditional retail industry.

3.9 LIMITATIONS OF THE STUDY

In spite of all sincere efforts, the study is not foolproof in nature. It suffers from variety of limitations due to the following reasons:

The study is limited to Jaipur city only. Besides that, the detailed study has been conducted taking on 40 retail stores

based upon random sampling. Data pertaining to the study has been collected for a period of only 3years. Time is also a limiting factor as the study is conducted in a very short span of

time.

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Questions to the respondent to know about consumer behavior towards organized & unorganized retailing in Jaipur:-

1) Which type of place do you visit frequently shopping needs?A .super market B. Wholesale Market C. Local market

Particulars Super Market

Wholesale Market

Local Market

Total

Respondents 18 9 13 40Percentage 45% 22% 33% 100%

45%

23%

33%

Respondents

super marketwholesale marketlocal market

Interpretation:- From the above pie chart we can see that 45% of customer select

option super market, 22% of customer select option wholesale market and

rest 33% selected option local market.

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2) Form where would you prefer to buy product. ?A. single market B. Multiband storeC. local market D. Local big retail store.

Particulars Single Market

Multiband Market

Local Market

Local big Retail stores

Total

Respondents 8 23 6 3 40Percentage 20% 57% 15% 8% 100%

20%

57%

15% 8%

Respondentssingle market multiband market local market local big retail stores

Interaction:- From the above pie chart we can see that 20% of respondent went

for single market 57% of respondent went for multiband market, 15% went

for local market and rest 8% said local big retail stores for buying preference.

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3) Which one from malls/ local stores is more convenience for all your shopping needs?A. malls B. big marketC. kirana stores D. others

Particulars Malls Big Market

Kirana Stores

Others Total


40%

48%

10%3%

Respondentsmalls big market kirana stores others

Interpretation:- From the above pie chart we can understand that 40% of

respondent said malls, 47% of respondent said big market, 10% of respondent

said kirana stores and remaining 3% said Others for the more convenience in

buying products from the above option.

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4) What influence your buying selection?A. Availability of range B. Customer service. C. Reasonable price D. Other

Particulars Availability of range

Customer Service

Reasonable Price

Others Total


25%

15%

35%

25%

RespondentsAvailability of range customer serviceresasonable price others

Interpretation:- From the above pie chart we can see that 32% of the respondent

said Availability of range 19% of the respondent said Customer service,

45% of the respondent said Resasonable price and rest of the 4% said Others

for the options that influence their buying preferences.

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5). When do you prefer to shop most in organized retailing center ?A During sales B. During fresh season stockC. During discount D. When required

Particulars During Sales

During Fresh season stocks

During discount

When Required

Total


25%

35%

15%

25%

Respondentsduring sales during fresh season stockduring discount when required

Interpretation:-From the above pie chart we can conclude that 25% of the

respondent said During sales,35% of the respondent said During fresh

season stock,15% of the respondent said During discount and rest of the 25%

of the respondent said When required for their reason for visiting the organized

retailing.

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6) How frequently do you visit organised retailing stores?A. less than 3month B. 1-3 monthC. 1-6 month D. 1year

Particulars Less than 3 Months

1-3 Months

1-6 Months

1 Year Total


48%

40%

10%

3%

Respondents

less then 3 months1-3 months1-6 months1 year

Interpretation:- From the above pie chart we can understand that 47% of

respondent said Less than 3 months, 40% of respondent said 1-3 months,

10% of respondent said 1-6 months and rest of 3% go for the option 1 year for

their frequency of visiting the org. retailing store.

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7) What more fascinates you to shop at organised retailing centres ? A. Membership card B. Discount mailers.C. parking facility D. Lucky draw offer.

Particulars Membership Card

Discount Mailers

Parking Facility

Lucky draw Offer

Total


20%

70%

8% 3%

Respondents

membership carddiscount mailersparking facilitylucky draw offer

Interpretation:- From the above pie chart we can understand that 20% of the

respondent said Membership card, 70% of the respondent said Discount

mailers, 7% of the respondent said Parking facility and rest 3% said Lucky

draw offer for the reason that fascinate them more for shopping in organized

retailing centers.

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8). Where would you like to buy the following products from?

Particulars clothes grocery FMCG Cosmetics &personal care

Electronic

organised 34 9 28 37unorganised 6 31 12 3

34

6

org unorganised

Interpretation:-From the above bar graph we can see that comparison level of

different product purchased from unorganized retailing average is less than

organized retailing.

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9) Do you agree that organised retailing stores provide more guarantied and better quality products?A. Strongly agree B. AgreeC. disagree D. Strongly disagree

Particulars Strongly Agree

Agree Disagree Strongly Disagree

Total


20%

53%

20%8%

Respondentsstrongly agree agree disagree strongly disagree

Interpretation:- From the above pie chat we can integrate that 20% of the

respondent said Strongly agree, 52% of the respondent said Agree,20% of the

respondent said Disagree and the remaining 8% said strongly disagree for

their comparison for more guarantied product in organised. retailing stores.

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10) What do you think is the season behind the market shift from unorganised to organised retailing?A. Wide ranges of product under one roof.B. Easy accessibility. C. Status symbol.D. Fixed prices E. Ambience while shopping

Particulars Wide range of products under one roof

Easy accessibility

Status Symbol

Fixed prices

Ambience while shopping

Total

Respondents 9 6 17 7 1 40Percentage 22% 15% 42% 18% 3% 100%

23%

15%

43%

18%3%

Respondents

wide range of products under on roofeasy accessibilitystatus symbol fixed pricesambience while shopping

Interpretation:-From the above pie chart we can understand that 22% of the

respondent said Wide range of products under one roof, 15% 0f the

respondent said Easy accessibility,42% of the respondent said Status symbol

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11) What according to you are the drawbacks of organised retailing ?A. high price B. Excessive service chargesC. increased tax rates D. Unwanted shopping

Particulars High Price

Excessive service charges

Increased tax rates

Unwanted Shopping

Total


15%

40%

33%

13%

Respondentshigh price excessive service chargesincreased tax rates unwanted shopping

Interpretation:-From the above pie chart we can conclude that 15% of the respondent said High price ,40% of the respondent said Excessive service charges,32% of the respondent said Increased tax rates and rest 13% of the respondent said unwanted shopping for the drawback of organized retailing market.

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12). Rank the following factors while shopping in organized & unorganized centers?

Particulars Organised UnorganisedEase of shopping 37 3Service of staff 32 8Customer facilities 40 00Availability-of products 32 00Discount &offers 33 7

37

32

40

32

33

organised

ease of shoppingservice of staffcustomer facilitiesavailability of productdiscount & offers

Interpretation:- From the above bar-graph, we can see that many respondents

had voted a maximum ranks to organized retailing in following parameters as

compared to unorganized retail stores.

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5.1 CONCLUSION:-

The mall culture specifically is all set for impressive growth in future in India.

Entertainment appeal of the malls is more powerful in urban markets which

observe the proliferation of nuclear family system. The expected entry of

multinationals in retail would bring wider choice to the Indian customers and

improved technology along with best glow

The study on consumer preferences and choice of store highlight that organized

retail is preferred due to convenience and variety. There is a difference in the

choice of store as well as product choice on the basis of age, income, residential

area of the consumer. Where income is low the small saving schemes like

coupons or loyalty discounts matter a lot, while for the rich, the store ambiance,

the entertainment facilities, the food joints are the dominating attractions and they

are ready to pay more for these facilities.

5.2 FINDINGS:-

India is one of the countries with the world’s youngest population with age of 24

years as against 35 years in U.S, 41 in Japan and 30 years in China. More than

half of the population has grown in the era of globalization and is exposed to

western lifestyle thus demanding a unique shopping experience.

Indian retail sector offers total 8 percent of employment in the country, thus

offering solid base to the employment of India. Our total workforce organized

sector offers almost 37 percent of employment. Therefore retail sector acts as a

safety valve that allows people and provides an opportunity to them to survive in

the competitive business world.

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Referred:-

1. . ITC to take retail biz to doorsteps of customers. May 26

Websites Referred:-

www.google.co.in

www.regoverningmarkets.org

http://economictimes.indiatimes.com/Opinion/Guest_Writer/

Competition_amo

ng_retail_giants_good/articleshow/2251975.cms

http://www.mom.gov.sg/publish/momportal/en/press_room/

mom_speeches/20 07/20070320-speech_by0.html.

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http://www.mom.gov.sg/publish/momportal/en/press_room/mom_speeches/20%2007/20070320-speech_by0.html

http://www.mom.gov.sg/publish/momportal/en/press_room/mom_speeches/20%2007/20070320-speech_by0.html

http://economictimes.indiatimes.com/Opinion/Guest_Writer/Competition_amo%20ng_retail_giants_good/articleshow/2251975.cms



http://www.regoverningmarkets.org/

http://www.google.co.in/


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organised & unorganized retailing in jaipur

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