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Project Report
On
ShoppersPreferences for Shopping Mall
A project undertaken towards the Partial fulfillment in the degree inPost Graduate Diploma in Management
Submitted to:
Prof. Nimit Chowdhary
Submitted By:
Md. Safdar KhanPGDM-Services
Roll No-1073028Session 2007-09
INDIAN INSTITUTE OF TOURISM AND TRAVELMANAGEMENT, GWALIOR
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1. Certificate Evidence..32. Acknowledgement.43. Executive Summary...54. Introduction75. Retail Formats in the Indian Retail Industry126. Market share and growth of retail segments17
7. Rural Retailing.238. Challenges for Organized Retailing in India...259. Data Collection......26
10. Conclusion...35
11. Annexure..36
12. Bibliography.38
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CERTIFICATE OF APPROVAL
This is to certify that project report entitled Shoppers Preferences for
Shopping Mall being submitted by MD.SAFDAR KHAN to Indian
Institute of Tourism and Travel Management, Gwalior, towards partial
fulfillment of the requirement of Post Graduate Diploma in Management is
the original bona-fide work carried out by him under my supervision and
guidance.
Dr. Nimit Chowdhary
FACULTY, IITTM
GWALIOR
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ACKNOWLEDGEMENT
A formal statement of acknowledgement will hardly meet the ends of the
justice in the matter of expression of my deeply felt sincere and allegiant
gratitude to all those who encouraged me and helped me during my study
It gives me immense pleasure, to express my unfeigned and sincere thanks
and gratitude to my supervisor Dr. Nimit Chowdhary for his valuable
guidance sustained, encouragement and constructive critic at every stage of
work, without which it would have never been accomplished.
I acknowledge with thanks the unsolicited cooperation and help provided by
the library and staff of IITTM, Gwalior. I owe special thanks for the help
and support received from the faculty of Institute and colleagues.
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EXECUTIVE SUMMARY
This project titled Shoppers Preferences for Shopping Mallis an effort towards
determining the variables and Factors that is perceived by the shoppers.
This study has been conducted keeping in sight the exponential growth and
modernization of the retail scenario in India. With over 12 million retail outlets in
India and 80% of them being run by family businesses, the India retail is highly
unorganized. In fact the penetration of organized retail in India currently stands at
a mere 3%. But the average growth rate for the organized sector has been 32%
which is 4 times the average growth rate of 8% from the unorganized sector.
With the rise of the Indian middle classes and the consumers demanding lifestyle
products and viewing shopping as an experience rather than a necessity, the
growth opportunities for organized retail in India are immense. Despite the
changing consumption pattern, rising incomes and liberalization of the FDI
policies, one of the main reasons for the current and expected growth of the
organized retail sector in India is the countrys demographic advantage with 54%
of Indians being under the age of 25.
India has been ranked No. 1 by GRDI (Global Retail Development Index) for the
year 2006. With companies like Reliance Industries Limited, Wal-Mart, ITC etc.
entering the retail scenario, the competition is gradually becoming fierce andglobal retailers are flocking to India to grab their share of the pie.
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This report presents the scenario of organized retailing in India and the various
challenges it had overcome and is still faced with. It also cites the strides thissector has made in the forms of new ventures, mergers and acquisitions etc. The
data presented here has been collected from primary and secondary sources.
This report also includes a small research study on why consumers prefer
shopping at malls and how the concept of experiential marketing is gaining a lot of
head way. This study has been undertaken keeping in mind that malls have been
the key driver for the growth of the organized retail in India. The study alsoportrays how consumers prefer organized or unorganized retailers depending on
the type of the product they are going to purchase. This study can help any mall in
improving its ratings as it also talks about what factors motivate the consumers to
go to the malls and what are their complaints against the malls. This report can be
useful for any company wanting to study or foray into the organized retail scenario
in India.
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INTRODUCTION
India has been a nation ofDukandaars with 12 million retail outlets, it has seen
more retail shops than anywhere else in the world. Retailing it is said is in our
blood as a shopkeeper as well as a shopper. But things have been changing in
our country, the way shopping is done, the way retail is getting modernized and
organized, and the way everyone is looking at and is involved in this industry. The
business of retail in India has seen significant changes in the last few years. We
have seen the emergence of new formats and the application of global concepts
and constructs albeit with modifications to suit the Indian environment.
The first question that needs to be answered before we proceed any further is:
What is retail? The word retail is derived from the French word retaillier, which
means to cut off a piece or to break bulk. A retailer may be defined as a dealer or
trader who sells goods in small quantities or as one who repeats or relates.
Retailing can hence be considered as the last stage in the movement of goods or
services to the consumer. In a nutshell, any firm that sells products to the final
consumer is performing the function of retailing.
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FACTORS RESPONSIBLE FOR DEVELOPMENT OF RETAIL IN
INDIA
The factors responsible for the development of the retail sector in India can be
broadly summarized as follows:
Rising incomes and improvements in infrastructure are enlarging consumer
markets and accelerating the convergence of consumer tastes. Looking at income
classification, the National Council of Applied Economic Research (NCAER)
classified approximately 50% of the Indian population as low income in 1994- 95;
this is expected to decline to 17.8% by 2006-07.
Liberalization of the Indian economy which has led to the opening up of the
market for consumer goods has helped the MNC brands like Kellogs, Unilever,
Nestle, etc. to make significant inroads into the vast consumer market by offering
a wide range of choices to the Indian consumers.
Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic,
etc.
The internet revolution is making the Indian consumer more accessible to the
growing influences of domestic and foreign retail chains. Reach of satellite T.V.
channels is helping in creating awareness about global products for local markets.
This young population, which is technology-savvy, watch more than 50 TV
satellite channels, and display the highest propensity to spend, will immensely
contribute to the growth of the retail sector in the country.
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The major objective of this study is to gain an insight into the current state and
development of the Shoppers Preferences for Shopping Mall in India.
Other objectives include:
1. To analyze the reasons behind the growth of organized retailing in India2. To explore the various methods and business models via which foreign
companies can enter the Indian retail sector
3. To understand the challenges being faced by the organized Indian retailsector
4. To ascertain the reasons behind the fast gaining popularity of shoppingmalls
5. To understand the motivating forces pulling the consumers to shoppingmalls
6. To find out the product segments for which consumers prefer organized orunorganized retailers
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Market features
Large and growing market of 1 billion people of which 300 million aremiddle class consumers.
India offers a vibrant market of youth and vigor with 54% of populationbelow 25 years of age. These young people will work harder, earn more and
demand more from the market and thereby sustaining growth in the long-
term.
The domestic demand is expected to double over the ten-year period from1998 to 2007. The number of households with "high income" is expected to
increase by 60% in the next four years to 44 million households.
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Economy:
The fundamentals of the Indian economy have become strong andsustainable. The macro-economic indicators are at present the best in the
history of independent India with high growth, foreign exchange reserves,
and foreign investment and robust increase in exports and low inflation and
interest rates.
India is the second fastest growing economy of the world at present.
A unique feature of the transition of the Indian economy has been highgrowth with stability. The Indian economy has proved its strength and
resilience when there have been crises in other parts of the world including
in Asia in recent years.
India is the sixth largest foreign exchange holder in the world. This isremarkable considering the fact that the Foreign Exchange reserves went
under US$ 1 billion in 1991 before the economic reforms started. This
comfortable situation has facilitated further relaxation of foreign exchange
restrictions and a gradual move towards greater capital account
convertibility.
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FORMS OF RETAILING
Modern retailing has entered India in form of sprawling malls and huge complexesoffering shopping, entertainment, leisure to the consumer as the retailers
experiment with a variety of formats, from discount stores to supermarkets to
hypermarkets to specialty chains. However, kiranas still continue to score over
modern formats primarily due to the convenience factor.
Traditionally, the small store (kirana) retailing has been one of the easiest ways to
generate self-employment, as it requires minimum investments in terms of land,
labour and capital. These stores are not affected by the modern retailing as it is
still considered very convenient to shop. In order to keep pace with the modern
formats, kiranas have now started providing more value-added services like
stocking ready to cook vegetables and other fresh produce. They also provide
services like credit, phone service, home delivery etc.
The organized retailing has helped in promoting several niche categories such as
packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory
products and convenience and health foods, which are generally not found in the
local kirana stores. Looking at the vast opportunity in this sector, big players like
Reliance and K Rahejas has announced its plans to become the country's largest
modern retainers by establishing a chain of stores across all major cities.
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1. HYPERMARKET
A hypermarket is a superstore which combines a supermarket and adepartment store. The result is a gigantic retail facility which carries an
enormous range of products under one roof, including full lines of
groceries and general merchandise. Among the retail formats,
hypermarkets are expected to fuel retail growth as food and grocery
stores account for 76 per cent of consumer expenditure.
There are currently only 25 hypermarkets in India and are owned by 4retail companies. The biggest hypermarket is Pantaloons Big Bazaar at
Phoenix Mills, Mumbai which has sales of $20million every year.
2. SUPERMARKET
A supermarket is a store that sells a wide variety of goods including
food and alcohol (where permitted), medicine, clothes, and other
household products that are consumed regularly. It is often part of a
chain that owns or controls (sometimes by franchise) other supermarkets
located in the same or other towns; this increases the opportunities for
economies of scale. The chains themselves are often supplied from the
distribution centers of a larger business. Pantaloon Retail's Food Bazaar
is the largest supermarket operator in India in terms of value.
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3. DEPARTMENT STOREA department store is a retail establishment which specializes in selling
a wide range of products without a single predominant merchandiseline. Department stores usually sell products including apparel,
furniture, appliances, electronics, and additionally select other lines of
products such as paint, hardware, toiletries, cosmetics, photographic
equipment, jewellery, toys, and sporting goods. Certain department
stores are further classified as discount department stores.
4. CONVENIENCE STOREA convenience store is a small store or shop, generally accessible or
local. They are often located alongside busy roads, or at gas/petrol
stations. This can take the form of gas stations supplementing their
income with retail outlets, or convenience stores adding gas to the list of
goods that they offer. Railway stations also often have convenience
stores.
SPECIALTY STORES
Specialty stores are small stores which specialize in a specific range of
merchandise and related items. The pricing policy is generally in the
medium to high range, depending on factors like the type and
exclusivity of merchandise and ownership, that is, whether they are
owner operated or a chain operation which has the advantage of bulk
purchasing and centralized warehousing system. They differ from
department stores and supermarkets which carry a wide range of
merchandise.
http://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Train_stationhttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Train_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_station -
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5. E-TAILINGE-tailing refers to retailing over the internet. Thus an E-tailer is a B2C
business that executes a transaction with the final consumer. E-tailerscan be pure play businesses like Amazon.com or businesses that have
evolved from a legacy business, Dell.com. E-tailing is a subset of e-
commerce. Pantaloon Retail India Limited (PRIL) has taken on E-
tailing in India by its interactive and user friendly online portal of
www.futurebazaar.com. Fabmart is considered the leader in the area of
e-tailing in India.
6. MALLMall can refer to a shopping mall, which is a place where a collection of
shops all adjoin a pedestrian area, or an exclusively pedestrian street,
that allows shoppers to walk without interference from vehicle traffic. A
shopping mall (or simply mall), shopping center, or shopping arcade is a
building or set of buildings that contain stores, with interconnecting
walkways enabling visitors to easily walk from store to store.
Over the last 2-3 years, the Indian consumer market has seen a
significant growth in the number of modern-day shopping centers,
popularly known as malls. There is an increased demand for quality
retail space from a varied segment of large-format retailers and brands,
which include food and apparel chains, consumer durables and
multiplex operators. Shopping-centre development has attracted real-
estate developers and corporate houses across cities in India.
http://www.futurebazaar.com/http://en.wikipedia.org/wiki/Retailing#Shops_and_Storeshttp://en.wikipedia.org/wiki/Retailing#Shops_and_Storeshttp://www.futurebazaar.com/ -
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RETAIL SEGMENTS
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1. FOOD AND GROCERY
There are large number and variety of retailers in the food-retailingsector. Traditional types of retailers, who operate small single-outlet
businesses mainly using family labour, dominate this sector .In
comparison, super markets account for a small proportion of food sales
in India. However the growth rate of super market sales has been
significant in recent years because greater numbers of higher income
Indians prefer to shop at super markets due to higher standards of
hygiene and attractive ambience.
Food and grocery ($154 million) constitutes 41% of private
consumption expenditure and 77% of total retail sales. However 99% of
this segment is unorganized. But there seems to be tremendous growth
potential in terms of supermarkets, hypermarkets and discount chains.
The food business in India is largely unorganized adding up to barely
Rs. 40,000 crore, with other large players adding another 50% to that.
The All India food consumption is close to Rs. 900,000 crore, with the
total urban consumption being around Rs.330,000 crore. This means
that aggregate revenues of large food players is currently only 5% of the
total Indian market, and around 15-20% of total urban food
consumption. Most food is sold in the local `wet' market, vendors,
roadside push cart sellers or tiny kirana stores.
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2. CLOTHINGNumerous clothing and footwear shops in shopping centers and marketsoperate all over India. Traditional outlets stock a limited range of cheap
and popular items; in contrast, modern clothing and footwear stores
have modern products and attractive displays to lure customers.
However, with rapid urbanization, and changing patterns of consumer
tastes and preferences, it is unlikely that the traditional outlets will
survive the test of time.
Apparel is the second most organized retail segment and growth is
expected here as well due to the rigorous branding activities by apparel
retailers. Department stores are also on an expansion spree with almost
all major brands including Shoppers' Stop, Westside and Globus
drawing up aggressive plans to open more outlets. The ready-mades and
western outfits are growing at 40-45% annually, as the market teems up
with international brands and new entrants entering this segment
creating an Rs.500 crore market for the premium grooming segment.
The past few years has seen the sector aligning itself with global trends
with retailing companies like Shoppers' stop and Crossroads entering
the fray to entice the middle class.
3. FOOTWEARFootwear is the most organized retail segment in India and is dominated
by local players like Liberty and the multinational retailer Bata. Foreign
companies such as Adidas and Nike etc. have entered India through the
franchise route.
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4. HOME FURNISHINGSmall retailers again dominate this sector. Despite the large size of this
market, very few large and modern retailers have established specializedstores for these products. However there is considerable potential for the
entry or expansion of specialized retail chains in the country.
5. DURABLE GOODSThe Indian durable goods sector has seen the entry of a large number of
foreign companies during the post liberalization period. A greatervariety of consumer electronic items and household appliances became
available to the Indian customer. Intense competition among companies
to sell their brands provided a strong impetus to the growth for retailers
doing business in this sector.
The growth in this segment will be in proportion to the rising income
and standard of living of the urban population. With the growth of
middle-class families, home textiles and electronics/consumer durables
are increasingly becoming a means to demonstrate prosperity while at
the same time creating a comfortable home environment. The consumer
durables market can be stratified into consumer electronics comprising
of TV sets, audio systems, VCD players and others; and appliances like
washing machines, microwave ovens, air conditioners (A/Cs). The
existing size of this sector stands at an estimated USD 4.5 Billion with
organized retailing being at 5%. Finally, credit friendliness, drop in
interest rates and easy availability of finance have changed mindsets in
this segment.
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6. BOOKS AND MUSICIncreasing household incomes due to better economic opportunities
have encouraged consumer expenditure on leisure and personal goods inthe country. There are specialized retailers for each category of products
(books, music products, etc.) in this sector. Another prominent feature
of this sector is popularity of franchising agreements between
established manufacturers and retailers.
The size of the Indian music industry, as per this Images-KSA Study, is
estimated at Rs.1100 crore of which about 36 percent is consumed bythe pirated market and organized music retailing constitutes about 14
percent, equivalent to Rs.150 crore.
The book industry is estimated at over Rs. 3,000 crore out of which
organized retail accounts for only 7% (at Rs.210 crore). This segment is
seen to be emerging with text and curriculum books accounting to about
50% of the total sales.
7. GEMS AND JEWELLERYThe gems and jewellery market is the key emerging area, accounting for
a high proportion of retail spends. India is the largest consumer of gold
in the world with an estimated annual consumption of 1000 tonnes,
considering actual imports and recycled gold. The market for jewellery
is estimated as upwards of Rs. 65,000 crores.
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Top 10 Retailers in India (2009)
Rank Company/Name Retail Outlets Store Types
Number
of
Outlets
Turnover,
Mio $
1 Bata Bata Textiles 1,600 152
2 Pantaloon Retail
Food Bazar,
Pantaloons,
Big Bazaar
Supermarkets,
Hypermarkets,
Department stores
60 149
3 RPG Group
Foodworld,
Spencer,
Health &
Glow
Supermarkets,
Hypermarkets,
Health and Beauty
150 123
4 Shoppers StopShoppers
StopDepartment stores 17 113
5 Lifestyle Lifestyle Department stores 7 62
6Subhiksha
Trading ServicesSubhiksha
Supermarkets,
Health and Beauty183 61
7 Raymond Raymond Textiles 304 59
8 Apollo HospitalsApollo
PharmacyHealth and Beauty 135 47
9 Madura Garments
Madura
Garments Textiles 300 45
10 Viveks
Viveks,
Jainsons,
Premier
Electronics 51 44
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RURAL RETAILING
More than half of retail market in India is in the rural areas (55%); although shareof urban market is increasing by almost 5% every 8-10 years 14. Accommodating
almost two-third of the country's consumers and generating almost half of the
national income, the rural India offers tremendous opportunities for organized
retailers which many companies have failed to access. According to the study
conducted by NCEAR, the number of `lower middle income' group in rural areas
is almost double as compared to the urban areas, having a large consuming class
with 41% of the Indian middle class and 58% of the total disposable income.
A look at the demographics reveals that the highest income levels households in
the rural areas are 1.6 million as compared to 2.3 million in urban areas. It has also
been forecasted that the middle and the higher income households are expected to
grow to 111 million by 2007 from the current levels of 80 million. Thus, it can be
said that with 128 million households, the rural population is nearly three times the
urban. This vast demand base and size offers a huge opportunity that MNCs
cannot afford to ignore.
In order to meet with this rapid growth in demand the government has shown its
concern by providing an induction of Rs.140 billion and Rs. 300 billion in the
rural sector through its development schemes in the Seventh and the Eight plan
respectively. The large players like ITC, HLL, BPCL are realizing the potential of
this sector and are seen experimenting with new ways to tap this segment.
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Next in line, HLL came up with Project Shakti in late 2000 to sell its products
through women self-help groups who operate like a direct-to-home team of saleswomen in inaccessible areas where HLL's conventional sales system does not
reach. Another step to tap the rural market was `Operation Bharat' wherein low-
priced sample packets of toothpastes, fairness creams, Clinic Plus shampoos and
Ponds face creams to 20mn households.
As a part of their rural strategy, BPCL introduced Rural Marketing Vehicles
(RMVs) that move from village and village and filling cylinders on the spot forrural consumers keeping in mind the low-income of the rural population. The
Company also introduced a smaller size cylinder to reduce both the initial deposit
cost as well as the recurring refill cost.
Rural retailing also gained momentum with Godrej growing stronger through its
Adhaar initiative. Clearly, with 70 per cent of the population in rural areas, mainly
consisting of farmers, retailers have realised that this is the fastest way forward -
be it ITC's E-Choupal initiative or DCM Consolidated's Hariyali Stores. Reliance's
retail venture too is targeting this segment and has plans to spend a large part of its
Rs 550-crore investment here.
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CHALLENGES FOR ORGANIZED RETAIL IN INDIA
The industry is facing a severe shortage of talented professionals,especially at the middle-management level.
Most Indian retail players are under serious pressure to make their supplychains more efficient in order to deliver the levels of quality and service
that consumers are demanding. Long intermediation chains would increase
the costs by 15%.
Lack of adequate infrastructure with respect to roads, electricity, coldchains and ports has further led to the impediment of a pan-India network
of suppliers. Due to these constraints, retail chains have to resort to
multiple vendors for their requirements, thereby, raising costs and prices.
The available talent pool does not back retail sector as the sector has onlyrecently emerged from its nascent phase. Further, retailing is yet to
become a preferred career option for most of India's educated class that has
chosen sectors like IT, BPO and financial services.
The retail sector does not have 'industry' status yet making it difficult forretailers to raise finance from banks to fund their expansion plans.
Government restrictions on the FDI are leading to an absence of foreignplayers resulting into limited exposure to best practices.
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OBJECTIVES
The main objective of this study is to understand the reasons behind why
Shoppers preferences for Shopping Mall and thus explaining how malls have
made a significant contribution in the increased share of organized retail in India.
SCOPE OF THE STUDY
The scope of the study has been restricted to the Gwalior. The study has been
carried on with consumers of all ages.
SOURCES OF DATA
The data has been collected from Primary sources through personal interviews of
the consumers via a structured questionnaire.
SAMPLING
Samples were drawn from consumers living in the NCR region. Judgmental and
convenient sampling techniques were used.
The sample size for the consumers is 100.
DATA COLLECTION
Data was collected from the sample consumers using a structured questionnaire
and also via unstructured interviews.
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Motivating Factors Expanded Definition/ExamplesNumber of Different Kinds
of Stores
Number of different clothing, shoe, food, music
stores, etc.
Friendliness Level Whether the mall feels friendly and welcoming
Number of Cool Mall
Stores
Whether the mall stores are hip, trendy, fashionable,
etc.
Mall Interior Design
(provides aestheticexperiences)
Mall colors, sitting areas, lighting, decorations, etc.
Entertainment Experiences Whether the mall has movie theaters, live music
shows, fashion shows, etc.
Sport/Play Experiences
(provides Escapist experi-
ences)
Whether the mall has a bowling alley, games arcade
etc.
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DATA PRESENTATION
Frequency of visiting a shopping mall
Frequency of Mall Visits
0
10
20
30
40
50
60
70
80
90
100
Weekly Fortnightly Monthly Once every few
months
Never
Time
Percentage
ofPeo
ple
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Average time spent by the consumers at the mall per visit
Time Spent at The Mall
0
10
20
30
40
50
60
70
80
90
100
About 1 hour About 2 hours About 3 hours More than 3 hours
Time
Percentage
ofPe
ople
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Various reasons why people visit a shopping mall
Reasons for Visiting Malls
0
10
20
30
40
50
60
70
80
90
100
Shopping Entertainment (movies) Food Sports/Games (bowling
alley, games arcade etc.)
Various factors
Percentage
ofPe
ople
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What motivates people to go to a shopping mall
Motivating Factors for Visiting the Mall
0
10
20
30
40
50
60
70
80
90
100
Number of Different
Kinds of Stores
(variety of products
and services)
Time saving (one
stop shop)
Mall Interior Design
(sitting, lighting etc.)
Entertainment
Experiences (movie
theaters, live shows
etc.)
Games/Sports
Experiences (bowling
alley, games arcade
etc.)
Motivators
Percentage
of
People
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Drawbacks consumers associate with going to shopping malls
Drawbacks Associated with Malls
0
10
20
30
40
50
60
70
80
90
100
High parking charges Time taken in
transportation to reach a
mall
Price of products Other
Drawbacks
Percentage
ofPeople
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Income distribution table of the sample of consumersIncome Distribution of Sample
0
10
20
30
40
50
60
70
80
90
100
Less than Rs. 20,000 Rs. 25,000 Rs. 40,000 Rs. 40,000 Rs. 60,000 More than Rs. 60,000
Income
Percentage
ofPe
ople
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FINDINGS
The data collected shows that majority of the people go to malls for shopping and
entertainment in the form of movies.
Now, the major motivating factor that drives people to the malls is the availability
of a variety of stores in one location and the amount of time saved by the
consumers by shopping at a place that caters to almost all their needs.
Entertainment also comes as a good source of motivation for the consumers to go
to the malls.
The very fact that 83% of the interviewed consumers would rather shop at a mall
than an independent store speaks of the popularity of malls with the consumers.
This finding is supported by the fact that people are motivated to come to a mall
mainly because of all sorts of stores being accessible easily at one place.
During the interviews, an unstructured approach was also followed from which it
was found that:
Consumers like to go to the mall mainly on weekends forentertainment and shopping
Consumers go to the mall to gain knowledge about all kinds ofproducts so that they can male an informed decision
Almost all the consumers said they would not go through the trouble of traveling
all the way to the mall for a small and petty purchase.
All this portrays that malls are leading the growth of organized retail in India and
with the continuous and extremely fast paced growth of malls; it is highly likely
that the share of organized retail in India will go still higher.
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It has been found and demonstrated in this study that organized retail in India is on
a fast paced road to success. This statement is corroborated by the opening up of
the Indian economy to FDI and the onset of Reliance Retail and the eagerly
awaited and dreaded onset of Walmart. It took China and Brazil almost 30 years to
bring up their organized retail and make it more popular and acceptable than
unorganized retail. For India the journey has begun and will take considerable
time before the organized retail share can come in the same proximity as that of
unorganized. The main reason for the parity between the shares of the 2 is the
price and the distance factor. Especially for food and food products, consumers
trust the unorganized retailers to give them a better deal than the organized. Alsothe kirana stores are easily reachable and have a more personal form of customer
relationship management than the organized sector which is not as personal due to
its wide client base. But slowly and steadily the organized retail in India is and
will continue to increase its share in the market and gain acceptability with the
consumers.
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ANNEXURE
1. How often do you visit a mall? Weekly Fortnightly Monthly Once every few months Never
2. How much time on an average, do you spend per visit to the mall? Less than 30 minutes One hour Two hours More than two hours
3. For what purpose do you go to a mall for? Shopping Entertainment (movies) Food Sports/Games (bowling alley, games arcade etc.)
4. What motivates you to go to the mall? Number of different kinds of Stores (variety of products and services) Time saving (one stop shop) Mall interior design (sitting, lighting etc.) Entertainment experiences (movie theaters, live shows etc.) Games/Sports experiences (bowling alley, games arcade etc.)
5. Do you prefer to shop at a mall or at independent stores? Mall
Independent stores
6. What drawbacks do you associate with going to malls? High parking charges Time taken in transportation to reach a mall Price of products Other_________________
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7. For purchasing the flowing items would you rather go to a mall (organizedretailer) or a local shop (unorganized retailer)?
PRODUCT
ORGANIZED
RETAILER
UNORGANIZED
RETAILER
Food and grocery Clothes Books and Music Durables Home Furnishing Footwear Jewellery Medicines Beauty products
8. Name: Mr/Miss/Mrs ___________________________
9. Age:Less than 19 1925 2635 3550 Over 50
10.Monthly income: Less than Rs. 20,000 Rs. 25,000Rs. 40,000
Rs. 40,000Rs. 60,000 More than Rs. 60,000
THANK YOU
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The retail rush (2008), Financial Times Information Limited Gilbert, D (2007) Retail Marketing Management, Pearson Education, New
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Opportunity India: Retail, (2007) Sector M2 Communications Ltd. Retail Scenario in India: Unlimited Opportunity, (2007) Confederation
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