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Formats

Formats in Indian Organized Retail Sector -

Supermarkets

Hypermarkets

Department Stores

Modern format individual retailers

Shopping malls

Specialty Chains

For further information on Formats in Indian Organized Retail Sector please visit the following

sites:

High Street Shops

Specialty Stores

Supermarkets

Franchisee Outlets

Convenience Stores

Hypermarkets

Shopping malls

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2. Technological development, stages of development, changes and rate of change of

technology, and research and development

3. Impact of technology on human being, the man-machine system, and the

environmental effects of technology

4. Communication and infrastructural technology in management.

ECONOMIC ENVIRONMENT: - The economic environment consists of macro-level

factors related to the means of production and distribution of wealth which have an impact

on the business of an organization. Some of the important factors and influences

operating in the economic environment are as follows:

1. The economic stage at which a country exists at a given point of time

2. The economic structure adopted, such as, a capitalistic, socialistic or mixed economy

3. Economic policies, such as, industrial, monetary and fiscal policies.

4. Economic planning, such as, five-year plans, annual budget, and so on

5. Economic indices like national income, distribution of income, rate of savings and

investment, rate and growth of GNP, per capita income, disposable personal income,

value of exports and imports, the balance of payments, etc. and so on

6. Infrastructural factors, such as, financial institutions, bank, modes of transportation,

communication facilities, and so on.

POLITICAL ENVIRONMENT: - The political environment consists of factors related to

the management of public affairs and their impact on the business of an organization.

Some of the important factors and influences operating in the political environment are as

follows:

1. The political system and its features, like the nature of the political system ideological

forces, political parties and centers of power

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2. The political structure, its goals and stability

3. Political processes, like the operation of the party system, elections, funding of

elections, and legislation with respect to economic and industrial promotion, and

regulation

4. Political philosophy, governments role in business, and its policies and interventions

in economic and business development.

SOCIO-CULTURAL ENVIRONMENT: - The socio-cultural environment consists of

factors related to the human relationship with in a society, the development, forms and

functions of such a relationship; and the learnt and shared behavior of groups of human

beings which have a bearing on the business of an organization. Some of the important

factors and influences operating in the social environment are as follows:

1. Demographic characteristics, such as, population, its density and distribution, changes

in population and age composition, inter-state migration and rural-urban mobility, and

income distribution

2. Socio-cultural concerns such as environmental pollution, consumerism, corruption,

use of mass media, the role of business in society

3. Socio-cultural values and attitudes, such as, expectation of society from business,

social customs, beliefs, rituals and practices, changing lifestyles patterns, and

materialism

4. Family structure and changes in it, attitude towards within the family, and family values

5. The role and position of men, women, children, adolescents, and the aged in family

and society

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6. Education levels, awareness and consciousness of rights, the work ethics of the

members of society, and the attitude towards the minorities and disadvantaged

groups.

HOW GROWTH IS RELATED TO EXTERNAL ENVIRONMENT IN RETAIL INDUSTRY:

Success of a company depends on good relationships with a broad range of people and

organizations that have a stake in business. With some, such as our customers, employees,

suppliers and investors, the relationship is based on direct contact or financial involvement

with the business. Others, such as governments and regulators, local communities, civil

society organizations, academics and individual concerned citizens, have a impact on the

growth of the company.

The revolution in retailing industry has brought many changes and also opened door for

many Indian as well as foreign players. In a market like India there is a constant clash

between challenges and opportunities but chances favors those companies that are trying to

establish themselves. So to sustain in a market like India companies have to bring innovative

solutions. Indian market has potential to accommodate many retail players, because still a

small proportion of the pie is organized.

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RESEARCH MODEL:-

GROWTHSOCIOLOGICAL

FACTORS

FIRM RELATED

FACTORS

ECONOMICALFACTORS

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CHAPTER-2

INDUSTRY PROFILE

The retail industry is a sector of the economy that is comprised of individuals and

companies engaged in the selling of finished products to end user consumers. Multi-

store retail chains in the U.S. are both publicly traded on the stock exchange and

privately owned. Retail consists of the sale of goods or merchandise from a fixed

location, such as a department store, boutique or kiosk, or by mail, in small or individual

lots for direct consumption by the purchaser.

Individuals or businesses. In commerce, a "retailer" buys goods or products in large

quantities from manufacturers or importers, either directly or through a wholesaler, and

then sells smaller quantities to the end-user. Retail establishments are often called

shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers

see the process of retailing as a necessary part of their overall distribution strategy. The

term "retailer" is also applied where a service provider services the needs of a large

number of individuals, such as a public utility, like electric power.

Shopping generally refers to the act of buying products. Sometimes this is done to

obtain necessities such as food and clothing; sometimes it is done as a recreational

activity. Recreational shopping often involves window shopping (just looking, not

buying) and browsing and does not always result in a purchase.

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TYPES OF RETAILING

Department stores - very large stores offering a huge assortment of "soft" and

"hard goods; often bear a resemblance to a collection of specialty stores. A

retailer of such store carries variety of categories and has broad assortment at

average price. They offer considerable customer service.

Discount stores - tend to offer a wide array of products and services, but they

compete mainly on price offers extensive assortment of merchandise at

affordable and cut-rate prices. Normally retailers sell less fashion-oriented

brands.

Supermarkets - sell mostly food products;

Warehouse stores - warehouses that offer low-cost, often high-quantity goods

piled on pallets or steel shelves; warehouse clubs charge a membership fee;

Variety stores or "dollar stores" - these offer extremely low-cost goods, with

limited selection;

Demographic - retailers that aim at one particular segment (e.g., high-end

retailers focusing on wealthy individuals).

Mom-And-Pop (or Kirana Stores as they call them in India): is a retail outlet that

is owned and operated by individuals. The range of products are very selective

and few in numbers. These stores are seen in local community often are family-

run businesses. The square feet area of the store depends on the store holder.

Specialty stores: A typical speciality store gives attention to a particular category

and provides high level of service to the customers. A pet store that specializes

in selling dog food would be regarded as a specialty store. However, branded

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stores also come under this format. For example if a customer visits a Reebok or

Gap store then they find just Reebok and Gap products in the respective stores.

General store - a rural store that supplies the main needs for the local

community;

Convenience stores: is essentially found in residential areas. They provide

limited amount of merchandise at more than average prices with a speedy

checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets: provides variety and huge volumes of exclusive merchandise at

low margins. The operating cost is comparatively less than other retail formats. A

classic example is the Metro in Bangalore.

Supermarkets: is a self service store consisting mainly of grocery and limited

products on non food items. They may adopt a Hi-Lo or an EDLP strategy for

pricing. The supermarkets can be anywhere between 20,000-40,000 square feet.

Example: SPAR supermarket.

Malls: has a range of retail shops at a single outlet. They endow with products,

food and entertainment under a roof. Example: Sigma mall and Garuda mall in

Bangalore, Express Avenue in Chennai.

Category killers or Category Specialist: By supplying wide assortment in a single

category for lower prices a retailer can "kill" that category for other retailers. For

few categories, such as electronics, the products are displayed at the centre of

the store and sales person will be available to address customer queries and

give suggestions when required. Other retail format stores are forced to reduce

the prices if a category specialist retail store is present in the vicinity. For

example: Pai Electronics store in Bangalore, Tata Croma.

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E-tailers: The customer can shop and order through internet and the

merchandise are dropped at the customer's doorstep. Here the retailers use drop

shipping technique. They accept the payment for the product but the customer

receives the product directly from the manufacturer or a wholesaler. This format

is ideal for customers who do not want to travel to retail stores and are interested

in home shopping. However it is important for the customer to be wary about

defective products and non secure credit card transaction. Exple: Soft drinks

vending at Bangalore Airport.

Vending Machines: This is an automated piece of equipment wherein customers

can drop in the money in machine and acquire the products. For example: Soft

drinks vending at Bangalore Airport.

Indian retail

The Indian retail industry is divided into organised and unorganised sectors.

Organised

retailing refers to trading activities undertaken by licensed retailers, that is, those

who are

registered for sales tax, income tax, etc. These include the corporate-backed

hypermarkets and retail chains, and also the privately owned large retail

businesses.

Unorganised retailing, on the other hand, refers to the traditional formats of low-

cost

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retailing, for example, the local kirana shops, owner manned general stores,

paan/beedi

shops, convenience stores, hand cart and pavement vendors, etc.

Indias retail sector is wearing new clothes and with a three-year compounded

annual

growth rate of 46.64 per cent, retail is the fastest growing sector in the Indian

economy.

Traditional markets are making way for new formats such as departmental

stores,

hypermarkets, supermarkets and specialty stores. Western-style malls have

begun

appearing in metros and second-rung cities alike, introducing the Indian

consumer to an

unparalleled shopping experience.

The Indian retail sector is highly fragmented with 97 per cent of its business

being run

by the unorganized retailers like the traditional family run stores and corner

stores. The

organized retail however is at a very nascent stage though attempts are being

made to

increase its proportion to 9-10 per cent by the year 2010 bringing in a huge

opportunity

for prospective new players. The sector is the largest source of employment after

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CHAPTER:-3

RESEARCH METHODOLOGY

Research Methodology is the way to systematically solve the problem, in it we study the

various steps that are generally adopted in the study along with the logic behind them. It is a

conceptual structure with in which study is conducted; it constitutes the blue print for the

collection, measurement and analysis of data. In the context of the study the methodology

applied is as follows:

Objective

o To analyses economic environment of organised retailing in C.G.

o To suggest the strategic measures to the organised retailing in C.G.

Brief introduction about this Survey:-

Research Design Descriptive

Research Instrument Structured questionnaire

Research Technique Survey

Measurement Scale 5 point Likert Scales

Data collection Primary data collected through questionnaire,

Secondary data from :- Books, websites ,Journals,

Magazines.

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Location From Durg, Bhilai and Raipur

Sample Size 120

Sample Plan Simple Random

Demographic Characteristics:-

LOCATION

Raipur 50

Bhilai 40

Durg 30

ANNUAL

TURN OVER

5-9.99LAKH 28

10-14.99LAKH 32

15-19.99LAKH 30

20LAKH &ABOVE 30

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CHAPTER:-4

Data Analysis and Tabulation

Rotated Component Matrixa

Component

1 2 3 4 5

P_GRO_1 .761 .094 -.091 .194 .150

P_GRO_2 .741 .262 .061 -.199 -.052

SOC_1 .064 .321 .587 .225 -.235

SOC_2 .149 -.007 .784 .092 .087

SOC_3 -.184 .083 .759 .144 .151

SOC_4 .320 -.345 .562 -.152 .105SOC_5 .169 -.073 .726 .125 -.064

ECO_1 -.177 .732 .247 .653 .039

ECO_2 . 032 . 763 .129 .031 -.071

ECO_3 .330 . 634 . 182 .113 -.102

FIR_1 .078 -.185 .122 .068 .746

FIR_2 -.045 .158 -.006 .006 .809

FIR_3

-.056 .173 -.196 .124 .741

Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Rotation Sums of Square

Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance

Cum

lative%

12.413 18.564 18.564 2.413 18.564 18.564 1.901 14.627

14.6

7

21.660 12.772 31.336 1.660 12.772 31.336 1.738 13.371

27.9

8

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31.538 11.828 43.163 1.538 11.828 43.163 1.503 11.565

39.5

3

41.290 9.927 53.090 1.290 9.927 53.090 1.484 11.413

50.9

6

51.122 8.634 61.724 1.122 8.634 61.724 1.397 10.748

61.7

4

6 .942 7.249 68.973

7 .802 6.173 75.146

8 .768 5.905 81.051

9 .659 5.069 86.120

10 .501 3.853 89.973

11 .482 3.706 93.679

12 .446 3.430 97.109

13 .376 2.891 100.000

Extraction Method: Principal Component Analysis.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.098 .365 3.011 .004

SOC .412 .172 .295 2.396 .019

ECO .104 .139 .092 .747 .457

FIR .000 .125 .000 -.001 .999

a. Dependent Variable: GRO

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CHAPTER :-5

INTERPRETATION OF FINDINGS

1. It was found by Regression test that there was one factor which is significantly

responsible for affecting the growth of organized retailing , That is Sociological

Factor.

2. In the Regression test the coefficient value of Sociological Factor is 0.19 which is

less than 0.05 .

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CHAPTER 6:-

RECOMMENDATIONS

Since, there is a significant difference among the determinants so every determinant is

to be treated differently. As the retailers considered the Sociological factor for the

growth of the malls.

Increase in the population.

Increase literacy rate.

Increase in expenditure on entertainment activity.

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CHAPTER 7:-

LIMITATIONS

This study is only modest attempt and not be claimed as comprehensive one, further it

is to be pointed that data are inebriation for the study and consequently the findings

mode out of it are reliable to the extent that the respondent have been for the right

nourishing the same.

During conducting this research I come across the following limitation: -

1. The research and survey was limited to only one city of Chhattisgarh.

2. The time available for conducting was not sufficient.

3. Respondents were least interested.

4. Since the sample size taken was very small, the conclusion cannot be

generalized.

5. Result is depandant on the accuracy of the data.The mental status of the

respondents has not been considered that might influenced the accuracy of the

data.

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CHAPTER 8:-

Conclusion

This case study help me a lot to understand about the Economic, social and firm

related factors of Chhattisgarh, it also help me to understand that how

population, GDP, literacy, per capita income of any state affect the future

prospect of retail industry.

The organized retail industry is a part of developed state but it is new for

developing state. Due to these study I come to know that the Chhattisgarh have

a better future prospect for retail industry . In Chhattisgarh the market is small but

open there are very few player in the organized retail industry hence the

competition is very less.