Вы находитесь на странице: 1из 56

CONTENTS

Sr. No. Topics

1 The Indian Retail market

2 About Retail Market

3 Itroduction to Retail Market

4 What is FDI

5 Support Retail Market

6 Introduction To Supermarket Or Malls

7 Entry of MNCs

8 Support For Malls

9 Current supermarkets

10 What is Consumer Behaviour?

11 Is mall culture capturing India?

12 QUESTIONER PRIMARY DATA

13 RESEARCH METHODOLOGY

14 Conclusion

16 ANNEXURE
17 BIBLIOGRAPHY
Introduction
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its
GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail
markets in the world by economic value. India is one of the fastest growing retail markets in the
world, with 1.2 billion people.

Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is,
those who are registered for sales tax, income tax, etc. These include the publicly traded
supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned
large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing,
for example, the local corner shops, owner manned general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc.
Supermarkets and similar organized retail accounted for just 4% of the market in 2008.Until
recently, regulations prevented of the foreign investment in retailing. Some retails faced
complying with over thirty regulations such as signboard licences and anti-hoarding
measures before they could open doors. There are taxes for moving goods to states in some
cases. However, the Indian government has been opening the retail market and simplifying
regulations. In November 2011, Indian central government announced major reforms paving way
for giants such as Walmart, Carrefour and tesco, as well single brand majors such as IKEA,
Nike< and Apple to enter one of the fastest growing retail market of 1.2 billion people. This
announcement immediately caused intense activism both in opposition and in support- within
India. On 7th December 2011,Indian government conceding to the opposition, announced it is
suspending the retail reforms till it reaches a consensus.

Most Indian shopping happens in open markets or numerous small grocery and retail shops.
Shoppers typically wait outside the shop, ask for what they want, and can not pick or examine a
product from the shelf. Access to the shelf or product storage area is limited. Once the shopper
requests the food staple or household product they are looking for, the shopkeeper goes to the
container or shelf or to the back of the store, brings it out and offers it for sale to the shopper.
Often the shopkeeper may substitute the product, claiming that it is similar or equivalent to the
product the consumer is asking for. The product typically has no price label in these small retail
shops; all packaged products must display the maximum retail price above which the product
cannot be sold. It is a criminal offence to do so. . The shopkeeper can price the food staple and
household products arbitrarily, and two consumers may pay different prices for the same product
on the same day but never will those price be above the maximum retail price. Price is rarely
negotiated between the shopper and shopkeeper. The shoppers usually do not have time to
examine the product label, and do not have a choice to make an informed decision between
competitive products.

India's retail and logistics industry, organized and unorganized in combination, employs about 40
million Indians (3.3% of Indian population). The typical Indian retail shops are very small. Over
14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2)
in size. India has about 11 shop outlets for every 1000 people. Vast majority of the unorganized
retail shops in India employ family members, do not have the scale to procure or transport
products at high volume wholesale level, have limited to no quality control or fake-versus-
authentic product screening technology and have no training on safe and hygienic storage,
packaging or logistics. The unorganized retail shops source their products from a chain of
middlemen who mark up the product as it moves from farmer or producer to the consumer. The
unorganized retail shops typically offer no after-sales support or service. Finally, most
transactions at unorganized retail shops are done with cash, with all sales being final.
Between 2000 to 2010, consumers in select Indian cities have gradually begun to experience the
quality, choice, convenience and benefits of organized retail industry.

The Pop Mom & Shop


Pop Mom & shop are basically small types of store where limited number of goods or product
are placed for selling. It has been a very old concept. People from rural and urban use to mostly
prefer pop Mom & Shop, for getting day to day product. Pop Mom & Shop use to potray a small
500 sq. ft. place or shop, where there was one shopkeeper named as(Baniya) use there with some
cereals, pulses, and daily use commodities. One of the highlighting features of the pop mom &
shop is that people were given.

But as the passed, the pop mom & shop camed up with new fashioned concept of pop mom &
shop. It has changed by availing all products which a consumer requires today. Pop mom & shop
started with the free home delivery pattern
About Retail Market
Shopkeepers may manage their own independent store or run a franchise store on behalf of
a retail chain. Unlike Sales assistants or store managers (who usually work for a large
retailer), shopkeepers will normally have overall responsibility for a store. Independent
retailers that employ shopkeepers include ; green grocers, newsagents, butchers, bakers,
booksellers, florists, and antique dealers.

As a shopkeeper, you would serve customers (either at a counter or checkout) and carry
out other duties such as :

taking payments, giving change and wrapping purchases


answering enquiries and giving aclvice about products to customers
listening to customers' needs and requests, which can indicate ncw sales opportunities
calculating takings and wages
depositing cash at the bank, book-keeping and stocktaking
ordering stock from wholesalers, manufacturers, agents and importers.

Running your own shop would also involve keeping up to date with issues such as :

your competitors' prices and products and using this knowledge to set the rates in your
own shop
the regulations covering trading and running a business, for example VAT and national
insurance payments.

Hours
You are likely to work long hours, including evenings and Weekends.

This work would involve standing for long periods, and there is some lifting and carrying of
stock.
Entry Requirements

You will not need any specific academic qualifications to become a shopkeeper. However,
you will need good maths skills, people management anti business skills. Experience of
shopwork, sales, administration Or management would be particularly useful.

You could prepare for working as a shopkeeper by taking part-time or short course in a
subject such as sales or starting a business. You would also need financial backing in order
to buy the business.

The Business Link network offers a range of business support and development services,
including information about finding and setting up premises, VAT and tax, and becoming
an employer.

Training and Development

Once you are running your own shop, you will be responsible for your own development.
You could study on a part-time basis for qualifications such as :

NVQ levels 1 to 3 in Customer Service


City & Guilds Certificate in Retail Principles
City & Guilds, or EDI Certificate in Retail (management).

For more advice and information on relevant courses and learning opportunities, you could
try your local Retail Skills Shop (supported by the National Skills Academy for Retail and
Skillsmart, the Sector Skills Council for Retail). Check the National Skills Academy
website for a list of local shops.
Skills and Knowledge
an energetic and self-motivated approach to work
the commitment ability to work long and unsocial hours
good planning and organisational skills
a good understanding of business and finance
the ability to handle cash and keep accounts
marketing skills with the ability to gcncratc sales opportunities
good communication skills.

Opportunities

The number of independent shopkeepers in the UK has reduced in recent years due to
competition from larger stores and supermarket chains, and more recently as a result of
challenging economic times. Overheads such as rent have also increased.

As an independent shopkeeper, you could run your own shop or 'concession'-a shop
within a department store. Alternatively, you could buy a franchise, which would give you
the right to trade under a particular name and business system (see the franchise owner
profile for details)

With experience and an established brand name, you could expand or improve your
premises or buy another shop.
The Indian Retail market

Indian market has high complexities in terms of a wide geographic spread and distinct consumer
preferences varying by each region necessitating a need for localization even within the
geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail
space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of 6
percent is highest in the world. 1.8 million households in India have an annual income of over
4.5 million (US$72,900.00).
Delving further into consumer buying habits, purchase decisions can be separated into two
categories: status- oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing
machines, dishwashers, microwave ovens and DVD players fall in the status category.
Indulgence- oriented products include plasma TVs, state-of-the-art home theatre systems, iPods,
high-end digital cameras, camcorders, and gaming consoles. Consumers in the status category
buy because they need to maintain a position in their social group. Indulgence-oriented buying
happens with those who want to enjoy life better with products that meet their requirements.
When it comes to the festival shopping season, it is primarily the status-oriented segment that
contributes largely to the retailers cash register.
While India presents a large market opportunity given the number and increasing purchasing
power of consumers, there are significant challenges as well given that over 90% of trade is
conducted through independent local stores. Challenges include: Geographically dispersed
population, small ticket sizes, complex distribution network, little use of IT systems, limitations
of mass media and existence of counterfeit goods.

Nowadays, consumer in India wants the right price, ambience and good quality all under one
roof. With the rapidly changing lifestyle and growing income of consumers, the retail industry
has shown good growth rates in India. According to a report on Indian Retail Industry, it is
estimated that organised retail in India will cross the $650-billion mark by 2011, with an already
estimated investment of around $421 billion slated for the next four years. Also, the report says
that the organized retail penetration (ORP) is the highest in footwear with 22 per cent followed
by clothing. Though food and grocery account for largest share of retail spend by the consumer
at about 76 per cent, only 1 percent of this market is in the organized sector.
Scope of indian retail market

The scope of the Indian retail market is immense for this sector is poised for the
highest growth in the next 5 years. The India retail industry contributes 10% of
the countries GDP and its current growth rate is 8.5%. In the Indian retail market
the scope for growth can be seen from the fact that it is expected to rise to US$
608.9 billion in 2009 from US$ 394 billion in 2005.

The organized retailing sector in India is only 3% and is expected to rise to 25-
30% by the year 2010. There are under construction at present around 325
departmental stores, 300 new malls, and 1500 supermarkets. This proves that
there is a tremendous scope for growth in the Indian retail market.

The growth of scope in the Indian retail market is mainly due to the change in the
consumers behavior. For the new generation have preference towards luxury
commodities which have been due to the strong increase in income, changing
lifestyle, and demographic patterns which are favorable.

The scope of the Indian retail market have been seen by many retail giants and
thats the reason that many new players are entering the India retail industry. The
major Indian retailers are:

Pantaloons Retail India Ltd


Shoppers Stop
Bata India Ltd
Music World Entertainment Ltd

Judging the scope for growth in the India retail industry many global retail giants
are also entering the Indian retail market. They are

Tesco
Metro AG
Wal- Mart
The scope for growth in the Indian retail market is seen mainly in the
following cities:

Mumbai
Delhi
Pune
Ahmedabad
Bangalore
Hyderabad
Kolkata
Chennai
Major Indian Retailers

Some of the leading players in organised retail market:


1. Pantaloon Retail
The flagship company of Future Group, Pantaloons Retail operates over 16 million square feet of
retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people. It can
boast of launching the first hypermarket Big Bazaar in India in 2001. The companies also
operates in other retail segments such as - Food & grocery (Big bazaar, Food bazaar), Home
solutions (Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe
factory), Books: music & gifts (Depot), Health & Beauty care services (Star,
Sitara andHealth village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling
co.) The turnover this year was 12500 crores.

2. K Raheja Group
They forayed into retail with Shoppers Stop, Indias first departmental store in 2001. It is the
only retailer from India to become a member of the prestigious Intercontinental Group of
Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for
Airport Retailing. Shoppers Stop has a national presence, with over 2.05 million square feet area
across 39 stores in 17 cities. It has also introduced new formats in the market viz HomeStop
the exclusive home furnishings, dcor as well as furniture store and HyperCity a premium
shopping destination for Foods, Homeware, Home Entertainment, Hi-Tech Appliances,
Furniture, Sports, Toys & Fashion. Other format of the company includes -- Crossword Book
Store, Mothercare & Early Learning Centre (ELC), Estee Lauder group , Airport Retailing,
TimeZone Entertainment. The turnover this year was 1570 crores.

3. Tata group
Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a lifestyle
retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the
lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Tatas has
also formed a subsidiary named Infiniti retail which consists of Croma, a consumer electronics
chain. Another subsidiary, Titan Industries, owns brands like Titan, the watch of India and
Tanishq, the jewellery brand. Sales turover was 197.13 crore in December 2010.

4. RPG group
One of the first entrants into organised food & grocery retail with Foodworld stores in 1996 and
then formed an alliance with Dairy farm International and launched health & glow (pharmacy &
beauty care) outlets. Now the alliance has dissolved and RPG has Spencers Hyper, Super, Daily
and Express formats and Music World stores across the country.

5. Landmark group
Landmark Group was launched in 1998 in India; currently owning 100 stores across various
retail formats. The retail ventures of Landmark Group includes - Home Centre, Centrepoint,
Babyshop, Splash, Shoe Mart, Lifestyle, Max, Lifestyle Department Stores, SPAR hypermarkets,
Foodmark, Fun City, Fitness First, Citymax India etc. It is a 3.8 billion dollar company.

6. Bharti-Walmart
Bharti have signed a 50:50 percent joint venture agreement with Walmart in which Wal-Mart
will be taking care of cash & carry and Bharti will do the front-end. Further they plan to invest
US$ 7 bn in creating retail network in the country including 100 hypermarkets and several
hundred small stores.

7. Reliance
The company owns more than 560 Reliance Fresh stores and recently it has also launched
Reliance Mart Hypermart. The company further plans to launch its hypermart in Delhi / NCR,
Hyderabad, Vijaywada, Pune and Ludhiana region. The turnover was 4500 crore for this year.

8. AV Birla Group's brand portfolio includes brands such as Louis Phillipe, Van Heusen, Allen
Solly, Peter England, Trouser town. Also, Madura garments is subsidiary of Aditya Birla Nuvo
Ltd. The recently acquired food and grocery chain of south, Trineth, has further increased their
number of store to 400 stores in the country. The company also own More supermarkets and
hypermarkets. Currently it runs 600 supermarket and nine hypermarkets across India. The
turnover this year was 1700 crores.

9. Metro
Metro Cash & Carry, the first company to introduce cash and carry business, started its
operations in India in 2003 with two Distribution Centres in Bangalore. Metro offers assortment
of over 18000 articles across food and non food at the best wholesale prices. Currently Metro
operates six cash and carry centres in Banglaore, Hyderabad, Kolkata and Mumbai.

10. Viveks Ltd


Vivek Limited is the largest consumer electronics and home appliances retail chain in India, with
44 stores in south, covering a retail space area of over 1, 75, 000 sq. ft and a turnover of over Rs.
400 crore. Its brand, Viveks, is now a household name. The company plans to set up 50 more
showrooms in South India.

India Retail Reforms


Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand
Indian retail, forbidding foreign groups from any ownership in supermarkets, convenience stores
or any retail outlets, to sell multiple products from different brands directly to Indian consumers..
The government of Manmohan Singh, prime minister, announced on 24 November 2011 the
following:

India will allow foreign groups to own up to 51 per cent in "multi-brand retailers", as
supermarkets are known in India, in the most radical pro-liberalisation reform passed by an
Indian cabinet in years;
single brand retailers, such as Apple and Ikea, can own 100 percent of their Indian stores, up
from the previous cap of 51 percent;
both multi-brand and single brand stores in India will have to source nearly a third of their
goods from small and medium-sized Indian suppliers;
all multi-brand and single brand stores in India must confine their operations to 53-odd cities
with a population over one million, out of some 7935 towns and cities in India. It is expected
that these stores will now have full access to over 200 million urban consumers in India;
multi-brand retailers must have a minimum investment of US$100 million with at least half
of the amount invested in back end infrastructure, including cold chains, refrigeration,
transportation, packing, sorting and processing to considerably reduce the post harvest losses
and bring remunerative prices to farmers;
the opening of retail competition will be within India's federal structure of government. In
other words, the policy is an enabling legal framework for India. The states of India have the
prerogative to accept it and implement it, or they can decide to not implement it if they so
choose. Actual implementation of policy will be within the parameters of state laws and
regulations.
The opening of retail industry to global competition is expected to spur a retail rush to India. It
has the potential to transform not only the retailing landscape but also the nation's ailing
infrastructure.,
A Wall Street Journal article claims that fresh investments in Indian organized retail will
generate 10 million new jobs between 20122014, and about five to six million of them in
logistics alone; even though the retail market is being opened to just 53 cities out of about 8000
towns and cities in India.
It is expected to help tame stubbornly high inflation but is likely to be vehemently opposed by
millions of small retailers, who see large foreign chains as a threat. The need to control food
price inflation-averaging double-digit rises over several years-prompted the government to open
the sector, analysts claim. Hitherto Indias food supplies have been controlled by tens of millions
of milddlemen. Traders add huge mark-ups to farm prices ,while offering little by way of
technical support to help farmers boost their productivity, packaging technology, pushing up
retail prices significantly. Analists said allowing in big foreign retailers would provide an
impetus for them to set up modern supply chains, with refrigerated vans, cold storage and more
efficient logistics. I think foreign chains can also bring in humongous logistical benefits and
capital, Chandrajit Banerjee, director-general, Confederation of Indian Industry, told Reuters.
The biggest beneficiary would be the small farmers who will be able to improve their
productivity by selling directly to large organized players, Mr Banerjee said.
Indian Retail Reforms On Hold
According to Bloomberg, on 3 December 2011, the Chief Minister of the Indian state of West
Bengal, Mamata Banerjee, who is against the policy and whose Trinamool Congress brings 19
votes to the ruling Congress party-led coalition, claimed that Indias government may put the
FDI retail reforms on hold until it reaches consensus within the ruling coalition. Reuters reports
that this risked a possible dilution of the policy rather than a change of heart.

India further eased foreign investment rules in retail on 1 August in a renewed attempt to attract
global supermarket chains like Wal-Mart Stores Inc and Tesco .

Foreign retailers have been keen to enter India's $500 billion retail market since the country
allowed overseas investment in its supermarket sector in September 2012 but ambiguity around
entry rules has kept them away.

The issue also remains politically controversial because of worries that millions of small
shopkeepers could go out of business and India has so far not received a single application from
any global retailer.

Following are the key highlights of India's efforts to reform retail sector.

* November 2011 - India allowed foreign supermarket chains to enter the country and own up to
51 percent in their Indian operations in an attempt to bring in much needed capital from abroad
and build its poor infrastructure supply chain.
It also allowed single brand retailers like Swedish furniture giant IKEA to own 100 percent of
their business in India.
* December 2011 - The government put the retail reform on hold, backtracking from its boldest
measures in years in the face of political backlash from allies and opposition parties over worries
that millions of small shopkeepers could go out of business.
* January 2012 - India formally eliminated ownership restrictions on foreign investment in
single-brand retail but required that companies source 30 percent from small local firms.

* June 2012 - New Delhi began clearing the ground for a new push to open up the supermarket
sector amid souring investor sentiment, double-digit food inflation and the threat of a credit-
ratings downgrade.

* September 2012 - India revived the retail reform, allowing foreign supermarkets to buy up to
51 percent in a local partner with restrictions around sourcing and investment in an effort to
appease political opposition. Local sourcing requirements for single brand retailers were diluted.

* June 2013 - The government issued a clarification and said global supermarket operators can
not acquire existing assets of Indian companies and that the initial mandatory $100 million
investment to set up supply chain infrastructure and stores must be in new assets.

* August 2013 - India relaxed sourcing and investment rules for supermarkets. It allowed
retailers to meet 30 percent sourcing requirement over 5 years initially and said they only have to
invest 50 percent of an "initial" mandatory investment of $100 million in setting up cold storages
and warehouses.

Following are some facts on the retail sector in India:

* India's population is around 1.2 billion and the retail sector sees annual sales of $500 billion,
with nearly 90 percent of the market controlled by tiny family-run shops.

* Organised retail makes up less than 10 percent of the market but is expanding at 20 percent a
year, driven by the emergence of shopping centers and malls and a middle class of close to 300
million and whose numbers are growing at nearly 2 percent a year.

* India allows full foreign ownership in single-brand retail and cash-and-carry or wholesale
ventures. It allows 51 percent ownership in supermarkets.
FASTEST GROWING RETAIL SEGMENTS IN INDIA
What is FDI?
A foreign direct investment is a controlling ownership in a business enterprise in one
country by an entity based in another country.

In a narrow sense foreign direct investment refers just to building new facilities.

It can be described as an investment transaction in which an investor from one country


seeks to obtain managerial interest in an entity in another country.

It is also meant for controlling and operating physical assets created through such
investment.

2.2 What is the importance of FDI?


There is a strong relationship between foreign investment and economic growth.

Larger inflows of foreign investment are needed for the country to achieve a sustainable
high trajectory of economic growth.

There are several irrefutable reasons for this. For the economy to grow by 7to 8 per cent a
year there is a need to invest around 35 to 40 per cent of GDP.

National savings fall far short of this by nearly 10 per cent. Foreign borrowing and
foreign investment have to meet this investment saving gap.

This is generally recognized and successive governments have attempted to provide


various incentives to foreign investors.

Peace and security are necessary conditions, but not sufficient conditions to attract
foreign investments.
Social Impact And Controversy With Retail Reforms
The November 2011 retail reforms in India have sparked intense activism, both in opposition and
in support of the reforms.

Controversy over Indian retail reforms

A horticultural produce retail market in Kolkata, India; produce loss in these retail
formats is very high for perishables

Critics of the Indian retail reforms announcement are making one or more of the
following points

Independent stores will close, leading to massive job losses. Walmart employs
very few people in the united states. If allowed to expand in India as much as
Walmart has expanded in the United States, few thousand jobs may be created but
millions will be lost.
Walmart will lower prices to dump goods, get competition out of the way,
become a monopoly, then raise prices. We have seen this in the case of the soft
drinks industry. Pepsi and coke came in and wiped out all the domestic brands.
India doesnt need foreign retailers, since homegrown companies and traditional
markets may be able to do the job.
Work will be done by Indians, profits will go to foreigners.
Remember East Indian company. It entered India as a trader and then took over
politically.
There will be sterile homogeneity and Indian cities will look like cities anywhere
else. The government hasnt built consensus
Introduction To Supermarket Or Malls
A shopping mall, shopping centre, shopping arcade, shopping precinct or simply mall
is one or more buildings forming a complex of shops representing merchandisers,
with interconnecting walkways enabling visitors to easily walk from unit to unit,
along with a parking areaa modern, indoor version of the traditional market place.
Modern car-friendly strip malls developed from the 1920s, and shopping malls
corresponded with the rise of suburban living in many parts of the Western World,
especially the United States, after World War II. From early on, the design tended to
be inward-facing, with malls following theories of how customers could best be
enticed in a controlled environment. Similar, the concept of a mall having one or
more anchor or big box stores was pioneered early, with individual stores or
smaller-scale chain stores intended to benefit from the shoppers attracted by the big
stores.

History
Numerous covered shopping arcades, such as the 19th- century AI-Hamidiyah Souq in
Damascus,Syria, can be considered precursors to the present-day shopping mall.
Isfahans Grand Bazaar, which is largely covered, dates from the 10th century. The 10
kilometer long covered Tehrans Grand Bazaar also a long history. The Grand Bazaar
of Istanbul was built in the 15th century and is still one of the largest covered markets
in the world, with more than 58 streets and 4,000 shops. Gostiny Dvor in St.
Petersburg, which opened in 1785, may be regarded as one of the first purposely-built
mall-type shopping complexes, as it consisted of more than 100 shops covering an
area of over 53,000 m2 (570,000 sq ft).

The oxford Covered Market in Oxford, England opened in 1774 and still runs today.

The Burlington Arcade in London was opened in 1819. The Arcade in Providence,
Rhode Island introduced the retail arcade concept to the United States in 1828. This
was a forerunner of todays shopping mall the Galleria Vittorio Emanuele II in Milan,
Italy followed in the 1870s and is closer to large modern malls in spaciousness. Other
large cities created arcades and shopping centres in the late 19th century and early 20th
century, including the Cleveland Arcade, Dayton Arcade and Moscows GUM, which
opened in 1890. Early shopping centers designed for the automobile include Market
Square, lake Forest, I Illinois (1916) and country Club Plaza, Kansas City, Missouri
(1924). An early indoor mall prototype in the United States was the Lake View Store
at Morgan Park, Duluth, Minnesota, which was built in 1915 and held its grand
opening on July 20, 1916. The architect was Dean and Dean form Chicago and the
building contractor was George II Lounsberry from Duluth. The building is two
stories with a full basement, and shops were originally located on all three levels. All
of the stores were located within the interior of the mall; some shops were accessible
from inside and out.

MALLS
The largest from of organized retailing today. Located mainly in metro cities,
in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and
above. They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof. Examples
include shoppers stop, piramyd, and Pantaloon. Specialty Stores: Chains such
as the Bangalore based kemp, the Mumbai book retailer Crossword, RPGs
music world and the times Groups chain planet M, are focusing on specific
market segments and have established established themselves strongly in their
sectors.
Mall development is phenomenal in India. The mall mania is spreading fast
and entering even the second tier cities in India. Real estate developers are
jumping very fast to take this further from Metro cities to smaller cities and
corporate houses like ITC and Sriram group are making steady progress to
make this phenomena feasible in rural market also.There is no denying that
the top notch cities like Mumbai, Delhi, Bangalore, Hyderabad, Kolkata,
Chennai and Pune are leading the way but the second tier cities like Ludhiana,
Chandigarh, Nagapur and Surat are catching the eye of all retailers. Retail
developers are in such a mood that they may over ride the requirement in a
specific city.

Discount stores
As the name suggests, discount stores or factory outlets, offer discounts on the
MRP through selling in bulk reaching economies of scale or excess stock left over
at the season. The product category can range from a variety of perishable/non-
perishable goods.

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer
needs. Further classified into localized departments such as clothing, toys, home,
groceries, etc. departmental Stores are expected to take over the apparel business
from exclusive brand showrooms. Among these, the biggest success is K Rahejas
Shoppers Stop, which started in Mumbai and now has more that seven larger
stores (over 30000 sq. ft) across India and even has its own in store brand for
clothes called Stop.
A department store offers an extensive assortment (width and depth) of goods and
services that are organized into separate departments for the purpose of efficient
buying, assortment, promotion and above all ease of shopping for the consumer.
Such a format provides the greatest selection of any general merchandize and very
often serves as the anchor store in shopping mall or shopping centre. In India, the
number of department stores is less compared to other retail formats such as
supermarkets and discount stores. Shoppers' Stop is the first one to open a
department store in the early 1990s and currently operates 19 stores in 10
different cities in India. The store strongly focuses on lifestyle retailing and
mainly divides into five departments such as apparel, accessories, home dcor,
gift ideas and other services. Shoppers Stop is getting stronger and stronger year
after year. It attracts more than 12 million shoppers every year with a conversion
rate of 38 per cent. In the end of FY2000 this retailer had 5 stores and is in the
process of reaching 39 stores with retail space of 2,502,747 sq ft by FY08.
Another operator Lifestyle India began operations in 1998 with its first store in
Chennai in 1999 and in March 2006 it opened one of the largest department stores
in the same city. The store spreads over 75,000 sq. ft and store provides customers
a great shopping experience with three floors of apparel, footwear, products for
children, household furniture and decor, health and beauty products.
Hyper marts/supermarkets:

Large self-service outlets, catering to varied shopper needs are termed as


supermarkets. These are located in or near residential high streets. These stores
today contribute to 30% of all food & grocery organized retail sales. Super
Markets can further be classified in to mini supermarkets typically 1,000 sq ft to
2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5000 sq ft.
having a strong focus on food & grocery and personal sales.
Hypermarkets have emerged as the biggest crowd pullers due to the fact that
regular repeat purchases are a norm at such outlets.
Unlike western countries where supermarkets are prominently visible, in our
country this is lacking. The supermarkets largely concentrate on selling food
related products and are considerably smaller in size compared to hypermarkets.
Their value proposition is also different from the hypermarkets. The supermarkets
offer relatively less assortments but focus on specific product categories. They do
not play the game on price rather use convenience and affordability as their
salient features. In India this role is played by the provision stores and sweet
shops. Interestingly the fresh vegetables and fruits are sold on the foot path and in
open markets. Traditionally consumers feel conservative to buy fruits and
vegetables from air conditioned supermarkets. They prefer to buy either from the
local mobile vegetable sellers or from the nearest sabji market. Probably that
works as deterrent factor for the growth of supermarkets in India. But the situation
is changing and slowly supermarket operators are coming to their own.

Convenience Stores:

these are relatively small stores 400-2,000 sq. feet located near residential areas. they
stock a limited range of high-turnover convenience products and are usually open for
extended periods during the day, seven days a week. Prices are slightly higher due to
the convenience premium.
Entry of MNCs

A spice market

The worlds largest retailer by sales, wal-mart stores Inc and Sunil Mittals BHarti
Enterprises have entered into a joint venture agreement and they are planning to open
10 to 15 cash-and-carry facilities over seven years. The first of the stores, which will
sell groceries, consumer appliances and fruits and vegetables to retailers and small
businesses, is slated to open in north India by the end of 2008. See also for more
Detail Pick/muller Carrefour, the worlds second largest retailer by sales, is planning
to set up two business entities in the country one for its cash-and-carry business and
the other a master franchisee which will lend its banner, technical services and know
how to an Indian company for direct-to consumer retail. The worlds fifth largest
retailer by sales, Costco wholesale corp (costco) known for its warehouse club model
is also interested in coming to Indian and waiting for the right opportunity.
Opposition to the retailers plans have argued that livelihoods of small scale and rural
vendors would be threatened. However, studies have found that only a limited
number of small vendors will be affected and that the benefits of market expansion
far outweigh the impact of the new stores. Tesco plc., plans to set up shop in India
with a wholesale cash-and-carry business and will help Indian conglomerate Tata
group to grow its hypermarket business.
Growth of MNCs

A retail mall in India


Growth over 1997-2007

India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale.
Then, it required government approval. The approval. The approval requirement was
relaxed, and automatic permission was granted in 2006. Between 2000 to 2010,
Indian retail attracted about $1.8 billion in foreign direct investment, representing a
very small 1.5% of total investment flow into India.

Single brand retailing attracted 94 proposals between 23006 and 2010,of which 57
were approved and implemented. For a country of 1.2 billion people, this is a very
small number. Some claim one of the primary restraint inhibiting better participation
was that India required single brand retailers to limit their ownership in Indian outlets
to 51%. China in contrast allows 100% ownership by foreign companies in both
single brand and multi brand retail presence.

Indian retail has experienced limited growth, and its spoilage of food harvest is
amongst the highest in the world, because of very limited integrated cold-chain and
other infrastructure. India has only 5386 stand-alone cold storages, having a total
capacity of 23.6 million metric tons. However, 80 percent of this storage in used only
for potatoes. The remaining infrastructure capacity is less than 1% of the annual farm
output of Indian, and grossly inadequate during peak harvest seasons. This leads to
about 30% losses in certain perishable agricultural output in India, on average, every
year.

Indian laws already allow foreign direct investment in cold-chain infrastructure to the
extent of 100 percent. There has been no interest in foreign direct investment in cold
storage infrastructure build out. Experts claim that cold storage infrastructure will
become economically viable only when there is strong and contractually-binding
demand from organized retail. The risk of cold storing perishable food, without an
assured way to move and sell it, puts the economic viability of expensive cold storage
in doubt. In the absence of organized retail competition and with a ban on foreign
direct investment in multi-brand retailers, foreign direct investments are unlikely to
begin in cold storage and farm logistics infrastructure.

Until 2010, intermediaries and middlemen in India have dominated the value chain.
Due to a number of intermediaries involved in the traditional Indian retail chain,
norms are flouted and pricing lacks transparency. Small Indian farmers realize only
1/3rd if the total price paid by the final Indian consumer, as against 2/3rd by farmers in
nations with a higher share of organized retail. The 60%+ margins for middlemen and
traditional retail shops have limited growth and prevented innovation in Indian retail
industry.
Indian has had years of debate and discussions on the risks and prudence of allowing
innovation and competition within its retail industry. Numerous economists
repeatedly recommended to the Government of India that legal restrictions on
organized retail must be removed, and the retail industry in India must be opened to
competition. For example , in an invited address to the Indian parliament in
December 2010, Jagdish Bhagwati, professor of Economics and Law at the Columbia
University analysed the relationship between growth and poverty resuction, then
urged the Indian parliament to extend economic reforms by freeing up of the retail
sector, further liberalization of trade in all sectors, and introducing labor market
reforms. Such reforms professor Bhagwati argued will accelerate economic growth
and make a sustainable difference in the life of Indias poorest.

A 2007 report noted that an increasing number of people in India are turning to the
services sector for employment due to the relative low compensation offered by the
traditional agriculture and manufacturing sectors. The organized retail market is
growing at 35 percent annually while growth of unorganized retail sector is pegged at
6 percent.

The Retail Business in India is currently at the point of inflection. As of 2008, rapid
change with investments to the tune of US $ 25 billion were being planned by several
Indian andmultinational companies in the next 5 years. It is a huge industry in terms
of size and according of India Brand Equity Foundation (IBEF),it is valued at about
US$ 395.96 billion. Organised retail is expected to garner about 16-18 percent of the
total retail market (US $ 65-75 billion) in the next 5 years.

India has topped the A.T. kearneys annual Global Retail Development Index
(GRDI) for the third consecutive year, maintaining its position as the most attractive
market for retail investment. The Indian economy has registered a growth of 8% for
2007. The predictions for 2008 is 7.9%. the enormous growth of the retail industry
has created a huge demand for real estate. Property developers are creating retail real
estate at an aggressive pace and by 2010,300 malls are estimated to be operational in
the country.

Growth after 2011

Before 2011, India had prevented innovation and organized competition in its
consumer retail industry. Several studies claim that the lack of infrastructure and
competitive retail industry is a key cause of Indias persistently high inflation.
Furthermore, because of unorganized retail, in a nation where malnutrition remains a
serious problem, food waste is rife. Well over 30% of food staples and perishable
goods produced in India spoils because poor infrastructure and small retail outlets
prevent hygienic storage and movement of the goods from the farmer to the
consumer.

One report estimates the 2011 Indian retail market as generating sales of about $470
billion a year, of which a miniscule $27 billion comes from organized retail such as
supermarkets, chain stores with centralized operations and shops in malls. The
opening of retail industry to free market competition, some claim will enable rapid
growth in retail sector of Indian economy. Others believe the growth of Indian retail
industry will take time, with organized retail possibly needing decade to grow to a
25% share. A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year: a revenue equal to the 2009
revenue share Japan for the worlds 250 largest retailers.

The Economist forecasts that Indian retail will nearly double in economic value,
expanding by about $400 billion by 2020. The projected increase alone is equivalent
to the current retail market size of France.

In 2011, food accounted for 70% of Indian retail, but was under-represented by
organized retail. A.. Kearney estimates Indias organized retail had a 31% share in
clothing and apparel, while the home supplies retail was growing between 20% to 30%
per year. These data correspond to retail prospects prior to November announcement of
the retail reform.

It might be true that India has the largest number of shops per inhabitant. However
there are detailed figures for Belgium, the Netherlands and Luxemburg. In Belgium, the
number of outlets is approximately 8 per 1,000 and in the Netherlands it is 6. So the
Indian number must be far higher.
Support For Malls

Support of Chief Ministers of Indian states

Supporters of retail reform who have voiced the need to promote organized retail
include Chief Ministers of several states of India, several belonging to political parties
that have no affiliation with congress-led central government of India. The list includes
the Chief Ministers of Maharashtra, Andhra Pradesh, Tamil Nadu and Gujarat. In a report
submitted earlier in 2011, these Chief Ministers urged the prime Minister to prioritize
reforms to help promote organized retail, shorten the retail path form farm to consumer,
allow organized retail to buy direct from farmers at remunerative produce prices, and
reduce farm to retail costs. Similarly, the Chief Minister of Delhi has come out in support
of the retail reform, as have the chief Minister to Delhi has come out in support of the
retail reform, as have the Chief Ministers of the two farming states of Haryana and
Punjab in north India. The Chief Ministers of Haryana and Punjab claim that the
announced retail reforms will immensely benefit farmers in their states.
The Chief Minister of the state of Maharashtra-the state with the highest GDP in India
and home to its financial capital Mumbai-has also welcomed the retail reform.

Tarun Gogoi, the Chief Minister of Assam, an eastern state in India, announcing his
support to the retail reform, claimed this will go a long way in bringing about a sea
change in rural economy. The decision will boost agriculture and allied sectors,
manufacturing, logistics, integrated cold chains, refrigerated transportation and food
processing facilities in a big way. Criticising the BJP- organized opposition, Gogoi
claimed that these parties who had just a few years ago dubbed opening up retail as good
for India, are now singing a different tune.

Current supermarkets
Existing Indian retail firms such as Spencer's, Foodworld Supermarkets Ltd, Nilgiri's and
ShopRite support retail reform and consider international competition as a blessing in
disguise. They expect a flurry of joint ventures with global majors for expansion capital
and opportunity to gain expertise in supply chain management. Spencer's Retail with 200
stores in India, and with retail of fresh vegetables and fruits accounting for 55 per cent of
business claims retail reform to be a win-win situation, as they already procure the farm
products directly from the growers without the involvement of middlemen or traders.
Spencer's claims that there is scope for it to expand its footprint in terms of store location
as well as procuring farm products. Foodworld, which operates over 60 stores, plans to
ramp up its presence to more than 200 locations, It has already tied up with Hong
Kong-based Dairy Farm International. With the relaxation in international investments in Indian
retail, India's Foodworld expects its global relationship will only get stronger. Competition
and investment in retail will provide more benefits to consumers through lower prices,
wider availability and significant improvement in supply chain logistics
What is Consumer Behaviour?

The term 'consumer behavior' is the behavior that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs.

Consumer behavior focuses on how individuals make decisions to spend their available
resources (time. Money, effort) consumption related items.

That includes what they buy, why they when they buy it, where they buy it, how often
they buy it, how often they use it.

How they evaluate it after the purchase, the impact of such evaluations and how they
dispose of it.

The term 'consumer behavior' describes two different kinds of consuming entities the
personal consumer and the organizational consumer.
The personal consumer buys goods and services for his or her own use, for the use of
the household, Or as a gift for a friend. The products are bought for final use by
individuals, who are referred to as end users or ultimate consumers.

The organizational consumer includes profit and not-for-profit businesses,


government agencies (local, state and national) and institutions (Eg. schools,
hospitals, prisons), all of which must buy products, equipments and services in order
to run their organizations.

4.1 Consumer buying behavior

Marketing starts and ends with consumers. Consumer is the centre of business activities in a
market-oriented marketing philosophy. Consumer satisfaction has a very important place in
business. Consumers can be satisfied only when a marketer knows what consumers need.
Consumer need should be treated as the focus point. Demand creation depends on consumer
satisfaction. Thus, the study of consumer behavior is the first step in designing marketing
program me meaningfully and successfully.

Consumer behavior, studies, how individualist groups and organizations select, buy and dispose
of goods, services, ideas to satisfy their needs and wants. Thus, the study of consumer behavior
plays an important role in designing the marketing programme. Consumers favour those
products, which suit and satisfy their needs and wants: Consumer behavior concerns with the
study of the present or actual and the potential buyers.
Marketer can understand consumers through analysing the 7 O's framework propounded by
Philip Kotler. : The 7 O's are related with consumer behavior. The 7 O's framework answers
most of the question about the market. Marketers can get enough insight by analyzing these 7
O's.

Today consumers give more importance on environment friendly products. They are concerned
about health, hygiene and fitness. They prefer natural products. Hence detailed study on
upcoming groups of consumers is essential for any firm.

Consumers tastes and preferences are ever changing. Study of consumer behavior gives
information regarding colour, design, size etc. which consumers want. In short, consumer
behavior helps in formulating of production policy.

Changing Attitudes of the Masses

Droves of middle-class Indians have broken off their love of traditional stand-alone Indian stores
that have no air conditioning; organized parking and other public amenities. Experts say malls
throughout the country are getting bigger as they are now being positioned as a one-stop-shop for
shopping, entertainment, leisure and eating-out needs rather than a place only for shopping for
fashion products.

By 2007, north zone will account for 39 per cent of total mall space, followed by west zone (33
per cent), south zone (18 per cent) and east zone (10 per cent), and said the Images study. The
study said a lot more activity on the mall development front was expected from the smaller cities
in the years ahead. These cities will have about 12.8 million sq ft of mall space by 2007, with
Ludhiana accounting for about 2.5 million sq ft and Ahmedabad about 3.4 million sq ft.

The study said the fast growing middleclass population, the rise in women workforce and
consumerism over the decade was the major forces in driving demand in the retail sector. "To the
present generation, shopping means much more than a mere necessity and malls are now fast
becoming image benchmarks for communities.
CHANGING INDIAN CONSUMER BEHAVIOUR
There has been an increase in the disposable income of the middle class households in India. Between
1993 and 2003 there was a 20.9% growth in the real disposable income of the Indians. Besides that,
there has been a 10% growth in the middle and high income populations in the last decade. Add to that,
the falling interest rates, easier consumer credit and a greater variety and quality of goods available at
all price points has increased the momentum of consumerism in India. Consumers in particular, the
urban consumers are getting exposed to international lifestyles.

They are inclined to own more assets and thus there is an increased tendency to spend. Therefore,
contrary to the olden times, shopping is no longer need based.

The greater education levels have increased the awareness levels of consumers and they are becoming
more demanding and discerning. The age segments of 17- 21 year olds, (which number more than a 100
million in India) tend to spend freely and are highly influenced by international lifestyles.

As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls
and huge complexes offer shopping, entertainment and food all under one roof, the concept of
shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in
shopping in India. This has also contributed to large scale investments in the real estate sector with
major national and global players investing in developing the infrastructure and construction of the
retailing business.

The trends that are driving the growth of the retail sector in India are
Low share of organized retailing
Competitive real estate prices
Increase in disposable income and customer aspirations
Increase in expenditure for luxury items

Another credible factor in the prospects of the retail sector in India is the increase in the young working
population. Hefty pay-packets, nuclear families in urban areas, along with increasing working-women
population have also contributed to the growth of retailing in India

. These key factors have been the growth drivers of the organized retail sector in India which now boast
of retailing almost all the preferences of life -Apparel and Accessories, Appliances, Electronics, Cosmetics
and Toiletries, Home and Office Products, Travel and Leisure and many more. With this the retail sector
in India is witnessing a rejuvenation as traditional markets make way for new formats such as
departmental stores, hypermarkets, supermarkets and specialty stores.
The retailing configuration in India is fast developing as shopping malls are increasingly becoming
familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities
are no longer behind in the race. If development plans till 2007 are studied it shows the projection of
220 shopping malls, with 139 malls in metros and the remaining 81 in the Tier II cities.

Effect of Mall Culture on Consumer Psychology

Consumers shopping behaviors and mall preferences will empower international retailers,
domestic retailers, and mall operators to market their products and services
more effectively. Research on retail patronage has been conducted in various cultural contexts,
but limited empirical studies have been conducted on Indian consumers and their preferences for
retail formatsspecifically malls. A thorough understanding of Indian consumers motivations
and their mall-patronage intentions would benefit mall managers in drawing practical and
constructive lessons on strategies to meet the needs of consumers in India. Consumers
evaluation is affected by design characteristics of mall as well as physical services. Mall design
must be consistent with the consumers expectations and experience at other malls (Burke,
2005). Howard (2007) described that music, color, intricacy of the mall layout and products
arrangement are elements of mall environment that can be used by retailers to effect consumer
behavior. He also
discovered direct relationship of music and layout with consumer desire to stay

Is mall culture capturing India?

Absolutely, without any doubt the mall culture has gripped Indians and they seem love every bit
of it.
Few days back I visited a newly opened 2 million square feet everything-under-one-roof mall in
Pune. I was shocked to see the number of people that had thronged the place. It seemed to be
some kind of a huge people procession out there.
In earlier days (about a decade back), if you wanted to do any kind of shopping, one had couple
of places to go (or should I say streets) like Laxmi Road or Main street (every city has shopping
streets like these, especially in the downtown area), where small shoppers line up across the
roads. Bargaining to extract the best price was common place- and it had it own charm too.

But everything has changed now. The younger and older generation alike prefer buying stuff
from huge malls where one not only get variety, but quality too at moderate prices.
Even for your everyday grocery buying superstores have come up at every nook and corner. Just
to give you an example, we have around 8 superstores (Reliance fresh, Spencers, Big Bazaar)
within area of roughly 5 sq. km. The main attraction with all of them is competitive pricing as
compared to next door retail grocery shop.

source
In a recent survey done by Jones Lang LaSalle Meghraj, a real estate consultancy firm, it
reports that 328 new malls are expected to come up in metros and Tier I, II, III cities by
2010.
And the reason for so many malls and super stores coming up is simple huge consumer
demand.
According to study carried out by Assocham, a whooping Rs. 1,31,804 crore has been invested
in organised retailing in last 6 months alone.
Here are some of the highlights of that study:
Organized retail growing at estimated 25%; set to penetrate tier II and tier III cities like
Pune, Chandigarh and Hyderabad; investment worth Rs27,550 crore announced

Real estate companies like Unitech and DLF draw up plans that cater to growing demand of
shopping malls; capex of Rs65,000 planned to be invested in real estate development for
retail space in next four to five years; food and grocery is next big retail segment with
investment plan of Rs22,100 crore
Hyper marts will soon dot the Indian retail space with investment announcements of
Rs29,154 crore expected to set them up

Companies like Reliance Retail have set aside Rs24,000 crore for setting up hyper marts by
2010-11 in National Capital Region; Spencer retail announced capex of Rs3000 crore for
expanding its retail outlet and setting up hyper marts by 2010

Increased competition among food & grocery retailers will provide better services to users;
capex of Rs22,100 crore planned to set up chains of food and grocery stores in next three
years

Past six months witnessed major expansion in textile and apparel segment by large
retailers including Provogue, Trent and Arvind Mills drawing up an investment chart of
Rs7,900 crore for setting up new stores in Pune, Hyderabad, Navi Mumbai

Job creation centres of the future will be cities like Hyderabad, Pune, Surat and Chandigarh
among others
How successful are malls in India?

It has been seen that many a time mall is opened with huge expectations but faced shut
down. This includes Full Stop Mall on Palm Beach Road, the Marine Drive of Navi
Mumbai, Gold City Mall in Navi Mumbai, Star City Mall in Delhi and many more. Also
in many malls 70-80 percent spaces remain vacant. Poor selection of site is one of the
major reasons. Experts advise to do a thorough research before opening a mall in any
area. Success actually depends upon its location, demographic factors, and spending
power of the local population.

Some of the largest malls in India are: Phoenix Market City Mumbai (Mumbai,
Maharashtra), Metro Junction Mall (Kalyan, Maharashtra), LuLu International Shopping
Mall (Kochi, Kerala), The Great India Place (Noida) and Z Square shopping Mall
(Kanpur, Uttar Pradesh).

All in all malls have changed the lifestyle of consumers in India and helped the retail
sector to become more organized

______________________________________________________________________________

Mall Culture in India


Mall culture in India and especially in Delhi & NCR has grown with an incredible pace.
Just a few years back, people had to make a choice among shopping, movies or hanging
out on a holiday but thanks to our malls, all these jobs can be performed at the same time,
under the same roof and that too with a wonderful experience. And it is basically the
experience and not the intention that counts when it comes to malls.
The reason why shopping malls are so popular lies in their international appeal. It seems
to be a thing of history when shopping malls had their presence only in places like
Singapore and Dubai. In fact, now they are everywhere around us.
If we dive back in time to the early Nineties, Ansal Plaza appeared to be the only popular
shopping mall of the region but presently there are more than two dozens of well-
established malls in the region and another 140-odd new shopping arcades are set to dot
the city landscape in days to come.
People find these malls to be the best place to shop or hang out in summer heat as they
offer free entry to a completely air conditioned complex with good music playing all
around and loads of window shopping opportunity which is appreciated by one and all.
Not to forget the numerous food joints that serve different cuisines meant to magnetize
the taste buds of all the foodies.
Though malls are equally popular among all ages, the true lovers of multiplexes are the
youngsters for whom malls are the `ultimate place to be`. These malls serve their various
purposes like shopping, watching movies, dating or just to hang out though they really
dont need a purpose for being there. Malls are the coolest and safest place to go
bunking, says Raghav, a college student while the other boys and girls belonging to the
same age group have no different opinions.
These malls have also come up with different ways to cater to their target visitors like
some of them have discos where the Gen-X get a chance to chill-out during nights. Mohit
says, Opening of discos has added a new adventure and fun to my life. I can now go and
party in the night too.
These malls have changed the trends to an extent that the glamour that could be seen only
on the silver screen has now come to our cities and we can actually see it in our
neighborhood. Almost all the malls present in the region can match any high-quality mall
in any part of the world.

Culture could be defined as the set of learned beliefs and values and mall culture is learned
shopping experiences. This culture is different from the typical Indian Shopping Culture (i.e.
convenience/Kirana shops or Mom and Pop stores). The mall culture in the society is created due
to shopping, roaming, enjoying movies and entertainment and also making routine to visit a mall.
In India all this has happened rapidly but there is still a huge potential market remains untapped.
The malls developed in India due to many reasons. Some are listed below:

Population Density: Market is the sum total of existing and potential customers. Prominent
cities of India cover a huge part of population. A huge percentage of population lives in these
areas. This gives developers a very big market to serve.

High income: These cities are known as industrial hubs. Here the income level of people is
higher than the level in rural and some urban areas. People have more money to spend on good
shopping experience they can think more than bread and butter and also are ready to spend for
entertainment

Different buying habits: In metro cities shoppers are broader conscious. Malls collect these all
of international brands of reputed companies are made available by malls. Change in culture
again developed a situation where both husband and wife are working and they want all the
required materials under one roof, this led to developing of more and more malls.
Reasons for growth of Malls in India

Fast growing middle class with higher discretionary income. Emergence of youth as an
independent shopper with a lot of disposal income. Rogerness of Indian shoppers for a
new shopping experience.

Ability of Mall developers to make shopping an enjoyable experience. Presence of


factors like cost effectiveness, convenience wide variety of products with the fun element
entertainment and good time pass plus shopping on weekends.

Influence of media and marketing communication resulting in changing aspirations,


lifestyle orientation and change in consumer perceptions about shopping.
Prospects of shopping malls in India

Global estimates say India will be home to 26.2 million square feet of shopping malls in
2006 and the good news for the people belonging to NCR is that 40% of these will be
concentrated in this region alone.

Introduction of malls has not been able to replace traditional markets, which are still
popular among the pocket conscious people, but has definitely added a new adventure to
the shopping experience. The retail business in India is set to witness heady growth in the
years ahead with the number of shopping malls in Asia's third largest economy rising to a
staggering 358 by the end of 2007, says a study.

The country has some 100 malls now, with the National Capital Region (NCR) and
Mumbai accounting for maximum numbers of the gleaming shopping centres, says a
study by the Images fashion magazine. The retail sector will see over 34 million sq ft of
shopping centre space by the year end, said the report on shopping centre development in
India.

"Performance beyond expectation is all the more significant in the backdrop of adverse
reports and predictions on this sector," said Amitabh Taneja, director (India) of
International Council of Shopping Centres."Based on a complete list of shopping centre
developments taking place across the country, the projection for listed developments by
2007 is 358, with a total built up area of 87.8 million sq ft," he added.

According to Images, there are a total of 96 operational malls in India with a total built-
up area of 21.6 million sq ft. The number will rise to 158 malls by the end of the current
year. Organized retailing is projected to grow at the rate of 25-30 per cent per annum to
touch $8 billion by 2005 and $24 billion by 2010, said the Images study.

Investments in the retail sector are estimated at between $400 million and $500 million
over the next two to three years, and over $4 billion by the end of 2010, it added. The
retail industry in India is currently estimated at $205 billion, which is likely to grow at a
rate of five percent per annum in the coming years
Shopping V/S Pop Mom & Shop The Competiton Scenario.

The organized sector identified as mall/pop mom & shop is still at nascent stage,and is
unlikely to prove a threat to the unorganized sector for many, many years to come. The retail
segnment itself is growing so fast that it will absord any fresh addition to the supermarkets very
easily, and thae unorganized sector will still very modest 7.8% of the overall retail market.This
alone proves that there is a long way to go for organized retail,before it can even present itself as
an alternative to small traders.

Besides there are a number of reasons which for that India will continue to be dominatd by small
retailers for a long time to come such as:

Even the biggest of domestic players in organized retail lack the muscle and resources to
cater to significant proportion of Indian population.It takes a lot of time and money for a
organized retailers to show decent profits in Indian situation and the weaker ones will
continue to fall by the way side-remember Shubhiksha.

The bulk future growth in retail will come from rural population which is a segment that
organized retailers will not be able to cover for a number of reasons poor infrastructures
operational difficulties ,remoteness of markets and the share size of the Indian market.

Peculiarities of the India Customers,which make it very unpredictable lot.Even for a


large section of able and affluent buyers malls are mostly for changing out and family
outings-purchasing is still done at the friendly neighbourhood pop mom & shop.And
however much marketing gurus like to tout the changing minest and the
increased,purchasing power of the Indian customer.

Despite of what the media and business leaders want us to believe, the average Indian
Customer has very limited purchasing capacity .Even the affluent buyers are not
profligate spenders-we Indians love to extract maximum value for moneyPurchasing at
the local pop mom & shopwalas give as valuable opportunity to bargain!
HOW OFTEN YOU GO FOR SHOPPING

WEEKLY

QtrFORTNIGHTLY

MONTHLY

QUARTERLY

Data Analysis And Interpretation

1) How often do u go for shopping?


Weekly Fortnightly Monthly Quaterly

OPINION NO.OF RESPONDENTS PERCENTAGE


WEEKLY 8 16%
FORTNIGHTLY 30 60%
MINTHLY 10 20%
QUARTERLY 2 4%
TOTAL 50 100%
INTERPRETATION

60% said that they would go fortnightly to the shopping mall this directly shows that shopping
mall is in great demand.

WHERE DO YOU PREFER SHOPPING

SHOPPING MALL
POP MOM AND SHOP
OTHERS

2) Where do you prefer shopping?


Pop mom & shop Shopping mall others

OPINION NO.OF RESPONDENTS PERCENTAGE


SHOPPING MALL 35 70%
POP MOM & SHOP 15 30%
OTHERS 0 0%
TOTAL 50 100%
Sales

shopping mall
pop and mom shop

3) Do you think shopping mall is more convenient than Pop mom & shop?
Yes No

OPINION NO.OF RESPONDENTS PERCENTAGE


SHOPPING MALL 34 68%
POP MOM & SHOP 16 32%
TOTAL 50 100%

INTERPRETATION -
68% said yes they feel convenient in buying in shopping mall and 32 % said no.

4) IF yes ,why ?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Mostly people said that buying in the mall is convenient because the varieties of product which
enables them to make choice, and the price is also less they said we want quality products at lower
rate.

Sales

expensive
cheaper
same

5) What do you think about the prices in malls as compared to stores?


Expensive Cheaper Same

OPINION NO.OF RESPONDENTS PERCENTAGE


EXPENSIVE 40 80%
CHEAPER 05 10%
SAME 05 10%
TOTAL 50 100%
INTERPRETATION-
80% said they feel it expensive to buy in Pop Mom & Shops as there are no offers and the
product are sell at the MRP price.

Sales

yes
no

6) While shopping in the mall do you miss the suggestion that our Pop Mom & shop
walas use to give?

OPINION NO.OF RESPONDENTS PERCENTAGE


YES 36 72%
NO 14 28%
TOTAL 50 100%
Sales

credit facility
self service
suggestion from storekeeper
home delivery

7) What the drawbacks while shopping in mall as compared to Pop Mom & Shop?
Credit facility Suggestion from storekeeper
Self-service Home delivery

OPINION NO.OF RESPONDENTS PERCENTAGE


CREDIT FACILITY 2 4%
SELF SERVICE 2 4%
SUGGESTION FROM 36 72%
STOREKEEPER
HOME DELIVERY 10 20%
TOTAL 50 100%
INTERPRETATION-

72% peoples feels thet suggestions from the storekeeper is the main drawback of the shopping
mall where 20 % go for home delivery,4% for self service,and 4% for credit facility.

Sales

shopping mall
pop and mom shop

8) Which one of this would be your first choice or preference to buy your necessary
products?

Shopping mall Pop Mom & Shop

OPINION NO.OF RESPONDENTS PERCENTAGE


SHOPPING MALL 38 76%
POP MOM & SHOP 12 24%
TOTAL 50 100%
INTERPRETATION-

76% of the people think that they would prefer buying in the shopping mall where 24% said Pop
Mom & Shop.

Sales

price
variety
atmoshpere

9) What do you think is the main attraction in malls?


Price Variety Atmosphere

OPINION NO.OF RESPONDENTS PERCENTAGE


PRICE 10 20%
VARIETY 10 20%
ATMOSPHERE 30 24%
TOTAL 50 100%
INTERPRETATION-
60% people said that the atmosphere of the shopping attracts them much more as compare to the price
having only 20% respondents and 20 % for variety.

10) What are the advantages of shopping in mall?

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

INTERPRETATION-
Most of the people said that buying in shopping mall is fantastic because the environment, different
product varieties, offers or discount given the shopping mall.

Study desing

Objectives of the study


The purposed study shall primarily attempts to study is the malls In comparison to that in a pop and
mom shop/retail shops and also factors influencing the changes.
RESEARCH METHODOLOGY

a) To carry out the research, primary data will be scrutinized in addition to


secondary data which will be collected from customers of offering ages.
b) The methodology adopted to study the consumer buy in behavior is through
survey in shopping malls. The survey is done through the personal interviews by
putting different set of structure questionnaire to them. However
informal/unstructured interviews may be conducted to get insight of it.
c) The sample sizes for collection of data will be restricted to customers in few area
of Mumbai.
d) For analysis of the data, simple statistical tools will be used. Data analysis will be
represented in tabular and graphical form.

QUESTIONNAIRE

It is formalized set of question with are logically and systematically arranged to collect the
information useful for the proposed study. The question which are easy and to understand.

Limitation
1) The research will be conducted at limited area of Mumbai may not give a universal
view.
2) The Research is restricted to selective 40 respondents on which analysis and
conclusion will be drawn.
Conclusion

After doing a research work on the Retail Market In India, I conclude saying that with the
passing time consumer have changed their preference from purchasing from pop and mom shop
to purchasing in shopping malls

Consumer prefer shopping mall comparatively than the pop and mom shop because of several
reasons such as variety of products, increase standard of living, getting many necessities under
one roof, etc.
ANNEXURE

1) How often do you go for shopping?


A) Weekly B) Fortnightly C)Monthly D)Quarterly

2) Where do you prefer shopping?


A) Pop Mom & Shop B)Shopping malls C)Others

3) Do you think shopping mall is more convenient than pop Mom & shop?
A) Yes B) No

4) If yes , why?

___________________________________________________________________________________

5) What do you think about the prices in malls as compared to stores?


A) expensive B) cheaper C) same

6) While Shopping in mall do you miss the suggestion that our pop mom & shop walas use to give?
A) yes B) No

7) what the drawbacks while shopping in malls as compared to Pop Mom & Shop?
A) Credit Facility B) Suggestion from storekeeper
C) self- service D) home delivery

8) Which One of this would be your first choice or preference to buy your necessary products?
A) Shopping Malls B)Pop Mom & shop

9) What do you think is the main attraction in malls?


A) Price B) Variety C) Atmosphere

10) What are the advantages of shopping in malls?

_________________________________________________________________________
BIBLIOGRAPHY

The data which is been presented my me is been collected in the way of secondary data as well
as primary data. The following are some books which I have referred while making this project
they are mentioned below:-

Special studies in Marketing - Sunny Fernandes


( Rishabh Publications)

Retail management - Sunny Fernandes


( Rishabh Publications)

I have also got the secondary data from websites which are as follows:-

http://www.wikinvest.com/industry/Retail

http://www.exel.com/excel/exel_retail.jsp

http://www.indiagovernance.gov.in?news.php?id=1102

http://businesstoday.intoday.in/story/retail-fdi/1/214464.html

I have collected the primary data by doing the survey by the people