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Organized retailing Organized retail is nothing but a retail place all the items are segregated and brought under one roof, unlike the unorganized retail where there are different things are sold in different shops. It also aims to bring maximum of different brands making the same type of product together. The retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organized 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. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. [2] In India, a shopkeeper of such kind of shops is usually known as a dukandar.

The future of the India Retail Industry will be very promising with 3 factors:
1. The growing of the market,

2. The government policies to be more favorable to large retail players, and 3. The emerging technologies facilitating operations.

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

EXTERNAL ENVIRONMENT:The external environment includes all the factors outside the organization which provide opportunities or pose threats to the organization. The environment in which an organization exists can be described in terms of the opportunities and threats operating in the external environment. In a wider sense, the external environment encompasses a variety of factors, like: international, national and local economy; social changes; demographic variables; political system; technology; attitude towards business; energy sources; raw materials; and other resources; and many other macro-level factors. such a wider perception of the environment could be designated as the general environment. All organizations, in some way or the other, are concerned about the general environment. But the immediate concerns of any organization are confined to just a part of the general environment, which is of high strategic relevance to the organization. This part of the environment could be termed as the immediately relevant environment, or simply, the relevant environment. SECTORS OF EXTERNEL ENVIRONMENT: TECHNOLOGICAL ENVIRONMENT: - The technological environment consists of those factors that are related to the knowledge applied and the materials and machines used in the production of goods and services which have an impact on the business of an organization. Some of the important factors and influences operating in the technological environment are as follows: 1. Sources of technology, like company sources, external sources, and foreign sources; cost of technology acquisition; collaboration in and transfer of technology

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

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

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.


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.








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. Multistore 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.


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 familyrun 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

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.

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 lowcost

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

agriculture, and has deep penetration into rural India generating more than 10 per cent

of Indias GDP.

The future The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.



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:

o o

To analyses economic environment of organised retailing in C.G. To suggest the strategic measures to the organised retailing in C.G.

Brief introduction about this Survey:Research Design Research Instrument Research Technique Measurement Scale Data collection Descriptive Structured questionnaire Survey 5 point Likert Scales Primary data collected through questionnaire, Secondary data from :- Books, websites ,Journals, Magazines.

Location Sample Size Sample Plan

From Durg, Bhilai and Raipur 120 Simple Random

Demographic Characteristics:-

LOCATION Raipur Bhilai Durg ANNUAL TURN OVER 5-9.99LAKH 10-14.99LAKH 15-19.99LAKH 20LAKH &ABOVE 28 32 30 30 50 40 30

Hypothesis: -

H1: Economic Factor is responsible for growth of organized retailing. H2: Sociological Factor is responsible for growth of organized retailing. H3: Firm related Factor is responsible for growth of organized retailing.






CHAPTER:-4 Data Analysis and Tabulation

Rotated Component Matrixa Component 1 P_GRO_1 P_GRO_2 SOC_1 SOC_2 SOC_3 SOC_4 SOC_5 ECO_1 ECO_2 ECO_3 FIR_1 FIR_2 FIR_3 -.056 .173 -.196 .124 .741 .761 .741 .064 .149 -.184 .320 .169 -.177 . 032 .330 .078 -.045 2 .094 .262 .321 -.007 .083 -.345 -.073 .732 . 763 . 634 -.185 .158 3 -.091 .061 .587 .784 .759 .562 .726 .247 .129 . 182 .122 -.006 4 .194 -.199 .225 .092 .144 -.152 .125 .653 .031 .113 .068 .006 5 .150 -.052 -.235 .087 .151 .105 -.064 .039 -.071 -.102 .746 .809

Total Variance Explained Rotation Initial Eigenvalues Extraction Sums of Squared Loadings Loadings Cumu lative Component Total 1 2.413 % of Variance Cumulative % Total 18.564 18.564 2.413 % of Variance Cumulative % Total 18.564 18.564 1.901 % of Variance % 14.627 14.62 7 27.99 8 Sums of Squared

















39.56 3 50.97 6 61.72 4









1.122 .942 .802 .768 .659 .501 .482 .446 .376

8.634 7.249 6.173 5.905 5.069 3.853 3.706 3.430 2.891

61.724 68.973 75.146 81.051 86.120 89.973 93.679 97.109 100.000






6 7 8 9 10 11 12 13

Extraction Method: Principal Component Analysis.


Standardized Unstandardized Coefficients Model 1 (Constant) SOC ECO FIR a. Dependent Variable: GRO B 1.098 .412 .104 .000 Std. Error .365 .172 .139 .125 .295 .092 .000 Coefficients Beta t 3.011 2.396 .747 -.001 Sig. .004 .019 .457 .999


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 .


Since, there is a significant difference among the determinants so every determinant is to be treated differently. As the retailers growth of the malls. Increase in the population. Increase literacy rate. Increase in expenditure on entertainment activity. considered the Sociological factor for the


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.

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.