CHAPTER 1: INTRODUCTION

Organized retail today accounts for less than 5% of Indias retail business, but is bound to
grow, forcing choices on the government, and upon itself. Chinas eperience and
those of other !sian countries that recently modernized their retail sector can provide
valuable insight on what choices ma"e sense. #erving local consumer tastes in
China with over $.% billion people poses a similar challenge in India, with its $.$5
billion people. Chinese regulations, at both the central and local levels, had created
confusion and difficulty for retailers trying to open new businesses or ac&uire
established ones.
Indias regulatory patchwor" fre&uently impedes the efficient flow of products and
needs to be coordinated across states and local 'urisdictions. (inally, the Chinese
transportation infrastructure varies across the countrys vast epanse. )hey are
modern and highly efficient, especially in urban and coastal areas, and organized
retail is most successful here. India needs better transportation and cold*chain
supply*chain infrastructure across the country.
+oosening foreign entry into the retail sector should be based on a strategic &uid pro
&uo, the profit potential of Indias large retail mar"et for retail operations "nowhow
and investment that are critical to modernizing and improving the efficiency of
Indian retail.
)aiwan opened up its retail sector to foreigners in the $-./s without creating a
regulatory environment for the emergence of a strong retail sector. 0redictably,
foreign companies dominate )aiwanese retail today. In contrast, 1apans distribution
networ"s and regulatory environment have been inhospitable to foreign retailers and
the 1apanese pay today for this absence of competition with some of the highest
retail prices in the world.
#outh 2orea and China managed the process of foreign entry more gradually,
initially encouraging 'oint ventures between domestic and foreign retailers before
looser regulations on (3I in retail were brought in. 4oth countries now have the
benefit of a vibrant domestic retail sector, and the competition between domestic and
foreign retailers has yielded low prices and good service.
$
India is already following Chinas eample, initially encouraging 'oint ventures
between domestic and foreign retailers before allowing $//% (3I in organized
multi*brand retail. )his gradual opening up should preserve a vibrant domestic retail
sector in the long term, and provide India with a solid foundation of domestic
epertise and human capital. (or long*term success, organized retailers should
pursue a few "ey strategies.
(irst, build capabilities and bac"end logistics infrastructure. 3omestic firms should
partner with established foreign firms to capitalize on combining foreign retail
"nowhow with domestic mar"et "nowledge. )his is happening already. 52*based
)esco is wor"ing with the )atas6 5#*based 7al*8art with 4harti, etc. Over time,
these 'oint ventures will dissolve but both the domestic and foreign firms will have
the capabilities to establish successful retail businesses independently.
7hile the government is rapidly investing in transportation infrastructure, organized
retailers should either invest in their own supply*chain infrastructure or promote
intermediaries that develop and invest in cutting*edge supply*chain infrastructure.
#econd, learn local and regional preferences in developing the merchandising mi.
9One size fits all is not a winning strategy, as #ubhi"sha, till recently one of Indias
retail success stories, learnt the hard way through ban"ruptcy when it epanded
rapidly into the north from its south Indian roots with little local mar"et "nowledge.
8erchandising correctly in a diverse country such as India ta"es time, trial and error,
and is critical for success. )hird, to deal with the "irana challenge, organized retailers
should actively engage customers and local political leaders, to demonstrate the
value of their retail enterprise, especially in the contet of political challenges from
"irana lobbyists.
(or eample, 4harti has created a retail academy to train thousands of people in
0un'ab. Creating thousands of 'obs over time develops a political constituency of
employees.
4ut the "irana challenge is not 'ust political, it is also competitive. :iven the high
customer loyalty to these micro*local outlets, helping "iranas become more efficient
while allowing them to effectively serve their clients can be both politically
;
epedient and profitable. One way to address this situation is for organised retailers
to engage in 9co*opetition, to ma"e customers out of their smaller retail rivals.
7e already see this ta"ing form in India with cash*and*carry stores that essentially
serve as wholesalers to "iranas and other local establishments, as well as to
individual shoppers. )esco*)ata, 4harti*7al*8art and 8etro have all created cash*
and*carry formats. In fact, the government has recognized the political benefits of
co*opetition by allowing $//% (3I in the cash*and*carry format. ! competitive
organized retail sector would be a boon for the Indian consumer because the industry
will be forced to continuously improve on products, service and price, letting India
be in the vanguard of retail innovation. #uch tough competition can produce strong
domestic retailers who themselves may epand overseas. 0erhaps, more importantly,
the presence of foreign retailers would create a huge opportunity for Indian farmers,
food processors and other manufacturers. (oreign retailers that have positive
eperience with domestic suppliers sourcing for the Indian mar"et are also li"ely to
source from Indian suppliers for their global operations. Consider this, if a <%//*
billion !merican behemoth li"e 7al*8art sourced even $/% of its products from
India, the potential for Indian farmers and manufacturers is huge. )he eport
potential may even dwarf the direct benefits from organized retail.
1.1 EVOLUTION OF THE
INDIAN RETAIL MARKET
=etailing goes bac" to centuries6
it started as a very primitive
business but today has grown
tremendously. (irst people were
doing businesses with their
neighbors. :oods were
echanged between them.
:radually people began to collect
themselves to a given
neighborhood, which provides a
%
geographical place to do the echange. )his not only increases the eposure of a given
good but also helps a lot towards the development of a more formalized system.
:radually, a few more start to get together to a place that in turn creates a need for a
common place. +ater this common place was called a fair. 7ith the passing of time the
number of people doing businesses in a given fair increased, issues li"e security,
transportation becomes a matter of concern. )his semi*formalized system then gave birth
to small*scale groceries, where people start to provide more combinations in their own
neighborhoods. )hen came the issue of choice in given grocery, the choices the customer
had was limited, this was the beginning of the concept of >everything under one roof?. !s
time passes, 'oint family changes into nuclear family. )here too both members started
earning which resulted into a new way of lifestyle. (rom then instead of mom*and*pop
type of stores organized retail stores came into eistence. 4ased on the ICICI =esearch,
the Indian =etail 8ar"et evolution can be traced in the following way,
=etail has become largest source of employment and has deep penetration into rural
India. =etailing contributes to $/% of :30 and around .% of the employment. =etail
sector is one of Indias fastest growing sectors with a 5% compounded annual growth
rate. It is epected that retail in India could be worth 5#< $@5* ;// billion by ;/$A. )he
organized retail industry in India had not evolved till the early $--/s. 5ntil then the
industry was dominated by the unorganized sector. It was a sellers mar"et with a limited
number of brands and little choice available to customers. +ac" of trained manpower, ta
laws and government regulations, consumer awareness and restrictions over entry of
foreign player delayed the growth of organized retailing. Organized retail chains
comprise only %% of the Indian mar"et. =est -@% mar"et is comprised of mom* and B
pop type shops. Cow the number of organized retail stores is gradually increasing.
!ccording to D)I: EDconomic )imes Intelligence :roupF, the size of the organized retail
industry was about =s. $A/ billion in ;//$*/;. In ;//5 budget :overnment has allowed
;A% (oreign 3irect Investment E(3IF in the retail sector. Organized retailing is on
continuous increase of its mar"et share from the past. =etailing can be categorized as of
different sectors li"e food and groceries, clothing and tetiles, consumer durables,
footwear, furniture and furnishing, catering services, 'ewellery and watches, boo"s, music
and gifts, mobile handsets and others.
G
RECENT TRENDS
Health I 4eauty$%Clothing I )etile%A%Dntertainment$%7atch I
1ewellery$@%4oo"s, 8usic I :ifts%%(ood I
:rocery$G%0harma;%(ootwear$%%Home%%3urables$/%
5
=etailing in India is witnessing a huge revamping eercise as can be seen in the graph
India is rated the fifth most attractive emerging retail mar"et, a potential goldmine.
Dstimated to be 5#< ;// billion, of which organized retailing Ei.e. modern tradeF
ma"es
up % percent or 5#< A.G billion
!s per a report by 208: the annual growth of department stores is estimated at ;G%
=an"ed second in a :lobal =etail 3evelopment Inde of %/ developing countries
drawn
up by !) 2earney.
8ultiple drivers leading to a consumption boom,
o (avorable demographics
o :rowth in income
o Increasing population of women
o =aising aspirations, Jalue added goods sales
(ood and apparel retailing "ey drivers of growth
Organized retailing in India has been largely an urban
0henomenon with affluent classes and growing number of double*income
households.
8ore successful in cities in the south and west of India. =easons range from
differences in consumer buying behavior to cost of real estate and taation laws.
=ural mar"ets emerging as a huge opportunity for retailers reflected in the share of
the rural mar"et across most categories of consumption
o 8ahamaza is leveraging technology and networ" mar"eting concepts to act
as an aggregator and serve the rural mar"ets.
I) is a tool that has been used by retailers ranging from !mazon.com to e4ay to
radically change buying behavior across the globe.
A
1.2 RETAIL SALES IN INDIA
@
.
1.3 CHALLENGES TO RETAIL DEVELOPMENT IN INDIA
Organized retail in India is little over a decade old. It is largely an urban phenomenon and
the pace of growth is still slow. #ome of the reasons for this slow growth are, *
THE KIRANAS CONTINUE - )he very first challenge facing the organized retail
industry in India is competition from the unorganized sector. )raditionally retailing
has established in India for centuries. It is a low cost structure, mostly owner operated,
has negligible real estate and labor costs and little or no taes to pay. Consumer
familiarity that runs from generation to generation is one big advantage for the
traditional retailing sector.
On the other hand, organized sector have big epenses to meet and yet have to "eep
prices low enough to compete with the traditional sector.
RETAIL NOT BEING RECOGNIZED AS AN INDUSTRY IN INDIA B +ac" of
recognition as an industry hampers the availability of finance to the eisting and new
players. )his affects growth and epansion plans.
THE HIGH COSTS OF REAL ESTATE B =eal estate prices in some cities in India
are amongst the highest in the world. )he lease or rent of property is one of the ma'or
areas of ependiture6 a high lease rental reduces the profitability of a pro'ect.
HIGH STAMP DUTIES iB In addition to the high cost of real estate the sector also
faces very high stamp duties on transfer of property, which varies from state to state
E$;.5% in :u'arat and .% in 3elhiF. )he problem is compounded by problems of clear
titles to ownership, while at the same time land use conversion is time consuming and
comple as is the legal process for settling of property disputes.
LACK OF ADEQUATE INFRASTRUCTURE * 0oor roads and the lac" of a cold
chain infrastructure hampers the development of food and grocery retail in India. )he
eisting supermar"ets and foods retailers have to invest a substantial amount of money
and time in building a cold chain networ".
MULTIPLE AND COMPLEX TAXATION SYSTEM B )he sales ta rates vary
from state to state, while organized players have to face a multiple point control and
system there is considerable sales ta evasion by unorganised stores. In many
locations, retailers have to face a multi point octroi with the introduction of value
-
!dded )a EJ!)F in ;//5, certain anomalies in the eisting sales ta system causing
disruption in the supply chain are li"ely to get corrected over a period of time.
)here is price war between different retail organizations. Dach and every one is saying to
provide goods at low cost and offers various promotional schemes. In such a case it is
difficult to "eep ones customers with oneself.
OPPORTUNITIES
=etail mar"eting gets various opportunities to grow up in the Indian mar"et. Cot only
retailing but 8anufacturers as well as suppliers, and buyers have various opportunities,
some of which are mentioned below*
!HAT IS IN STORE- Organized retail provides brands much needed visibility and
platform for customer interaction. It also helps in launching of new product or
product variant and in mar"et penetration. It has wider product range and more
fre&uent, speedier deliveries.
URBANIZATION " Increased urbanization has shifted consumers to one place and
thus a single retail can catch more customers.
NUCLEAR FAMILY- !s the time passed away 'oint families came in a new form
i.e. nuclear family. !gain the income level of these nuclear families increases because
both members started earning. )his results into increased power of purchase and lac"
of time. Cow they want everything under one roof. )his brought the concept of
organized retailing.
PLASTIC REVOLUTION " Increased use of credit cards is in favor of retail
mar"eting. It creates re&uirement even when it is not necessary.
#O DIKHTA HAI !OH BIKTA HAI " Organized retail stores put stress on proper
infrastructure li"e well maintained building, air conditioning, trained employees,
electronic machine, par"ing facilities and proper display of goods category wise. Here
customers feel comfort, 'oy and entertainment. 0urchasing becomes 'oy for him. #elf*
selection saves time and gives more opportunities and satisfaction. (i cost removes
the threat of misleading. )hey avail various discounts and promotional schemes
presented by the manufacturers. )hey also get product of different varieties and of
proper &uality.
$/
EMPLOYMENT - =etail mar"eting is one of the largest employments generating
industry. It provides employment to s"illed, semi*s"illed as well as to uns"illed
persons. )hus it helps in the socio* economic development of the society.
PRICE !AR " Increase in the no of retail outlets increases competition among these
retailers. )o attract customers they give various promotional schemes as various
discounts, buy one get one free, another product with any particular product, festival
special, etc.
CONTRACT FARMING " )he retail mar"eters directly purchase from farmers and
reducing middlemen, thus provide proper cost to farmers and also set proper price for
consumers. )hey also ma"e contract with farmers to get proper amount of crops and
vegetables.
REDUCES SUPPLY CHAIN MANAGEMENT - )he big players of retail
mar"eting and the manufacturing companies directly come in contact thus reducing
many intermediary chains. 8anufacturers also give many promotional schemes for
their product that is beneficial for consumers.
1.$ NE! TRA#ECTORY IN RETAIL
SECTOR
)he Indian retail mar"et currently stands at
5#3 %-A billion and is li"ely to grow further
at $;% to increase to 5#3 5@G billion by
;/$5. )his sector is the second largest
employer after agriculture, employing more
than %5 million people with wholesale trade
generating an additional employment to 5.5/ million more. )he growing disposable
income in the country is resulting in increasing consumer spending habits. )he
government is considering in allowing foreign direct investment E(3IF in multi*brand
retailing as a measure to ma"e India more attractive to overseas investors. )he proposal,
piloted by the 3epartment of Industrial 0olicy and 0romotion E3I00F, is currently at the
discussion stage and is awaiting government clearance.
$$
C%&'()*+%& P,++-.&' %/ +0- I&1('+.2
)he total retail
spending is
estimated to
double in the net
five years. Of this,
organized retailK
currently growing
at a C!:= of
;;%**is estimated
to be ;$% of total
retail ependiture.
)he food and grocery segment is the highest contributor to the retail sector with
maimum contribution coming from traditional retailing, while penetration of modern
retail is highest in the clothing and fashion segment, at ;%% of the growth.
T.-&1' & +0- R-+,3 I&1('+.2
L Dmergence of organized retail, =eal estate development in the country, for eample, the
construction of mega malls and shopping malls, is augmenting the growth of the
organized retail 4usiness
L #pending capacity of youth of India, India has a large youth population, which is a
conducive environment to growth of this sector
L =aising incomes and purchasing power, )he per
capita income in India has doubled between ;///*
/$
and ;//-*$/ resulting in improved purchasing
power.
L Changing mindset of customers, )he customer mind set is gradually shifting from low
price to better convenience, high value and a better shopping eperience
$;
L Dasy customer credit, Dmergence of concepts such as &uic" and easy loans, D8Is, loan
through credit cards,. has made purchasing possible for Indian consumers, for products
such as consumer durables
L Higher brand consciousness, )here is high brand consciousness among the youth6 A/%
of India9s
population is below the age of %/ leading to popularization of brands and products
1.$.1 MARKET OPPORTUNITIES
T%* 4%&+.5(+%.' ,4.%'' +0- '-6)-&+'
)he food and grocery segment is the highest contributor to the retail sector EA/%F with
minimum penetration of organized retailing. 0enetration of modern retail is maimum
E;%%F in the clothing and fashion segment, which is $/% of the total retail sector.
4esides, organized retail in beauty, wellness and electronics through specialty stores is
growing at a rapid pace.
(ew highlights of the opportunities available under various segments are,
$%
1.$.2 TAX AND REGULATORY STRUCTURE
In the post liberalization scenario, India is considered a premium destination for foreign
investment. It is hence essential to have a thorough understanding of the alternative
funding options available in the mar"et. !t the same time, India poses some uni&ue and
interesting challenges to potential investors. )hus, navigating such ris"s not only re&uires
being aware of the available options, but identifying all eogenous factors that can
probably as well impact them. )herefore, financing a business re&uires rigorous
bac"ground evaluations, such as studying the type of business entity, nature of business,
prevailing economic scenario, duration of financing re&uirement, etc. In addition, there
are various structuring models for investments in India. )o hedge investment ris"s and
comply with various regulatory restrictions, foreign investors may invest in the form of a
'oint venture company.
(oreign companies could also invest in India through a franchisee model. However, other
investment structures could also be considered in order to enable compliance with the
regulatory re&uirements. )ypically, profits generated through investment are repatriated
in the form of dividendMroyalty payments to the foreign investors. Conetheless, there are
various ta and regulatory implications associated with such investmentMrepatriation
models. )o add, any investor would typically structure its investment in a ta efficient
manner as this will enable easy repatriation of capital and profits. )herefore, capital
structuring plays an important role while ma"ing any investment decision. Dchange
control regulations and ta provisions are enacted to achieve different ob'ectives of the
goverment. )he "ey challenge is, thus, to decide on the funding option that is not only
$G
permitted as per the echange control regulations but is Nta efficientN at the same time.
)here have been numerous instances of conflicting provisions within such regulations6
hence synchronization of these regulations becomes vital and crucial.
R-*,+.,+%& '+.,+-62
(oreign capital invested in India is generally allowed to be repatriated along with capital
appreciation, if any, after payment of taes due on them, sub'ect to other ta and
regulatory conditions. Hence, in formalizing a strategy to achieve a ta efficient
repatriation, the following aspectsMoptions could be eamined in detail,
1.$.3 SECTOR ANALYSIS
F%%1 ,&1 G.%4-.2 R-+,3
L 4usiness 8onitor International E48IF forecast that sales through 8ass :rocery =etail
outlets to reach
to 5#3 ;@.A@ billion by ;/$5
L !ccording to industry estimates, lac" of supply chain infrastructure results in G/% loss
of farm produce6 investment in bac"*end infrastructure should help reducing this
L #ourcing of processed food from #8Ds could result in higher margins
L 0olitical support for (3I in food and grocery may face challenges and many state may
not allow (3I
or else allow with more restriction
L Hypermar"ets and supermar"ets are the best suited retail structure for this segment
$5
A**,.-3 R-+,3
L =eadymade and western outfits are growing at G/*G5% annually
L Opening of multi*brand apparel retail for (3I is not epected to face ma'or political
deliberations
L (or apparel retail, investment in bac"*end infrastructure lies in creation of warehouses
L 8anufacturing facilities Efor private label brandF and logistics is most li"ely to be
outsourced
L International retailer could have private label brand sourced from #8D segment
L 3epartmental store is the best suited retail structure for this segment
F(.&+(.- ,&1 F(.&'0&6'
L Category faces stiff competition from small time traditional retailers as well as
individual carpenters
L (or furniture retail, options for investment in bac"*end infrastructure lies in creation of
manufacturing
facilitiesMwarehouses
L #ome of the furniture products could be sourced from the #8D segment
L (3I in furniture retail is not epected to face ma'or political deliberations
L #pecialty retail outlet is best suited structure for this segment
B-,(+2 ,&1 !-33&-''
L 0enetration level of modern retail is 'ust G% and there is a huge untapped potential in
this segment
L 0rivate label brands in some of the product categories can be sourced from the #8D
segment
L (3I in multi*brand beauty and wellness stores is not epected to face ma'or political
deliberations
L #pecialty retail outlet is the best suited structure for this segment
G-)' ,&1 #-7-3.2
L 4randed 'ewelry has rapidly ac&uired a niche over the past few years. Increasing
purchasing power
$A
and disposable income of Indias middle class has resulted in growth of this industry
L Opening of multi*brand gems and 'ewelry stores is not epected to face ma'or political
deliberations
L #pecial design products could be sourced from the #8D segment
L )arget segment for retailers are largely in the metros and tier*$ cities
C%&'()-. D(.,53-'
L )raditionally mar"et is largely dominated by branded store, penetration of modern retail
is $;% in consumer electronics segment
L Consumers are brand conscious for consumer durables hence sourcing of products from
#8D the segment is not favorable
L )arget segment for retailers would not 'ust be restricted in the metros and tier*$ cities, it
would also include tier*; cities
L (3I in consumer durables sector too is not epected to face any ma'or political
deliberation
+iberalization of (3I in multi*brand retail is getting closer to reality. !fter almost a year
of deliberations post the 7hite 0aper published by the 3I00M 8inistry of Commerce and
Industry, a =etail (3I 3raft document has been submitted to the 5nion Cabinet for
approval. )his is the final hurdle that needs to be surpassed. However, there are all
indications that the Cabinet is li"ely to endorse this liberalization since the government is
committed to advance this sector. !ccordingly, we could epect the final policy to be
announced within the net si months to a year.
One aspect seems to be clear that will be no Oone*shot, big*bang "ind of approach toward
introducing (3I in multi*brand retail. Instead, we could epect a phased liberalization
approach with a number of conditions laid down, at least initially, for foreign retailers to
enter India. )hese conditions would be intended to assure the opposition parties,the local
retailer lobbies, the farmer and trade unions, etc. that the government has adopted a
NbalancedMmid*wayN "ind of approach after due consideration of the views of all
sta"eholders involved. Of the various conditions that are being discussed for entry, the
most significant, from a foreign retailer perspective, are li"ely to be,* the minimum
$@
investment threshold Esay 5#3 $// 8illionF for entry, and the permissionsMsupport
re&uired from local #tate governments to enable foreign retailers to set up business in
their respective states. )hus, we are li"ely to witness a second round of Opolitical uproars
and debates from the state level authorities and politicians, once the policy is actually
announced. !mongst the larger and important states Efrom a retail mar"et perspectiveF,
8aharashtra, Cew 3elhi, 0un'ab, !ndhra 0radesh, )amil Cadu, 7est 4engal and :u'arat
are li"ely to support the policy faster than the other states. 7hile the opposition*ruled
states such as 2arnata"a and 5ttar 0radesh are li"ely to stage a round of political
Oposturing before the policy translates into stores on the ground. Cevertheless, it is a
clear signal to the foreign retailers who have been patiently waiting in the wings to begin
their groundwor" for their India entry. )hey will have some gainful time now, as the
liberalization is li"ely to be more phased and calibrated. 7ith their competitors eyeing
for the same cities and probing for the best locations, potential entrants should start
developing their plans, strategize their store locations and initiate discussions with their
local partners. !lso, India being a large and comple mar"et with under*developed
logistics and bac"*end infrastructure, ade&uate time and attention needs to be given on
this specific area since the bac"*end retail infrastructure that has been ta"en for granted in
developed countries Eeven in China for that matterF is still at a nascent stage in India.
1.8 INDIA RETAIL SECTOR " THE CURRENT AND FUTURE
)he 48I India =etail =eport for the first*&uarter of ;/$$ forecasts that total retail sales
will grow from 5#< %-;.A% billion in ;/$$ to 5#< A@G.%@ billion by ;/$G. #trong
underlying economic growth, population epansion, the increasing wealth of individuals
and the rapid construction of organised retail infrastructure are "ey factors behind the
forecast growth. 7ith the epanding middle and upper class consumer base, there will
also be opportunities in IndiaNs tier II and III cities.
8ass grocery retail E8:=F sales in India are epected to undergo enormous growth over
the forecast period. 48I predicts that sales through 8:= outlets will increase by $G5 per
cent to reach 5#< ;$.%5 billion by ;/$G.
$.
48I forecasts consumer electronic sales at 5#< ;-./- billion in ;/$$, with over*the*
counter EO)CF pharmaceutical sales at 5#< ;.A- billion. )he former sub*sector is
epected to show growth of 55.A per cent between ;/$$ and ;/$G, reaching 5#< G5.;@
billion, with pro'ected double*digit growth of "ey products such as noteboo"s, mobile
handsets and )Js. O)C pharmaceuticals, meanwhile, should increase slightly more, by
5A.5 per cent throughout the forecast period, to reach 5#< G.;$ billion.
China and India are predicted to account for more than -$ per cent of regional retail sales
in ;/$$, and by ;/$G their share of the regional mar"et is epected to be more than -;
per cent. :rowth in regional retail sales for ;/$$*;/$G is forecast by 48I at G..$ per
cent, an annual average $5 per cent.
!ccording to a 8c2insey I Company report titled N)he :reat Indian 4azaar, Organised
=etail Comes of !ge in IndiaN, organised retail in India is epected to increase from 5 per
cent of the total mar"et in ;//. to $G * $. per cent of the total retail mar"et and reach
5#< G5/ billion by ;/$5.
(urthermore, according to a report titled NIndia Organised =etail 8ar"et ;/$/N, published
by 2night (ran" India in 8ay ;/$/ during ;/$/*$;, around 55 million s&uare feet Es& ftF
of retail space will be ready in 8umbai, national capital region ECC=F, 4engaluru,
2ol"ata, Chennai, Hyderabad and 0une. 4esides, between ;/$/ and ;/$;, the organised
retail real estate stoc" will grow from the eisting G$ million s& ft to -5 million s& ft.
3riven by the growth of organised retail coupled with changing consumer habits, food
retail sector in India is set to be more than double to 5#< $5/ billion by ;/;5, according
to a report by 208:.
IndiaNs retail mar"et is epected to be worth about 5#< G$/ billion, with 5 per cent of
sales through organised retail, meaning that the opportunity in India remains immense.
=etail should continue to grow rapidlyKup to 5#< 5%5 billion in ;/$%, with $/ per cent
coming from organised retail, reflecting a fast*growing middle class, demanding higher
&uality shopping environments and stronger brands, according to the report 9Dpanding
Opportunities for :lobal =etailers, released by ! ) 2earney.
$-
India has been ran"ed as the third most attractive nation for retail investment among %/
emerging mar"ets by the 5#*based global management consulting firm, ! ) 2earney in
its -th annual :lobal =etail 3evelopment Inde E:=3IF ;/$/.
(oreign direct investment E(3IF inflows between !pril ;/// and October ;/$/, in single*
brand retail trading, stood at 5#< $-@./G million, according to the 3epartment of
Industrial 0olicy and 0romotion E3I00F.
C,..-/%(., the worlds second*largest retailer, has opened its first cash*and*carry
store in India in Cew 3elhi. :ermany*based wholesale company 8etro Cash I
Carry E8CCF opened its second wholesale centre at 5ppal in Hyderabad, ta"ing
to its number to si in the country.
Dlectronic retail chain ma'or, N-9+ R-+,3 I&1,, plans to open G// showrooms
across the country during 1anuary*8arch ;/$$ increasing the total number of
retail stores to $,/// by the end of the fiscal year ;/$/*$$.
1ewellery retail store chain T,&'0: plans to open $5 new retail stores in various
parts of the country in the ;/$$*$; fiscal.
V M,.+ R-+,3 L+1, a medium*sized hypermar"et format retail chain, is set to
open G/ outlets over the net three years, starting with $% stores in ;/$$, in )ier*
II and )ier*III cities.
R-3,&4- R-+,3, the wholly owned subsidiary of 8u"esh !mbaniNs =eliance
Industries, is set to open $5/ stores by the end of 8arch ;/$$ and double the
number of stores across the country in all formats within five years.
F(+(.- V,3(- R-+,3, a (uture :roup venture, will ta"e its hypermar"et chain 4ig
4azaar to smaller cities of !ndhra 0radesh, with an investment of around 5#<
$.5G million to 5#< G.G$ million depending on the size and format.
=0:*owned S*-&4-.;' R-+,3 plans to set up $5*;/ new stores in the country in
;/$$*$;.
;/
S*,. H2*-.),.<-+', the global food retailing chain of the 3ubai*based
+andmar" :roup, epects to start funding its India epansion beyond ;/$% out of
its local cash flow in the country. #o far, the +andmar" :roup has invested 5#<
5$.%$ million in setting up five hypermar"ets and plans to pump in another 5#<
5$.%$ million into the net phase of epansion.
+eading watchma"er T+,& I&1('+.-' L)+-1 plans to invest about 5#< ;$..%
million for opening 5/ premium watch outlets Helios in net five years to attain a
sales target of 5#< .@.%$ million.
4ritish high street retailer, M,.<' ,&1 S*-&4-. E8I#F plans to significantly
increase its retail presence in India, targeting 5/ stores in the net three years.
#painNs I&1+-9, DuropeNs largest clothing retailer opened the first store of its
flagship Para brand in India in 1une ;/$/. It further plans to open a total of five
Para outlets in India.
4harti =etail, owner of E,'2 D,2 storeKsupermar"ets and hypermartsKplans to
invest about 5#< ;.5 billion over the net five years to add about $/ million s& ft
of retail space in the country by then, according to a company spo"esperson.
)here is very huge potential for the growth of organized =etailing in India. 4y following
some of the strategies it can rise tremendously and can reach each and every noc" and
corner. Open communication should be established between functional departments. !
balance should be maintained between brand building and promotion. Con*mar"eting
factors li"e gas prices, weather etc. should be avoided and new schemes should always be
launched. )he =etail Industry in India has come forth as one of the most dynamic and
fast paced industries with several players entering the mar"et. 4ut all of them have not
yet tasted success because of the heavy initial investments that are re&uired to brea" even
with other companies and compete with them. )he India =etail Industry is gradually
inching its way towards becoming the net boom industry.
;$
CHAPTER 2: LITERATURE REVIE!
!lthough there are a number of anecdotal reports regarding the effects of mega*retailers,
7al*8art in particular, empirical research reports are limited.. Coteworthy 5.#. studies,
including 4eaumont E$--GF, #tone I !rtz E$--5F, #hils I )aylor E$--@F, have concluded
that the opening of mega*retailers in a community has the potential to impact on eisting
smaller merchants in two ways. (irstly, there will be an effect on the retail business in
terms of changes to sales levels6 increasing in outlets in the immediate area carrying
different product categories to the mega*retail outlets, a result of increased traffic and
declining in the overall mar"et area in outlets carrying similar categories E#tone I !rtz,
$--5F. #econdly, changes in the way the merchants conduct their business in terms of
competitive strategies, reduction in number of employees6 due either to a fall off in sales
or increased efficiencies in the business, changes in mar"eting practices, pricing, product
mi and store positioning, location of outlet and recognition of customer service as being
central to survival.
#hils I )aylors E$---F comprehensive study identifies both social and economic
effects, the social effects being the physical and social decline of neighborhoods as
retailers fail to survive, noting Ein areas visitedF Qprofound changes in 'oblessness and
socialization.R )he most serious economic effects include retail closures as the traditional
retailers fail to compete, with the conse&uent loss of 'obs including the employment of
the owners themselves and reduced numbers of employees6 both a result of #hil I
)aylors Qdrain awayR effect caused by the presence of mega*retailers shifting activities
from various geographic traditional retail centers or clusters.
In see"ing community approval to locate stores, mega*retailers have promised
increased 'ob numbers. In several situations it is reported the number of 'obs have not
materialized to the etent promised, a situation eacerbated by the fact that, according to
the #tils I )aylor study, >in echange for $ new part*time 'ob in a mega*discount store,
about $$M; full time 'obs are eliminated in smaller stores.? (urther, most 'obs in the
;;
mega*retail stores are >minimum wage? with little opportunity for improvement or
promotion and most are non*union with all the ramifications implicit in such situations
Ei.e. absence of provision of benefits to large numbers of employeesF. In some situations,
they report, the megaretailers have closed down operations after several years. Having
forced the closure of much of the local retail trade, the closures leave a retail vacuum and
an eacerbated unemployment problem E3alal, !l*2hatib, 3aCosta, and 3ec"er, $--GF.
8ore fundamental economic effects put forward by #tils and )aylor are, firstly, the
erosion of >free retail mar"et? choice for consumers both in terms of choice of retailer
and location and brand plus other choice issues. Citing $--A 7al*8arts CDO, 3avid 3.
:lasss statement at their annual stoc"holders meeting of that year >7e are going to
dominate Corth !merica.? they point to the 9decimation of communities >main street?
retailers, unable to compete.
Conversely, !rcher I )aylor E$--GF argue that small retailers can survive >in the
shadow of the retail giants? the "ey being levels of customer service that the mega*
retailers cant provide, their very size limiting their abilities in this area. 8ore
specifically, 4erry E$---, ;//$F contends that by using five well*documented retailing
best practices, the >(ive 0illars of =etailing?, survival and success can be achieved.
4errys >(ive 0illars? of retailing or best retail practices, components of his >retail
model?, are,
$. #olve Customers 0roblems
;. )reat Customers with =espect
%. Connect with Customers Dmotions
G. #et the (airest Enot lowestF 0rice
5. #ave Customers )ime
4erry argues that all five of the pillars must be developed in order for the concept to be
effective. In the absence of an instrument in the literature to operationalize 4errys
;%
model, the authors have developed five measures or scales described under the
methodology section of this article.
7hile mega*retailing traces its origins bac" to the creation of the first department
store by !ristide 4oucicaut in 0aris in $.5; EChirouze, ;//%F, the arrival of mega*
retailing in Canada and Ontario in particular has been the result of the epansion of 5.#.
mega*retailers into the country since the late $-./s. Insofar as Ontario is concerned,
epansion was confined largely to the more populous southern part of the province with
the greater concentration in the :reater )oronto !rea E:)!F6 1ones and 3oucet E$--.F
record -% EG.5 million s&uare feetF of this form of outlet in the :)! area by $--/
increasing to ;A. E$$.$ million s&uare feetF by $--.. Dpansion has continued with ;//;
data showing A$G outlets E;- million s&. feetF, EHernandez, 4iasotto, and 1ones, ;//%6
Hernandez, 1ones, and 8aze, ;//%6 #immons, ;//%F.
;G
CHAPTER 3: EMERGING TRENDS IN UNORGANISED
AND ORGANISED RETAIL MARKETS = CUSTOMER
SHOPPING BEHAVIOR IN INDIAN SCENARIO
India has witnessed a frenetic pace of retail development over the past five years.
:oldman #achs has estimated that the Indian Dconomic growth could actually eceed
that of China by ;/$5. It is believed that the Country has potential to deliver the faster
growth over the net 5/ years. E$F !s we all "now that India has been a nation of
3u"andars, having Bapproimately $; million retailers. Obviously retailing is in our
blood Beither as a shop"eeper or as a shopper. )he Indian =etail mar"et is estimated to
grow from the current 5# < %%/ billion to 5# < G;@ billion by ;/$/ I 5. #. < A%@ by
;/$5. =etail which contributes $/% of our :30 is the largest source of employment after
agriculture. E!nneure, $/F
In the year ;//G, ratio of 4ig 8ar"et*#mall 8ar"et retail was %,-@ which is epected to
be -,-$ by ;/$/. E!nneure, - It is not 'ust the global players li"e 7al*8art, )esco and
8etro group are eying to capture a pie of this galloping mar"et but also the domestic
corporate behemoths li"e =eliance, Ceel2amal, 22 8odi, !ditya 4irla group, and
4harti group too are at the same stage of retail development.
)here is increased sophistication in the shopping pattern of customers, which has resulted
to the emergence of big retail chains in most metros6 mini metros and towns being the
net target. Customer taste and preferences are changing leading to radical transformation
in lifestyles and spending patterns which in turn is giving rise to new business
opportunities. )he generic growth is li"ely to be driven by changing lifestyles and by
strong surge in income, which in turn will be supported by favorable demographic
patterns. 3evelopment of mega malls in India is adding new dimensions to the booming
retail sector. )here is significant development in retail landscape not only in the metros
;5
but also in the smaller cities. Dven I)C went one step ahead to revolutionize rural retail
by developing 9Choupal #agar6 a rural mall, for the =ural India. On one hand there are
groups of visionary corporate wor"ing constantly to improve upon urban shopping
eperience and on the other hand some companies are trying to infuse innovative retail
eperience into the rural #et up. :iven the situation we can say that Indian =etailing is at
boom.
3.1 THE MACRO PICTURE
=etailer inspired by the wall*mart story of growth in small town !merica, are tempted to
focus on smaller towns and villages in India. However, a careful analysis of the town
strata*wise population, population growth, migration trends of customer spending
analysis reveals a very different picture of India. !s per the CC!D= estimates,
E !nneure @I .F the share of the %5 towns with a present population of greater than $
million in Indias total population would grow much faster than their smaller
counterparts, from $/.; % today to reach $G.G % by ;/;5. #imultaneously, the share of
these towns in retail mar"et would grow from ;$ % today to G/ % by ;/;5. 7ithin these
top %5 towns, an estimated @/ to ./ % of retail trade would be in the organised 8ar"et
sector. )his is similar to the eperience in China where in cities li"e #anghai and
4ei'ing, the organised 8ar"et sector accounts for @/ to ./ % of overall retails trade in
certain categories. =etailers should therefore focus on top %@ towns in the net decade, as
the opportunity in smaller towns and rural India would be smaller and more fragmented
as compared to the larger towns. 4ut again this is the one side of the coin. only.
3.2 CLASSIFICATION OF INDIA >CUSTOMERS? ON THE BASIS
OF RESEARCH
=esearch Conducted by (uture :roup future group; research classifies Indian Customers
into three sets and provides a base to the retailers in segmenting the Indian mar"et. )he
;A
research shows that serving class consists of approimately 55% of the population, the
ma'or one I only $G% are in the upper middle class, regarded as consuming class.
It indicates that retailers should target this segment EIndia ;F rather than focusing on India
one only, and should formulate their strategies according to the needs and epectations of
serving class, to flourish in the mar"et
C3,''/4,+%& %/ C('+%)-.'
I&1, 1 I&1, 2 I&1, 3
C%&'()&6 C3,'' S-.@&6 C3,'' S+.(663&6 43,''
Constitutes only 1$ A
of the countrys
population
8ost of these customers
have a '(5'+,&+,3
disposable income and
they form part of
usually called as the
(**-. )113- and the
3%7-. )113- 43,''
Includes people li"e
drivers, house hold
helpers, office peons,
liftmen, washer man etc.
)hese people ma"e life
easier and more
comfortable for the
consuming class or
I&1, 1.
=esearch indicates that
for every India one at
least three India )wos
are there, ma"ing up
appro. 88 A of the
population but due to
low income they have a
very little disposable
income to spend on
buying aspirational
goods I services .
It lives hand*to*mouth
eistence, so can not
afford to even aspire for
good living.
5nfortunately this
segment will continue to
be on the peripheries of
the consumption cycle
in India, in years to
come.
;@
S%(.4-: F(+(.- G.%(* R-'-,.40B P(53'0-1 & +0- B%%< CI+ H,**-&-1 & I&1,D 52 K'0%.- B2,&B
2EEF ''(-.
3.3 EMERGING TRENDS IN CONSUMERSG INCOME =
CONSUMPTION PATTERN
CC!D= study and some other data published by different research I consulting sources
indicate the following trend in Consumer income and put the following pro'ections about
the Indian retailing,
1? G.%7&6 P.%'*-.+2: 8a"ing Indian Consumers :reat, !s per Indias Marketing
White book (2006)
%
by 4usiness world, India has around $-; million households. Of
these, only a little over si million are 9affluent B that is, with household income in
ecess of IC=;$5, ///. !nother @5 million households are in the category of 9well
off immediately below the affluent, earning between IC=G5, /// and IC= ;, $5,///.
)his is a sizable proportion which offers ecellent opportunity for organised 8ar"et
retailers to serve.
2? I&4.-,'- & +0- SH,53- D'*%',53- I&4%)-: 4usiness communities believe that
sizable disposable income in India is concentrated in the urban areas and well off and
affluent classes6 income distribution in India is une&ual compared to other !sian
economies. In fact, the ;/ million middle class home in rural I&1, -:(,3' the number in
urban I&1,
G
and thus have the same purchasing power.
)herefore, there is significant and considerable opportunity for organised 8ar"et retailers
in the rural areas as well. )here is no denying that the rural mar"et holds immense
promise for the 4ig 8ar"et retail but companies ponder over, how to serve that mar"et
profitably. 5nli"e the urban mar"et, it is less developed in terms of infrastructural
facilities.
3? P3,4- ' &% )%.- )*%.+,&+: )he 8a'or issue is to find out a suitable business model
and retail format to fit local taste and preferences. Of course, cost of doing business in
;.
rural mar"et would be lesser, as compared to urban mar"et but reaching out to the mass is
a concern. (or eample the most successful and the largest incorporation, 7al*8art
started in the rural mar"et where as competition started in the urban mar"et. )his retailer
has proved that it is important to understand how do you operate your business model
rather than where you do it. :iven the increasing urban eposure of rural India, the urban
and the rural upper*income groups can form an interesting continuum mar"et, giving it a
scale of ;% million households, or 118 )33%& 4%&'()-.'.
$? I&4.-,'&6 P%+-&+,3 & R(.,3 M,.<-+': CC!D= data shows that for $--.*--, for a
bas"et of ;; (8C: products it trac"s, a total of over =s -$,5// crore was spent. Of this,
%@% was spent by the two lowest*income groups in rural India, and only about ;/% by
the top two income groups in urban areas.
)his is, perhaps, the best and only statement of the structure and potential of the Indian
mar"et. Hence, mar"eters have to worry about purchasing power of consumers not where
do they reside. (or eample there are nearly $2BEEE .(.,3 haats, average number of sales
outlets per haat ' 3EE and average sales per outlet is IC= -// and average foot fall in a
haat ' ,5%(+ $B8EE. In rural India there are 5/ million 2isan Credit Card E2CCF holders.
)hese are some of the indicators how rural India is performing well I coming up.
8? A' *-. NCAER 1,+, &%. %/ H%('-0%31 having income of S -/,/// per annum in
;//5*/A was $,%;,;G- E ///F is pro'ected to come down to $,$G,%-G by ;//-*$/ which
indicates that middle class is growing and they are emerging as real customers.
E !nneure,$,;,%,GF
I? H60-. P.%*%.+%&,+- R(.,3 E9*-&1+(.-, 7hile an average City*dweller may be
spending almost twice than his counter*part in rural areas but in terms of allocation
of his budget to "ey segments, the villager has sprung a few surprises. !ccording to
the latest data on household Consumption ependiture, rural India is allocating
almost $/% of the monthly household 4udget for fuel I +ighting while an average
urban household spends -% under the same head. E!nneure, $$F .#till it remains
attractive because of intense competition in 5rban India.
;-
In value terms, however there is a sharp difference with rural Indian households
earmar"ing =s. A/ a month as consumption ependiture, compared to =s.$$/ in cities and
towns. !fter all, at =s.$- a day or =s. A;5 a month, the average consumption spending
too is low in rural areas, compared to =s. %- a day or =s.$$@$ a month in urban India.
The rapid rise in incomes will lead to an even faster increase in demand for consmer
drables and e!pendables" #eslt b$% the ownership of goods will also go p significantl$
b$ getting empowered throgh rise in the si&e of the great Indian middle class"
('nne!re()* 6* +)
F? Y%(&6 P%*(3,+%&: 4y ;/$/ almost half of our citizens will be in the wor"ing age
group of ;/*;G years. ! youthful, euberant generation, bred on success will not drive
the productivity but also set a spiraling effect on consumption I generation of income.
Currently the country has a population of over one billion, A/% of which is under %/
years of age. )his means ma'ority of the population is young and wor"ing class with
higher purchasing power. )he low median age of population means a higher current
consumption rate which augurs well for the retail sector. Consumer spending in India has
grown at over $; percent since mid*$--/s and AG per cent of Indian :30 is accounted for
by private consumption. Over the last decade, the average Indian spending has gone up
from IC= 5,@G5 in $--;*-% to IC= $A,G5@ in ;//%*/G and is epected to grow around its
trend rate of $; per cent per annum.
J? F(&1,)-&+,3 C0,&6-' & I&1,& E4%&%)2: )here are fundamental but significant
changes underway in our economy. In 1anuary ;//A, the government announced that
foreign companies can own up to 5$ percent of a single brand retail company, such as
Ci"e or !didas. )his decision would certainly encourage retailers such as Para
5
and :ap
A
to enter this mar"et. )esco is planning to enter the mar"et through a partnership with
Home Care =etail 8art 0vt +td and epects to open 5/ stores by ;/$/.
@
3.$ EMERGING TRENDS IN MODERN RETAIL FORMATS
%/
It is difficult to fit a successful international format directly and epect a similar
performance in India. )he lessons from multinationals epanding to new geographies
also point to this. (or eample, 7al*8art is highly successful in 5#! but the story is
different in !sian countries li"e China. )herefore, it is important for a retailer to loo" at
local conditions and insights into the local buying behavior before shaping the format
choice. Considering the diversity in terms of taste and preferences prevailing in India, the
retailers may go for eperimentation to identify the winning format suited to different
geographies and segments. (or eample, the taste in south is different from that in north
and this brings challenges to the retailers. )herefore, most of grocery retailers are region
centric at this point in time. )he available research findings on retail indicate the
following trends in 8odern =etail formats,
1? T.,3 = E..%.: Cow a number of retailers are in a mode of eperimentation and
trying several formats which are essentially the representation of retailing
concepts to fit into the consumer mind space. !part from geography even rural
and urban divide poses different "ind of challenge to the retailer. 0antaloon =etail
India is eperimenting with several retail formats to cater to a wide segment of
consumers in the mar"et. #ome of the new formats are (ashion #tation Epopular
fashionF, 4lue #"y Efashion accessoriesF, a++ Efashion apparel for plus*size
individualsF, Collection i Ehome furnishingsF, 3epot Eboo"s I musicF and D*Pone
EConsumer electronicsF.
E)-.6-&4- %/ !0%3-',3- C3(5': #ince retailers are trying to segment the mar"et with
the help of formats, they developed another new format in the form of 7holesale
Club to sell a segment of consumers, who purchase on bul" and loo" out for
substantial discounts and offers. )he new format is going to be a "ind of wholesale
club which is li"ely to be located close to (ood 4azaar. Consumers who are
interested to purchase on bul" can ta"e benefit from this format. #imilarly the +and
mar" group also operates multiple formats such as hypermar"et E8aF, departmental
store E+ifestyleF, #hoe mart and (uncity
.
etc. #uch eperimentation and
identification of an appropriate format for the local conditions would separate
winners from losers in India, possibly implying multiple formats could be the reality
%$
in the long run. 0antaloon =etail India +td is a live eample of that in Indian
scenario.
1? I&4.-,'&6 A44-*+,&4- %/ R(.,3 M,.<-+': 8all*mania is phenomenal in India
and is spreading fast and entering even the second tier cities in India. =eal estate
developers are 'umping very fast to ta"e this further from 8etro cities to smaller
cities and corporate houses li"e I)C and #riram group are ma"ing steady progress
to ma"e this phenomena feasible in rural mar"ets as well. )here is no denying that
the top notch cities li"e 8umbai, 3elhi, 4angalore, Hyderabad, 2ol"ata, Chennai
and 0une are leading the way but the second tier cities li"e +udhiana, 0atiala,
Cagpur and #urat are also catching the eye of all retailers. =etail developers are in
such a mood that they may over ride the re&uirement in a specific city.
2? G%@+. ' ,3'% *.%)%+&6 +0- D-@-3%*)-&+ %/ M%1-.& R-+,3 F%.),+': +arge
format malls are increasingly getting prominence with ade&uate retail space
allocated to leisure and entertainment. #ome states li"e 0un'ab have lifted
entertainment ta on multiplees till ;//-. )his boosted the confidence of the
mall developers to accommodate entertainment players li"e 0J=, 7aves, !dlab
and (un =epublic in large malls.
3? E//4-&+ B(2&6: I&4.-,'&6 I)*%.+,&4- %/ S(*-.),.<-+' = D'4%(&+
S+%.-': #uch 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 as compared to other retail formats
such as supermar"ets and discount stores. #hoppersN #top is the first one to open a
department store in the early $--/s and currently operates $- stores in $/
different cities in India .)he store strongly focuses on lifestyle retailing and
mainly divides into five departments such as apparel, accessories, home dTcor,
gift ideas and other services. #hoppers #top is getting stronger and stronger year
after year. It attracts more than $; million shoppers every year with a conversion
rate of %. per cent. In the end of (U;/// this retailer had 5 stores and is in the
process of reaching %- stores with retail space of ;,5/;,@G@ s& ft by (U/..
%;
!nother operator +ifestyle India began operations in $--. with its first store in
Chennai in $--- and in 8arch ;//A it opened one of the largest department stores in
the same city. )he store spreads over @5,/// s&. ft and store provides customers a
great shopping eperience with three floors of apparel, footwear, products for
children, household furniture and decor, health and beauty products.
2? H2*-.),.<-+': T0- B66-'+ C.%71 P(33-.: Hypermar"ets have emerged as the
biggest crowd pullers due to the fact that regular repeat purchases are a norm at
such outlets. Hypermar"ets not only offer consumers the most etensive
merchandise mi, product and brand choices under one roof, but also create
superior value for money advantages of hypermar"et shopping. 7ith product
categories on offer ranging from fresh produce and (8C: products to
electronics, value apparels, house ware, do it yourself E3IUF and outdoor
products, the hypermar"ets are emerging as one of the popular formats in India..
Cumber of players operating hypermar"et format are increasing day by day. One
of the leading players in this format is 0antaloon =etail India +imited which
operates %; 4ig 4azaars in twenty cities. In early ;//A, the 2. =ahe'a Corp EC.+.
=ahe'a :roupF has introduced its value retail concept hyper city which is the
countrys largest hypermar"et at $$./// s& ft. hyper city =etail plans to open 55
hypermar"ets by ;/$5. !s the mar"et is epanding and consumers are in a mood
to accept changes, hypermar"ets are getting overwhelming response from
consumer. Currently there are about G/ odd hypermar"ets in India but this format
holds a great potential for growth.
3? C('+%)-.' '+33 .-32 %& +.,1+%&,3 4%&4-*+': ! super mar"et normally sells
grocery, fresh, cut vegetables, fruits, frozen foods, toiletries, cosmetics, small
utensils, cutlery, stationery and :ift items. In India (ood 7orld, (ood 4azaar,
Cilgiri E%/ plus storesF, and !dani are the leading super mar"et operators .One of
the biggest super mar"et operators in the western India is !dani =etail +imited
which operates !dani super mar"et plans to continue its 'ourney to reach total $-
cities with the store strength of A/ plus in the state of :u'arat. !=+ also plans to
epand its operation in the neighboring states of =a'asthan, 8adhya 0radesh,
8aharashtra and Chhattisgarh.
%%
#ubhi"sha is one of the leading super mar"et operators, who largely operates in the
'%(+0-.& *,.+ %/ I&1, is epanding to 7-'+-.& I&1,. One more retailer =eliance
=etail is on the move and this retailer opened its =eliance (resh*a super mar"et chain
with $$ stores in Hyderabad in Covember ;//A and is planning to enter @/ more
cities within ; years.
$? E)-.6-&4- %/ P.@,+--L,5-3 B.,&1': )he private labels are offering fleibility
to both the retailer and the consumer on price front. )he ob'ective of the store is
to offer variety at affordable price in each category. (ood 4azaar have made the
transition from 'ust a grocery retailer to developing emotional bonding with
shoppers by providing some value added services to the shoppers. #ome of these
initiatives include , > #% D<0+, H, 7% 0 B<+, H, ?
,ive chakki- which allows customers to buy fresh wheat and have it grinded there
at the store
.resh /ice conter- )his provides customer to have fresh 'uices.
,ive dair$- )his provides customers with fresh mil" and mil" products.
,ive kitchen- Customers have the option of buying vegetables, getting them
chopped, coo"ed fully or partly. #oups, salads and sandwiches are also available at live
"itchen.
8? E,'- %/ S0%**&6 = C('+%)H-1 S-.@4-': O.1-. %/ +0- D,2: T% ,4+@,+- + ,
&-7 /%.),+ 0,' -)-.6-1 & +0- &,)- %/ C%&@-&-&4- S+%.-. ! Convenience
store offers locational advantage to the shoppers and provides ease of shopping
and customized service to the shoppers. It charges average to above average
prices, depending on the product category and carries a moderate number of stoc"
"eeping units E#25sF. Cormally it remains open for long hours and shoppers use
it for buying fill*in merchandize and emergency purchases. In India, Convenience
stores occupied ;% thousand s&. meter of retail space with sales of about =s $%G@
%G
million in ;//5 and are epected occupy .5 thousand s&uare meter of selling
space by ;/$/ .
I? M,6&-+4 E//-4+: D'4%(&+-.' &%+ S0%*<--*-.': 7al*8art, the largest retailer
in the world is a discounter. 0ractically the discounters offer several advantages
such as lower price, wider assortment and &uality assurance. )he discounters li"e
7al*8art and !ldi were able to &uic"ly build scale and pass on the benefits to the
consumer. However, in the long run success depends on the operational efficiency
and consistent value delivery to the consumer. )he same retailer 7al*8art
struggles in !sian countries li"e China but etremely successful in 5#!. It is
believed that the average Indian consumer is highly price*sensitive and loo"s for
savings in term of money in their grocery purchase. #o price*value e&uation is a
critical component in most of the grocery purchases.
F? C,+-6%.2 K33-.: A N-7 C%&4-*+ )*%.+-1 /.%) U.S.: )he category "iller
concept originated in the 5.#. due to abundance of cheap land and the dominant
car culture. Category 2iller is a "ind of discount specialty store that offers less
variety but deep assortment of merchandise. 4y offering a deep assortment in a
category at comparative low prices, category specialist can be able to >"ill that
specific category of merchandize for other retailers. :enerally such "ind of
retailers uses a self service approach. )hey use their buying power to negotiate
low prices, ecellent terms and assured supply when items are scarce. In India this
"ind of retail stores are not prevalent at this point of time. 4ut there is scope for
such "ind of format. In India, 8ega*8art is one sort of category "iller which sells
apparel products.
J? D%33,. S+%.-': 3ollar stores have their roots in !mericaNs homey five*and* dimes,
the general stores that offered a range of products at low prices. 4ut modern
dollar*store retailers are having more sophisticated operations6 leveraging their
growing buying power to stri"e special deals with vendors and continuously
striving for uni&ue advantage of both convenience and price. #ome chains sell all
their goods at <$ or less. Others offer selected items at higher prices. 8ost sell a
combination of paper products, health and beauty supplies, cleaning products,
paper and stationery, household goods, toys, food and sometimes clothing. 4oth
%5
private*label and brand*name goods fill the shelves. )hey are loo"ing for
employing technology to manage large distribution networ"s. #tore -- is the
eample of it in Indian #cenario.
K? R-+,3 D-@-3%*)-&+ & R(.,3 I&1,: A M,.<-+ 7+0 S3@-. 3&&6: Chennai
based mar"et research firm (rancis 2anoi estimated the size of the rural mar"et to
be IC= $, /.,/// crore annually. 3uring the survey in ;//; the firm too" into
account four categories * (8C:, durables, agri*inputs, and two* and four*
wheelers for their estimation. =ural incomes are growing steadily as well.
CC!D= data shows while the number of middle*class households Ewith annual
income between =s G5,/// and =s ;.$5 la"hF is at $A.G million in urban India, the
figure stands at $5.A million$. in the rural areas, data from. +argely this rural
mar"et is untapped and there is huge opportunity for retailers.
=ecent 3evelopments in =ural =etailing, )herefore, in recent times rural retailing is
witnessing eplorations by both corporate houses and entrepreneurs B IT01s 0hopal
2agar* 3,,1s pro4ect 2hakthi and Mahama&a are some of the models being tried out.
!t this 'uncture there is no conclusive evidence of winning rural retail formats
available. However, corporate forays into rural retail are epected to bring more
eperimentation and innovation in term of retail format. )he 5odre4 'dhaar, the
rural retail initiative of :odre' !grovet +td operates a chain of $. stores providing a
host of services to farmers and their families and is planning to set up at least $,///
stores$- across rural India in the net five years. !part from 5odre4 'dhar and
0hopal 2agar other formats operating successfully in the rural area are, 8 I 8
#hubh +abh stores, Dscorts rural stores, )ata 2isan #ansar, and 7arnabazaar,
8aharashtra Eannual sale =s G/ croreF.
DSCL H,.2,3 K',& B,H,,.
Hariyali stores "eep wide range of product assortments such as fertilizers, pesticides,
farm implements, seeds, animal feed and irrigation e&uipment among other agriculture
related products. )hey also have officers who offer free advices to farmers regarding best
agriculture practices. Offering insurance and financial services to farmers is part of the
business. #o far, ;; VHariyaliV #tores have been operational in different states across
%A
Corth India. (armer response has been etremely encouraging. ! centre is attracting $5/
* ;// farmers a day. Hariyali 2isaan 4azaar has plans to rapidly scale up the operations
I create a national footprint covering all the ma'or agricultural mar"ets of the country.
M,0&1., = M,0&1., S0(50 L,50
)his is the rural initiative ta"en by 8ahindra I 8ahindra group to provide complete
pac"age of products and services related to firm productivity. One of the basic ob'ectives
is to establish mar"et lin"age and optimize farm produce supply chain. )here are about
franchised #hub +abh store established in ten states in India.
1$: --R-+,3&6: )he importance of internet retailing is growing all over the world. #ome
internet retailers such as e 4ay and rediff.com are providing a platform to vendors to sell
their products online and they do not ta"e the responsibility of delivering the product to
buyer. )hey provide virtual shopping space to the vendors. On the other hand online
retailers li"e amazon.com and walmart.com have to maintain their warehouse to stoc"
products and ta"e the responsibility of delivering products to the buyer. #o, most of the
bric" and mortar stores are entering into online retailing as they have physical
infrastructure and they can use that to capture additional consumer wallet. !ll the big
retailers li"e )arget, #ears and 2mart are operating online shop and some manufactures
also operate online.
(or eample !pple Inc. operates through apple.com and 3ell Inc. sells its products online
)hrough dell.com.
In India internet retailing is growing by ;-% C!:= and Duro*monitor report estimates
that the a C!:= G. per cent and in value term it going to touch IC= ;@ billion by ;/$/
from IC= G billion in ;//5. )he report also predicts that the contribution of internet
retailing to non*store retailing to is li"ely to be GA per cent by ;/$/.
6merging recent developments in the Indian Mall 7evelopment scenario inclde the
coming p of so called 5en 8 Malls and 0entral which is a 2eamless Mall" 5en 8
%@
Malls have been defined 0hesterton Meghara4 as greater than )* 00*000 s9"ft and
incorporate large entertainment area with enogh space for parking and e!cellent
infrastrctral benefit that shall be passed on to the retailer " The target adience
for the 5en 8 malls is torist :ot of town visitor and the person from the cit$
looking for entertainment options" 2o* we can sa$ that we are moving from a nation
of 7kandars to a ;ation that loves to shop.
D.@&6 /%.4-' 1-+-.)&&6 '0%**&6 5-0,@%. %/ I&1,& C('+%)-.': ! 8eta*
!nalysis of Indian Customers indicate the following factors as the driving force
determining the shopping behavior I attitude of the Indian customers,
%.
Source: Generated from the Primary and secondary research published by Future Group.
$. COMPANY PROFILES
$.1 EASY DAY STORES
F,4+%.' ,//-4+&6 '0%**-.'G 5-0,@%. S0%**&6 5-0,@%.
:reed 3rives a customer to purchase more
than what he or she need.
! wide range of options, better
products, and lower prices generate the
increased desire to purchase.
(ear to loose opportunity Higher purchase is driven by the fear
that current price offer may not be
available for long*time and thus the
product has to be purchased at once.
Dnvy or 3emonstration Dffect Dnvy sets in when a customer sees
others buying and ma"ing the best out
of deal.
0rice*value D&uation It is believed that !verage Indian
customer is highly 0rice*#ensitive and
loo"s for savings in terms of money in
their grocery purchase.
0rivate*+abel 4rands In India the concept of 0rivate*+abel
4rand is in its nascent stage and
customers still rely on branded product
+ive culture Jo Dikhta Hai, Wo hi ikta hai
%-
Dasyday stores are one*stop*shop that cater to every familys day to day needs. )hese
stores offer a wide assortment of products li"e personal care products, stationery,
household articles, hosiery items, daily*need groceries including staples, processed foods,
ba"ery I dairy products, meat I poultry and fresh produce. Its large format, Dasyday
8ar"et, stoc"s apparels for men, women and "ids, home furnishings, home ware,
cosmetics, a wide range of "ids toys, small appliances, mobile phones and stationery,
besides having live ba"ery, meat shop, poultry and fish, fresh fruits and vegetables,
grocery and general merchandise.
Jision
(uture :roup shall deliver Dverything, Dverywhere, Dvery time for Dvery Indian
Consumer in the most profitable manner.
8ission
)hey share the vision and belief that our customers and sta"eholders shall be served
only by creating and eecuting future scenarios in the consumption space leading to
economic development.
)hey will be the trendsetters in evolving delivery formats, creating retail realty,
ma"ing consumption affordable for all customer segments B for classes and for
masses.
)hey shall infuse Indian brands with confidence and
renewed ambition.
)hey shall be efficient, cost* conscious and committed
to &uality in whatever we do.
)hey shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to ma"e us successful.
BRAND OFFERED
Dasy 3ay, 4harti 7al*8art 0rivate +td Ea 'oint venture between 4harti Dnterprises and
G/
7al*8art for wholesale cash*and*carry and bac"*end supply chain management
operations in IndiaF

4harti Dnterprises, one of Indias leading business groups has recently forayed into the
retail sector with its wholly owned subsidiary, 4harti =etail 0vt +td. (ood I :rocery and
fresh produce is a prime component of the product offerings at Dasy 3ay.
)he company has launched neighbourhood stores in 0un'ab called Dasy 3ay and is
epanding the chain with multiple consumer friendly format stores in India. )hese stores
are $// per cent owned and operated by 4harti.
)he retail space area covered by Dasy 3ay is ;,5// to G,5// s& ft and currently there are
seven operational stores in +udhiana, 1allandhar and 0atiala. )hese stores offer a wide
assortment of products such as personal care products, stationery, household articles,
hosiery items, food and grocery and fresh produce. ! private label B9:reat Jalue has
also been introduced in the grocery section. )he
company also plans to open supermar"ets of size %/,///
* 5/,/// s& ft and hypermar"ets of size @/,/// * @5,///
s& ft in the near future.
B0,.+ !,3-M,.+ P.@,+- L+1 is a business*to*business
E4;4F 'oint venture between 4harti Dnterprises and 7al*
8art for wholesale cash*and*carry and bac"*end supply
G$
chain management operations in India to serve small retailers, manufacturers and
farmers. )he 'oint venture E1JF has already set up a distribution centre in 0un'ab which
will partly service the merchandise needs of the 1Js cash*and*carry stores as well as
retail stores around the area, including 4harti =etails wholly owned Dasy 3ay stores.
)he 1J is scheduled to launch its first 4;4 wholesale cash and carry store in Corthern
India in the first &uarter of ;//-. ! typical cash*and carry store will stand between
5/,/// and $//,/// s& ft and sell a wide range of fruits and vegetables, groceries,
footwear, clothing and other general merchandise items .
MARKETING INITIATIVES
Dasyday stores promise >#abse 2am 3aam, Har 3in? and offer an etensive product mi
at everyday low prices ED3+0F, which are relatively lower by at least %*5 per cent on a
9monthly bas"et of products vis*a*vis similar stores.
TRAINING PROGRAMMES
4harti =etail provides its store employees with a rigorous ;*% wee"s on*the*'ob training
and subse&uently continuous training during store operations.
QUICK FACTS
Y-,. %/ /.'+ '+%.- 3,(&40: ;//.
T%+,3 &()5-. %/ %(+3-+' ,+ *.-'-&+: $;/ EDasydayF6 $/ EDasyday 8ar"etF
T%+,3 &()5-. %/ %(+3-+' ,' .-@-,3-1 & R-+,3-. A&&@-.',.2 I''(-
2E1E: 5. EDasydayF6 % EDasyday 8ar"etF
T,.6-+ 4%&'()-.': Ceighbourhood Efor DasydayF6 customers buying
monthly supplies or apparels Efor Dasyday 8ar"etF
E)*3%2-- '+.-&6+0: 5/// E4harti =etailF
G;
R-6%& 7+0 '+.%&6-'+ *.-'-&4-: 0un'ab, Haryana, =a'asthan, 5ttar 0radesh, 8adhya
0radesh and 5ttaranchal EDasyday I Dasyday 8ar"etF and Chhattisgarh EDasyday
8ar"etF
4harti =etail has planned investment of < 5# ; to ;.5 billion by ;/$5 and we will
approimately have about $/ million s&uare feet of retail eperience across India.
EASY DAY IN PATIALA
4harti =etail, a wholly owned subsidiary of 4harti Dnterprises, launched its third
compact*hypermar"et store NDasyday 8ar"etN in 0atiala.
+ocated at Omae 8all, 0atiala, the new store offers
customers a great shopping eperience, high in*stoc"
levels and a wide range of &uality products at the best
prices under one roof.
)he Dasyday 8ar"et in 0atiala is a %/,/// s&uare feet
store offering over $A,/// &uality products, including
trendy fashion wear such as :eorge Einternational brandF and !stitva EIndian Dthnic
7earF, home ware, a range of electronics I electrical appliances, mobile phones, toys,
ba"ery products, food I grocery and fresh fruits I vegetables. Other categories include
health I beauty products, basic home furnishings, food I grocery, hygienic meat and
fish I chic"en all at unbelievably low prices. Dasyday 8ar"et has provided &uality
employment opportunities to the people of 0atiala that include housewives, differently*
abled people, meat cutters, fruits and vegetable sellers, school and college dropouts.
#ince its launch in !pril ;//., Dasyday has successfully offered products at lowest prices
every day, so that the customers can save money. Dasyday stores are a one stop shop,
catering to every familyNs daily and monthly needs. )hey bring together relevant and a
wide range of &uality products along with great in*store eperience and service, at lowest
prices.
G%
4.2
M%.- is a pan*India retail chain operated by the Aditya Birla Group company, !ditya
4irla =etail +td. Currently it has 5G/ supermar"ets and nine hypermar"ets across the
country. It plans to increase it to $,%// supermar"ets and A5 hypermar"ets respectively by
;/$A.
)he :roupNs foray into the retail sector began in 3ecember ;//A when it ac&uired
)rinethra, the chain of stores based in south India. 8ay ;//@ saw !ditya 4irla =etail
+imited E!4=+F launch their own brand of stores called N8ore.N !4=+Ns vision is Vto
consistently provide the Indian consumer complete and differentiated shopping
eperiences and be amongst IndiaNs top retailers while delivering superior returns to all
sta"eholdersV.
Currently, there are over 5@5 supermar"ets and $;
hypermar"ets. !ll the supermar"ets are branded N8ore.N
and the hypermar"ets are branded N8ore 8egastoreN. )he
company has over $$,/// employees and has a pan*India
presence.
GG
8ore. supermar"ets are neighbourhood stores with the core proposition of offering value,
convenience and trust to the customers and averaging ;,5// s& ft area. )he hypermar"ets
are self*service superstores offering value and range in food and non*food products and
services at a single location. Hypermar"ets are located in large catchment areas and
encourage mass consumption with discount prices and substantial depth of assortment
with an average store size of 55,/// s& ft shopping area.
In 8ay ;//- !ditya 4irla =etail introduced a value proposition for its supermar"ets and
encapsulated it into a promise of giving its customers VHamesha DtraV which has
resonated with the consumer. VHamesha DtraV is the core essence of 8ore. It means
customers will always feel that they have got something etra while shopping at 8ore.
7ithin a short span of less than three years, 8ore. has more than one million members as
part of its loyalty programme. 8ore. has also launched a huge range of private labels in
food and grocery, staples and apparel which have already obtained a significant share of
category as well as salience with the consumer.
!ditya 4irla =etail was presented the N=etail 4est Dmployer of the UearN award at the
=eid and )aylor !wards for =etail Dcellence, by the global 'ury of the !sia =etail
Congress ;//- and again in ;/$$. In the same forum, !4=+Ns CDO, 8r. )homas
Jarghese was awarded the 0restigious =etail Icon !ward by the global 'ury of the !sia
=etail Congress ;/$$.
!ditya 4irla =etail +imited was also awarded the =eid I )aylor !ward for =etail
Dcellence by the global 'ury of !sia =etail Congress ;/$/ for the best mar"eting
campaign of the year B +aunch of Hamesha Dtra. It was also presented the :olden #tar
G5
!ward ;//-*;/$/ for the most admired =etailer of the year E(ood I :roceryF for
ecellence in (ood, Hospitality, #ervice and =etailing.
In 8arch ;/$$, the $/th Indira !ward for 8ar"eting Dcellence was awarded to !ditya
4irla =etail +imited CDO, 8r. )homas Jarghese for his outstanding contribution to
brand building.
S(*-.),.<-+
more" B +ocated in neighborhoods, it sells a range of fresh fruits I vegetables, groceries,
personal care, home care, general merchandise I a basic range of apparels. Currently,
there are over A// more" supermar"ets across the country.
H2*-.),.<-+
more"M65'2T<#6 B It sells a range of products across fruits and vegetables, groceries,
(8C: products. more"M65'2T<#6 also has a strong emphasis on general merchandise,
apparels I C3I).
Currently, thirteen hypermar"ets operate under the brand more"M65'2T<#6 in 8ysore,
Jadodara, !urangabad, Indore, 4engaluru E%F, 8umbai, Cew 3elhi E;F, Hyderabad,
Casi" and Jashi.
C3(5)%.-
Clubmore is the store loyalty program, which has a membership base of over $ million
members.
P.@,+- 3,5-3'
!ditya 4irla =etail +imited provides customers products under its own labels. 0rivate
label (ood 4rands include (easters, 2itchenNs 0romise, and 4est of India. Home I
0ersonal care brands include Dnriche, $$/%, 0este, 0aradise and :erme.
GA
CHAPTER 8: OB#ECTIVES
Ob'ective of the 0ro'ected #tudy and !nalysis the How >C%&'()- P-.4-*+%&
T%7,.1' S(*-.),.<-+ P.@,+- B.,&1 P.%1(4+': A C%)*,.,+@- S+(12 %/ B0,.+
E,'21,2 = A1+2, M%.-?
$. )o study and analyses the present scenario of =etail Outlets in India.
;. )o study about the role of retail and organised mar"ets in Indian society.
%. )o study and find out the effect of retail and unorganised mar"ets on the
consumer loyalty.
G. )o evaluate the consumer awareness and loyalty about the emerging retail and
unorganised mar"ets in 0un'ab.
5. )o analyses the number of different retail and organised mar"ets in different cities
of 0un'ab.
A. )o study the price comparability and transparency of 4harti easy day stores in
0atiala.
@. )o study the price offered and overall satisfaction with pricing policies of 4harti
easy day.
G@
CHAPTER I: RESEARCH METHODOLOGY
T0- R-'-,.40 M-+0%1%3%62 ('-1 52 )- /%. +0- *(.*%'- %/ +0' *.%L-4+ ' ,' /%33%7':-
R-'-,.40 D-'6&:-
)he research design used here for this pro'ect is a combination of Dploratory I
Dplanatory designs. (irst a general "now about of the >C%&'()-. B(2&6 B-0,@%(. &
O.6,&'-1 R-+,3 O(+3-+: A C,'- S+(12 %/ E,'2D,2 S+%.-' & P,+,3, C+2?. )hen a personal
interaction with the people concerned is made to figure out the results.
D,+, C%33-4+%& M-+0%1:-
P.),.2 D,+, >S,)*3&6?:-
)he sampling units in my pro'ect are C%&'()-.'. )he sample size was small by
following the convenience sampling method. )here were &ueries for the persons
interacted I the &uestionnaires have been attached at last.
SAMPLING SIZE
)he sample size of my research is $// consumers. +arge samples give more
reliable results that is why I tried my best to cover more users EconsumersF in P,+,3,.
S,)*3- SH- M
#ample 5nit B 1EE: Users EconsumerF
!rea of #urvey K 0un'ab.
D,+, A@,3,53+2: 3ata has been collected from the 5sers EConsumerF related to
different cities of 0un'ab li"e P,+,3,.
G.
T0- R-'-,.40 '+,&1' /%. :-
$. )o "now how of the actual phenomenon occurring I eploring the new ideas
with a clear I precise insight.
;. )o test the hypothesis with being variables to be compared within their
relationship.
D,+, A&,32'' = I&+-.*.-+,+%&:-
)he statistical tools used by me are mainly average, 0ercentage, I comparisons etc. I
would li"e to give brief points about
$. Wuestionnaire, * )he &uestionnaires are given to respondent with no
pressurization at all, i.e. heMshe is free to provide the information whatever the
concern is. One thing to be "ept in mind that personal &uestion apart from name,
address etc. should not be included.
;. 3irect Interviews, * )he direct interviews are one up against all the data collection
tools 'ust because one can 'udge that what a person is telling to the surveyor.
!lthough it is time consuming but the information gathered is of much more
weightage than others.
%. #ampling design, 0rocedure I #ample size,*! sample is always a part of the
desired universe I it should represent each I every aspect of the study being
conducted. )he only thing is that the sample being chosen is of relevance I
accurate source of information. 8y sampling design is based on random sampling
because each element gets probability to be included I all choices made are
independent of each other.
L)+,+%&':-
)he main limitation encountered during the pro'ect course was the responding error by
8anagement Decutives I Consumers, but the approimate figures of data I facts are
sufficient for the purpose of this pro'ect.
G-
CHAPTER I: DATA ANALYSIS
1. !0-.- 1% 2%( 5-3%&6 +%N
T,53- 1:
5=4!C .G
=5=!+ $A
G.,*0 1:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents .G% belong to 5rban and
rest $A% belong to =ural
5/
2. Y%(. P.%/-''%&N
T,53- 2:
0rofessional ;@
#tudent ;5
:ovt. #ervice ;/
4usinessman ;.
G.,*0 2:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents ;@% are professional,
;5% are students, and rest ;/% are in :ovt. #ervice and ;.% are businessman.
5$
3. E1(4,+%&,3 B,4<6.%(&1
T,53- 3:
8atric ;
Higher #econdary $%
:raduate %@
0ost :raduate G.
G.,*0 3:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents $G% are studied till
higher secondary, G/% are graduate and rest GA% are 0ost :raduate.
5;
$. D% 2%( (&1-.'+,&1 70,+ ' o.6,&'-1 .-+,3 ,&1 (&%.6,&'-1 M,.<-+ R-+,3N
T,53- $:
UD# -%
CO @
G.,*0 $:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents -%% says Ues they
understand what is organised 8ar"et and 5norganised =etail and rest @% says they do
not understand what is organised 8ar"et and 5norganised =etail.
5%
8. H%7 %/+-& 2%( @'+ +% R-+,3 O(+3-+' & , )%&+0N
T,53- 8:
$*5 )imes @.
5*$/ )imes $G
8ore than $/ times .
G.,*0 8:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents @.% respondents visits $*
5 times, $G% respondents visits 5*$/ times and rest .% respondents visits more than $/
times.
5G
I. H%7 )(40 +)- 2%( '*-&1 & +0- R-+,3 O(+3-+'N
T,53- I:
/*$ Hours A@
$*; Hours ;;
8ore than ; Hours $$
G.,*0 I:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents A@% respondents spend
/*$ hrs and rest ;;% respondents spend $*; hrs and rest $$% sometimes spend more than
; hours in the retail outlet.
55
F. O& , @'+ %/ 8 +)-' +% , ),33 0%7 ),&2 +)-' 1% 2%( ,4+(,332 *(.40,'-N
T,53- F:
Once $G
)wice %/
)hrice $;
8ore GG
G.,*0 F:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents $G% respondents visits
once, %/% respondents visits )wice, $;% respondents visits )hrice and rest GG%
respondents visit more than thrice.
5A
J. I& 7040 .-+,3 %(+3-+ 1% 2%( *.-/-. +% @'+N
T,53- J:
!ditya 8ore AG
Dasy 3ay -%
G.,*0 J:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents AG respondents prefer
!ditya 8ore and -% respondents prefer Dasy 3ay.
5@
K. !0,+ 7%(31 5- +0- *(.*%'- +% @'+ R-+,3 O(+3-+'N
T,53- K:
7indow #hopping 5$
#hopping G-
7atching 8ovies $$
Dhibition cum sale $%
0laying console games ;$
3ate with a friend %-
G.,*0 K:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents 5$ respondents do
window shopping, G- for shopping, $$ respondents prefer to watch movie, $% respondent
li"e to visit ehibition cum sale, ;$ play console games and rest %- date with a friend.
5.
1E. !0,+ ,.- +0- ),& ,++.,4+%&' %/ +0- R-+,3 O(+3-+'N
T,53- 1E:
0ar"ing facility G$
#ame rate as of bazaar G-
Dvery commodity under one roof @;
0ac"ed I Hygienic food 5.
+atest M4randed varieties %$
Centrally !ir*Conditioned @-
7ell e&uipped lifts and elevators 5-
G.,*0 1E:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents G$ of them say there
par"ing facility, G- of them says same rate as of bazaar, @; of them says every
commodity under one root, 5. of them says pac"ed I hygienic, %$ of them says
latestMbranded varieties, @- of them says centrally air conditioned and rest 5- of them
says well e&uipped lits and elevators are the main attraction of the =etail Outlet.
5-
11. A44%.1&6 +% 2%( 70,+ 7%(31 5- +0- F(+(.- %/ U&%.6,&'-1 M,.<-+ R-+,3
S+%.-'N !33 +0-2 '+,2 & +0- ),.<-+ /%. ,&%+0-. 1E %. )%.- Y-,.' %. &%+
T,53- 11:
UD# A/
CO G/
G.,*0 11:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents A/% says Ues it stay in
the mar"et for another $/ or more Uears or not and rest G/% says Co.
A/
12. I/ 2%( 0,@- '%)- -)-.6-&42 70-.- 1% 2%( 6% /%. '0%**&6N
T,53- 12:
)he )raditional store Closer to your home @.
)he 8ega 8art ;;
G.,*0 12:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents @.% says the traditional
store or unorganised retail closer to your home and rest ;;% says that the mega mart or
organised retail.
A$
13. B-&-/+' 2%( 6-+ /.%) +0- +.,1+%&,3 '+%.-'N
T,53- 13:
Credit ;/
(riendly =elation 5.
(ree home delivery $;
!ny other $/
G.,*0 13:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents ;/% respondents get
credit, 5.% respondents gets friendly relation, $;% respondents gets free home delivery
and rest $/% respondents gets any other.
A;
1$. !0,+ ' +0- '4%*- %/ +0- o.6,&'-1 .-+,3 & I&1,N
T,53- 1$:
3eveloped @/
5nderdeveloped ;5
(ailure 5
G.,*0 1$:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents @/% respondents thin"
that the retail in India can be developed, ;5% respondents can thin" the retail in India can
be underdeveloped and rest 5% respondents can thin" the retail in India can be failure.
A%
18. !0,+ ,.- +0- 6.%7+0 *.%'*-4+' ,&1 ''(-' .-3,+-1 +% +0- .-+,3 &1('+.2N
T,53- 18:
8anaged 8ar"et ;.
On time 3elivery $5
Wuality 0roduct 5@
G.,*0 18:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents ;.% respondents say the
management mar"et are the growth prospects and issues related to the retail industryB
$5% respondents say on time delivery are the growth prospects and issues related to the
retail industry and rest 5@% respondents say &uality products are the growth prospects
and issues related to the retail industry.
AG
1I. !0,+ ,.- +0- %**%.+(&+-' = 40,33-&6-' & /.%&+ %/ +0- .-+,3-.' & I&1, ,&1
-)-.6&6 +.-&1' +0-.-N
T,53- 1I:
8aintaining Wuality $A
Competitiveness A/
4etter Dnvironment $A
Irregular :ovt. 0olicies .
G.,*0 1I:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents $A% says maintaining
&uality, A/% says competitiveness, $A% says better environment and rest .% says
irregular :ovt. 0olicies.
A5
1F. A44%.1&6 +% 2%( +0- 5%%) & +0- .-+,3 I&1('+.2 733 .-,40 +% +0- .(.,3 ,.-, %.
733 + %&32 4%&4-&+.,+-1 +% +0- (.5,& ,.-,.
T,53- 1F:
UD# A.
CO %;

G.,*0 1F:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents A.% respondents says
Ues the retail Industry will reach to the rural area and rest %;% says Co it will only
concentrated to the urban area.
AA
1J. H%7 0,' .-+,3-.' ,**.%,40 +% 2%(N
T,53- 1J:
)hrough 0amphlet GA
)hrough local ).J Channel ;.
)hrough local Cews paper ;.
)hrough #8# $;
)hrough Hoardings A
G.,*0 1J:
I&+-.*.-+,+%&: !ccording to the graph out of $// respondents GA of them says through
pamphlets, ;. of them says through local ).J channels, ;. of them says through local
news 0aper, $; of them says through #8# and rest A of them says through hoardings
A@
1K. R,+- +0- R,&6- %/ P.%1(4+' ,@,3,53- & R-+,3 S+%.-N
T,53-:
:ood !verage 0oor
Dasy 3ay @- $$ %
8ore G% $A 5
G.,*0:
INTERPRETATION: !ccording to -% respondents of easy day say that A@ of them say
that 0roducts available in =etail #tore are good, ;- of them say that 0roducts available in
=etail #tore are average and rest G of them say that 0roducts available in =etail #tore are
poor.
!ccording to AG respondents of !ditya 8ore say that G% of them say that 0roducts
available in =etail #tore are good, $A of them say that 0roducts available in =etail #tore
are average and rest 5 of them say that 0roducts available in =etail #tore are poor.
A.
2E. R,+- +0- 1'4%(&+ %//-.' %/ R-+,3 S+%.-N
T,53-:
:ood !verage 0oor
Dasy 3ay .$ $/ ;
8ore %% ;$ $/
G.,*0:
INTERPRETATION: !ccording to -% respondents of easy day say that .$ of them say
that +0- discount offers of =etail #tore are good, $/ of them say that discount offers of
=etail #tore are average and rest ; of them say that discount offers of =etail #tore are
poor.
!ccording to AG respondents of 8ore say that %% of them say that +0- discount
offers of =etail #tore are good, ;$ of them say that discount offers of =etail #tore are
average and rest $/ of them say that discount offers of =etail #tore are poor.
A-
21. E&%(60 C0%4- %/ P.4-'
T,53-:
#trongly !gree !gree 3isagree #trongly 3isagree
Dasy 3ay 5$ %% @ ;
8ore %; ;$ - ;
G.,*0:
INTERPRETATION: !ccording to -% respondents of easy day say that 5$ of them
strongly agree that there is enough choice of prices, %% of them agree that there is enough
choice of prices, @ of them disagree that there is enough choice of prices and rest ; of
them strongly disagree that there is enough choice of prices.
!ccording to AG respondents of !ditya 8ore say that %; of them strongly agree
that there is enough choice of prices, ;$ of them agree that there is enough choice of
prices, - of them disagree that there is enough choice of prices and rest ; of them strongly
disagree that there is enough choice of prices.
@/
22. P.4- C%)*,.,53+2
T,53-:
#trongly !gree !gree 3isagree #trongly 3isagree
Dasy 3ay 5G %% 5 $
8ore %5 ;% 5 $
G.,*0:
INTERPRETATION: !ccording to -% respondents of easy day say that 5G of them
strongly agree that there is prices comparability, %% of them agree that there is prices
comparability, 5 of them disagree that there is prices comparability and rest $ of them
strongly disagree that there is prices comparability.
!ccording to AG respondents of !ditya 8ore say that that ;% of them strongly
agree that there is prices comparability, 5 of them agree that there is prices comparability,
5 of them disagree that there is prices comparability and rest $ of them strongly disagree
that there is prices comparability.
@$
23. T.,&'*,.-&42
T,53-:
#trongly
!gree
!gree 3isagree #trongly
3isagree
Dasy 3ay A; %/ $ /
8ore 5% - ; /
G.,*0:
INTERPRETATION: !ccording to -% respondents of easy day say that A; of them
strongly agree that there is transparency, %/ of them agree that there transparency, $ of
them disagree that there is transparency and rest $ of them strongly disagree that there is
transparency.
!ccording to AG respondents of 8ore say that that 5% of them strongly agree that
there is transparency, - of them agree that there is transparency, and rest ; of them
disagree that there is transparency.
@;
2$. O@-.,33 S,+'/,4+%& 7+0 P.4&6 P%34-' %/ R-+,3 S+%.-N
T,53-:
Highly
#atisfactory
#atisfactory !veragely
#atisfactory
3issatisfactory Highly
3issatisfactory
Dasy 3ay AG ;@ ; / /
8ore G% $- ; / /
G.,*0:
INTERPRETATION: !ccording to -% respondents of easy day say that AG of them say
that Overall #atisfaction with 0ricing 0olicies of =etail #tore are highly satisfactory, ;@ of
them say that Overall #atisfaction with 0ricing 0olicies of =etail #tore are satisfactory, ; of
them say that Overall #atisfaction with 0ricing 0olicies of =etail #tore are average
satisfactory.
!ccording to AG respondents say that G% of them say that Overall #atisfaction with 0ricing
0olicies of =etail #tore are highly satisfactory, $- of them say that Overall #atisfaction with
0ricing 0olicies of =etail #tore are satisfactory, ; of them say that Overall #atisfaction with
0ricing 0olicies of =etail #tore are average satisfactory.
@%
CHAPTER F: KEY OBSERVATIONS
)he primary data collected from the respondents, led to the following "ey observations
about customers shopping behaviour in Indian scenario among the modern retail
formats:
$. 8aster and serving class employee, never shop at the same store, though lower
middle class visits hyper mar"ets and discount stores, the upper middle class
fre&uents department stores, specialty chains and super mar"et.
;. (or India two, the clean and shiny environment of modern retail stores creates the
perception that such stores are too epensive and eclusive, so they are not meant
for them. India two tends to feel alienated in environment, fre&uent by India one.
%. India two moves and finds lot of comfort in crowds, so they normally hesitate in
visiting the stores having broader area coverage.
G. It is observed during the research that given the right environment and a correct
emotional connect with customers, anything is possible , as 4ig 4azaar did by
celebrating #abse #asta 3in , and attracted the unepected crowd.
5. =esearch indicated that Customers feel conservative to buy fruits I Jegetable
from air*conditioned supermar"ets. )hey still prefer to buy these "ind of products
either from the local mobile vegetables sellers or from the nearest sab'i 8ar"et.
0robably this is wor"ing as deterrent factor for the growth of #upermar"ets in
India in a sense that they are able to attract visitors rather customers.
A. It was observed that customers loo"ed into 0rice*Jalue e&uation. 8ost of the
retailers reported that customers were very much conscious for the value, and they
usually compared the value sacrificed I received. It played a very "ey role in
their buying decision process.
@. It was also observed on the basis of primary as well as secondary research, that
retailers often overloo" the schemes I offerings epected by the customers and
tried to impose their own offerings upon customers which ultimately cause the
dissatisfaction.
@G
.. #hop"eepers dealing in apparels, accessories, I other items reported that they
were able to attract the Customers but conversion rate is not more than %/*G/%
which is again very alarming and a matter of high concern.
-. #hop"eepers dealing in food items I Jegetables reported that ,
aF Customers for food items always epect hyper discounts I offers.
bF 7here as customers for vegetables still believe in the past notion that
vegetables sold in the open mar"et are fresh.
$/. #hop"eepers dealing in 'ewellery items reported that in case of unbranded
'ewellery items Indian customers still rely on their traditional 'ewellery merchant
only.
$$. !ll the shop"eepers EinterviewedF in every category reported that female
customers proved to be great bargainers than their male counterparts.
@5
CHAPTER J: CONCLUSION
8ost of the consumer belong to urban area rather than rural areas. =etail Outlets are
more a fashion and that is more li"ely to attract the students or young generation. !s
the trend is 'ust started more and more people have started visiting =etail Outlets.
8ost of the respondents have a "nowledge regarding organised retail store and
5norganised 8ar"et =etail.
=etail Outlets are more a fashion and that is more li"ely to attract the students or
young generation. !s the trend is 'ust started more and more people have started
visiting =etail Outlets.
8ore and more consumer li"e to visit malls, and spend more that 5 hours there. 8any
of the consumers shop for their daily needs as more are there for window shopping.
)he main attractions are the branded clothes and that every commodity available
under one roof.
!ccording to the respondents the traditional store cant stop wor"ing they will remain
in the race of retail for the net $/ years or so on. =ight now the scenario of the
mar"et is li"e that most of the respondents li"e to go to traditional shops rather than
the retail outlets. 7henever some emergency come, in which consumer li"e to buy
the grocery, respondent will prefer 0ap*8om that is traditional shops. 4enefits of the
retail stores are credit, free home delivery, friendly relation and other benefits li"e
professional staff, ambient par"ing facility, pollution free environment and so on.
!ccording to the respondents the scenario right now for retail outlets is
underdeveloped, still need time to grow so to developed. !ccording to the
respondents the retail outlets are the managed mar"et, they have the &uality products
and they provide a better on time and hassle free delivery system.
Opportunities I challenges in front of the retailers in India and emerging trends are
that they have to maintain the &uality, provide better environment, competitiveness
and the irregular government policies.
7hile summarizing the facts and loo"ing at the present scenario, the retail industry
will reach to the rural area but with time, right now it is still not well established in
the urban areas as well.
@A
)o attract the attention of customers, big retail malls across the country are promising
the best deals at lowest prices on most of the fast moving items they stoc".
Dasy 3ay have the cheapest price or your money bac" challenge on. Competition
among big stores is also fuelled by a new entrant.
8ostly customers consider Dasy 3ay as the most cheap retail store. !long with
!ditya 8ore, Dasy 3ay is also considered as cheap store.
Dasy 3ay are considered the stores that has better &uality than !ditya 8ore. Dasy
3ay has &uality based products and the consumers who prefer !ditya 8ore 7ith
!ditya 8ore and Dasy 3ay in the case of &uality is very less.
!ditya 8ore are much behind to Dasy 3ay in the sense of product variety. 8ostly
consumers thin"s that Dasy 3ay provides much varieties to purchasers. Dmployees of
Dasy 3ay has more "nowledge about store than the employees of !ditya 8ore.
#ervice of Dasy 3ay is superior to its competitors as respondents are in favour of
!ditya 8ore is the second choice for customers in the case of service.
!fter completing this research we come to "now that Only easy day is ahead of
!ditya 8ore because of its prime +ocation and higher product range.
4ut there are few areas where these malls needs amendments and these suggestions
are mentioned in these malls.
!dvertising is an important factor of getting sales promotion and Dasy 3ay is ahead
of !ditya 8ore, easy day in apparel in the 0atiala, but 0roduct Wuality of easy day is
better than !ditya 8ore in 0atiala. 0roduct =ange of easy day is better than that of
!ditya 8ore.
@@
CHAPTER K: SUGGESTIONS
A/+-. 4%&1(4+&6 +0- M-+, "A&,32'' /%. +0- I&1,& .-+,3&6 ),.<-+B + 4,& 5-
4%&43(1-1 +0,+:
$F =etailers need to thin" about shoppers not 'ust about a format as understanding the
shoppers dynamics holds the "ey to such a business. =etailers would have to create
new delivery formats that can cater to the huge mass of consumers.
;F =etailers must understand what value shopper is loo"ing for and how the retailers can
deliver that desired value to the customer. However, most retailers loo" for what they
are offering and how shoppers can fit into retailers scheme of offerings.
%F In the long run such strategies may not be viable. #am 7alton and 1ac" 7elch share
a same line of thin"ing that consumer is the source of competitive advantage and one
of leading 52 based retailers )esco Inc. has shown how understanding consumer can
be a source of redefining business and gaining sustainable advantage.
!ll the formats are profitable and each format is tailor made to fulfill customer need.
It is the value offering which ma"es )esco so popular and profitable. #imilarly in India
0antaloon =etail runs several formats and for value retailing 4ig 4azaar is receiving
eceptional response from the customers.
GF =etailing in India is entirely different from western countries for that matter even
from !sian counterparts. #tudies show that upgraded 2irana stores are growing at the
same rate as organised store retailers.
5F It is also observed that in the changing retailing environment, understanding the
psyche of customer is critical to success in retailing.!ggregate level picture may be
misleading, as it averages the beats and the valleys. Hence, individual understanding
is desirable.
AF )hough, some Indians are behaving as sophisticated shoppers, tens of millions are
still novice but no less avid consumers are 'oining the fray every year. #o, retailers
@.
have to ac"nowledge this change and also stay a step a head of the evolution curve of
the Indian mar"et.
@F (inally, it is not the format that gives business sustainability rather it is one of the
vehicles to deliver the value to the customer.
.F Indian consumers are still family*driven entities. #hopping, entertainment and eating
out are family events. #ince these decisions are normally group decisions, hence a
mar"eter has to address family sensibilities more rigorously to woo Indian customers.
-F Indian customers have become more sensitive to &uality, customer service and status.
HeM#he is ready to pay, sometimes, astronomical sums provided their needs are
satisfied. )hey are basically loo"ing for an eperience which is more of cognitive
than physical. In brief, /o 7ikhta 3ai Wo 3i =ikta 3ai.
In some cases, few unorganised store owners find no competition because they
understand what their customers want. #o ultimately it can be said that for a retailer
understanding the customers is 'ust li"e 43)5&6 +0- G.-,'-1 P%3-.
@-
BIBLIOGRAPHY
B%%<':
4erry, +.+. E;//$F. >)he Old 0illars of Cew =etailing? Harvard 4usiness =eview, @-,
G, $%$*$%@.
4i'apur"ar, =. E;//%F, )he Cew, Improved Indian Consumer, 4usiness 7orld, .
th

3ecember, 00. ;.*%A.
Consumer I 8ar"eters, 8ar"eting 7hite 4oo" E;//AF 0. $/-
(3I in =etail #ector in India, !rpita 8u"her'ee, Citisha 0atel, IC=ID=
0ublication,pg.%$
India =etail Hand boo" ,ICICI and !C Ceilson , O=: 8arg E ;//AF
+iving it 5p, India )oday, !ugust, ;;,;//5, pp..A
8ar"eting 7hite 4oo" E;//AF, 4usiness 7orld, pp.;%@,$$G*$$5.
Con*#tore =etailing, =etailing in India, Duro monitor =eport, ;//A
=etailing in 0un'ab, ;/$/ and beyond E;//AF, !n image I CII study.
)he :lobal =etail 3evelopment Inde E;//AF, !t 2earney
)#8: E )ata #trategic 8anagement :roupF !nalysis, ;//A.
!-5'+-:
http,MMwww.franchisee".comM8ar"etX )rendsX=etailX/%/G.htm
http,MMwww.etretailbiz.comMfeb;//GMf=etail.html
http,MMwww.amec.com.mMrevistaMnumX@X;//GMJirchezX1orge.htm
./
http,MMwww.researchandmar"ets.comMreportinfo.aspYreportXidZ%G/A5%
ANNEXURE: QUESTIONNAIRE
3ear =espondent,
I am a student of management studies6 I am supposed to (&1-.+,<- ,
'(.@-2 %& >C%&'()- P-.4-*+%& T%7,.1' S(*-.),.<-+ P.@,+- B.,&1 P.%1(4+': A
C%)*,.,+@- S+(12 %/ B0,.+ E,'21,2 = A1+2, M%.-D. I epect full co*operation
from your side.
1. Y%(. N,)-OOOOOOOOOOOOOOOOOOOOOO A6-:OOOOO E-),3 I1OOOOOOOOOOO
2. !0-.- 1% 2%( 5-3%&6 +%N
EaF 5rban EbF =ural
3. Y%(. P.%/-''%&N
EaF 0rofessional bF #tudent cF :ovt. #ervice
EdF 4usinessman
$. E1(4,+%&,3 B,4<6.%(&1
EaF 8atric EbF Higher #econdary EcF :raduate
EdF 0ost :raduate
8. D% 2%( (&1-.'+,&1 70,+ ' o.6,&'-1 M,.<-+ ,&1 (&%.6,&'-1 M,.<-+ R-+,3N
Ues Co
I. H%7 %/+-& 2%( @'+ +% R-+,3 O(+3-+' & , )%&+0N
EaF $*5 )imes EbF 5*$/ )imes EcF 8ore than $/ times
F. H%7 )(40 +)- 2%( '*-&1 & +0- R-+,3 O(+3-+'N
EaF $*% Hours EbF %*A Hours EcF 8ore than A Hours
.$
J. O& , @'+ %/ 8 +)-' +% , ),33 0%7 ),&2 +)-' 1% 2%( ,4+(,332 *(.40,'-N
EaF Once EbF )wice EcF )hrice EdF 8ore
K. !0,+ 7%(31 5- +0- *(.*%'- +% @'+ R-+,3 O(+3-+'N
EaF 7indow #hopping EbF #hopping EcF 7atching 8ovies

EdF Dhibition cum sale EeF 0laying console games
EfF 3ate with a friend
1E. !0,+ ,.- +0- ),& ,++.,4+%&' %/ +0- R-+,3 O(+3-+'N
EaF 0ar"ing facility EbF #ame rate as of bazaar
EcF Dvery commodity under one roof EdF 0ac"ed I Hygienic food
EeF +atest M4randed varieties EfF Centrally !ir*Conditioned
EgF 7ell e&uipped lifts and elevators
11. A44%.1&6 +% 2%( 70,+ 7%(31 5- +0- F(+(.- %/ (&%.6,&'-1 R-+,3 S+%.-'N
7ill they stay in the mar"et for another $/ or more Uears or not
EaF Ues EbF Co
12. !0-.- 1% 2%( *.-/-. '0%**&6N
EaF 4ig 8ar"et =etail Outlets EbF #mall 8ar"et =etail
13. I/ 2%( 0,@- '%)- -)-.6-&42 70-.- 1% 2%( 6% /%. '0%**&6
EaF. )he 0opmamEtraditional storeF Closer to you home
EbF. )he mega mart
1$. B-&-/+' 2%( 6-+ /.%) +0- +.,1+%&,3 '+%.-'N
EaF Credit EbF (riendly =elation
.;
EcF (ree home delivery EdF !ny otherXXXXXXXXXXX
.%
18. !0,+ ' +0- '4%*- %/ +0- o.6,&'-1 M,.<-+ R-+,3 & I&1,N
EaF 3eveloped EbF 5nderdeveloped EcF (ailure
1I. !0,+ ,.- +0- 6.%7+0 *.%'*-4+' ,&1 ''(-' .-3,+-1 +% +0- .-+,3 &1('+.2N
EaF 8anaged 8ar"et EbF On time 3elivery EcF Wuality 0roduct
1F. !0,+ ,.- +0- %**%.+(&+-' = 40,33-&6-' & /.%&+ %/ +0- .-+,3-.' & I&1, ,&1
-)-.6&6 +.-&1' +0-.-N
EaF 8aintaining Wuality EbF Competitiveness
EcF 4etter Dnvironment EdF Irregular :ovt. 0olicies
1J. A44%.1&6 +% 2%( +0- 5%%) & +0- .-+,3 I&1('+.2 733 .-,40 +% +0- .(.,3 ,.-, %.
733 + %&32 4%&4-&+.,+-1 +% +0- (.5,& ,.-,
EaF Ues EbF Co
1K. R,+- +0- R,&6- %/ P.%1(4+' ,@,3,53- & R-+,3 S+%.-N
:ood !verage 0oor
Dasy 3ay
8ore
2E. R,+- +0- 1'4%(&+ %//-.' %/ R-+,3 S+%.-N
:ood !verage 0oor
Dasy 3ay
8ore
21. E&%(60 C0%4- %/ P.4-'
E=D)!I+D=F offers a wide enough choice of [0=O35C)#\ at different prices.
#trongly !gree !gree 3isagree #trongly
3isagree
Dasy 3ay
8ore
22. P.4- C%)*,.,53+2
Uou can easily compare prices of products at E=D)!I+D=F when buying [0=O35C)#\
#trongly !gree !gree 3isagree #trongly
.G
3isagree
Dasy 3ay
8ore
23. T.,&'*,.-&42
0rices are clear and accurate, i.e. you "now eactly what you are going to pay, before you
buy the product.
#trongly !gree !gree 3isagree #trongly 3isagree
Dasy 3ay
8ore
2$. O@-.,33 S,+'/,4+%& 7+0 P.4&6 P%34-' %/ R-+,3 S+%.-N
Highly
#atisfactory
#atisfactory !veragely
#atisfactory
3issatisfactory Highly
3issatisfactory
Dasy 3ay
8ore
.5