Profiling Indian shoppers: an exploratory study of organised retail

Abstract

Driven by real estate costs, relative purchasing power and demand-supply gap in Tier II and III cities in India, organised retailers are looking at a fair share of adjustments to their retail strategies to make their presence felt in these markets. The primary objective of this study is to profile Indian shoppers in Tier II cities and analyse their shopping orientation by a survey of consumers across two such cities. Thirteen variables were identified and were treated with factor analysis; store selection, amount and time spent within store, and number of items purchased on each shopping trip have also been tracked in order to understand purchase patterns. Four shopping orientations emerged, namely Value, Purpose, Convenience and Consultation. Retailers in Tier II cities may identify such shopping orientations and increase customer traffic and sales by emphasising on well targeted strategies.