Organized Retailing In India Research Articles

Customers’ Perception towards CRM Practices in reference to Organized Retail in India

Retailing being one of the fastest growing sectors is facing tremendous competition from domestic as well as foreign players. Customer retention is an area of serious concern for online as well as offline retailers in the Indian economy, driving players in the Indian business scenario to bring radical change in their CRM practices which affects their customers perception. Retailers are highly concerned in identifying the key drivers of service execution that model customer shopping satisfaction and enhance loyalty. Customer satisfaction & loyalty is an outcome of sound customer relationship management practices. Thus, to ensure the prolong survival in the highly aggressive retail business environment customer centric approach is hour’s need. This paper critically analyses Customer’s perception towards CRM practices with reference to organized retail in India. Major parameters such as reliability, product attributes, customer service, convenience and ambience are identified to evaluate the customer perception towards CRM practices. The relevance of each parameter is analyzed with special reference to both the formats of organized retailing i.e., online & offline. For in-depth analysis of each parameter in both the formats of retail, they are further divided into sub-parameters. A survey is conducted for collecting data about customers perception towards these parameters. A statistical tool two-way ANOVA is used to analyze the variation in customer perception between online and offline retail. Based on analysis and major findings of research a conceptual model is also being proposed to get a pictorial view of how these parameters are affecting customers perception towards online & offline retail.

Comparison of Employment Generation in Organized and Unorganized Markets of Kolkata City

Retailing is defined as a set of activities involved in the selling of a product or service to definite customers ranging from vehicles to clothing to feast at restaurants to film tickets. Somayajulu et al. (2002) found several hurdles hampering the growth of organized retail in India. These hurdles included high intermediation, high supply chain costs, insufficient supply chain infrastructure, inflexible labor laws, multiple licensing requirements, etc. Retailers along these lines attempt different business exercises and perform capacities, for example, arranging, holding stock, and so on, that increase the value of the contributions they make to the objective sections. The retail industry is divided into two parts- Organized Retail Sector and Unorganized Sector. The research study intends to analyze the volume and nature of employment generated between organized and unorganized sectors of Kolkata. The study reveals that unorganized sector retailers did experience a slight decline in their volume of business and profit in the initial years after the entry of large organized retailers, but there was no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers and hence none of the retailers would like to change their existing business in spite of having sufficient resources for changing business because all of them do not find any reason to change business

Human Resource Practices In The Organised Retail Sectors

Human Resource Practices In The Organised Retail Sectors

Gen. X and Gen.Y Customer Groups Perception and Preferences Towards Choice of Shopping Malls Using Structural Equation Model (SEM)

In the recent years, the growth, development and expansion of organized retailing has initiated many revolutionary changes in the business environment in Retail Sector and as a result, various types of modern retail outlets had started functioning with most competent and aggressive manner in the country with most effective and efficient business strategies. One among such type of retail format is a shopping mall, wherein a group of retail stores comes under one roof. In Today’s fast growing Indian business environment, shopping malls are most expected to be front-runners towards the growth of organized retail in India. In this paper, the researchers carried out a descriptive study with a major objective focusing on the customer groups of Gen X and Gen Y. The researchers try to find out the perception and preferences among these two Gen X and Gen Y Customer Groups in choosing their preferred shopping mall. Non Probability Sampling Method and Convenience Sampling Technique was adapted in order to collect 200 samples. Samples were collected out of which each 100 samples were divided and collected among Gen X and Gen Y Customer Group keeping as a Base, also the researchers designed a questionnaire and collected primary samples with a structured Interview. Finally, the outcome of the research after employing the Structural Equation Model (SEM) reveals that Gen X and Gen Y Customer Group may look similar in characteristics and but their preferences and perceptions differs in choosing their preferred shopping mall for purchasing their products and services.

Understanding the evolution in the concepts of organized retailing in India

Understanding the evolution in the concepts of organized retailing in India

Retail Development and its on Investor Confidence: An Empirical Study

Three years after not being in top 10nd in Global Retail Development Index given by A. T. Kearney, India bounced back to 2Rank in 2016 Global Retail Development Index (GRDI). With a population of 1.31 billion, the total retail sale of $1.01trillion, and with CAGR (2013–2015) of 8.8%, India is always a retailer's paradise. But high customer inflation, currency fluctuations and ambiguity over foreign direct investment policies have hindered the growth of organized retailing in India since last fewyears. Government initiatives in improving the ease of doing business, and better clarity regarding foreign direct investmentregulation has helped India to improve its ranking in the GRDI. This achievement is going to place India back on the radar of theinternational retailing companies for their investments in India. This paper attempts to discuss the opportunities to place theretail sector as one of the growth engines of the Indian economy for the coming decade. This paper is organized into three main sections. While the growth of organized retail in the country over last two and a half decades is discusses in the first part, the second part discusses the correlation between GRDI and foreign direct investment confidence index and its impact on overall GDP growth. Third part focuses on policies, institutions and regulations in retail sector.

Organized Retailing in India: A Short Review

Since last many years, there has been rapid growth of organized retailing in India and according to an estimate, it will be worth $170-$190 billion by 2020 as compare to $70-$80 billion currently. In contrast, the unorganized retail sector which employs 95% of the retailers is witnessing a downward trend in terms of industry share, thereby creating a fear of unemployment. So the big question is; is the growth of organized retail in India justified? The concern is what impact it will have on local kirana store, farmers, consumers, commission agents, traders and the economy. In this context, the present study focuses on Indian retail industry and concludes that while there is validity to these concerns, there would be net gain to the society from organized retailing. Further, the paper defines the move that the affected parties take as well as the policy actions the government can implement to resolve the issue amicably.

Growth drivers of organised retail: A focus on indian retail

Indian retail industry is at a nascent stage. India, being one of the most attractive emerging markets, is experiencing a radical change in its retail industry. The rapid development of retailing in India has led to the expansion of organized retail stores both in metros and in smaller cities. The current research is directed to understand the concepts of retailing with a focus on genesis and growth of organized retail in India. This paper briefly discusses the major Indian retail organizations. Further, this paper explores various growth drivers of organized retail industry in India. The study identifies a huge scope for expansion of Indian retail business.

FOREIGN DIRECT INVESTMENT (FDI) IN RETAIL IN INDIA: RAISON DETRE OF GROWTH

According to the Investment Commission of India, the retail sector is expected to grow almost three times its current levels to $660 billion by 2015. Investments are sought by Indian Retailers also to get necessary push for evolution of organized retailing in India, which has been much slower as compared to rest of the world. This is significant to mention that despite of the on-going wave of incessant liberalization and globalization the absence of political will to attract advanced technology and to adopt new retail format is holding retail revolution. FDI in Indian Economy is present since ages, though it is revealed from the chart that there are some states and cities where FDI inflows are larger in comparison of rest of the India. Maharashtra, Tamilnadu, Delhi, Karnataka and Andhra Pradesh are attracting two third of the total investment being the main centers of IT development in last 15 years. Moreover, on city to city basis, it is revealed that there is huge segregation in the inflows as more than 50 percent inflows are dropping in few cities Bangloru, Mumbai and National Capital Region (NCR).

Growth and opportunities of organized retailing in India

Retailing is one of the most attractive sector in the world's economy. It is becoming one of the largest industry all over the world. Indian economy is not also exception regarding this. From the last decades, the Indian retail industry has become the hot favourite destination for organized retail companies. A lot of big industrial groups have jumped in it as Reliance, Pantaloon, Tata, Landmark, Parimal, etc. Now the Indian retail sector has attracted the attention of people from various fields including academia and research organizations. The present study is undertaken to gain an insight about the present structure of Indian retail sector, the major sub-sectors in organized and traditional retail and changes in the relative share of organized retail in various segments. The study is descriptive in nature. The study is based on secondary data, which is taken from various reports published by various organizations.

Do Foreign Investors Comprehend the Opportunities of Indian Retailing?

India is one of the largest budding markets, with a population of over one billion. Indian retail industry is one of the sunrise sectors with huge growth potential. According to the Investment Commission of India, the retail sector is expected to grow almost three times its current levels to $660 billion by 2015. However, in spite of the recent developments in retailing and its immense contribution to the economy, retailing continues to be the least evolved industries and the growth of organized retailing in India has been much slower as compared to rest of the world. Undoubtedly, this dismal situation of the retail sector, despite the on-going wave of incessant liberalization and globalization stems from the absence of an FDI encouraging policy in the Indian retail sector. This paper is going to try to give a better view of what is the Retailing, what are the types of retailing, Retail trade in India also explains different polices of FDI in India, and role of FDI in Indian retail industry, benefits of FDI. In this paper has also we tried to give an analytical perspective on FDI in retail sector and it’s repercussions on competitive market environment in India.

Fine-tuning the retail sector in India and the preconditions for FDI in Retailing

Promoting organized retail in India was initiated by the Government of India in 2006 by opening up single brand retailing to FDI. The international players are allowed to enter into the Indian retail market through five entry routes Viz., franchising, joint venture, manufacturing, cash and carry wholesale trading and distribution. The value of the retail segment is expected to grow from an estimated INR 22.53 trn in 2012 to INR 27.73 trn by 2016.This paper seeks to discuss about the pros and Cons of “Wal-Mart effect” on the Indian economy by justifying the economic rationale for the need for FDI in retail sector. It also focuses on the externalities and the spillovers that would be experienced in the Indian market due to liberalization of FDI in retail sector and stresses upon certain preconditions that have to be recommended by the DIPP for the smooth functioning of the economy

Economic Development, Technological Change, and Growth: Reforms and Economic Transformation in India

Swati Dhingra of London School of Economics and Political Science reviews, “Reforms and Economic Transformation in India” edited by Jagdish Bhagwati and Arvind Panagariya. The Econlit abstract of this book begins: “Nine papers explore economic policy reforms in India and consider why their impact has not been as significant as it has been in other reform-oriented economies. Papers discuss labor regulations and firm size distribution in Indian manufacturing; complementarity between formal and informal manufacturing in India—the role of policies and institutions; services growth in India—a look inside the black box; organized retailing in India—issues and outlook; selling the family silver to pay the grocer's bill?—the case of privatization in India; variety in, variety out—imported input and product scope expansion in India; reforms and the competitive environment; the postreform narrowing of inequality across castes—evidence from the states; and entrepreneurship in services and the socially disadvantaged in India. Bhagwati is University Professor of Economics and Law at Columbia University. Panagariya is Professor of Economics and Jagdish Bhagwati Professor of Indian Political Economy at Columbia University.”

Foreign Direct Investment and Retailing: The Road Ahead

Indian retail sector is highly fragmented as compared to the developed as well as the other developing countries. This shows a great potential for the organized retail industry to prosper in India, as the market for the final consumption in India is very large. Retail trade is largely in the hands of private independent owners and distributor’s structure for fast moving consumer goods consisting of multiple layers such as carrying and forwarding agents, distributors, stockiest, wholesalers and retailers. Thus, the growth potential for the organized retailer is enormous. The purpose of this paper is to provide an examination of foreign direct investment in retailing. FDI inflow rose by 50 per cent to US $ 20.76 billion during January-August 2011, while the cumulative amount of FDI equity inflows from April 2010 to August 2011 stood at US$ 219.14 billion, according to the latest data released by the Department of Industrial Policy and Promotion (DIPP). Services (financial and non- financial), telecom, housing and real estate, construction and power were the sectors that attracted maximum FDI during the first eight months of 2011 while Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE, among others, are the major investors in India. At present the organized retailing in India is witnessing considerable growth. A number of large domestic business groups have entered the retail trade sector and are expanding their operation aggressively. Several format of organized retailing like hyper market; supermarkets and discount stores are being set up by big business groups besides the ongoing proliferation of shopping malls in the metros and other large cities. Successful retail organizations must understand their market, their customers and the importance of strategic location. Because of completion in the retail industry can be fierce, such organization need the best micro marketing tools available to analyse where to place new stores, establish customer profile, and determine best marketing practices in order to find new customers.

Culture, small retail stores, and Indian consumer preferences: A moderating role of demographics

Growth in the Indian retail industry in the last decade has attracted interest from both academicians and retail practitioners. Earlier research has discussed the impact of organized retailing on the future of small retail stores. It is understood that economic factors like rising income, consumption levels, economic growth, and large middle class segment have contributed toward the growth of organized retail in India. This study examines Indian consumers’ preference to shop from small retail stores with respect to cultural- and store-related factors. Demographic factors – education, age, and gender – moderate cultural factors of long-term orientation and collectivism and consequently consumers’ preference to shop from small retail stores.

FDI in Multi-brand Retail: An Analysis of the Impact on Different Stakeholders and Possible Options for Indian Retailers

Modern formats of retailing have evolved as a new frontier in services sector in last few years and offering various value propositions to shoppers. With increasing share of organized retailing in India, the retailers have been experimenting in designing profitable business models, sustaining service quality & delivery levels. The massive consumer base in India has attracted many established foreign retailers to consider India as a retail destination. Moreover, with the cabinet's nod to FDI in multibrand retailers in India, the competition from foreign retailers is going to increase multifold. With increased competition the dimensions of retail service quality haveto go thorough changes and more and more innovations are being required to sustain and grow. However, established foreign retailers may establish superior backend supply chain that may benefit the farmers and help keep the inflation low. But it may create new challenges for domestic organized retailers. The paper suggests different strategies for the upcoming Indian retailers to prepare them tocompete in the changing competitive retail scenario and build new value propositions for shoppers.

Determinants of Shopper Behaviour in E-tailing: An Empirical Analysis

Consumers’ decision-making process has been changed with the introduction of the Internet as on alternative channel for shopping. E-tailing is an emergent area of nascent organized retailing in India. The purpose of this paper is to explore the determinants of shopper behaviour such as convenience, customer service, trust, web store environment, and web shopping enjoyment and to examine the influence of these factors towards willingness to buy and patronage of online retail stores. The study is purely based on primary data collected from a sample of 135 respondents by using simple random sampling technique from five leading software companies in Hyderabad. Necessary secondary data were used to reinforce the model. A structured non-disguised questionnaire was administered and responses were measured on the seven-point Likert scale. Statistical tools like mean, standard deviation, multiple correlations, multiple regressions, student t-test, and ANOVA were used to find out the strength of relationship and degree of association among the variables entered into the model. The results reveal that convenience, web store environment, online shopping enjoyment, and customer service have significant impact on the willingness to buy from online retail stores rather than perceived trust. Except trust and customer service, all other variables are significant with patronage of online retail stores. As not much work in India has been done in this context, the paper seeks to provide fruitful insights into the factors determining the prospects of e-tailing that can benefit academicians as well as marketers.

FDI in Retail Sector in India: Opportunities and Challenges in the Present Scenario

Organized retailing is currently in a nascent stage in India. Although Organized retailing, contributes only 4% of total retail at present, will grow by 25–30% every year and become Rs.100,000 crore sector (Rs.1000 billion) by 2010, the organized retailing sector evaluation passes through the four important phases. In India, a number of barriers are found in the way of the development of organized retail market. FDI restrictions on the entry of international retailers in the country, different sales tax rates exists in different states of the country, implementation of VAT, complex cities in the tax structure, problem of funding from the banks, lack of proper infrastructure are constraints on the way of organized retailing. The three biggest challenges of the organized retail industry will be managing manpower, real estate and supply chain. This paper discusses, how Retail sector growth will help various sections of the society and country as whole and what kind of measures government should take for the growth of organized retailing in India?

Measuring Retail Service Quality: An Empirical Assessment of the Instrument

Retailing in India is growing at the rate of about 18-20 per cent per annum. As part of its strategy to gradually open it up to foreign competition, the government is also in the process of increasing foreign direct investment in the retail sector. At the same time, the urban consumer is becoming more discerning and demanding as far as the lifestyle is concerned. Urban Indian household income and purchasing power are also on the rise. Under such circumstances, the success of organized retailing in India mainly depends on delivery of services through quality improvements. In service organizations, customer-perceived service quality is considered as one of the key determinants of business performance. So far, in the Indian context, there is a dearth of tested instruments which can measure customer-perceived service quality of a retail store. At the same time, instruments developed in other countries have not been tested for their applicability in the Indian retail industry. It is in this context that this paper reports on the application of Dabholkar, Thorpe and Rentz's (1996) retail service quality scale in measuring the gap between the customers' expectations and their perceptions about the service quality of retail stores in India. Statistical analyses were performed to test the dimensionality of service quality and to examine the reliability of the scale. Finally, the analysis of the gap scores was used to suggest relevant improvements in the retail store service quality. The results indicate the following: Although the instrument was found to be quite reliable, the gap scores did not merge into five dimensions of service quality as proposed by the scale developers; rather, the gap scores roughly merged into nine dimensions. The instrument and the five dimensions of service quality may need considerable restructuring. A few statements which showed considerable reliability problems should be restated or substituted by more relevant statements. The instrument may not be applicable to the retail sector in India without further restructuring. Further research is necessary to understand retail store service quality in India. The analysis of the gap scores indicates that the highest perceived service gap lies in the policies of the retail stores, particularly, parking facilities provided by them. Apart from this, all other statements also show a negative gap implying the need for considerable improvements in retail service quality. Therefore, as organized retailing develops in India, retail stores in India will have to improve the quality of their services significantly in order to compete successfully in the global marketplace.