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1. INTRODUCTION OF RETAIL SECTOR
1.1 ORIGIN OF RETAIL SECTOR :
Early Trade:When man started to cultivate and harvest the land, he would
occasionally find himself with a surplus of goods. Once the needs of
his family and local community were met, he would attempt to trade
his goods for different goods produced elsewhere. Thus markets
were formed. These early efforts to swap goods developed into
more formal gatherings. When a producer who had a surplus could
not find another producer with suitable products to swap, he mayhave allowed others to owe him goods. Thus early credit terms
would have been developed. This would have led to symbolic
representations of such debts in the form of valuable items (such as
gemstones or beads), and eventually money.
1.2 HOW RETAIL DEVELOPED?
Peddlers and Producers:
The Retail Trade is rooted in two groups, the peddlers and
producers. Peddlers tended to be opportunistic in their choice of
stock and customer. They would purchase any goods that they
thought they could sell for a profit. Producers were interested in
selling goods that they had produced.
General Store:
This division continues to this day with some shops specializing in
specific areas, reflecting their origins as outlets for producers (such
as Pacific Concord of Hong Kong), and others providing a broad mix,
known as General Store (such as Casey's in the Midwest of the
U.S.A.). Although specialist shops are still with us, over time, the
general store has increasingly taken on specialist products.
Customers have found this to be more convenient than having to
visit many shops - thus the term "Convenience Store" has also been
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applied to these shops. As the popularity of general stores has
grown, so has their size. This combined with the advent of Self-
Service has lead to the Supermarket, or Superstore.
Early Markets:
Over time, producers would have seen value in deliberately over-
producing in order to profit from selling these goods. Merchants
would also have begun to appear. They would travel from village to
village, purchasing these goods and selling them for a profit. Over
time, both producers and merchants would regularly take their
goods to one selling place in the centre of the community. Thus,
regular markets appeared. The First Shop: Eventually, markets
would become permanent fixtures i.e. shops. These shops along
with the logistics required to get the goods to them were, the start
of the Retail Trade.
The Birth of Distance Retailing:
Defined as sales of goods between two distant parties where the
deliverer has no direct interest in the transaction, the earliest
instances of distance retailing probably coincided with the first
regular delivery or postal services. Such services would have started
in earnest once man had learned how to ride a camel, horse etc.
When individuals or groups left their community and settled
elsewhere, some missed foodstuffs and other goods that were only
available in their birthplace. They arranged for some of these goods
to be sent to them. Others in their newly adopted community
enjoyed these goods and demand grew. Similarly, new settlers
discovered goods in their new surroundings that they dispatched
back to their birthplace, and once again, demand grew. This soon
turned into a regular trade. Although such trading routes expanded
mainly through the growth of traveling salesmen and then
wholesalers, there were still instances where individuals purchased
goods at long distance for their own use. A second reason that
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distance selling increased was through war. As armies marched
through territories, they laid down communication lines stretching
from their home base to the front. As well as garnering goods from
whichever locality they found themselves in, they would have alsotaken advantage of the lines of communication to order goods from
home.
Origins of Retail
It is likely that, as markets became more permanent fixtures they
evolved into shops. Although advantageous in many respects, this
removed the mobility that a peddler or traveling merchant may still
have enjoyed. For some shopkeepers, it made sense to obtain extra
stock and open up another shop, most probably operated by
another family member. This would recover business from peddlers
and create new business and the greater volume would allow the
shopkeeper to strike a better deal with suppliers. Thus the retail
chain would have started. Its thought that this process would have
started in china over 2200 years ago with a chain of shops owned by
a trader called Lo Kass.
The First Self-Service Store:
This all changed in 1915 when Albert Gerrard opened the Groceteria
in Los Angeles, the first documented self-service store. This was
soon followed a year later by the Piggly Wiggly self-service store,
founded by Clarence Saunders in Tennessee in the U.S.
Growth:
This new type of shopping was more efficient and many customers
preferred it. Although personal service stores remain to this day,
this new concept started a rapid growth of self-service stores in the
United States. Other countries were slow to take up the idea, but
there has been a steady rise in the global amount of self-service
stores ever since.
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Efficiency
These entrepreneurs noticed that their staff had to spend a great
deal of time taking grocery orders from customers. The grocerieswere stacked on shelves allowing customers to walk around and
browse, collecting their shopping in a basket that was supplied. The
shopkeeper would only need to tot up the final bill at the end of the
process and transfer the goods from the basket to the customer and
receive payment.
From Family Business to Formal Structure:
Although retail chains would have been mostly run by families, as
some chains grew, they would have needed to employ people from
outside of their family. This was a limiting factor as there would
have been a limit to the amount of trusted non family members
available to help run the chain. Another, even more definite limiting
factor was the distance the furthest shop would have been from the
original shop. The greater the distance, the more time and effort
would have been needed to effectively manage outpost shops and
to service them with goods. There was, therefore, a natural barrier
to expansion. That was the case until transport and communications
became faster and more reliable. When this happened towards the
end of the 19th century, chains became much bigger and more
widespread. Many of these businesses became more structured and
formalized, leading to the retail chain that we see today.
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2. INDUSTRY OVERVIEW
Retailing is the interface between the producer and the individual
consumer buying for personal consumption. This excludes direct
interface between the manufacturer and institutional buyers such as
the government and other bulk customers. A retailer is one who
stocks the producers goods and is involved in the act of selling it to
the individual consumer, at a margin of profit. As such, retailing is
the last link that connects the individual consumer with the
manufacturing and distribution chain.
Retail has played a major role world over in increasing productivity
across a wide range of consumer goods and services .The impact
can be best seen in countries like U.S.A., U.K., Mexico, Thailand and
more recently China. Economies of countries like Singapore,
Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted
by the retail sector.
Top Retailers Worldwide: Rank Retailer Home Country
1. Wal-Mart Stores, Inc. U.S.A.
2. Carrefour Group France3. The Kroger Co. U.S.A.
4. The Home Depot, Inc. U.S.A.
5. Metro Germany
List of retailers that have come with new formats:
Retailer Current Format New Formats
Shoppers Stop Department Store Quasi-mall
Crossword Large Bookstore Corner shop
Piramyd Departmental Store Quasi-mall, Food retail
Pantaloon Own brand store Hypermarket
Subhiksha Supermarket considering moving to self service
Globus Department Store Small fashion stores
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The retail industry in India is of late often being hailed as one of the
sunrise sectors in the economy. AT Kearney, the well-known
international management consultancy, recently identified India as
the second most attractive retail destination globally from amongthirty emergent markets. It has made India the cause of a good deal
of excitement and the cynosure of many foreign eyes. With a
contribution of 14% to the national GDP and employing 7% of the
total workforce (only agriculture employs more) in the country, the
retail industry is definitely one of the pillars of the Indian economy.
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2.1 Industry analysis of the Indian retail sector:
Modern retailing has entered India in form of malls and huge
complexes offering shopping, entertainment, leisure to the
consumer as the retailers experiment with a variety of formats, from
discount stores to supermarkets to hypermarkets to specialty
chains. However, kiranas still continue to score over modern formats
mostly due to the convenience factor i.e. near to their house.
This organized segment typically comprises of a large number of
retailers, greater enforcement of taxation mechanisms and better
labour law monitoring system. It's no longer about just stocking and
selling but about efficient supply chain management, developing
vendor relationship quality customer service, efficient
merchandising and even the labour class is also in the working
process timely promotional campaigns. The modern retail formats
are encouraging development of well-established and efficient
supply chains in each segment ensuring efficient movement of
goods from farms to kitchens, which will result in huge savings for
the farmers as well as for the nation. The government also stands to
gain through more efficient collection of tax revenues. Network
marketing has been growing quite fast and has a few large players
today. Gas stations are seeing action in the form of convenience
stores, ATMs, food courts and pharmacies appearing in many
outlets.
Traditionally, the kirana retailing has been one of the easiest ways
to generate self-employment, as it required minimum investment in
terms of land, labour and capital. These stores are not affected by
the modern format of retailing. In order to keep pace with the
modern formats, kiranas have now started providing more value-
added services like stocking ready to cook vegetables and other
fresh produce.
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They also provide services like credit, phone service, home delivery
etc. The organized retailing has helped in promoting several niche
categories such as packaged fruit juices, hair creams, fabric
bleaches, shower gels, depilatory products and convenience andhealth foods, which are generally not found in the local kirana
stores. Looking at the vast opportunity in this sector, big players like
Reliance has announced its plans to become the country's largest
modern retainers by establishing a chain of stores across all major
cities.
Apart from metro cities, several small towns like Nagpur, Nasik,
Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati has
seen the expansion of modern retails. Small towns in Maharashtra
are emerging as retail hubs for large chain stores like Pantaloon
Retail because many small cities like Nagpur have a student
population, lower real estate costs, fewer power cuts and lower
levels of attrition.
However, retailers need to adjust their product mix for smaller
cities, as they tend to be more conservative than the metros. In
order for the market to grow in modern retail, it is necessary that
steps are taken for rewriting laws, restructuring the tax regime,
accessing and developing new skills and investing significantly in
India.
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3. Indian Retail Industry:
Today, retailing doesnt involve just dealing or marketing from
shops, it includes analyzing the market in an effort to provide
reasonable prices together with an array of options and experience
to customers. The sole purpose of all this is retaining the brand
loyalty of customers. Indian retail is currently a US$ 245 billion
market and is anticipated to extend to almost US$ 385 billion mark
by the next five years. The Indian retail sector is currently sporting a
brand new look and together with a 46.64 per cent three-year
Compounded Annual Growth Rate (CAGR), Conventional
marketplaces are paving way for new shopping malls, the likes of
superstores, shopping plazas, supermarkets and brand label stores.
International style shopping centers have started dotting the skyline
of cities and smaller towns, acquainting the Indian customer to a
unique shopping experience. The retail industry in India is split up
into the unorganized and organized retail segments.
The unorganized retail sector includes the big, average and modest
grocery stores and the chemist shops. A changeover is taking place
from the conventional retail sector to organized retailing. But the
unorganized segment still dominates and leads the industry. By
2010, the Indian retailing sector is anticipated to become an Rs12.5
trillion market. The share of organized retailing is supposed to jump
to about 10 per cent from the existing three per cent. The
anticipated staggering growth in organized retailing provides an
opportunity to expand the market for both established and new
players. According to the latest report India Retail Sector Analysis
(200809)I by RNCOS, the total retail market is primarily focused in
rural regions, which makes up 55 per cent or US$ 165 billion of the
overall retail market as opposed to urban segment, which
represents 45 per cent or US$ 135 billion of the gross retail market.
The rural market is spread over 627,000 villages, even though its
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centre of attention is focused around a core group of 100,000
villages that makes up 50 per cent of the rural population.
India represents the most compelling international investment
opportunity for mass merchant and food retailers looking to expand
overseas, according to management consulting firm AT Kearney's
2005 Global Retail Development Index (GRDI), an annual study of
retail investment attractiveness among 30 emerging markets. India
is rated as the fifth largest emerging retail market and is seen as a
potential goldmine. Driving global brands into India is the greatly
improved investment climate due to the recent relaxation of direct
ownership restrictions on foreign retailers. The country's retail
market totals $330 billion, is vastly underserved and has grown by
10 per cent on an average over the past five years. The message for
retailers on India is clear move now or forego prime locations and
market positions that will soon become saturated. Global retailers
that missed opportunities to capture first-mover advantage in China
will make up for it in India.
Though India has more than five million retail outlets, they are
greatly unorganized. There is no supply chain management
perspective. In fact, out of the entire retail sector in India, the
organized sector is only 25 per cent and the rest is unorganized. 96
per cent of the retail outlets are smaller in area than the standard
norms. The retail industry is divided into organized and unorganized
sectors. Organized retailing refers to trading activities undertakenby licensed retailers who are registered for sales tax and income
tax. These include corporate backed hypermarket and retail chains
and so on. Unorganized retailing is the traditional low-cost shops,
handcarts and pavements and is by far the prevalent form of trade
in India. The efficiency of organized sector in retailing is manifested
in some of the newer supermarkets in urban/metropolitan India
the produce is cleaner, fresher, well packed and often cheaper thanthe local shopkeeper. This is possible because of the far more
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efficient distribution system, which organized retail chains are
employing, by cutting the layers of middlemen involved. There are
other benefits too, of transforming the unorganized retail sector into
an organized sector. Firstly, a number of new jobs will be created,far better paid than the underage labor working in the local shops.
Secondly, the benefits to the producer and consumer through better
prices and lesser wastage; throwing up exportable surpluses, which
will also benefit the economy as a whole. Thus one can see that
allowing FDI in retailing is beneficial to all the stakeholders involved.
The Big Bazaars and Spencers, the huge unorganized retail sector
is finally beginning to see the merit of logging on, even if at a model
scale.
Taxation policies also push you to automate and the push is even
harder for those looking to expand beyond their single store
existence. Though its early days yet to measure it penetration in
the unorganized retail industry, interest levels are surely raising
fast. Its good to at least answer their questions.
Indian Retail Sector is very large and there is so many retail
companies. Day to day indian retail companies is growing. Here is a
list of top retailer in India.
1. Lifestyle
2. RPG Retail
3. Pantaloon Group
4. Provogue
5. Reliance Fresh
6. Globus
7. Reliance World
8. Spencer's Retail
9. Trent (Westside)
10. Crossword
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India is rated as the most attractive retail markets
Socio demographic factors will lead to fastergrowth of organized retail in India:
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Retail Formats:
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Format Description The ValueProposition
BrandedStores
Exclusive showrooms either
owned or franchised out by a
manufacturer.
Complete range
available for a given
brand, certified
product quality
SpecialtyStores
Focus on a specific consumer
need, carry most of the brands
available
Greater choice to the
consumer, comparison
between brands is
possible
DepartmentStoresLarge stores having a widevariety of products, organized
into different departments such
as clothing, house wares,
furniture, appliances, toys, etc.
One stop shop cateringto varied/ consumer
needs.
Supermarkets
Extremely large self-service retail
outlets
One stop shop catering
to varied consumer
needs
Discount
Stores
Stores offering discounts on the
retail price through selling highvolumes and reaping economies
of scale
Low Prices
Hyper- mart Larger than a supermarket,sometimes with a warehouse
appearance, generally located in
quieter parts of the city
Low prices, vast choice
available including
services such as
cafeterias.
Conveniencestores
Small self-service formats
located in crowded urban areas.
Convenient location
and extended
operating hours.
ShoppingMalls
Enclosure having different
formats of in-store retailers, all
under one roof.
Variety of shops
available to each
other.
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Formats adopted by the Retail Players in INDIA.
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Retailer Original
formats
Later Formats
RPG Retail Supermarket(Foodworld)
Hypermarket (Spencer's)Specialty Store
(Health and Glow)
Piramal's DepartmentStore (Piramyd
Megastore)
Discount Store (TruMart)
PantaloonRetail
Small format
outlets (Shoppe)
DepartmentStore
(Pantaloon)
Supermarket(FoodBAZAR)
Hypermarket (Big Bazaar) Mall (Central)
K RahejaGroup
Department
Store (shopper's
stop)
Specialty Store
(Crossword)
Supermarket
Hypermarket (TBA)
Tata/ TrentDepartment
Store (Westside)
Hypermarket (Star India Bazaar)
LandmarkGroup
Department
Store (Lifestyle)
Hypermarket (TBA)
Others Discount Store (Subhiksha, Margin Free, Apna Bazaar),Supermarket (Nilgiri's), Specialty Electronics
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3.1Retailing formats in India:
1. Malls:
The largest form of organized retailing today. Located mainly in
metro cities, in proximity to urban outskirts. Ranges from 60,000 sq
ft to 7, 00,000 sq ft and above. They lend an ideal shopping
experience with an amalgamation of product, service and
entertainment, all under a common roof. Examples include
Shoppers Stop, Pyramid, and Pantaloon.
2. Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books
retailer Crossword, RPG's Music World and the Times Group's music
chain Planet M, are focusing on specific market segments and have
established themselves strongly in their sectors.
3. Discount Stores:
As the name suggests, discount stores or factory outlets, offer
discounts on the MRP through selling in bulk reaching economies of
scale or excess stock left over at the season. The product category
can range from a variety of perishable/ non perishable goods.
4. Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety
of consumer needs. Further classified into localized departments
such as clothing, toys, home, groceries, etc
5. Department Stores:
Departmental Stores are expected to take over the apparel business
from exclusive brand showrooms. Among these, the biggest success
is K Raheja's Shoppers Stop, which started in Mumbai and now has
more than seven large stores (over 30,000 sq. ft) across India and
even has its own in store brand for clothes called Stop!
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6. Hyper marts/Supermarkets:
Large self service outlets, catering to varied shopper needs are
termed as Supermarkets. These are located in or near residentialhigh streets. These stores today contribute to 30% of all food &
grocery organized retail sales. Super Markets can further be
classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft
and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft.
having a strong focus on food & grocery and personal sales.
7. Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near
residential areas. They stock a limited range of high-turnover
convenience products and are usually open for extended periods
during the day, seven days a week. Prices are slightly higher due to
the convenience premium.
8. MBOs :
Multi Brand outlets, also known as Category Killers, offer several
brands across a single product category. These usually do well in
busy market places and Metros.
SPECIALITY STORES:
Food retail:
Food dominates the shopping basket in India. The US$ 6.1 billion
Indian foods industry, which forms 44 per cent of the entire FMCG
sales, is growing at 9 per cent and has set the growth agenda for
modern trade formats. Since nearly 60 per cent of the average
Indian grocery basket comprises nonbranded items, the branded
food industry is homing in on converting Indian consumers to
branded food.
The mobile revolution:
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The retail market for mobile phones -- handset, airtime and
accessories -- is already a US$ 16.7 billion business, growing at over
20 per cent per year. In comparison, the consumer electronics and
appliance market is worth US$ 5.6 billion, with a growth rate that ishalf of the mobile market.
Kids retail:
When it comes to Indian children, retailers are busy bonding--and
branding:
Monalisa, the Versace of kids is coming to India.
Global lifestyle brand Nautica is bringing Nautica Kids. International brand Zapp tied up with Raymond to foray into kids'
apparel.
Disney launched exclusive chains which stock character-based
stationery.
Pantaloon's joint venture with Gini & Jony will set up a retail chain
to market kids' apparel.
Swiss kidswear brand Milou is collaborating with Tirupur-basedSreeja Hosieries.
Turner International India Pvt Ltd. will launch Cartoon Network
Townsville and Planet POGO-- two theme parks designed around
its channels--in the National Capital Region.
Sahara One Television has also signed a Memorandum of
Understanding to source content from Spacetoon Media Group,
Middle East's largest kids' entertainment brand for animation andlive action content.
Leading the kids' retail revolution is the apparel business, which
accounts for almost 80 per cent of the revenue, with kids' clothing in
India following international fashion trends. According to research
firm KSA Technopak, the branded segment comprises US$ 701.7
million of the total kids' apparel marketsize of over US$ 3 billion.
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Agricultural retail:
Agriculture across India is heralding the country's second GreenRevolution. 14 states, including Maharashtra, Punjab, Andhra
Pradesh and Rajasthan amended the Agricultural Produce Marketing
Committee (APMC) act this year, along the lines of the Model APMC
Act, '02, which allows farmers to sell their produce directly to buyers
offering them the best price.
Agricultural sectors such as horticulture, floriculture, development of
seeds, animal husbandry, pisciculture, aqua culture, cultivation of
vegetables, mushroom under cultivated conditions and services
related to agro and allied sectors are open to 100 per cent FDI
through the automatic route. For its e-Choupal scheme, ITC built
internet kiosks in rural villages so farmers can access latest
information on weather, current market prices, foods-in-demand,
etc.
With a US$ 5.6 billion, multi-year investment in agriculture and
retail, Reliance Retail will establish links with farms on several
thousand acres in Punjab, West Bengal and Maharashtra. Field
Fresh, planning to become India's first large-scale exporter of
produce, will annually pay farmers over US$ 30,000 to lease land for
vegetables, to hire tractors and to pay their workers.
International retailers:
The Australian government's National Food Industry Strategy and
Austrade initiated a test marketing food retail in India wherein 12
major Australian food producers have tied up with India-based
distributor AB Mauri to sell their products directly at retail outlets.
The largest-ever 150-member British business delegation in India
committed investments in the areas of food processing, agri retail
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and manufacturing. It is also likely to press for the liberalisation of
sectors like financial & legal services and retail.
US-based home delivery and logistics company, Specialised
Transportation Inc, will enter the Indian market through a strategic
alliance with Patel Retail, a subsidiary of Patel Integrated Logistics.
Among other big international players, Wal-Mart has announced its
plans for India in partnership with Bharti, Tesco is sure to try again,
and Carrefour too might finally find the right partner.
Supermarkets:
Large self service outlets, catering to varied shopper needs are
termed as Supermarkets. These are located in or near residential
high streets. These stores today contribute to 30% of all food &
grocery organized retail sales. Super Markets can further be
classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft
and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft.
having a strong focus on food & grocery and personal sales.
Supermarkets are relatively new entrants in the market. They are so
called pioneers in organized food retailing and go by the western
model in look and feel and format. This is what everybody means
when they say organized food retailing.
Franchise outlets:
Like Tommy Hilfiger and Wal Mart, other US retailers are firming up
their India entry strategies and if they are already in, they are
undergoing rapid expansion. Fashion brands DKNY is also al set to
foray into the Indian fashion Industry through a franchisee
agreement with Indian company, S. Kumar Starbucks recently
expressed their interest in entering Indian company Like Tommy
Hilfiger and Wal-Mart, other US retailers are firming up their India
entry strategies and if they are already in, they are undergoing
rapid expansion. Fashion brand DKNY is also all set to foray into the
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Indian fashion Industry through a franchisee agreement with Indian
company, S Kumars. Starbucks recently expressed their interest in
entering India through the franchise route, like their American F&B
counterparts Pizza Hut, Subway, and the very successfulMcDonalds. McDonalds has major expansion plans lined up; in the
next 3 years, it plans to open another 100 outlets in cities across
India.
Hypermarket:
A very large commercial establishment that is a combination of
departmental store and a supermarket. The specific features of a
hypermarket are the wide range of goods offered, quality service,
quality display of goods on the shelves and complex systems
providing for customers loyalty.
Hypermarket is known for a wide range of goods offered. It consist
of dozens of thousands of items, while similar goods can be offered
in several forms. In order to work with such an assortment it is
necessary to group it into categories and sub categories that would
unite goods according to this or that criteria.
Shopping Malls:
The new shopping malls that have been expanding their footprint
across Indian cities are well designed, built on international formats
of retailing and integrated with entertainment and restaurants to
provide a complete family experience. Over 300 malls are expected
to be built over the next two years andmost Indian cities with over a
million populations will be exposed to this modern method of
retailing.
Shopping malls have existed in India since several decades but were
designed and built to house several shops in a single facility. These
malls also known as Shopping Arcades offered only rows of shops,
most of which were small stores that promised bargains for their
various wares. These Shopping Arcades tried to maximize on their
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store space and did not offer any areas for recreation and
entertainment.
The present day malls are a creation of the past few years post
2000. They are designed professionally using a lot of internationalexperience and combine shopping with a lot of brand building,
recreation, food and entertainment. Malls also have a large format
store that serves as their anchor for shopping and a prominent
restaurant that anchors the food needs of visitors. Most malls also
feature a multiplex cinema that offers entertainment to the visitors
of the mall. Finally the mall has large atria and open spaces to allow
visitors and families to hang-out.
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3.Major Industry Players:
The big players in Indian retail landscape now are the Future Group,
Shoppers Stop, Westside, Subiksha and RPG Spencer. The
newcomers who are knocking at the gates are Reliance Retail,
Bharti Wal-Mart and Aditya Birla Trinethra. Here, we intend to do a
brief profiling of the major players in order to understand the retail
business in a better manner.
1 The Future Group
The Future Group, which was earlier known as
PRIL (Pantaloon Retail India Limited) began as a
trouser manufacturer in the mid 1980s. The
Future Group is divided into six verticals Future Retail, Future
Capital, Future Brands, Future Space, Future Media and Future
Logistics. The Future Group started operations in the mid 1987s by
incorporating the company as Manz Wear Private Limited. The
company went on to manufacture ready made trousers under the
Pantaloons brand name. It came out with a public issue in 1991
and later changed their name to Pantaloon Fashions (India) Limited
(PFIL).
The first exclusive mens store called Pantaloon Shoppe was
inaugurated in 1992. Pantaloons went for a franchisee route to
expand the number of retail outlets and by 1995, it had reached to
a crucial number of 70. The first departmental store called
Pantaloons was opened in Kolkata in 1997 with an investment of Rs
0.7 million. The store was a success and recorded revenues of Rs
100 million within the first year of operations. In 1999, the
companys name was changed to Pantaloon Retail (India) Limited
(PRIL).
The success of Pantaloons departmental stores encouraged PRIL to
come up with other retailing formats such as Big Bazaar to retail
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low cost general merchandising, and Food Bazaar to retail food
products. As of 2005, the Future Group has 3.5 million sq ft of retail
space and over 100 stores across 25 cities in India. It employs more
than 12,000 people and has a customerbase of more than 120 million.
2 Shoppers Stop
Shoppers Stop, promoted by the real
estate group K Raheja, was one of the first movers to have set up a
large retail outlet in New Delhi with international ambience.
Shoppers Stop Ltd now has a considerable presence all over the
country with overr 7 lakh square feet of retail space and stocks over
200 brands of garments and accessories. The stores are spread all
over India with presence in Mumbai, Delhi, Bangalore, Hyderabad,
Jaipur, Pune , Kolkata, Gurgaon, Chennai & Ghaziabad.
Shoppers Stop is also very well known for having pioneered several
quality retailing concepts in India like CROSSWORD, Hyper CITY and
Mother Care. They are the only retailer from India to become amember of the prestigious Intercontinental Group of Departmental
Stores (IGDS).
Shoppers Stop is positioned as a family store delivering a complete
shopping experience. With its wide range of merchandise, exclusive
shop-in-shop counters of international brands and world-class
customer service, Shoppers Stop brought international standards of
shopping to the Indian consumer providing them with a world class
shopping experience. Shoppers Stops core customers represent a
strong SEC A skew. They fall between the age group of 16 years to
35 years, the majority of them being families and young couples
with a monthly household income above Rs. 20,000/- and an annual
spend of Rs.1,50,000/-. A large number of Non - Resident Indians
visit the shop for ethnic clothes in the international environment
they are accustomed.
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The stores offer a complete range of apparel and lifestyle
accessories for the entire family. From apparel brands like
Provogue, Color Plus, Arrow, Levis, Scullers, Zodiac to cosmetic
brands like Lakme, Chambor, Le Teint Ricci etc., Shoppers Stopcaters to almost every lifestyle need.
Shoppers' Stop also retails its own line of clothing namely Stop, Life,
Kashish, Vettorio Fratini and DIY. The merchandise at Shoppers
Stop is sold at a quality and price assurance backed by its
guarantee stamp on every bill.
Shoppers Stops customer loyalty program is called The First
Citizen. The program offers its members an opportunity to collect
points and avail of innumerable special benefits. Currently,
Shoppers Stop has a database of over 2.5 lakh members who
contribute to nearly 50% of the total sales of Shoppers Stop.
The Organization, in 2000, along with ICICI ventures also acquired
the reputed bookstore, Crossword, which offers the widest range
of books along with CD-ROM, music, stationery and toys. Services
like Dial-a-book, Fax-a-book and Email-a-book enable customers to
shop from their homes. Crossword currently has 18 Stores.
Shoppers Stop has been very keen to understand the importance of
distribution and logistics in ensuring that merchandise is available
on the shop floors. This has led the retail chain o streamline its
supply chain. The company has developed process manuals for each
part of the logistics chain. These modules include vendormanagement, purchase order management, stock receiving
systems, purchase verification and inventory build up, generation
and fixing of price and store tags, dispatch of stocks to the retail
floor and forwarding of bills for payment.
Shoppers Stop has a grand ambition to position itself as a global
retailer. The company intends to bring the worlds best retail
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technology, retail practices and sales to India. Currently, they are
adding 4 to 5 new stores every year.
3. Piramyd
Piramyd Retail is part of the Piramal Group, which has presence in
diverse sectors spanning Pharmaceuticals, Textiles, Real Estate,
Engineering, Family Entertainment and Retail with manufacturing
operations in 19 locations across five states and employing over
18,000 people.
The promoters launched the apparel business in 1999 under
Piramyd Retail and Merchandising Pvt. Ltd. (PRMPL) while its food;
home & personal care businesses (FHPC) were housed under
Crossroads Shoppertainment Pvt. Ltd. (CSPL). As the apparel and
food businesses individually reached a critical mass the
management merged the two companies into Piramyd Retail Ltd.due to distant synergies in two businesses in March 2005. Pyramid
also has a smaller format of stores called TruMart that caters to
Food and Personal Care products.
Piramyd Retail currently has 5 Mega stores and 8 TruMart stores
mainly in Maharashtra. The company plans to increase these
numbers to 17 Mega stores and 69 TruMarts by 2008. The floor
space is expected to be 5 times on successful expansion.
The FHPC (Food & Personal Care) business is volume driven while
the Lifestyle store is a margin driven business. Piramyd Retail plans
to increase the contribution of private labels from existing 7% to 18-
20% of the revenues by 2010. Gross margins from private labels are
over 40% and hence the company is planning to increase this
business. Most of the stores are on the lease format and thecompany is prone to higher lease rentals due to the overall increase
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in real estate prices. This may bring the profit levels down
substantially.
Piramyd Retail did have a first mover advantage in many locations
but it has actually failed to capitalize over
this advantage. Its competitors like
Pantaloon, Shoppers Stop and Trent
gained larger benefits of their far more
aggressive business & marketing strategy in the retail space.
4. Subiksha
The Chennai based Subiksha grocery chain runs around 200 outlets
all over the country and its current turnover stands at Rs 224 cores.
Their target customer is the middle income value conscious buyers.
The main aim of Subiksha is to offer a functional and transactional
shopping experience. This retail chain has no qualms and spends
almost no money on creating a pleasant shopping experience, and
all stores are non-air conditioned. There is no false roofing or
sparkling vitrified tiles on the floor.
A few years ago, Subiksha did not even offer shoppers self service.
The customer had to place an order at a computerized teller and the
goods were billed and delivered after cash is collected. Customers
had to bring their own carry bags or pay to buy them from the store.
Subiksha even attempted to charge the customers for home
delivery.
However, now Subiksha has slightly tweaked their business model in
order to create a better appeal to customers who were defecting to
the competitors. The store formats are still small and non-air-
conditioned. But customers have the option to pick from shelf
spaces. They also get shopping bags and free home delivery. But
the selling USP (unique selling proposition) remains the same ---
Subiksha tries to be as close to the customer as possible and offers
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the lowest price and huge savings in comparison to competitors. Its
slogan happens to be --- bachat mera adhikar hain (saving is my
fundamental right).
5. Reliance Retail
On June 26, 2006, Mukesh Ambani, Chairman and Managing
Director, Reliance Industries Limited, announced a Rs 25,000-crore
investment in the retail sector.
Reliance Retail started its retail operation with Reliance Fresh, a
grocery store that sells vegetables, fruits, personal care items and
other food products. Soon, these retail outlets will also be selling
apparel and footwear, lifestyle and home improvement products,
electronic goods and farm implements and inputs. They will also
offer products and services in energy, travel, health and
entertainment. In addition to this, partnerships would be developed
to bring the best of global luxury brands to India as well.
Reliance Retail plans to extend its footprint to cover 1,500 Indian
cities and towns with outlets of a varied format, a mix of
neighborhood convenience stores, supermarkets, specialty stores
and hypermarkets. Reliance also plans to
open restaurant outlets, financial services
marts and tourism counters within its
stores.
The first store christened Reliance Fresh opened in November2006 at Hyderabad. Within a few months they have now opened
stores in Mumbai, Pune and Ahmedabad and plans foray into other
cities on a rapid scale.
6. Aditya Birla MORE
The Aditya Birla Group is India's first truly
multinational corporation. Global in vision,rooted in values, the Group is driven by a
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performance ethic pegged on value creation for its multiple
stakeholders. A US$ 24 billion conglomerate, with a market
capitalization of US$ 23 billion and in the League of Fortune 500, it
is anchored by an extraordinary force of 100,000 employeesbelonging to over 25 different nationalities. Over 50 per cent of its
revenues flow from its operations across the world. Our mission is
to change the way people shop. We will give them more. says Mr.
Kumar Mangalam Birla, Chairman, Aditya Birla Group. The more for
you advantage: more promises a world-class pleasurable shopping
experience to Indian consumers in their very own neighborhood.
More Quality, more variety, more Convenience and more Value
are the four delivery cornerstones of the more chain of supermarket
stores more.
MORE Value MORE Promises best in market pricing. Linking up
directly with farmers to source fresh fruits, vegetables and staples
ensure great quality as well as great price. Add to this, the
membership program Club more which
provides convenience, customized
shopping solutions and savings, and the
more value promise becomes all the
more evident.
More is an inspirational brand for an inspirational country. We have
a bright and committed, enthusiastic team that represents the best
experience from India and globally. MORE also has a range of
products from its own stable available across value, premium and
select ranges. The products have been quality-checked and are
available in attractive packaging at competitive prices. To avail
additional benefits, at no extra charge, customers can also enroll for
the membership program Club more.
7. VISHAL RETAIL :
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http://www.adityabirla.com/media/features/there_is_more.htm#1http://www.adityabirla.com/media/features/there_is_more.htm#2http://www.adityabirla.com/media/features/there_is_more.htm#3http://www.adityabirla.com/media/features/there_is_more.htm#4http://www.adityabirla.com/media/features/there_is_more.htm#1http://www.adityabirla.com/media/features/there_is_more.htm#2http://www.adityabirla.com/media/features/there_is_more.htm#3http://www.adityabirla.com/media/features/there_is_more.htm#48/8/2019 Reatail Mall Culture
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Vishal is one of fastest growing retailing groups in India. Its outlets
cater to almost all price ranges. The showrooms have over 70, 00
products range which fulfills all your household needs, and can be
catered to less than one roof. It is covering about 1282000 sq. ft. in18 states across India. Each store gives you international quality
goods and prices hard to match. The cost benefit that is derived
from the large central purchase of goods and services is passed on
to the consumer. What started as a humble one store enterprise in
1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate
encompassing 51 showrooms in 39 cities. Indias first hyper-market
has also been opened for the Indian consumer by Vishal. Situated in
the national capital Delhi this store boasts of the singe largest
collection of goods and commodities sold less than one roof in India.
The groups prime focus is on retailing.
The Vishal stores offer affordable family fashion at prices to suit
every pocket. The groups philosophy is integration and towards this
end has initiated backward integration in the field of high fashion by
setting up a state of the art manufacturing facility to support its
retail endeavors. Company has already tied up for 5-lakh sq ft
space and is looking for more. Company will come up with 32 new
stores this year. Company is doing research on more formats.
Company is looking for opportunities of expansion in the South.
Contribution of apparels business at 53% may slightly come down to
50%. India is a big country and there is huge space for four-five big
retail players. Vishal can always sustain growth in this big market.Company can sustain margins as it is going for backward
integration. Currently manufacturing contributes 10% of the
business, which in the next two to three years will go up to 25%.
Company is increasing its focus on the non-apparel and FMCG
segment. The current share of FMCG at 15% could go up to 20-25%.
Apparel sales currently at 63% in the next 2-3 years should come
down to 50% as the company is now also focusing on different
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segments. With growth in volumes, the cost of sourcing will come
down in the near future. Company will venture wherever it gets real
estate space. Currently, it has very little space in the south India.
Eventually, it will have a pan-India set up.
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1 RESEARCH METHODOLOGY
5.1 Research problem statement
A STUDY ON IMPACT OF RETAIL MALL ON RETAIL OUTLET
5.2 Research objective
Primary objective:
To study the impact of retail mall on retail outlet.
To Study the customer approach towards the both shopping
points.
Secondary objective:
To study preference of consumer for shopping point while
purchasing products.
To study important parameters taken in to consider by
consumer while selecting shopping point for purchase.
To Study about the loyalty schemes run by the both shopping
points.
To study Customers expectation from the both shopping point.
5.3 List of information needed
To know the impact of retail mall on retail outlet in Surat
City the information required are.
- Gender
- Occupation
- Annual Family Income
- Services
- Awareness
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5.4 Research Design
Descriptive research design is being used.
The reason of using descriptive design in present study is that it is
not based on judgment and intuition but on actual data collected
and therefore, accurate in generalizing.
In which research concerned with the finding out who, what, where,
when, and how.
1 Do you go for shopping?
2 How frequently, do you go for shopping?
3 Which type of shopping point, you would like to purchase
products?
4 Which is the importance to you while selecting both types of
shopping point?
5 Which attributes you taken in to consider while selecting
shopping point?
5.5 Sampling Plan
Population:
People of Surat City above the age of 18.
sampling frame:
The sampling frame consists of the list item from which the sample
is to be drawn. The sample framer for the research constitutes the
people residing in Surat city.
Students Retired self employed
Businessman Housewives Professionals
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Sample Type:
The project is entirely based on the practical approach. Project s
based on the Convenience sampling that is Non probability and
unrestricted sampling because the questionnaire was filled as per
convenience and time.
Sample size:
Sample size is 150 respondents.
5.6 Data collection
There are basically two types of data primary and secondary.
Primary data
The source for the primary data is Questionnaire Method.
Secondary data
The Secondary data have been collected from the sources like
Website, Magazines, Reports and Books.
5.7 Processing and analyzing collected data
The processing analysis of data based on the percentage method
and chart are also made to view the data pictorially.
5.8 Limitation of study
There is always a boundary existing every where and every time.
Every task that is undertaken has some obstacles in its way, some
basic limitation that make the task bit difficult are stated as follows
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The survey was limited only to the physical boundaries of Surat
city and that is limited in the population.
Different people have a different thought, process and different
attitudes. As a result their manner of answering the question ofthe study differs the answer received sometimes positive, while
sometimes they were negative.
The study on buying behaviour of consumer towards online
shopping of computer is limited to the product of computer and
computer peripherals only.
A census survey is not possible due to time period so I have
selected sample survey. As we survey the area of Surat city, the research could not give
the result on the whole. The people might have different attitude
and behaviour for the product at different places.
Thus despite of the limitation we have tried to make the report
as accurate as we could make.
5.9 Interpretation
This step involves inference from the analysis of the data collected.
The required goal fulfilled at this stage. All the datas are carefully
scrutinized and thereafter report was prepared.
It was of no use of collection unless it is tabulated properly so as to
interpret it with a view to arrive at a certain logical and meaningful
conclusion. Use of charts has been made with a view to datapictorially, precisely, and to make study more interesting and easily
comprehensible.
5.10 Report writing:
This is the last step in the preparation of the project report. The sole
objective of the report writing was to report the finding to the
concerned authority.
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6.DATA ANALYSIS & INTERPRETATION
Gender wise classification
Gender wise classification
Frequency Percent Valid PercentCumulative
Percent
Valid male 85 56.7 56.7 56.7
female 65 43.3 43.3 100.0
Total 150 100.0 100.0
57%
43%
Male
Female
Interpretation:
From the above table and chart we can examine that out of the total
respondents 150, 57% of the respondents were male i.e. 85
respondents were male while 43% of the respondents were female
i.e. 65 were female respondents.
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Age group wise classification
Age group wise classification
Frequency Percent Valid PercentCumulative
Percent
Valid 15-25 38 25.3 25.3 25.3
25-35 54 36.0 36.0 61.3
35-45 36 24.0 24.0 85.3
45 & above 22 14.7 14.7 100.0
Total 150 100.0 100.0
36%
15%
24%
25%
15-25
25-3535-45
45 & above
Interpretation:
From the above table and the chart we examine that majority of the
respondents i.e. 36% of the respondents were in the age group of
25-35 years followed by 25% respondents in the age group 15-25
years, while the lowest 24% respondents were there in the age
group of 35-45 years while 15% were the respondents in the age
group below 45 & above years.
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Occupation wise classification
Occupation wise classification
Frequency Percent Valid Percent
Valid Business 28 18.6 18.6
Profession 29 19.3 19.3
Service 26 17.3 17.3
Student 31 20.7 20.7
Others 36 24.0 24.0
Total 150 100.0 100.0
0
5
10
15
20
25
30
35
40
Occupation
Business
Profession
Servvice
student
Others
Interpretations:
From the above table and chart we can examine that 21% of the
respondents were students followed by occupation like service and
profession with 17% and 19% respectively while the respondent
who were engaged in the occupation of business were 18% . The
respondents engaged in other type of occupation were 24%.
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Annual family income wise classification
Annual family income wise classification
Frequency Percent Valid PercentCumulative
Percent
Valid less than 50000 23 15.3 15.3 15.3
50000-100000 34 22.7 22.7 38.0
100000-200000 47 31.3 31.3 69.3
200000 & above 46 30.7 30.7 100.0
Total 150 100.0 100.0
Interpretation:
From the above table and chart we examine that 31% of the
respondent belong from annual income group of 1, 00,000 to 2,
00,000. Followed 31% of respondent which belong to the income
group of 2,00,000 & above while the income group of 50000-100000
is 23% and the remaining 15%respondents were belongs to less
than 50000.
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23
31
3115%
less than 50000
50000-100000
100000-200000
200000 & above
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1. How frequently, do you go for shopping?
Frequency Percent Valid PercentCumulative
Percent
Valid daily 45 31.3 31.3 31.3twice in week 46 31.9 31.9 63.2
once in week 32 22.2 22.2 85.4
monthly 21 14.6 14.6 100.0
Total 144 100.0 100.0
32%
31%15%
22%
daily
twice in weekonce in week
monthly
Interpretation:
From the above table and chart we examine that 32% of the
respondent go for shopping twice a week. Followed 31% of
respondent which goes for shopping daily while 22% goes for once a
week and the remaining 15%respondents were goes for monthly
shopping.
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2. From which type of shopping point, you wouldlike to purchase the following products?
Interpretation: From the above table and chart we examine that
62% of the respondent like to purchase footwear from at Retail
mall, while 38% of respondent who goes at Retail outlet.
75% of the respondent purchase Gifts from Retail mall, while
25% of respondent purchase from Retail outlet.
55% of the respondent purchase Apparel/clothing from Retailmall, while 45% of respondent purchase from Retail outlet. It is
quit similar ratio.
83% of the respondent purchase White goods (fridge, washing
machine etc) from Retail outlet, while 17% of respondent
purchase from Retail mall.
85% of the respondent purchase Home entertainment products
(TV, AV system) from Retail outlet, while 15% of respondent
purchase from Retail mall.
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Percent
Footwear GiftsApparel/clothing
White goodsHome
entertainmentproducts
Malls 61.8 75.0 54.9 17.4 14.6
Retail outlet 38.2 25.0 45.1 82.6 85.4
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3. For the following criteria please indicate theirimportance to you while selecting both types of
shopping point.3.1 Convenient location
Convenient location for Retail mall
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 3 2.1 2.1 2.1Not important 6 4.2 4.2 6.3
Neutral 18 12.5 12.5 18.8
Important 42 29.2 29.2 47.9
Most important 75 52.1 52.1 100.0Total 144 100.0 100.0
Convenient location for Retail outlet
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 7 4.9 4.9 4.9Not important 11 7.6 7.6 12.5
Neutral 19 13.2 13.2 25.7
Important 46 31.9 31.9 57.6
Most important 61 42.4 42.4 100.0
Total 144 100.0 100.0
0 20 40 60 80
Retail mall
Retail outlet Least important
Not important
Neutral
Important
most important
Interpretations:
From the above table and chart we examine that convient location
of the shopping point is most important crieteria among 52%
respondents indicate it for Retail mall, while for the Retail outlet
43%. While 29% respondents indicate it is importanr for mall, for
retail outlet 31% respondents indicate it. While 13% give Neutral
response for both. 3% resppondents indicates as leastimportant.
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3.2 Sales promotion scheme
Sales promotion scheme at mall
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 7 4.9 4.9 4.9Not important 15 10.4 10.4 15.3
Neutral 32 22.2 22.2 37.5
Important 33 22.9 22.9 60.4
Most important 57 39.6 39.6 100.0
Total 144 100.0 100.0
Sales promotion scheme at retail outlet
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 5 3.5 3.5 3.5Not important 9 6.3 6.3 9.7
Neutral 17 11.8 11.8 21.5Important 26 18.1 18.1 39.6
Most important 87 60.4 60.4 100.0
Total 144 100.0 100.0
0
10
20
30
40
50
60
70
80
90
Retail mall Retail outlet
Most important
Important
Neutral
Not important
Least important
Interpretations:
From the above table and chart we examine that Sales promotion
scheme at the shopping point is most important crieteria among60% respondents indicate it for Retail outlet, while for the Retail
mall 39%.
Similarly for retail mall 22% respondents indicate imporatant, for
retail outlet 18% respondents indicate it. While 11% give Neutral
response for retail outlet & 22% for retail outlet. 6% resppondents
indicates as least important.
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3.3 Image of shopping point
Image of mall
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 12 8.3 8.3 8.3Not important 14 9.7 9.7 18.1
Neutral 24 16.7 16.7 34.7
Important 36 25.0 25.0 59.7
Most important 58 40.3 40.3 100.0
Total 144 100.0 100.0
Image of retail outlet
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 12 8.3 8.3 8.3Not important 15 10.4 10.4 18.8
Neutral 26 18.1 18.1 36.8
Important 44 30.6 30.6 67.4
Most important 47 32.6 32.6 100.0
Total 144 100.0 100.0
0
10
20
30
40
50
60
Retail mall Retail outlet
Most important
Important
Neutral
Not important
Least important
Interpretations:
According to Respondents that Image of shopping point is mostimportant crieteria among 40% respondents indicate it for Retail
mall, while for the Retail outlet 32%.
For retail mall 25% respondents indicate imporatant, for retail outlet
30% respondents indicate it. While 17% give Neutral response. 8%
resppondents indicates as least important & not important.
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3.4 Shopping convenience
Shopping convenience at mall
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 3 2.1 2.1 2.1Not important 12 8.3 8.3 10.4
Neutral 32 22.2 22.2 32.6
Important 43 29.9 29.9 62.5
Most important 54 37.5 37.5 100.0
Total 144 100.0 100.0
Shopping convenience at retail outlet
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 3 2.1 2.1 2.1Not important 10 6.9 6.9 9.0
Neutral 34 23.6 23.6 32.6Important 41 28.5 28.5 61.1
Most important 56 38.9 38.9 100.0
Total 144 100.0 100.0
0 10 20 30 40 50 60
1st Qtr
2nd Qtr Least important
Not important
Neutral
Important
Most important
Interpretations:
According to Respondents that Shopping convenience is most
important crieteria among 38% respondents indicate it for Retail
mall, while for the Retail outlet 37%.
For retail mall 29% respondents indicate it is imporatant, for retail
outlet 28% respondents indicate it. While 23% give Neutral
response. 2% resppondents indicates as least important & not
important.
3.5 Availability of more variety
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Availability of more variety at mall
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 1 .7 .7 .7Not important 14 9.7 9.7 10.4
Neutral 20 13.9 13.9 24.3
Important 44 30.6 30.6 54.9
Most important 65 45.1 45.1 100.0
Total 144 100.0 100.0
Availability of more variety at retail outlet
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 5 3.5 3.5 3.5Not important 8 5.6 5.6 9.0
Neutral 24 16.7 16.7 25.7
Important 48 33.3 33.3 59.0
Most important 59 41.0 41.0 100.0
Total 144 100.0 100.0
0
10
20
30
40
50
60
70
Retail mall Retail outlet
Most important
Important
Neutral
Not important
Least important
Interpretations:
From the above table and chart we examine that Availability of
more variety at the shopping point is most important crieteria
among 45% respondents indicate it for Retail outlet, while for theRetail mall 41%.
Similarly for retail mall 30% respondents indicate imporatant, for
retail outlet 33% respondents indicate it. While 13% give Neutral
response for retail mall & 16% for retail outlet. 8% resppondents
indicates as not important.
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3.6 Atmosphere of outlets
Atmosphere of mall
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 4 2.8 2.8 2.8Not important 8 5.6 5.6 8.3
Neutral 31 21.5 21.5 29.9
Important 55 38.2 38.2 68.1
Most important 46 31.9 31.9 100.0
Total 144 100.0 100.0
Atmosphere of retail outlet
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 7 4.9 4.9 4.9
Not important 9 6.3 6.3 11.1Neutral 21 14.6 14.6 25.7
Important 50 34.7 34.7 60.4
Most important 57 39.6 39.6 100.0
Total 144 100.0 100.0
0
10
20
30
40
50
60
Retail mall Retail outlet
Most important
Important
Neutral
Not important
Least important
Interpretations:
From the above table and chart we examine that Atmosphere of the
shopping point is most important crieteria among 31% respondents
indicate it for Retail mall, while for the Retail outlet 39%.
For retail mall 38% respondents indicate imporatant, for retail outlet
34% respondents indicate it. While 22% give Neutral response. 5%
resppondents indicates as least important & not important.
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3.7 Service quality
Service quality of mall
Frequency Percent Valid PercentCumulative
Percent
Valid Not important 5 3.5 3.5 3.5Neutral 31 21.5 21.5 25.0
Important 54 37.5 37.5 62.5
Most important 54 37.5 37.5 100.0
Total 144 100.0 100.0
Service quality of retail outlet
Frequency Percent Valid PercentCumulative
Percent
Valid Not important 9 6.3 6.3 6.3Neutral 26 18.1 18.1 24.3
Important 57 39.6 39.6 63.9
Most important 52 36.1 36.1 100.0
Total 144 100.0 100.0
0 10 20 30 40 50 60
Retail mall
Retail outlet Least important
Not important
Neutral
Important
Most important
Interpretations: According to Respondents that Service quality at
shopping point is most important crieteria among 36% respondents
indicate it for Retail mall, while for the Retail outlet 36%.
For retail mall 37% respondents indicate imporatant, for retail outlet
39% respondents indicate it. While 19% give Neutral response. 3.5%
resppondents indicates as not important.
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4. From the statements and express your opinionfor both types of shopping point.
4.1 Frequency of respondent opinion Agree with Retail mall
Out of total no. of respondents found that 70% respondents
agreed that Retail mall was normally located at convenient place,
60% respondents agreed that they get some additional service at
Retail mall, and 51% respondents agreed that retail mall offers
more variety of products comparing to Retail outlet.
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Responses
Agree Retail mall Retail outlet
normally located at convenient place 70.1% 39.6%
get some additional service 60.4% 25.0%
Goods are costly at this place 58.3% 60.4%
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4.2Frequency of respondent opinion Agree with Retailoutlet:
Retail outlet was highly preferred by the respondents for
shopped because 54% respondents agreed that there is less
chances of being cheated, 74% visit for specific brand only, also
64% respondents agreed that Complains are attend quickly
comparing to the Retail mall.
While Respondent agrees that Bargaining is not possible at both
shopping point.
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Responses
Agree Retail mall Retail outlet
Goods are costly at this place 58.3% 60.4%
less chances of being cheated
visit for specific brand
Complains are attend quickly
Bargaining is not possible
45.8%
49.3%
43.8%
47.9%
53.5%
73.6%
63.9%
52.8%
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4.3 Frequency of respondent opinion - Disagree:
Majority respondents disagreed that Bargaining is not possible,
Complains are not attend quickly, nonavailibility of specific
brands at retail mall as comparing to Retail outlet.
Retail outlet was not preferred by the respondents for shopped
because it is not located at convenient place, lack of additional
service, cost of goods are high compare to retail mall, not offers
more variety of products, high chances of cheated comparing to
the Retail outlet.
While some Respondent give neutral response.
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Responses
Disagree Retail mall Retail outlet
normally located at convenient place 9.0% 32.6%
get some additional service 17.4% 34.7%
Goods are costly at this place 20.8% 24.3%
It offers more variety of products
less chances of being cheated
visit for specific brand
Complains are attend quickly
Bargaining is not possible
27.1%
21.5%
21.5%
32.6%
28.5%
47.2%
25.7%
18.1%
21.5%
20.1%
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5. Attributes of shopping point
5.1 External appearance:
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 11 7.6 7.6 7.6Not important 9 6.3 6.3 13.9
Neutral 14 9.7 9.7 23.6
Important 26 18.1 18.1 41.7
Most important 84 58.3 58.3 100.0
Total 144 100.0 100.0
58%
8% 6% 10%
18%
Least important
Not important
Neutral
Important
Most important
Interpretations:External appearance as Most important attribute
among 51% respondents termed, while 25% respondents termed asimportant. 6% respondent least concerned about the External
appearance. 8% respondents thinks it is not important.
5.2 Parking facility:
Frequency Percent Valid PercentCumulative
Percent
Valid Least important 11 7.6 7.6 7.6Not important 9 6.3 6.3 13.9
Neutral 14 9.7 9.7 23.6
Important 26 18.1 18.1 41.7
Most important 84 58.3 58.3 100.0Total 144 100.0 100.0
58%
8% 6% 10%
18%
Least important
Not important
Neutral
Important
Most important
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Interpretations: According to58% respondents the Parking facilityat shopping point is Most important attribute, while 18%
respondents termed as important. 10% give Neutral response. 8%
respondents thinks it is least important.
5.3 Lighting inside
Frequency Percent Valid PercentCumulative
Percent
Valid Not important 7 4.9 4.9 4.9Neutral 10 6.9 6.9 11.8Important 48 33.3 33.3 45.1Most important 79 54.9 54.9 100.0Total 144 100.0 100.0
55%
5% 7%
33%
Not important
Neutral
Important
Most important
Interpretations: According to55% respondents Lighting inside inshopping point is Most important attribute, Also 33% respondents
termed as important. 7% give Neutral response.
5.4 Interior colour
Frequency Percent Valid PercentCumulative
Percent
Valid Not important 7 4.9 4.9 4.9Neutral 11 7.6 7.6 12.5Important 56 38.9 38.9 51.4Most important 70 48.6 48.6 100.0Total 144 100.0 100.0
48%
39%
8%5%
Not important
Neutral
Important
Most important
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Interpretations: According to 48% respondents Interior colour ofshopping point is Most important attribute, Also 39% respondents
termed it as important. 8% give Neutral response. 5% said it is not
important for them.
5.5 Cleanliness
Frequency Percent Valid PercentCumulative
Percent
Valid Neutral 6 4.2 4.2 4.2Important 54 37.5 37.5 41.7Most important 84 58.3 58.3 100.0Total 144 100.0 100.0
58%
4% 38%
Neutral
Important
Most important
Interpretations: According to58% respondents Cleanliness with inshopping point is Most important, Also 38% respondents termed it
as important. 4% give Neutral response.
5.6 Staff behavior
Frequency Percent Valid PercentCumulative
Percent
Valid Neutral 12 8.3 8.3 8.3Important 46 31.9 31.9 40.3Most important 86 59.7 59.7 100.0Total 144 100.0 100.0
8%
60%
32%
Neutral
Important
Mostimportant
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Interpretations:
According to60% respondents termed Staff behavior at shoppingpoint is Most important, 32% respondents termed it as important.
8% give Neutral response.
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5.7 Range of product
Frequency Percent Valid PercentCumulative
Percent
Valid Not important 9 6.3 6.3 6.3Neutral 13 9.0 9.0 15.3
Important 36 25.0 25.0 40.3Most important 86 59.7 59.7 100.0
Total 144 100.0 100.0
60%
6% 9%
25%
Not important
Neutral
Important
Most important
Interpretations: According to 60% respondents termed Range of
product available at shopping point is Most important, 25%
respondents termed it as important. 9% give Neutral response.
While 6% said it is not Important.
5.8 Replacement facility
Frequency Percent Valid PercentCumulative
Percent
Valid Not important 2 1.4 1.4 1.4Neutral 15 10.4 10.4 11.8
Important 35 24.3 24.3 36.1
Most important 92 63.9 63.9 100.0
Total 144 100.0 100.0
10%1%
65%
24%
Not important
Neutral
Important
Most
important
Interpretations: According to 64% respondents termed
Replacement facility available at shopping point is Most important,
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24% respondents termed it as important. 11% give Neutral
response. While 1% said it is not Important.
5.9 Acceptance of credit card
Frequency Percent Valid PercentCumulative
Percent
Valid Neutral 25 17.4 17.4 17.4Important 43 29.9 29.9 47.2Most important 76 52.8 52.8 100.0Total 144 100.0 100.0
53%
17%
30%
Neutral
Important
Most important
Interpretations: According to 53% respondents termed
Acceptance of credit card at shopping point is Most important, 30%
respondents termed it as important. 17% give Neutral response.
While no one said said it is not Important or least important.
5.10 Availability of other service (water, sittingarrangement, etc)
Frequency Percent Valid PercentCumulative
Percent
Valid Neutral 5 3.5 3.5 3.5Important 35 24.3 24.3 27.8Most important 104 72.2 72.2 100.0Total 144 100.0 100.0
73%
3% 24%
Neutral
Important
Most
important
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Interpretations: According to 53% respondents termed Availability
of other service (water, sitting arrangement, etc) at shopping point
is Most important, 24% respondents termed it as important. 4% give
Neutral response. While no one said said it is not Important or leastimportant.
6. Experience of Retail mall
Frequency Percent Valid PercentCumulative
Percent
Valid Very poor 5 3.5 3.5 3.5
Poor 14 9.7 9.7 13.2Good 39 27.1 27.1 40.3
Very good 48 33.3 33.3 73.6
Excellent 38 26.4 26.4 100.0
Total 144 100.0 100.0
Interpretations:
Above table and graph indicates experience of respondents towards
Retail mall, it was found that 33% respondents experience was very
good, 26% respondents experience was Excellent , 27%
respondents experience was good and 10% respondents experience
was poor, while 4% respondents experience was very poor in
purchasing from Retail mall.
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7. Experience of retail outlet
Frequency Percent Valid Percent CumulativePercent
Valid Very poor 4 2.8 2.8 2.8
Poor 21 14.6 14.6 17.4
Good 61 42.4 42.4 59.7
Very good 33 22.9 22.9 82.6
Excellent 25 17.4 17.4 100.0
Total 144 100.0 100.0
Interpretations:
Above table and graph indicates experience of respondents towards
retail outlet, it was found that 42% respondents experience was
good, 17% respondents experience was Excellent, 23% respondentsexperience was very good and 15% respondents experience was
poor, while 3% respondents experience was very poor in purchasing
from Retail outlet.
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FINDINGS
It was found in the study that major respondents preferred
both Retail mall and Retail outlet for shopping of products.
From the study, it was found that most respondent of like to
purchase Footwear, gifts, clothing from the Retail mall
because of certain extra benefits they get it. While they like to
purchase the products like White goods (fridge, washing
machine etc), Home entertainment products (TV, AV system)
from the Retail outlet.
It was found that most of respondents select retail mall for
shopping on the bases of location nearer to them, various
sales promotion scheme available at shopping point, Image of
shopping point, and service quality. Some respondents give
neutral response, but very few said these factors are least
important.
It was found that most of female respondents select retail
outlet as shopping point where shopping convenience is easy,
Availability of more variety, Service quality is good.
From the survey we can examine that Retail outlet was highly
preferred by the respondents for shopped because it is
located at convenient place than the retail outlet. Also
because they get additional services, variety of products at
Retail mall comparing to the Retail outlet.
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Retail outlet was highly preferred by the respondents for
shopped because there is less chances of being cheated,
available specific brand, also Complains are attend quickly
comparing to the Retail mall.
It was found from the study that many Female and youth
respondents indicate that the External appearance of
shopping point, Parking facility, Lighting inside, Interior colour
of shopping point as most important attribute for make
decision about choosing shopping point.
Many Businessman, housewives & profession respondents
indicate that cleanliness within store, Staff behavior, Range of
product available, Replacement facility, Acceptance of credit
card, Availability of other service like (water, trail rooms, etc)
most importance. While very few give least importance to it.
It was found that most of respondents experience of
purchasing from Retail Mall is very good and excellent. While
most of respondents experience of purchasing from Retail
outlet is good.
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CONCLUSION
After globalization whole world is become like one market. India
liberalized the foreign investment in Indias that, no. of foreign
companies invest in India. As a result, very stiff competition
prevailed in the market and it is difficult to survive in the market.
Now a day, there is very stiff competition between Retail mall and
retail outlet. Even Retail mall competes among them for survival
and profit.
In modern period, students and youth mostly upper class people
preferred to purchase from retail mall because of facilities andcomfort attract them for purchasing of products.
But on the other hand respondents also preferred Retail outlet store
for shopping because facilities they got from retail outlet like
replacement of product, complain attend quickly, branded products
and easy availability of the stores. From the study it was concluded
that Retail mall dominate Retail outlet.
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BIBLIOGAPHY
BOOKS:
Donald Cooper & Pamela Schindler Business Research
Methods 8th ed., Tata McGraw Hill,.
Philip Kotler, Kevin Lane Keller, Abraham Koshi & Mithileshwar
Jha Marketing Management, 12th ed., Pearson Education,
Websites:
business.mapsofindia.com/india-retail-industry/
business.mapsofindia.com/india-industry/retail.html
www.economywatch.com/business-and-economy/indian-retail-
industry.html
www.economywatch.com/business-and-economy/indian-retail-
industry.html
www.ibef.org/industry/retail.aspx
www.indiaretailshow.com/
www.indiaonestop.com/retailing.htm
www.sebi.gov.in/dp/pantaloon.pdf
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http://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.ibef.org/industry/retail.aspxhttp://www.indiaretailshow.com/http://www.indiaonestop.com/retailing.htmhttp://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.economywatch.com/business-and-economy/indian-retail-industry.htmlhttp://www.ibef.org/industry/retail.aspxhttp://www.indiaretailshow.com/http://www.indiaonestop.com/retailing.htm8/8/2019 Reatail Mall Culture
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QUESTIONNAIRE
OBJECTIVE: - I, Mr. Jenish Patel, studying M.B.A. in DBIM, VNSGU,Surat &am