DMS-ISM DHANBAD

ASSIGNMENT OF
RETAIL MARKETING
ON
CHANGING CONSUMER
BEHAVIOUR PATTERN IN
ORGANIZED RETAIL
SECTOR IN INDIA

SUBMITTED BY:
NEHA KUMARI
2013MB0035

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MBA-IV SEMESTER
Retailing in India came with evolutionary patterns from Kirana store to super market.
This sector was un-organized in the initial stage, and after that it is carried forward and
now it is growing as supermarket and hypermarket.
India is one of the fastest growing economies in the world and one of the largest in term
of purchasing power parity. It has been called a nation of shopkeepers since centuries.
Trading is one of the most significant sectors of the Indian economy. The contribution of
this sector in the total Gross Domestic Product is 14 percent and near about 3 crore
peoples derive their income from this treading activities. Majority of them are laborers
involved in small retail treading activity. These small traders now will have to face
competition with organized large departmental stores like, Metro, Kasino, Big Bazaar,
Pyramid, Pantaloon, Westside etc. With the changing demographics across the world the
organized retailing is taking shape where people buy their daily and monthly purchases.
In a way, large area, usually lined with many products, brands with width and depth.
Organized retailers actually work as a retail outlet catering to varied needs of the
customers. The purchasing pattern of the customer was changed recent days. Customers
buying behavior is influence by social factors, such as the group to which the customer
belong and social status. In a group, several individual may interact to influence the
purchase decision.
India is the country having the most unorganized retail market. Traditionally it was a
familys livelihood, with their shop in the front and house at the back, while they run the
retail business. More than 99 per cent retailers have a space less than 500 square feet of
shops. The Indian retail sector is estimated at around 900,000 crore, of which the
organized sector accounts for a mere 2 per cent indicating a huge potential market
opportunity that is laying in the waiting for the consumer. Purchasing power of Indian
urban consumer is growing and branded merchandise in categories like Apparels,
Cosmetics, Shoes, Watches, Beverages, Food and even jewellery, are slowly becoming
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lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers
need to advantage of this growth and aiming to grow, diversify and introduce new
formats have to pay more attention to the brand building process. The emphasis here is on
retail as a brand rather than retailers selling brands. The focus should be on branding the
retail business itself. A number of large corporate houses Tatas, Rahejas, Piramals,
Goenkas have already made their foray into this arena, with beauty and health stores,
supermarkets, self-service music stores, new age book stores, every- day- low price
stores, computers and peripherals stores, office equipment stores and home-building
constructions stores. Today the organized players have attacked every retail category.
The Indian retailing sector is at an inflexion point where the growth of organized retailing
and consumption by the Indian population is going to take a higher growth trajectory. The
Indian population is observing a noteworthy demographics change. An increasing young
working population under age of 24 years, sharp rise in the per capita income, an increase
of dual income nuclear families in the urban areas, along with increasing working women
population, internet revolution and emerging opportunities in the services sector are
going to be the key growth drivers of the organized retail sector in India. The whole
model of shopping has altered in terms of format and consumer shopping behavior
pattern, which ultimately could lead to a shopping revolution in India.
Due to changes in the disposable income and increased awareness of quality, the
consumers perception towards organized and unorganized retailers differs on the basis of
quality and price. They preferred to buy different products from the organized and
different from the unorganized retailers.

Benefits of Organized retailing to consumer and society

Beautiful interiors with entertainment facility

Extremely pleasing ambience
Mall offers you much more than just shopping
Huge gaming zone where kids can utilize the time at the optimum
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Malls are always being constructed at prime location and in high profile areas. The
changing trend, convenience of shopping, getting variety of items under one roof
attracts and induces people of all age group to frequently visit malls.
Generates employment opportunities, direct and indirect, for thousands of people.
With the emergence of organized outlets, consumers gained through the availability of
better quality products, lower prices, one-stop shopping, choice of additional brands and
products, family shopping, and fresh stocks. According to report of ICRIER organized
and unorganized retail not only coexist but also grow substantially. The reason behind
that the retail sector is gradually growing on an overall basis hence the benefit of this
growth goes to both the sectors.
The changing consumer behavior is increasingly shaping organized retailing and is, in
turn, evolving with new found options and opportunities. On the socio-cultural side, the
growing number of nuclear families, general improvement in education levels and, most
importantly, continuous rise in women's economic independence through jobs, as well as
entrepreneurship, has made women play a more proactive role in shopping for the family.
This has led to an increasing number of customers availing of convenience options such
as super markets, where most of the shopping for daily necessities can be done under one
roof.
The values, cultures and beliefs of the customers prompt them to go the same retail shop
where they can get the product required, at low price and with least waiting time for
billing. No matter how lucrative is this sector and how bright is the market; the organized
sector in retailing has to go a long way to understand the customer requirement.
References:
Retail report by KPMG in India, March,09, Consumer Markets Indian Retail: Time to change lanes.
K. Medha, 2013, A study of impact and effects on consumers of organized retailing in India, Proceeding
of the International Conference on Social Science Research, ICSSR 2013.

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