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    Impact of Small Retailers On Big Retailers

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    Belur Baxi
    This document provides a comparative study of organized and unorganized retailing in India. It finds that while organized retailing is growing rapidly, small retailers will still be important due to their ability to provide personalized service and deal with consumer preferences like freshness. The study recommends that small retailers form groups for strength, while organized retailers focus on customer service and discounts to compete. Overall, both sectors face challenges, but retailers who understand customers will survive.

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    Impact of Small Retailers On Big Retailers

    Uploaded by

    Belur Baxi
    181 views17 pages
    This document provides a comparative study of organized and unorganized retailing in India. It finds that while organized retailing is growing rapidly, small retailers will still be important due to their ability to provide personalized service and deal with consumer preferences like freshness. The study recommends that small retailers form groups for strength, while organized retailers focus on customer service and discounts to compete. Overall, both sectors face challenges, but retailers who understand customers will survive.

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    Impact of Small Retailers on Big Retailers

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    This document provides a comparative study of organized and unorganized retailing in India. It finds that while organized retailing is growing rapidly, small retailers will still be important due to their ability to provide personalized service and deal with consumer preferences like freshness. The study recommends that small retailers form groups for strength, while organized retailers focus on customer service and discounts to compete. Overall, both sectors face challenges, but retailers who understand customers will survive.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    181 views17 pages

    Impact of Small Retailers On Big Retailers

    Uploaded by

    Belur Baxi
    This document provides a comparative study of organized and unorganized retailing in India. It finds that while organized retailing is growing rapidly, small retailers will still be important due to their ability to provide personalized service and deal with consumer preferences like freshness. The study recommends that small retailers form groups for strength, while organized retailers focus on customer service and discounts to compete. Overall, both sectors face challenges, but retailers who understand customers will survive.

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    A COMPARITIVE STUDY ON

    ORGANISED AND UNORGANISED


    RETAILING
    IN
    INDIA
    OBJECTIVE OF THE STUDY
    The objective of my study is to
    • Know about the retailing in India
    • Comparative study of the organized retiling sector and
    unorganized retailing sector
    AN OVERVIEW ON GLOBAL RETAIL
    INDUSTRY
    Nine retailers belongs to global fortune 100 companies
    1 220 Wal-Mart
    24
    35 62 Carrefour
    38 60 ahold
    46 54 Home Depot
    55
    Retailers
    56 50 Kroger
    68
    72 44 Metro
    83 41 Sears
    89 40 Target
    93
    100 38 Albertson's
    RETAIL INDUSTRY IN INDIA
    INDIA’S retail industry is in the growth stage and with a three
    year compound annul growth rate of 46.64 percent, retail is
    the fastest growing sector in the Indian economy.
    Traditional markets are making way for new formats such as
    departmental stores, supermarkets, exclusive stores and
    specialty stores.
    Retail trade contributes around 10-11% of India’s GDP and currently
    employs over 4 core people. Within this, unorganized retailing
    accounts for 97% of the total retail trade. Traditional forms of low-
    cost retail trade, from the owner operated local shops and general
    stores to the handcart and pavement vendors together form the
    bulk of this sector. In the absence of any significant growth in
    organized sector employment in India in the manufacturing or
    services sector, millions are forced to seek their livelihood in the
    informal sector. Retail trade, which has been a relatively easy
    business to enter with low capital and infrastructure needs, has
    acted as a refuge source of income for the unemployed
    The Central Statistical Organization (CSO) in its national
    accounts statistics (NAS) uses the classification of ‘organized
    and unorganized’ sectors.
    According to it : “Generally all enterprises which are either
    registered or come under the purview of nay one of he acts,
    such as Indian Factories Act, 1948, Mines and Minerals
    (Regulation and Development) Act, 1957, The Company Law,
    the central/ states Tax Acts, and the Shops and Establishment
    Acts of the state governments, are defined as organized
    sector…..
    All unincorporated enterprises and households industries which
    are not regulated by any acts and which do not maintain any
    annual reports presenting the profit and loss and the balance
    sheets are classified as unorganized.”
    IMPACT OF SMALL RETAILERS ON THE BIG
    RETAILLERS
    The customer favors the small retailer for the low price and
    services he offers. The small retailer is providing all those
    services, which supermarkets normally doesn't. such services
    include telephone order system, credit system, home delivery
    and face value.
    More importantly he is available next door; most often the
    owner himself is present to offer personalized service.
    This has forced supermarket to offer same range of services as
    small retailers.
    IMPACT OF BIG RETAILERS ON SMALL
    RETAILERS
    Retailing in India is in the process of getting more organized and
    professional. Large retail format supermarkets and shopping
    malls are set to take over the retail scene. Small retailers no
    longer remain the primary source for the basic monthly
    basket. The consumers normally get better prices, quality,
    selection, and convenience for these purchases at organized
    retail chain. For example,
    example if a customer buys 100 items a
    month, he now buys 80 of them from the supermarket at one
    go, and remaining 20 as and when required from the smell
    neighborhood retail out let.
    . A number of large domestic business groups have
    entered the retail trade sector and are expanding their
    operations aggressively. Several formats of organized
    retailing like hypermarkets, 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. This has serious
    implications for the livelihood of millions of small and
    unorganized retailers across the country.
    FINDING FROM THE STUDY
    The finding is this that the small retailer will be around because,
    by his very nature, he will be able to deal with several
    peculiarities in the Indian consumer psychology. For example,
    • one myth is that ‘whatever is modern is expensive’. This
    keeps several potential middle class shoppers from buying
    from supermarket.
    • Another myth is that fresh foods that are pre-packaged may
    not really be fresh.
    • Another finding is this that Organized retailing has witnessed
    considerable growth in India in the last few years and is
    currently growing at a very fast pace. A recent survey report
    prepared for the FICCI states that organized retail, estimated
    as a $ 6.4 billion industry in 2006, is projected to reach $ 23
    billion by 2010. The share of organized retail in overall retail
    sales is projected to jump from around 3% currently to
    around 9-10% in the next three years. A number of large
    domestic business groups have entered the retail trade sector
    and are expanding their operations aggressively.
    RECOMMENDATION
    Following are my recommendations for unorganized retail
    sector:-
    • Unorganized retail sector consists of small shopkeepers and
    retailers, they are very vast in number but they don’t have
    unity, they have to form unity in themselves.
    • They have to be more focused on making personal relations
    with the customers.
    • Have to keep on the bargain.
    Recommendation for organized retail sector:-
    • The income is rising in the urban middle class families, this
    will increase their ability to buy branded products.
    • They also have to work hard on PR services. Because they are
    facing challenge from both the sectors.
    • They have to give discounts not only in the seasons but, all
    the time.
    CONCLUSION
    Thus I can conclude that with the economy opening up, the
    retail industry, of late is going through several changes. Big
    players and MNC’s have started to enter the retail industry
    and a new dimension is being given to the retail business. The
    survival of the retailer, small or big, has become difficult.
    Supermarkets are yet to get the great Indian middle class and
    rural India in their fold. Until then, small retailers will be the
    most sought after retail entities, especially by those
    marketers who are keenly looking at penetrating semi-urban
    and rural areas.
    LIMITATION
    The main limitation of my study is that I have collected my data
    from secondary sources. So my findings and knowledge is
    totally depend up on the findings and researches of others.

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