consumers buying patterns At organized and unorganized retail stores

Topics: Retailing, Shopping mall, Online shopping Pages: 54 (5679 words) Published: October 25, 2013
Gupta and Tandon: Changing Consumer Preferences From Unorganized Retailing Towards Organized Retailing


Changing Consumer Preferences
From Unorganized Retailing
Towards Organized Retailing:
A Study in Jammu
Urvashi Gupta
Journal of Emerging Knowledge on Emerging Markets
Volume 4
November 2012

Produced by The Berkeley Electronic Press, 2012


Journal of Emerging Knowledge on Emerging Markets, Vol. 4 [2012], Art. 10

Changing Consumer
Preferences From
Unorganized Retailing
Towards Organized
A Study in Jammu
Urvashi Gupta
Baddi University of Emerging Sciences &Technology
Journal of Emerging Knowledge on Emerging Markets
Volume 4
November 2012


he retail industry in India is emerging as a one of the largest industries estimated to account for more than 10 per cent of the country’s GDP and around 8 per cent of the employment. Its highly dynamic and fast growing nature has put India on the threshold of a major shake-up to become the next retail boom area. Despite global slow-down and economic recession faced by most of the established as well as developing countries Indian economy has weathered the storm showing a fast track come back on the pre-recession stage.

Retail industry is divided into unorganized and organized sectors. In India, unorganized retailing has been predominantly in the form of local Kirana shops also called Mom-n-Pop stores, owner/ manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Organized retailing on the other hand refers to licensed retailers, who are registered for sales tax, income tax, etc. including corporate-backed hypermarkets

DOI: 10.7885/1946-651X.1098


Gupta and Tandon: Changing Consumer Preferences From Unorganized Retailing Towards Organized Retailing


and retail chains besides the privately owned large retail businesses. The retail sector is expanding and modernizing rapidly in line with India’s economic growth and recent Government of India’s initiatives.

Modern retail sector is at the crossroads where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. It is undergoing a major transformation as entry of global players and watchful expansion by major Indian retailers has opened new vistas of joint ventures, tie-ups and franchise offering new formats, services, private labels, locations and recently to diverge from metros to smaller towns, Arvind Singhal Chairman Technopak Advisors has rightly said that, “A lot of international retailers and brands are most likely to look at India, as global markets have stabilized and the Indian economy has proved to be better than most other countries. With the changing retail scenario the consumers are bound to look beyond traditional retail stores towards organized outlets may be with some reservations. This necessitates study of the factors which influence the consumers to move towards the organized retailing from unorganized one besides most prioritized attributes which attract the consumers towards either of them.

Jammu the winter capital of the state of Jammu & Kashmir is on the threshold of entry of organized retail in a significant way and accordingly requires study of consumer’s preferences related to unorganized and organized retail outlets. Overview of Global Retail Industry

Retail has played a major role in world over in increasing productivity across the board especially in consumer goods and services. The impact is significant in countries like U.S.A., U.K., Mexico, Thailand and china. Economies of...

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