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INTRODUCTION: 

INTRODUCTION OBJECTIVE OF THE RESEARCH: 1. The objective of the study is to understand the retail industry of India as a whole. 2. See the industry in the perspective of emerging Indian Economy. 3. The study aims at understanding the opportunities for various firms in this fast growing sector of India. 4. We also examine that what are the perception of consumers regarding this Industry and F.D.I.

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SCOPE OF THE STUDY The study will focus on the growth of retail industry particularly in the fast growing economy of India . It will further put light on the consumer perception & their changing dressing, eating, spending habit of Indian consumers, which has brought shopping mall culture in the country. Moreover it will focus on the growing opportunities for domestic companies as well as for foreign companies.

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STRUCTURE The Indian Retail sector is highly fragmented: mostly owner-run ‘ Mom and Pop 'outlets .Over 12 million retail outlets. Average outlet size < 500 sq.ft There are a few medium sized Indian retail chains like Pantaloon, Shoppers Stop, Food world (RPG Group) and Westside (Tata Group) - all growing rapidly. Mainly in the apparel and food & grocery segments 16.

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ISSUES RELATED TO FDI IN RETAIL IN INDIA Traditionally, the retailing sector in India has been characterized by the presence of a large number of small, unorganized retailers, popularly referred to as mom and pop shops or Karana stores. The unorganized sector still dominates the retail sector, with the organized sector accounting for only 3%. Retailing is one of the few sectors where foreign direct investment (FDI) is not allowed. But India is emerging as an attractive destination for FDI in retailing, evoking considerable protest from trading associations and other stakeholders. The government announced a partial opening of the sector by announcing 51% FDI in ‘ single brand retailing ’ last week. Closer Look at some of the issues related to FDI in retailing.

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Was the retailing sector never opened to FDI? Prior to 1997, there were no regulations restricting the entry of foreign players.Nanz and Spencer's are two major companies who were granted permission to sell products directly to customers. In 1997, it was decided that FDI would not be allowed for mere trading as it would lead to the outflow of foreign exchange, drive out the unorganized retailers from business and increase unemployment.

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Do other countries allow FDI in retailing? India is one of the few countries where FDI is not allowed in retailing. Almost all major developed and developing countries have allowed it. Some have imposed restrictions such as minimum capital requirements, sourcing conditions, investment in supply chain, etc, while others have opened the sector in a phased manner to allow domestic retailers to adjust to the changes.

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RETAIL SECTOR: AN INTRODUCTION SIZE · India is one of the ten largest retail markets in the world · Retail sales were $206 billion in 2007, over 28% of GDP · Organized Retail ’ constitutes only 4.5% of total retail sales - about $6.4 billion p.a. · However organized retail has been growing at over 24% p.a in the last 5 years.

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Will opening the sector result in loss of jobs? It ’ s an aspect that ’ s been greatly debated. There ’ s a view that modern trade will unleash opportunities such as non-agricultural employment and better quality of living for the existing agricultural society. Others say that by reducing the number of intermediaries, middlemen etc, organized retailing will lead to some job displacement. But this, they insist, will be compensated for by creation of jobs in allied sectors such as the food processing industries. Currently, the retail industry is the second largest employer, after agriculture, and it is estimated that the sector has the potential to create eight million jobs.

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Will FDI in retail adversely impact kirana stores? At present, mom-and-pop stores cater to 97% of the total market. They have unique advantages, like indigenous processes, skills in retaining c ust omers, proximity, convenience and services. However, global retailers investing in new markets have not hampered local retailers. In China, Carrefour, the largest foreign retailer, has 68 hypermarkets and Wal-Mart 47. Despite this, domestic competitors hold more than 90% of the market.

FINDINGS & ANALYSIS: 

FINDINGS & ANALYSIS ANALYSIS OF CONSUMER PERCEPTION 1.) Do you prefer to purchase from foreign retail organization.

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Interpretation : As we have seen from the above column chart that the 65 percent Of respondents say yes and only 35 percent say no, because they belongs to lower income category and can not afford.

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2.) How many retail organization you know of your city? Interpretation : As we have seen from the above pie chart that the 10 percent of r espondents can name only one retail organization name, 25 Percent can name 2 to three name, 50 percent can name 3 to 4 Name and rest can name more four name.

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4. How many time you usually go for purchase? Interpretation : As we have seen from the above pie chart that the 10 percent of respondents never go for purchase because they can not afford.40 percent usually go 2 times in a month for purchase ,30 percent usually go 4 times for purchase and 20 percent go more than four times in a month for purchase.

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Do you make plan before your purchasing from retail Interpretation : As we have seen from the above pie chart that the 60 percent say yes i.e. they make plan for their purchase and rest of them purchase at randomly.

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6. Are you satisfied with your purchasing every time. Interpretation : As we have seen from the above pie chart that the 65 percent of respondents are satisfies with their purchasing and rest of them Means 35 percent are not satisfy.

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7. What characteristics attract you to purchase? [ i . Five star environment ii. Product line iii. Customer support Pie 1, iv. Convenience] Interpretation : As we have seen from the above pie chart that the 10 percent of respondents only attracted by Ist,22% are attracted by 1 st & 2 nd option, 28% are attracted by 1 st,2nd & 3 rd option and rest of themare attracted by all feature of retail .

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8. Will you suggest other person to purchase from retail organization.

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Interpretation : As we have seen from the above pie chart that the 22 percent of people will never suggest other person to purchase from retail shop because of their bed experience but 78% of person will suggest other person to purchase from retail shop because they are extremely satisfied.

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9. Retails shops is “which type of place for purchasing? According to your perception”. Interpretation : As we have seen from the above pie chart 60% of people perceive that the retails are best place for purchasing 35% perceive that it is good place and 5% can not say anything.

QUESTIONNAIRE: 

QUESTIONNAIRE 1 .Do you prefer to purchase from froeign retail organization. Yes No 2 . How many retail organization you know of your city? a. Less than 2 b. 3 or 4 c. 5 or 6 d. more than 6 e. None 3. Write the name according to preference of retail shop. · --------------------------------------- · --------------------------------------- · --------------------------------------- · ---------------------------------------

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4. How many time you usually go for purchase? A. Less then two times or never B. Two times in a month C. Four times in a month D. More then four times 5. Do you make plan before your purchasing from retail shop. Yes No 6. Are you satisfied with your purchasing every time. Yes No 7. What characteristics attract you to purchase? [ i . Five star environment ii. Product line iii. Customer support iv. Convenience] A only 1. B 1 & 2. C 1,2 & 3. D All

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8. Will you suggest other person to purchase from retail sector? Yes No 9. Write some points of your satisfaction and dissatisfaction. Reason for satisfaction: · _________________________ · _________________________ · _________________________ Reason for dissatisfaction: · __________________________ · __________________________ · __________________________

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10. Retails shops is “ which type of place for purchasing? According to your perception ” . Best good can not say Thanks Name : ________________________ _ Age :__________ Sex :______ Ph._________________ Address________________________________________________ ___________________________________________________ Place_______________ Date____________