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Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-

11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 186



A STUDY OF IMPACT AND EFFECTS ON CONSUMERS OF ORGANIZED
RETAILING IN INDIA
Medha Kanetkar,
C.P. & Berar College, Tulsibag, Nagpur.
Tel: 9970934336
medhakanetkar@gmail.com

ABSTRACT
Organized retailers actually work as a retail outlet catering to varied needs of the customers. The
purchasing pattern of the customer has changed recent days. Customers buying behaviour is influenced
by social factors, such as the group to which the customers belong and social status. In a group, several
individuals may interact to influence the purchase decision. Change in consumption pattern is due to
outsourcing business per capita, income of middle age, population in big cities is rising rapidly and easier
access to credit. Retail shopping space is also growing exponentially and has increased to 54 million
square meters. The development of organized shopping malls has literally been a revolution in India.
Retailing is one of the largest business activities in India and one of the largest sources of employment in
the country. Due to drastic change in the behavior of the consumer, in the view of growing economy,
earning capacity, less time and fast track life the emerging challenge for the retail in India and in Nagpur
city is to maintain the quality in competitive rate structure. Data was collected from questionnaire filled
up by the consumers visited to organized retail shops. 400 consumers were selected by Random Sampling
Method. Introduction of organized retailing has not been able to replace traditional markets, which are
still popular among the pocket conscious people, but has definitely added a new adventure to the
shopping experience.
Keywords: Organized retailing, Consumer Behaviour, Socio-Economic Impact, emerging challenges,
consumption pattern
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1. Introduction

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, Walmart, Tesco, Metro, Kasino, Big
Bazar, Pyramid, Pantloon, 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. Up to 2002, consumers
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 187

even in India, top cities such as Mumbai, Delhi has no choice to purchase their daily foods and
consumers good from small scale Mom & Dad Stores. However, the shopping experience for Indias
urban consumers is now changing completely. Because of the outsourcing business per capita income of
middle age population in big cities is rising fast and easier access to credit are bringing a change in
consumption pattern. Retail shopping space is also growing exponentially and has increased to 54
million square meters.

The development of organized shopping malls has literally been a revolution in India. The opening of the
Indian Economy in the early 1990s brought a wide range of new households appliances, stylish apparel,
and other consumer goods, along with the plenty of media exposure. But what the Indian consumer still
lacked was a world-class shopping experience: a pleasant, open, relaxing, air-conditioned place to
compare prices, quality and styles without other customers trying to squeeze through the shop doorway
or shout over ones head to proprietor.

India is the country having the most unorganised 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 organised 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 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 organised players
have attacked every retail category.

Wal-Mart, the worlds biggest retailer, was established in 1962. Its founder Sam Walton had expanded
Wal-Mart into a chain of discount stores and all its stores were built on the principle of attracting
customers of the lower income group by providing a variety of products under one roof at a low price.
Also the malls are providing the facilities for customers to pay the higher amount on installment basis,
and/or giving interest free finance, credit card facility, gift hamper, free products and many other
discount facilities.

2. Indian Retailing can be classified in two sectors:
1) Organised Retailing, which has developed in India in following format.
i) Shopper stop Departmental store format
ii) Big Bazaar Hyper market
iii) Food world Super market
iv) Pantaloons and the home store Specially retailing

Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 188

2) Un-organised Retailing.
Retailing is subjected to the constant changes, which increase both the risk and the influenced by many
forces such as:
1) Population
2) Mobility of consumer
3) Increased in personal income
4) Changes in the distribution of income
5) Consumer credit
6) Competitive changes
7) Technological innovation
8) Government policies, etc.
The essential elements for a successful retail trade can be classified as,
1) Selection of proper goods
2) Perfect knowledge about the goods
3) Sales policy
4) Adequate capital
5) Business location
6) Education and business
7) Attractive display and advertisement
8) Providing credit facility

3. Methodology
3.1. Significance of the Study
Retailing is one of the largest business activity in India and one of the largest sources of employment in
the country. According to a study by Industry Body FICCI, the total retail trade in India was worth Rs.
11,00,000 crores in the year 2003. Of the approximately 12 millions retail shops, 96% occupy floor space
less than 500 square feet. The large number of retail shops is in the un-organized sector, such as
Grocery, Vegetable shop etc. Only about 2% of outlet in the organized sector, such as retail chains,
departmental stores, and special stores. The boom in Indias retail industry is mainly due to the rise in
shopping Malls across the country in the past 5-6 years even as their management has emerged as a big
challenge.

The Indian market comprises of three different types of consumer such as rich consumers having
tremendous purchasing capacity, middle class consumers having adequate purchasing power, and the
bottom line consumers who posses low purchasing power. Big retailers would not reach up to the
bottom; they would be concentrating their attention towards the reach and middle classes. The Mall
culture is affecting the small retailers. There are the major reasons of which the challenge has arisen for
the small stores. Usually the mentality of average people in India, have the product in a cheap rate and
in addition it should also have the quality. Such behavior of consumer has made market much more
competitive, but it has many prospects, so the big companies like ITC, Big Bazar, Tru Mart, Chaupal,
Reliance etc. have jumped into the retail market. These companies trying to attract the customer by
providing the goods in discount rate, less than MRP, certain gift hampers, free product on purchase etc.
Due to such methods or schemes of attracting the customer by the giant and organized players in retail
trade, the small and un- organized shopkeepers i.e. the sole traders are finding themselves difficult to
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 189

maintain the customers fluency. The mode of buying the product on credit by the customer from the
sole trader has also decreased. This happens especially with Grocery shops, small readymade cloth
stores and small other stores. As the economy in the boom condition people do have enough money in
their hand to purchase the product in cash, or on credit cards, so they are getting attached towards such
Big Bazaar, Tru Mart.It also because such retailers are able to maintain the quality and packed products.
Due to drastic change in the behavior of the consumer, in the view of growing economy, earning
capacity, less time and fast track life the emerging challenge for the retail in India and in Nagpur city is to
maintain the quality in competitive rate structure.

3.2. Area of the Research

Attempts have taken to study the view of consumers regarding organized and un-organized retailing and
their preferences towards the consumer goods in Nagpur City. For this research Nagpur City is
considered as the area of research. It is one of the important cities in Maharashtra, as well as in the
country. It is second capital of Maharashtra. It is located at geographical centre of India and well
connected by rail, road and air with rest of the country and three national highways are also passing
through the city. To cater the need of increasing importance of city, Cargo Hub, Mihan project has
already started and some IT companies have already started functioning and like Infosys, Mahindra-
Satyam have decided to launch their projects in near future.

The Mall culture was started in Nagpur city 4-5 years back by setting up Westside and then Big Bazaar.
Cooperative consumer stores were started long back, but the culture remains same as small retailers.
More consumers are attracting towards Big Bazaar because of its publicity, big space, marketing
strategy, display of various products and discount facilities. Displaying various products under one roof
makes the consumers convenient to choose the product freely and can handle the products by
themselves hence the consumers are purchasing some products which are not of their prime
importance.

Markets in Sitabuldi, Sadar, Central Avenue, and GandhiBaug meet the citys shopping needs.
Dharampeth and Itwari have emerged as a popular alternative. The total area covered by shopping mall
in Sitabuldi on 10lack sq. ft. with a hotel, recreation centre and multiplex theatres built in. Six new
shopping malls in Nagpur will come up by 2008-09 at an investment of Rs. 1,000 crores. The Nagpur
Municipal Corporation has allocated unused land to infrastructure development companies for a
twenty-year lease of Rs. 545 crores. BSEL infrastructure Realty and Unity Infraprojects have bagged the
projects. These malls would be located in Netaji Market and Water Works Department in Sitabuldi, in
Gokulpeth Market, Grain Market in Wardhaman Nagar, in Jaripatka and in Pachpoli Flyover near Kamal
Square. Some of the recently built notable landmarks are MHKS Mall at Chaoni, Mangalam Marvel at
W.H.C. Road, The Tringle at Kingsway and Inland at Central Avenue.

Big Bazaar is first Mall and organized retail shop in the city and hence we have taken into consideration
for our research project as a case study.

3.3. Objectives of the Study
To identify the emerging factors which affect the buying behavior and purchasing pattern of
consumer towards retailers.
To evaluate those factors in beneficial way for organized and unorganized retail
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 190

To understand quality dimension of Big Retailers.
To asses the reliability of Big Bazaar.
To study the responsive behavior of consumer towards the Big Bazaar.
To asses the retailing method and communication skill of salesman of the Mall like Big Bazaar.
To study the direct impact of Malls on small retailers.

3.4. Technique of data collection

For conducting this research program, primary data was collected from the consumers who
visited and made purchases from Big Bazaar.
Primary data was collected through interview and questionnaire.
Data related with the retail shopkeepers was collected from the small retail shopkeepers from
Sitabuldi and Vardhaman nagar area.
The secondary data have been use to know the different statistics regarding the development of
retail marketing and big retailers.
Books, journals, reports, articles published in the newspapers are the sources of secondary data.
The secondary data was also collected from internet.

3.5. Sampling

The consumers and small retailers are the universe of the research. It is very difficult to collect
information from every consumer, so we used the sampling method for research. Big Bazaar has two
outlets in Nagpur city (Ramdaspeth and Vardhaman nagar), so data was collected from the consumers
visited to these outlets. 400 consumers were selected by Random Sampling Method. A Questionnaire
was prepared for consumers and this was filled up by the way of contacting the consumers and making
some queries regarding their opinion.

Samples from Nagpur city was selected by Random Sampling method. Two outlets of Big Bazaar are the
places of observations. Specific sampling method have adopted for Big Bazaar. 400 consumers from
different locality and different economic status have selected for the study. The total data collected,
after filling up the questionnaires from 400 consumers, is analysed in this chapter. The presentation is
with tabular form and its explanation and using graphic presentation. The graphic presentations are self
explanatory hence tables are not presented.

Total 400 consumers from metropolitan township of Nagpur were administered the preset purposive
but small questionnaire and the responses recorded are presented here.


Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 191

4. Analysis of the Data
Table 1: Qualification of the consumer

Education No.of
Respondent
Per cent
Bellow S.S.C. 42 10.5o
S.S.C. 138 34.50
Graduate 172 43.00
Post Graduate 44 11.00
Other 04 1.00
Total 400 100

Data was collected from various consumers. Table 1 contain the data related with the qualification of
the consumer. It is observed that most of consumers are graduates, while bellow S.S.C. and Post
Graduate consumers are less. This is because most of the consumers are from middle-income group.

Figure 1: Monthly Income of Consumer


Above chart explains the respondent from the different income groups. It shows that most of the
consumers are from lower income group (35.5%) and middle-income group (47.5%), while consumers
from upper middle and upper income group are less. The consumers from high-income group may not
be interested to do the purchases from Big Bazaar, but may be from other big malls. Some consumers
are visiting Big Bazaar only for window-shopping.





Monthaly Income of Consumers
0
20
40
60
80
100
120
140
160
Income Group
R
e
s
p
o
n
d
a
n
t
Respondent 142 90 100 20 10 13 9 8 2 2 4
Up-to
5,000
5,000 to
10,000
10,000 to
15,000
15,000 to
20,000
20,000 to
25,000
25,000 to
30,000
30,000 to
35,000
35,000 to
40,000
40,000 to
45,000
45,000 to
50,000
Above
50,000
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 192

Table 2: Purchase of Essential Goods


Essential goods Mode of
purchase
No. of
Respondent
Per cent
Oil, Sugar, Food Grain,
Cosmetics, Tooth paste, Bath
Soap, Hair oil, Clothes
Cash 206 52
Credit 32 8
Both 162 40
Total 400 100


Figure 2: Percent of Respondent Regarding Payment




The consumers are purchasing their essential goods by cash, as now a day purchases on credit basis are
less. 52% consumers are purchasing by cash as compare to the 8% on the credit. Some times the
consumers may be using both means for purchasing which may be depending on the time of the month.


Table 3 : Difference In The Price Of Cash Purchase And Credit Purchase

Difference in price No. of Respondent Percent
Yes 252 63
No 148 37
Total 400 100


Correlating with Table - 3 the consumers are prefer to purchase by cash as there is a price difference in
cash and credit purchases.63% consumers experiences that there is difference in price between cash
purchase and credit purchase but 37% customers refuses that there is any difference .






Cash
51%
Credit
8%
Both
41%
Number of Respondent for Purchases of
Essential Goods
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 193



Figure 3 : Priority To The Shops For Purchasing




Total 400 respondents opinion is recorded and figure III.6 gives the percentile. 39% Consumers
attitudes are to have purchases of groceries from near by shops due to time constraint, but it is no every
time. Some bulk purchases are being done from wholesale market. The consumable and durables may
be purchasing along with groceries from Big Bazaar (22%) and super markets (15%).


Table 4: Various Outlets Used By Consumers for Luxurious Goods


Shop No. of Respondent Per Cent
Authorised Shop 134 33
Distributor 26 7
Retail Seller 122 31
Big Bazar/ Super
Bazar
118 29
Total 400 100


This is the general observation that the consumers are purchasing luxurious goods from Authorised
Shops (33%), Retail seller (31%) or Big Bazaar (29%). Very few are approaching to Distributors (7%).


39, 39%
22, 22%
15, 15%
24, 24%
Priority to shops for purchasing
Retail shop near to home Super Market
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 194

Table 5: Purchase of Same Goods in Big Bazaar and Small Retailer

Response
No. of
Respondent
Per cent
Yes from Big Bazaar 284 71
No 116 29
Total 400 100

71% consumers purchase the same goods from Big Bazaar as well as from the small retailers, but 29%
customers did not purchases the same goods from the only from small retailers.


Table 6 : Customers Response For Low Prices

Shops
No. of
Respondent
Per cent
Retail shop 240 60
Big Bazar 160 40
Total 400 100

Above responses from the consumers are depending on the types of luxurious goods hence the
responses are varying.


Table 7 : Responses Of Consumers About Big Bazaar Give Better Services Than Small Retailer

Shops
No. of
Respondent
Per cent
Yes 356 89
No 44 11
Total 400 100

Considering the services rendered to the customers, it is found that the Big Bazaar than retail shops
gives the better services. Above table shows that 89% respondents are satisfied with the better services
from the Big Bazaar


Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 195

Table 8 : Comparison Of Services Provided By Big Bazaar And Small Retailers

Services
Big Bazaar Small Retailers
Respondents Yes No Respondents Yes No
Accepts credit card 18



Free Home delivery 96

112

Cash discount 142



Free Gifts 80



Best Quality 78

38

Free handling of good 350



Price less than MRP 175

50

Delivery within short time 237

46


Consumers responses from the above table show that the cash discount on some items may be the
reason to have purchases from Big Bazaar; the other advantages are free home delivery (24%) and free
gifts (20%). Credit card holders prefer Big Bazaar for shopping.

Consumers attitude towards the free gift is more than other services, but this is not only reason to do
the shopping in Big Bazaar. In Big Bazaar consumers can handle the items freely to check the quality and
quantity, which can be done within short time. Small retailers are not providing any such facilities, which
can be seen in above table


Table 9: Effect of advertisement of Big Bazaar on consumers

Effect
No. of
Respondent
Per cent
Yes 256 64
No 144 36
Total 400 100

In the fast going world advertisement is a mean to attract the consumers. This is very true from the
responses mention in the above table. 64% consumers purchases are influences by the advertisement
but 36% consumers are not influenced by the advertisement.
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 196

It has observed that the advertisements are influencing the students and children to have purchases of
particular brands of goods. The cost in such cases is not a criteria but the availability.


Table 10: Reason of purchasing in Big Bazaar

Reasons No. of Respondent Per Cent
Goods are cheap and best quality 130 33
Packing is attractive 62 15.5
Cash discount on purchase 50 12.5
Benefit of different scheme 92 23
Handling of the goods freely 66 16
Total 400 100

In modern days consumers behaviour is changed. Most of the consumers give preference for shopping
in Malls or Big Bazaar because of the reasons given in the Table III.25 Consumers give preference to
quality or branded goods is the main reason for the purchasing in Malls. 33% consumers are attracted
towards Big Bazaar because of this reason. They also attracted that the different schemes are always in
Big Bazaar.

Total 400 respondents give their opinion about often purchases from Big Bazaar, which is shown in
figure III.6. Difference between the two responses is meagre as most of the purchases are done at the
beginning of the month. Consumers living nearby the locality, where Big Bazaar is situated, are taking
the advantage of the different schemes introduced by Big Bazaar. But the consumers living far away
from the Big Bazaar are visited less times. Therefore 53% consumers doing their purchases often in big
bazaar but 47% consumers are not the regular customers of big bazaar. Reasons to do purchases and
not purchases from big Bazaar are presented in Figure- 6. 37.74% consumers often purchases in big
bazaar because the quality of goods is always good, 29.25% customers believe in the store, 33.01%
consumers feel that the prices are reasonable in big bazaar. 41.49% consumers feel that the quality is
not always good so they has not often purchase in big bazaar, 28.72% consumers not believe in the
store, 29.79% consumers feel that the prices are flexible.

Table 11: Thing to consider while purchasing

Thing to consider No. of Respondent Per Cent
ISI mark on goods 172 43
Agmark goods 36 9
MRP of the goods 82 21
Expiry date of the goods 70 17
Name of the company 40 10
Total 400 100
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
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It is observed that 43% consumers purchasing their goods with the ISI mark, this shows the consumers
awareness about the quality. MRP and Expiry date of the goods is also an important factor while
purchasing. 10% consumers are aware about the Brand of the goods.


Table 12: Opinion of consumer about Big Bazaar

Reasons No. of Respondent Per Cent
Enjoyment in purchasing 128 32
Reasonable cost 110 27.5
Proper quality maintained 120 30
Proper quality not maintained 42 10.5
Total 400 100

The consumers attitude to purchase from Big Bazaar is depending on the factors given in Table 12,
while only few consumers (10.5%) are not satisfied about the quality. Malls are air conditioned so
people enjoying while purchasing and all things related with the living available under one roof.


Table 13: Steps taken by consumer for goods/items are improper or inferior

Items No. of Respondent Per Cent
Consumer Protection Act 110 28
Lodging complaint in Consumer
Forum Cell
140 35
Return the goods to Mall 76 19
Dont know what to do 74 18
Total 400 100

Steps taken by consumers are given above. It has observed that 63 per cent consumers are aware about
the consumer protection, may in terms of Act or Forum Cell. Very few consumers do not know about it.
Some (19%) consumers are returning the goods to the malls.



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Table 14: The Mode of Purchasing and its Reasons

Table 14: Mode I Purchasing from Super or Big Bazaar

Reasons No. of
Respondent
Goods available in proper quantity 102
Goods and Brand as per demand 118
Self purchasing is convenient 128
No chance for Deception 140
Knowledge about availability of goods while
selection
120
Knowledge of difference in prices of goods of
different brand
94
Others 76
Total 778

Variable responses are obtained from the customers. It is found from the questioner that the customers
have given the multiple reasons for their choice as Big Bazaar. As the responses are mixed it is
impossible to draw the concrete result.

Table 14: Mode II --- Purchasing from retail shop near the house

Reasons No. of
Respondent
Purchase of goods at any time 84
No unconvinced for purchasing 74
No deception 64
Easy exchange of goods 68
Others 28
Total 318

Table 14: Mode III --- Home-Delivery from Super / Big Bazaar

Reasons No. of
Respondent
due to lack of time 50
Convenience 70
Payment by cheque or credit card
also available
112
Others 16
Total 248

The data analysis carried out shows that all-in-one stores, with everything from groceries and vegetables
to footwear, clothes, cosmetics, furnishings and electrical items available under one roof, a growing
middle class with higher disposable incomes is heading for the Big Bazaar in droves. For some, it is a way
Proceeding of the International Conference on Social Science Research, ICSSR 2013 (e-ISBN 978-967-
11768-1-8). 4-5 June 2013, Penang, MALAYSIA. Organized by WorldConferences.net 199

to chill out on movies and food in the added comfort of a fully air-conditioned space. In short, it is a
living room for most of them. Introduction of organized retailing has not been able to replace
traditional markets, which are still popular among the pocket conscious people, but has definitely added
a new adventure to the shopping experience.

5. CONCLUSION

There is no doubt the world is changing and consumer behaviour is evolving faster than what would
have normally expected. Consumers and producers are brought together electronically in ways we have
never before experienced. One of the most exciting aspects of the new digital world is that consumers
can interact directly with other people who live around the block or around the people.

5(a). Impact of Organized Retailing

5(a).1 Socio Economic Impact

Livelihood of millions of small and big shopkeepers will be uprooted to setup the chain of corporation
owned retail. After farming, retailing is Indias major occupation. According to Census 2001, there were
269 lack main and 24 lack marginal workers in wholesale and retail trade. Nearly 3 crore people depends
on trade. 1.1 crore in urban and 1.9 crore in rural areas. The growth of corporate retail will take place by
destroying the self-organised small retail in India. Reliance and Wal-Mart are presenting themselves as
friends and liberators of farmers and they refer to small traders as middleman, as if they are not giant
middleman. At least in the case of small traders, farmers have a choice in the terms of whom to sell.
Reliance and Wal-Mart are monopolistic buyers who in due course of time will drive down procurement
prices of agriculture and manufactured products. They claim that they are paying more to the farmers,
but the truth is that they are at present procuring from the existing Mandis (markets) all across the
nation, and not straight from the farmers, so there is no question of paying better returns to the
farmers.

Benefits of organised retailing to consumer and society can be summarised as,
1. Beautiful interiors with entertainment facility
2. Extremely pleasing ambience
3. Mall offers you much more than just shopping
4. Huge gaming zone where kids can utilize the time at the optimum
5. 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.
6. Generates employment opportunities, direct and indirect, for thousands of people.

Considering the impact of Big Bazaar on the consumers retailers are rendering the following services;
1. Keeping the stock of the different verities of goods.
2. Applying various methods of demand creation.
3. Helping in the effective distribution of consumer goods.
4. Extending credit facilities to the consumers.
5. Providing many personal services to the consumers.
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6. Providing essential data and information to the manufacturers about the trend in marketing
changes in fashion, tests, etc.
7. Making available the good according to the season.
8. Gives proper advice to the customer.

5(a) 2. Effects of Organized retailing in India
1. All-in-one stores. With everything from groceries and vegetables to footwear, clothes, cosmetics,
furnishings and electrical items available under one roof, a growing middle class with higher disposable
incomes is heading for the malls in droves.
2. For some, it is a way to chill out on movies and food in the added comfort of a fully air-conditioned
space. In short, it is a living room for most of them.
3. On festivals, the malls can undoubtedly compete with a meal what with the carnival-like atmosphere
and no elbow room for the visitors.
4. The anchors that first pull the crowds here and at other malls all over the country are as varied as
they come. There are the US and European chains such as McDonalds, Lacoste, Pizza Hut, Benetton,
Subway, Marks & Spencer and Mango. Their success has spawned the emergence of successful Indian
chains such as Pantaloon, Globus, Shoppers Stop, Giant, Lifestyle and Big Bazaar. Stores named after
popular branded merchandise also act as effective anchors
5. Introduction of organized retailing has not been able to replace traditional markets, which are still
popular among the pocket conscious people, but has definitely added a new adventure to the shopping
experience.

6. LIMITATIONS OF THE STUDY

The consumers are the universe of the research. It is very difficult to collect information from every
consumer, so we used the sampling method for research. Big Bazaar has two outlet in Nagpur city
(Ramdaspeth and Vardhamannagar ) so data was collected from the consumers visited to these outlet.
400 consumers were selected by Random Sampling Method. A Questionnaire was prepared for
consumers and this was filled up by the way of contacting the consumers and making some queries
regarding their opinion.


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