Recent Trend of Retail Business in
Chhattisgarh: With special reference to Bilaspur,
Chhattisgarh
Dr. Shobhit Bajpayee1* and Swati Tiwari2
*Corresponding Author E-mail:
ABSTRACT:
The study throws light on how retailers are
adopting organized retail formats to keep tempo with changing taste of
customers shopping behaviors. The organised retail
format is generally taken as those stores located in the malls. The market is
growing rapidly and changes are occurring across the industry, which has
positioned itself as an attractive destination.
The study concludes how the various factors
affect the store level shopping decision. The study is based on primary data
collected from retailers through structured questionnaire. The objective of the
study is to draw an idea about trends of retail business in C.G. Bilaspur city is one of the important city of the state,
hence selected for sample collection. A
questionnaire was designed to investigate customer’s preference of shopping
decisions regarding various factors of stores. The data was collected from 20
retailers of Bilaspur (C.G.). Specifically grocery
some of the grocery items are included in the study. Inclusion of whole range
of grocery was not possible. Respondents
were asked to explain their view of store on the basis of various factors.
Variables are collected from the description given by retailers (respondents).
The main factors on which retailers decide to go for particular type of retail
store are Price of goods and commodity, Sales staff, Quality and variety of
products, Other Services given by retailers.
It was found from the study that, customers
are more comfortable in shopping from large format retailers than traditional
retail stores. Traditional retailers are
facing tough competition with large format retail stores in small cities.
KEYWORDS: Large format retailer,
traditional retailers, preference, shopping trends.
Retailing is the biggest emerging private sector industry in the
world; it is one of the leading drivers of economy. India is experiencing an
exceptional consumption explosion. Many malls and hyper markets are opening day
by day. Retail industry in India and in Chhattisgarh is going through great
changes. Unorganized retail is taking shape of organized retail at a faster
rate. There are many factors supporting this change like, change in income of
consumers, availability of multinational brands, huge population, large number
of customers belonging to the age group of 18- 55 years etc. The average
consumers today are having more amount of money at their disposal, younger and
more inspirational in his or her needs than ever before.
Socio- demographic changes such as increased number of
dual-income, single-parent and technology-familiar households, have
significantly altered shoppers’ expectations, demands and spending pattern
during their traditional shopping experience(Kim,2002). A range of modern
retailers are attempting to serve the need of the new Indian consumer who now
value convenience and choice on a par with getting value for their hard earned
money (KMPG, 2006).The globally renowned consultancy firm A. T . Kearney (2004), has rated India as the
most attractive emerging retail market for three years in a row.
There are various types of retail stores and it is hard to catagorise it in any particular format. Over the years
retailing has gone through many changes and experienced tough competition. All
such changes are followed by retailers just to satisfy the demands of
consumers. New catagories have combined which makes
classification difficult (Berman &Evans, 1995). The retail industry in
India is divided into organized and unorganized sector. Organized retailing
refers to trading activities undertaken by licensed retailers; means registered
for sales tax, income tax etc. organized retailers also includes those super
markets which are supported by big corporate houses. Unorganized retailing is
the conventional format of small investment retail shops….generally known as
Mom and Pop stores, kirana shops, general stores etc.
A report of Centre for Policy Alternatives {Guruswamy,
et.al., 2005} suggests unorganised retailing is by
far the prevalent form of trade in India – constituting 98% of total trade,
while organized trade accounts only for the remaining 2%.
Chhattisgarh is newly formed state and is a growing child of only
13 years. Rapid development is experienced by Chhattisgarh in the development
of retail trade. Since inception of Chhattisgarh as state, rapid development is
observed in apparels, mobiles, electronics, groceries and furniture market.
Many new Malls are opening day by day with the expansion of cities. It is
observed that huge footfalls are seen in malls at the weekends. It is necessary
to find out the current retail trend in Chhattisgarh. Although malls has been a
noteworthy trend setter of foreign culture but very little research on malls is
found in Chhattisgarh, in educational ground. Study is conducted on grocery
stores located in malls. Especially those factors which influence customers to
shop in malls are tried to bring up. Bilaspur city of
Chhattisgarh is taken into study to carry on the research work.
REVIEW
OF LITERATURE:
Bell, Ho and Tang (1998) found that location no longer explain
most of the variance in store choice decisions. Rather store choice decisions
seems to be consistent with a model where consumers optimize their total
shopping costs, effort to access the store location being one component of
their fixed cost of shopping. Traill (2006) analysed the rapid spread of supermarkets in developing and
middle-income countries and forecasted its continuation. Today, suburban
sprawl, greater driving distances, the appearance of new warehouse retail
formats that are often located in large spaces away from residential areas, and
online retailing have made location somewhat less central as a store choice
criterion (Achabal, Gorr, Mahajan 1982). There are various measures of shopping
attitudes. For instance, Urbany el. al (1998) and Ailawadi et al (2001) have specifically developed a scale
for measuring attitude towards grocery shopping. Childers et al (2001)
developed a scale to measure attitude towards shopping that utilizes a
technological device. In the Indian context, in a study by Sinha
(2003) is available on the subject of shopping styles. In his study involving
300 respondents, Sinha suggests that the average
Indian shopper seeks emotional value more than functional value of shopping.
Several consumers’ studies have studied the “fun side” of shopping as opposed
to “shopping as a work” (Babin et al 2005; Batra and Ahtola, 1991). Most of
these studies have described shopping either in terms of its utilitarian aspects
or in terms of its hedonic value. Kumar and Leone (1988) and Walters (1991)
find a significant impact of promotions on stores switching traffic. However,
it is unlikely that consumers would keep track of weekly promotion on a
multitude of catagories in all the stores in their
neighborhood. Bucklin and Lattin(1992) show that
retail promotions in any one category do not directly influence a consumer’s
store choice decision, but they indirectly affect where the category is
purchased. Baker et al.(2002) find that store environment factors, particularly
physical design perceptions, significantly affect consumers’ perceptions of
merchandise price, merchandise quality, and employee service quality.
OBJECTIVE
OF THE STUDY:
1. To study the inclination of
customers towards the different types of formats as established by retailers.
2. To study whether different
retailers use their own recognized items or manufactures brands to give the
better services to customers for shopping.
3. To see the response of the
customers towards malls which are now opening up in the tier III cities.
HYPOTHESIS:
There is no remarkable difference between retailers dealing in
large-format outlets and traditional counters in background of following five
points: (1) quality and variety of products, (2) services given by retailers
(3) price of products, (4) sales staff, (5) other factors.
RESEARCH
METHODOLOGY:
Primary data was collected from
retailers. Questionnaire was supplied to 20 such retailers. Retailers are given
questionnaire to be filled up. It was designed to collect information from
retailer regarding services, quality and variety, price of product, sales staff
and other factors like: free home delivery exchange of goods, credit facility,
sales on approval basis. The questionnaire was provided to the retailers
independently. A sample size of 20 retailers was taken. List of all the
renowned retailers of Bilaspur was obtained so as to
select 20 retailers from this list representing different scales of outlets.
All the 20 retailers are dealing in grocery business. There are some retail
shops deal in groceries and other products and commodities. Of such stores only
grocery department is taken into study. They were 5 big multi brands stores
like Big bazaar, Mahima big bazaar, Easydays, Yash super bazaar, Apna super bazaar. 5 traditional grocery retailers from the
core market area, 5 specialty store owners, 5 near-by shops from different
localities (from high to low society). The size of these retail shops was from
500 sq.ft to 20000 sq.ft.
ANALYSIS
AND INTERPRETATION:
For analyzing the data various
percentage were computed. Taking five factors for study viz:
A1 – Quality and Variety of
Goods
A2 – Service given by retailers
A3 – Price of Product
A4 – Sales Staff
A5 – Other services
Out of the above factors,
reasonable and fair price is the factor which is always preferred by the
shoppers.
Table
1: Popularity-wise retail format
|
Types
of format |
No.
of respondents |
Percentage |
|
Large
retail format |
8 |
40 |
|
Traditional
retailers |
6 |
30 |
|
Near-by
shops |
2 |
10 |
|
Excusive
(specialty) counters |
4 |
20 |
|
No
response |
0 |
0 |
It indicates that most preferred
type of format on the popularity basis is large format retail stores located
either in malls or separately established. Traditional stores of core market
area are next to large format stores in the scale of popularity.
Table 2: Retailers preference toward Store Display
Management
|
Types
of display management |
No.
of respondents |
Percentage |
|
Window
dressing |
9 |
45 |
|
Evenness
in goods arrangement |
5 |
25 |
|
Brand
wise display |
3 |
15 |
|
Any
other |
3 |
15 |
Window dressing is the most
successful way of attracting customers to the store.
Table 3: Customer’s loyalty towards
retailer
|
Factors |
No.
of respondents |
Percentage |
|
A2-Quality
and Variety of goods |
10 |
50 |
|
A3-Services
by retailers |
3 |
20 |
|
A4-Sales
staff of store |
6 |
30 |
|
A5-Other
factors |
1 |
10 |
Fair price is the factor for
which 98% respondent agreed, regarding customers loyalty for any retail store.
Hence it is not shown in the table.
DISCUSSION:
1)
Preference of
customer for large format store than traditional stores (table 1) : -
It has
concluded from the study that, large format
stores are more preferred by customers than traditional stores.
Customers preferlarge format stores on the basis of factors such as quality and
variety of goods, services provided by stores, sales staff and other
services.After large format stores most preferred store is traditional shops.
Hypothesis is not been supported.
2)
Store display
management by retailers (table 2)
Out of the
various ways of presentation of goods
and commodities, window dressing is the most preferred and successful way of
getting attraction of customers. Window dressing is decoratively done in large
stores. And the next most desirous method of attracting customers attention is
arrangement of alike items at one place. Levy and Weitz (1998),opined that
merchandise presentation is a key issue in store management.
3)
Factors
attracting customers to stores (table 3)
The results
provides that price, quality and variety of goods and commodity is a vital
factor, which attracts customers to the stores. The behaviour of sales staff towards customers has noteworthy effect
on customers as per retailers. Large format retailers are paying more attention
on improving the skills of sales staff to leave an unfogettable impression in
the minds of the shoppers. Price has been found unexpectedly the frail cause in
this matter .
4)
RetaileRs
opinion regarding private brand Vs manufactures brand.(table 4)
From the study
it has been concluded that customers do not compromise with brand in
commodities like oil/ ghee, tea/coffee, soap/detergent. They wanted popular
brands instead of retailer’s brand. Where as in case of cereals/pulses and dry
fruits customers are ready to purchase retailer’s brand.
CONCLUSION:
The focus of study is on
customer’s preference towards different retail formats. It has been concluded
from the above study that, large format retail business is rapidly catching
pace in bilaspur city. As per retailers, it is giving
close competition to the traditional retailers in the market.
Preference of retail stores in
case of grocery, by customers not only depends upon the factors discussed
above. It also depends upon some other factors like distance of customer’s
residence from retail store, conveyance available to customer; particular age
group a customer belongs to, customers’ retro relations with retailers. The
impact of such variable has not been considered in this study. The results are
helpful for retailers for classification and synchronization of goods which
affects customers shopping attitude. It is also concluded from the study that
customers enjoy shopping when they are given opportunities to access store by
their own.
Table 4: Brand preferred by customers
|
Percentage of contribution |
Tea/ Coffee |
Oil/ghee |
Cereals/ pulses |
Soap/ detergent |
Dry fruits |
|||||
|
|
R |
M |
R |
M |
R |
M |
R |
M |
R |
M |
|
Up to 25% |
20 |
80 |
15 |
85 |
70 |
30 |
15 |
85 |
80 |
20 |
|
26 – 50 % |
35 |
65 |
10 |
90 |
80 |
20 |
10 |
90 |
70 |
30 |
|
51 – 75% |
40 |
60 |
12 |
88 |
85 |
15 |
20 |
80 |
65 |
35 |
|
76 –100 % |
25 |
75 |
10 |
90 |
80 |
20 |
25 |
75 |
75 |
25 |
R stands for retail brand, M stands for manufacturer brand.
This study includes only
selected grocery items and result may not apply to other products. It is
suggested to large format retailers to provide more opportunities of research
in this field. They should try to convert maximum footfall into customers.
Large format retailers are suggested to offer more discounts and combo pack
schemes to customers.
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Received on 19.01.2014 Modified on 01.02.2014
Accepted on 11.02.2014 © A&V Publication all right reserved
Asian J. Management 5(2):
April-June, 2014 page 261-264