ANALYSIS Retailer

8/6/2019 ANALYSIS Retailer

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ANALYSIS

DATA ANALYSIS PREPARATION

RETAILERS

Do you agree that there is trend towards organised retail in India?

40

10

0

5

10

15

20

25

30

35

40

YES NO

Do you think large organized retailers would be controlling a substantial portion

of the retail trade?

40

10

0

5

10

15

20

25

30

35

40

YES NO

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How do you perceive the development of Shopping malls in Delhi and NCR

Region?

45

5

0

5

10

15

20

25

30

35

4045

Healthy Trend Unhealthy Trend

What according to you is the purpose of the customers visit to the Shopping

Malls?

5

8

4550

10

38

4542

5

40

12

0

10

20

30

40

50

Yes No

Food and Beverages Music and Entertainment

Life style products Latest Fashion and Clothing

Choosing gifts Consumer Durable

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What according to you are the reasons for buying at that particular shopping

mall (Please rank them in order of preference?)

1

5

2

3

4

0

1

2

3

4

5

Nearness to house/locality Good range availableFriendly shopkeeper/ good relations Good ambienceGood bargain

Rank (1-6) the following factors, which influence the customer purchase decision

at a shopping mall.

5

6

4

3

2

1

0

2

4

6

Price Brand

Location of Mall Parking At Outlet/Mall

Appealing Ambience 3-D Column 6

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Do shopping malls have the following advantages?

32

48

32

50

39

50

18

2

18

0

11

00

5

10

15

20

25

30

3540

45

50

Yes No

Time Factor

Discount s chemes

Adequate parking space

Individual sections for all categoriesGood shopping experience in better place with convenience and variety.

Organized shops with international ambience &air condition all-around.

Do you think India has a potential in the Retail industry?

50

0

0

10

20

30

40

50

YES NO

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Do you think that organized retail will provide many opportunities both to existing

players as well as new entrants?

50

0

0

10

20

30

40

50

YES NO

Do you think India is prepared for open competition?

50

0

0

10

20

30

40

50

YES NO

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5% 7%7%

81%

Self Motivation

Advertisements

Promotional

Activities

Friends &

Relatives

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RESEARCH FINDINGS

Findings in Metropolitan Mall: - Consumers in mall were mostly in the age

group of 20 25 yrs and 25 - 35. They came to the mall mainly for the

entertainment in PVR and shopping in the Shoppers Stops. Consumers in mall

were all age group and almost all were brand oriented regarding the products.

The average spending was in the mall between 500 2500 and more then

Rs.2500. The annual holds income of the mall is between Rs.2-10 Lakhs.

Consumers in shopping mall accepted that Metropolitan Mall is the best shopping

mall on M.G.Road in Gurgaon

Consumer Buying Behavior in Metropolitan Mall.1. Consumers usually spend their money on Food, entertainment, Apparels,

and sports & footwear.

2. Consumers in the age group of below 20 25 yrs and 25 35 were in the

maximum numbers.

3. Consumers in Mall spend money between 500 2500 and more then Rs.

2500.

4. Consumers in mall come to the mall either once in a week or twice in a

week.

5. Consumers in Mall are either students or in services or professionals in

the maximum numbers.

Brand perception in Metropolitan Mall.

1. Consumers in mall mostly know it as PVR, Shoppers Stop and

Metropolitan Mall.

2. Consumers in mall are mostly Brand oriented regarding any thing.

3. Consumers accept that this mall is the best place for fun & entertainment

and it is a good food joint.

4. Consumers mostly motivates to come to the shopping mall by friends and

relatives.

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Findings in Sahara Mall: -

Consumers in Sahara mall were mostly in the age group among 25- 35 and 35

and above. In consumers, the numbers of Homemakers and Services and

professionals were in the maximum numbers. Consumer visits the mall generally

once in a week and twice in a month. Consumers come to the mall for the

households shopping, eating and purchase for the apparels. Consumers are

influenced by the Discounting schemes.The annual house holds income between

2 10 lakhs.

Consumer Buying Behavior In Sahara Mall: -

1. Consumers in mall come for the house holds shopping.

2. Consumers which come to the mall are mostly homemakers and of

service class.

3. According to them Sahara Mall is the best for the middle class.

Consumer Brand Perception in Sahara Mall

1. As a brand, the Sahara Mall is famous mall for the middle class due to the

Big Bazaar.

2. Big Bazaar, Pantaloon, and Haldiram are the most popular among the

consumers

3. The most popular brand among them is Big Bazaar.

4. Sales and discount schemes attracts them to come to the mall.

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Findings in MGF Plaza: -

In MGF Plaza the consumers were in the age group of 25-35 yrs and 35 above

mostly.

Consumers were homemakers, businesspersons and professionals. They come

for the mall for homefunishing items and electronics items. They spend in the

shopping mall more then Rs. 2500 and above. Consumers in mall were brand

oriented only for purchase of these above mentioned products.

Consumer Buying Behavior in MGF Plaza: -

1. Consumers come for the purchase of branded electronic items and

home furnishing items.

2. Consumers in the mall were the only serious buyers and they dont

come for the entertainment.

3. Consumers spend the money more than Rs. 2500

Consumer Brand Perception: -

1. The MGF Arcus brand attracts consumers in the mall.

2. Consumers also come there due to the Branded shops like Electrolux,

Philps and LG electronics.

3. As a brand in shopping malls, consumers said that Plaza is best for all

necessary home items like electronics and furniture.

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Research findings of 745 consumers analysis

1. Metropolitan Mall is very famous in the age group of consumers of 20

35 yrs.

2. Due to PVR and ambience, it is the best place for entertainment and fun.

3. Due to good food joints, Metropolitan Mall is the best place for eating.

4. Sahara mall is very famous among the homemakers and service class

consumers due to Big Bazaar.

5. Shoppers stop in Metropolitan Mall is more famous than the Pantaloon in

Sahara mall among the youths.

6. MGF Plaza is only famous for the home furnishing and electronic items.

7. In MGF Plaza, only very few youths come as compared to Metropolitan

Mall and Sahara mall.

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CONCLUSION

The organized retail in India is expected to cross INR 1000 billion mark by 2010

and around INR 200 billion investments are in the pipeline. The size of the

organized retailing market stood at Rs. 280 billion in 2004, thereby, making up amere 3% of the total retailing market. Moving forward, organized retailing is

projected to grow at the rate of 25%-30% p.a. and is estimated to reach an

astounding INR 1000 billion by 2010. Further, its contribution to total retailing

sales is likely to rise to 9% by the end of the decade. Currently the fashion sector

in India commands a lion's share in the country's organised retail pie. This is in

line with the retail evolution in other parts of the world, where fashion led the

retail development in the early stages of evolution and was followed by other

categories like Food & Grocery, Durables, etc. The last few years have seen

rapid transformation in many areas and setting scalable and profitable retail

models across categories. Indian consumers are rapidly evolving and accepting

modern formats overwhelmingly. Retail Space is no more a constraint for growth.

India is on the radar of Global Retailers and suppliers / brands world-wide are

willing to partner with retailers here. Further, large Indian corporate groups like

Tata, Reliance, Raheja, ITC, Bombay Dyeing, Murugappa & Piramal Groups etc

and also foreign investors and private equity players are firming up plans to

identify investment opportunities in the Indian retail sector. The quantum of

investments is likely to sky-rocket as the inherent attractiveness of the segment

lures more and more investors to earn large profits. Investments into the sector

are estimated at INR 20 25 billion in the next 2-3 years, and over INR 200

billion by end of 2010.

Stocks in the retail sector are also becoming increasingly attractive from an

investor's point of view. Successful development of value based concepts as well

as development of retail space in smaller cities and towns shall drive the

organized retail into the next levels of cities. Retailers have responded to this

phenomenon by introducing contemporary retail formats such as hypermarkets

and supermarkets in the new pockets of growth. Prominent tier-II' cities and

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towns, which are witnessing a pick-up in activity, include Surat, Lucknow, Dehra

Dun, Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar,

Varanasi and Ludhiana among others.

With consumption in metros already being exploited, manufacturers and retailersof products such as personal computers, mobile phones, automobiles, consumer

durables, financial services etc are increasingly targeting consumers in tier II

cities and towns. In addition, petro-retailing efforts of petroleum giants scattered

through out the country's landscape have also ensured that smaller towns are

also exposed to modern retailing formats.

On the supply side, mall development activity in the small towns is also picking

up at a rapid pace, thereby, creating quality space for retailers to fulfill their

aggressive expansion plans. Thus, the retail boom', 85% of which has so far

been concentrated in the metros is beginning to percolate down to smaller cities

and towns. The contribution of these tier-II cities to total organized retailing sales

is expected to grow to 20-25%.

Favorable demographic and psychographic changes relating to India's consumer

class, international exposure, availability of increasing quality retail space, wider

availability of products and brand communication are some of the factors that are

driving the retail in India. Over the last few years, many international retailers

have entered the Indian market on the strength of rising affluence levels of the

young Indian population along with the heightened awareness of global brands

and international shopping experiences and the increased availability of retail

real estate pace.

Development of India as a sourcing hub shall further make India as an attractive

retail opportunity for the global retailers. Retailers like Wal-Mart, GAP, Tesco, JC

Penney, H&M, Karstadt-Quelle etc stepping up their sourcing requirements from

India and moving from third-party buying offices to establishing their own wholly

owned / wholly managed sourcing & buying offices shall further make India as an

attractive retail opportunity for the global players. Buying volumes for many of

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these players are already in the range of INR 10-20 billion per year, with reported

plans to step up to INR 100-150 billion within the next 3-4 years.

Manufacturers in industries such as FMCG, consumer durables, paints etc are

waking up to the growing clout of the retailers as a shift in bargaining power fromthe former to the latter becomes more discernible. Already, a number of

manufacturers in India, in line with trends in developed markets, have set up

dedicated units to service the retail channel. Also, instead of viewing retailers

with suspicion, or as a necessary evil' as was the case earlier, manufacturers

are beginning to acknowledge them as channel members to be partnered with for

providing solutions to the end-consumer more effectively.

INDIA RETAIL BY 2006-07

50 million sq ft of quality space under development

7 major cities to account for 41 million sq ft development

300 malls, shopping centres and multiplexes under construction

To open 35 hypermarkets, 325 large department stores, 1500

supermarkets and over 10,000 new outlets

To add US $ 10 billion of business to organised retail.

The food and personal care retail market in India is currently valued at about 10

billion US dollars and is expected to grow by 5-7% year on year according to

reports by A.T.Kearney. The average Indian family spends about 31% of its

income on food and this is expected to grow to about 36% in the near future. This

scenario obviously has led a number of players to think about opening up retail

chains that cater to food and personal care. Even Walmart and other global

players are thinking of making a foray into the Indian market.

For a long period of time the debate has been whether the large retail players

would be able to dislodge todays Mom and Pop stores which currently service

the food and personal care need of Indians.

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The Mom and Pop stores have distinct advantages over the other players in

terms of low overheads and avoidance of sales tax. The introduction of VAT in

the Indian market would nullify the tax advantage to a certain extent but there is

another innate advantage that these stores enjoy. Various studies conducted by

institutes such as the Department of Economics, University of Connecticut, have

shown that the most important factor for a retail store is distance. The Mom and

Pop stores being the nearest to the consumers home have therefore remained

as the first choice for food and personal care. Critics argue that with the

emerging socio-economic trends in India such as the phenomenon of increase in

women joining the work force, brand consciousness, faster nuclearization of

families and a fast-paced life would lead to Mom and Pop stores being dislodged

by bigger stores.

Another factor of importance here is technology. Critics argue that the bigger

stores would be able to bring in better efficiencies and therefore would be able to

provide better variety and lower prices. The fact however remains that the high

real estate cost and other existing inefficiencies in the Indian market do not allow

for cost efficiencies. Such efficiencies can only come if the entire market

structure from the supplier to the end consumer becomes integrated into one.

Even if the retailers have the right integrating technology it mitigates costinefficiencies only to a certain extent as the vendor and transporters still operate

inefficiently.

Analysts have compared the socio-economic changes in India to the ones that

occurred in the US and they argue that the way malls and big retailers became a

common phenomenon in the US the same would happen in India. The fact

however remains that while the socio-economic changes have taken time to

trickle down the technological changes especially in terms of internet etc. havebeen faster, which therefore may lead to a totally new scenario in India.

While it is correct that a large population of India does not have Internet access

etc. but at the same time it is also true that the socio-economic changes we

talked about have also only come about largely in the middle and upper class.

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Therefore a scenario might emerge where India bypasses the stage of big

retailers in the food and personal care segment. The socio-economic changes

would take time. It might be possible that the technological changes take place

faster than the sociological changes and if that happens then the market could be

served directly through the net and through e-tailing. The changing face of the

food and personal care market has negated the need of a consumer to actually

be there physically. All items including pulses etc. are packed and therefore do

not require physical inspection. Even vegetables and dairy items are coming in

packs therefore there is no question of checking these items physically.

Therefore if the technological changes are faster, then India might move into e-

tailing for the food and personal care market without having any major retailer in

this segment.

This could be true also for other products where physical presence is not

required and where the goods are standardized commodities.

So the next time someone tells you that he or she is very excited about Wal*mart

coming to India, think about the race of changes.

With new shopping-malls having become operational in many cities across India,

it is interesting to observe how the shopping-behaviour of consumers in the

vicinity of these malls has changed and thereby draw some lessons that could be

of some use to the developers of hundreds of new malls that are currently under

planning or construction across India.

It is still not too long ago that the operators of a particular new shopping-mall at

Mumbai had to contemplate restricting entries of visitors by imposing conditions

that such entry was limited to those having mobile phones or credit cards a.k.a.,

the income tax department's one in six criterion for filing a tax return.

Delhi and Gurgaon saw some of the initial mall developers become parking lot

operators as well by charging exorbitant parking fees from all visitors. Rentals,

rather than going down with more malls coming up, started moving up even as

the quality of services within the malls started deteriorating. In this context,

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therefore, it is somewhat surprising that questions are already being asked, albeit

in whispers, whether shopping-malls can survive and operate profitably in India.

Many tenants lament about the low percentage of conversions from those who

walk through the portals of these malls, and casual observers routinely findshopping-bags missing in the hands of the supposed shoppers visiting these

malls as an indicator that the initial euphoria about shopping in the malls is

already on the wane and that consumers are reverting to their traditional

shopping-destinations.

There are some myths and some realities about these observations. It is, indeed,

true that many Indian retailer tenants in the shopping-malls have now become

familiar with terms such as footfalls, conversions, average transaction value, and

repeat customers.

However, it is also true that for many of these tenants, it has been their first

expansion beyond their traditional high street locations and hence, they have

expectations born more out of hype than by any real experience.

For instance, I would like to speculate that daily or weekend footfalls in traditional

shopping high streets of India such as South Extension and Karol Bagh in Delhi,

Linking Road in Mumbai, Commercial Street or Brigade Road in Bangalore, or forthat matter, T Nagar or Anna Nagar in Chennai would easily exceed the more

carefully estimated (or measured) footfalls in any of the malls in the country.

Similarly, if one were to carefully observe the ratio of visitors having "shopping-

bags" in their hands in these high streets versus those in the new malls, it is not

going to be very different. As far as individual retailers' performance is

concerned, even in the traditional markets some established retailers do

extraordinarily well while many other shops see a change of "shop boards" veryfrequently.

There is no reason to believe that it should be any different in a shopping-mall,

which, in any case, is fundamentally no different from a traditional shopping-high

street, except that a mall has a more modern and compact structure, in most

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cases a single roof. Local retailer tenants who move into a new mall for the first

time should not expect any customer loyalty being built up overnight.

For example, in Delhi's case, it is possible for a retailer to be very successful in

Karol Bagh or Lajpat Nagar shopping-districts but he would have to start fromscratch in terms of building up brand recognition as well as generating customer

conversions in a new location such as Gurgaon or Noida. In contrast, national

retailers such as Shoppers Stop, or national exclusive brand outlets such as

those operated by Madura Garments, Arvind Brands, Raymond, and Zodiac,

have national brand recognition and hence the performance of their outlets in

shopping-malls is usually comparable (or even better) with their outlets in

traditional shopping-markets.

Secondly, with most mall developers having blindly opted for a questionable

winning formula of shopping, entertainment (read Multiplex) and food (read

MacDonald's/Pizza Hut as the main draws), it is no surprise to find many mall

visitors having no shopping-bags since they have been enticed to visit only for

watching a movie and/or having a burger or a pizza or even a cup of coffee. The

situation pertaining to shopping, for instance, would be no different in locations

such as Saket or Vasant Vihar in Delhi, which are better known for their movie

theatres and eating options. What is the lesson for mall developers and for the

prospective tenants? For the developers, the critical lesson is to invest some

quality effort in understanding the shopping-needs of customers in their targeted

"catchment" areas and then build a carefully planned portfolio of retail options

that can meet the needs of these targeted customers.

In many instances, customers would only need shopping and eating options

rather than a multiplex as well. The developers also have to understand that their

retailer tenants have to earn a profit and hence the rentals have to be aligned to

what the retail business can bear (usually 5-8 per cent of gross revenues). Mall

developers also have to create distinctive identities for their specific malls, much

like the identities that have developed over time for major shopping-high streets

in various cities in the country.

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Their work is not done just when the mall has been commissioned! As for the

would-be retailer tenants, it is important to realise that merely moving into a mall

does not guarantee business for them. They have to work as hard to draw

consumers to their own stores once the latter have entered the mall, and then

have the right value proposition for them to get converted into customers, and

then become repeat customers.

The final, obvious, conclusion is that mall developers have to invest in getting a

better understanding about the retail business, while retailers have to get a better

understanding about the dynamics of operating at a new location.

1. Survey among the 265 consumers regarding the consumer buying

behavior and consumer brand perception in Metropolitan Mall reveals that

consumers came for fun & entertainment, shopping for the branded

apparels, sportswear and mostly for the food. Most of the consumers are

in the age group of 20 35 yrs. The annual income of the consumers is

between Rs. 2- 10 lakhs. PVR and Shoppers stop were very famous

among consumers.

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behavior and consumer brand perception in Sahara mall depicts that

consumers come for the purchasing of households and shopping in the

pantaloons. Consumers are mainly in the age group of 25 35 yrs and

more then 35 yrs. Big Bazaar is the main attraction among the consumers.


behavior and brand perception in MGF Plaza reveals that consumers are

mostly in the age group between 30 35 yrs and above. They come here

for the home furnishing and other necessary electronics items for home.

Arcus is the main attraction among consumers.

RECOMMENDATIONS

1. For the Metropolitan Mall: - This is a complete mall for family , fun and

entertainment. So it is advised to increase the numbers of consumers in

the mall. Open some more food joints in the mall and start some indoor

games like snooker for good time pass in the mall. Start disco for youths

and do more promotional activities for young generation like fashion

shows etc.

2. For the Sahara Mall: - It is not like a shopping mall. It is just like a Big

Bazaar store especially for the middle class and place mostly for the

consumers in the age group of 35 and above. So promote other stores

also in shopping mall. Make it a complete shopping mall. Open some

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places like PVR, Waves, Adlabs etc. in the mall for movies and

entertainment by which it can also attract the young generation. Make

some proper sitting arrangements for the customers especially for the old

age customers.

3. For the MGF Plaza: - This is a complete place for the home furnishing

items and necessary electronic items. So open some more branded stores

for these items.It can be used as a place for the property fairs and

homefurnishing items fair.

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REFERENCES

Retail Survey: A.T. Kearney (2003-2004), Retail Survey: KSA Technopak

(2004-2006)

Supermarket Key Attributes and Location Decisions by Daniel Serra

BOOKS

Fundamental of Marketing; William J. Stanton

Marketing Management; Kotler (Philip)

Creating Customer value; Gopal K. Gureja

Marketing Management; Saxena

Marketing Planning for Services; Malcolm McDonald,

Adrain Payne

MAGAZINE

Business India: The Magazine of the Corporate

World; December, 2006.

JOURNAL

Journal of Marketing; November 2005

WEBSITES

www.google.com

www.businessworld.com

www.saharaindia.com

www.mgfindia.com

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ANNEXURES

1. QUESTIONNAIRE FOR CONSUMER BUYING

BEHAVIOUR IN SHOPPING MALLS.

2. QUESTIONNAIRE FOR RETAILERS.

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QUESTIONNAIRE FOR CUSTOMERS

Dear Sir/Madam I am conducting a Survey on Consumer Behavior and

Experience about Shopping Malls: A comparative study. May I have five minutes

of yours to help me fill up the Questionnaire?

Please specify your profile:

Name:____________________________________________________

Profession: _______________________________________________

Question 1: What is the Annual household income of your family?

(a) Below 2 lakhs

(b) Rs 2-5 Lakhs

(c) Rs. 5-10 Lakhs

(d) Rs. 10 lakhs and above

Question 2: How much you spend on a average on youre per visit to

Shopping Mall?

(a) Up to Rs. 200

(b) Rs. 200-500

(c) Rs.500-2500

(d) Rs. 2500 and above

Question 3: What is the frequency of your visit to the Shopping Malls?

(a) Daily

(b) Once in a week

(c) Twice in a week

(d) Any other

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Question 4: Please rate the purpose of your visit to the Shopping Malls?(1

Being most the most important and 6 being least important)

Purpose 1 2 3 4 5 6

Food and BeveragesMusic and Entertainment

Life style productsLatest Fashion and

ClothingChoosing giftsConsumer Durable

Question 5: Please rate the following Shopping Malls, which you prefer the

most?

(a) Metropolitan Mall

(b) Sahara Mall(c) MGF Plaza Mall

Question 6: Please specify the reasons for the preference on the scale of 1

to 7 (1 being the most important and 7 being the least important)

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Factors Sahara

Mall

Metropolitan

Mall

MGF Plaza

Good Eating Place

Good Place for Family ShoppingBranded ShopsSales and Promotional ActivitiesServices and FacilitiesFun and EntertainmentSelf MotivationBetter BargainingFriends and RelativesExposure to New Trends and

Fashion

Emotional SatisfactionAdvertisements

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QUESTIONNAIRE FOR RETAILERS

This questionnaire bears reference to our academic purposes only and no

feedback given in this Questionnaire will ever be disclosed.

Name: Mr. Ms. ___________________________________ (optional)

Retailer Name:_________________________________________________

Address: _____________________________________________________

City: _________________________________________________________

Pin: _________________________________________________________

Phone: (O)__________________________ (M)_______________________

Q.1 Do you agree that there is trend towards organised retail in India?

Yes No

Q.2 Do you think large organized retailers would be controlling a

substantial portion of the retail trade?

Yes No

Q.3 How o you perceive the development of Shopping malls in Delhi and

NCR Region?

Healthy Trend

Unhealthy Trend

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Q.4 What according to you is the purpose of the customers visit to the

Shopping Malls?

Purpose Yes No

Food and Beverages Music and Entertainment Life style products Latest Fashion and Clothing Choosing gifts Consumer Durable

Q.5 What according to you are the reasons for buying at that particular

shopping mall (Please rank them in order of preference?)

Nearness to your house/locality

Good range available

Friendly shopkeeper/ good relations

Good ambience

Good bargain

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Q.6 Rank (1-6) the following factors, which influence the customer

purchase decision at a shopping mall.

Price

Brand

Location of Mall

Outlet/Mall

Appealing fragrance

Advice from acquaintances

Q.7 Do shopping malls have the following advantages?

Yes No

Time Factor Discount schemes Adequate parking space Individual sections of all categories Good shopping experience in better place with convenience

and variety.

Organized shops with international ambience &air condition

all-around.

Q.8 Do you think India has a potential in the Retail industry?Yes No

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Q.9 Do you think that organized retail will provide many opportunities both

to existing players as well as new entrants?

Yes No

Q.10 Do you think India is prepared for open competition?

Yes No

Date post:	08-Apr-2018
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ANALYSIS Retailer

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