Indian Retail sector Information
SIT Journal of Management
Vol. 3. No. Special. November 2013. Pp. 1-11
1
A Comparative Study of Organized and Unorganized Retail Sectors in
Bangalore
Mihir Dash* & Sam Chandy**
Abstract
This study analyzes the challenges and opportunities faced by organized and unorganized retail players in Bangalore. It was found that organized retailers see competition from the unorganized sector as their biggest challenge, followed by competition between organized retailers and the inefficiency of distribution channels, internal logistical problem and retail shrinkage, while unorganized retailers see organized retailing as their major challenge, followed by cost of operation, logistical problems, competition between other kirana retailers and inefficient distribution channels. It was also found that organized retailers see Bangalore‟s growing middle class as their greatest opportunity followed by large number of earning youth customers,
Bangalore having people from all over India, proportionate increase in spending with earnings and India‟s booming economy, while the kirana retailers see Bangalore having people from all over India as their biggest opportunity, followed by Bangalore‟s growing middle class, India‟s booming economy, large number of educational institutions in Bangalore and proportionate increase in spending with earnings. Thus, the study found that the major challenges as well as opportunities of organized and unorganized retail are almost the same. This means that mitigating the challenges and leveraging on the opportunities could benefit both sectors.
Keywords: retailing, organized and unorganized retailing, competition, distribution channels, logistics, retail shrinkage, cost of operation.
*Mihir Dash, School of Business, Alliance UniversityChikkahagade Cross, Chandapura-Anekal
Road,Anekal, Bangalore-562106e-mail: mihirda@rediffmail.com, M: +91-9945182465.
**Sam Chandy, Vice President, Operations, Supercold Refrigeration Systems
Vol. 3. No. Special. November 2013. Pp. 1-11
1
A Comparative Study of Organized and Unorganized Retail Sectors in
Bangalore
Mihir Dash* & Sam Chandy**
Abstract
This study analyzes the challenges and opportunities faced by organized and unorganized retail players in Bangalore. It was found that organized retailers see competition from the unorganized sector as their biggest challenge, followed by competition between organized retailers and the inefficiency of distribution channels, internal logistical problem and retail shrinkage, while unorganized retailers see organized retailing as their major challenge, followed by cost of operation, logistical problems, competition between other kirana retailers and inefficient distribution channels. It was also found that organized retailers see Bangalore‟s growing middle class as their greatest opportunity followed by large number of earning youth customers,
Bangalore having people from all over India, proportionate increase in spending with earnings and India‟s booming economy, while the kirana retailers see Bangalore having people from all over India as their biggest opportunity, followed by Bangalore‟s growing middle class, India‟s booming economy, large number of educational institutions in Bangalore and proportionate increase in spending with earnings. Thus, the study found that the major challenges as well as opportunities of organized and unorganized retail are almost the same. This means that mitigating the challenges and leveraging on the opportunities could benefit both sectors.
Keywords: retailing, organized and unorganized retailing, competition, distribution channels, logistics, retail shrinkage, cost of operation.
*Mihir Dash, School of Business, Alliance UniversityChikkahagade Cross, Chandapura-Anekal
Road,Anekal, Bangalore-562106e-mail: mihirda@rediffmail.com, M: +91-9945182465.
**Sam Chandy, Vice President, Operations, Supercold Refrigeration Systems
References: 1) Aggarwal, S. (2008), “Rising Mall Rentals in Major Cities Dampen Retailer‟s Early 2) Banerjee, R. and Balakrishnan, R. (2008), “Second Tier Retailing is a Smart Idea,” The Economic Times, 6th February 2008 Berman, B. and Evans, J.R. (2003), Retail Management: A Strategic Approach, 9th Ed, Prentice Hall Publ. Chadha, A.S. (2008), “India Most Attractive Retail Destination in the World,” The Economic Times, 19th March 2008 Freathy, P. (2003), The Retailing Book: Principles and Applications, Prentice Hall Guha, R Singhal, A. (2007), “Impending Economic Impact of a resurgent Indian retail sector,” Technopak report on organized retailing in India Writangar, M. (2008), “Frauds steal retail show,” The Economic Times, 22 January 2008 Dash & Chandy