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According to the study reported in indiaretailbiz.com , 50% of small
retailers surveyed reported lower sales and 61% of all retailers pointed
to competition from organized retail for their declining financial health.
It also surmised that any adverse impact of organised retail on such mom-and-pop
stores will wear off over a period of time.
ICRIER, Indian Council for Research on International Economic Relations,
was appointed by the Ministry of Commerce & Industries to study the
impact of retail business by big corporations on small trade
The survey also covered 500 customers who shop at both the branded and
small retail stores.
Among the main reasons cited by customers for preferring branded retail,
32% said they like better quality of products, while 26% liked lower prices.
Among other reasons, 22% said, they get more brand choices, 22% liked
convenience of one stop shopping, 20% said they get fresh stocks. 17%
liked wider product choice, 16% felt that they get better service, 15%
preferred sales promotions, while 13% were attracted by attractive displays.
Among the reasons cited for preferring unorganised shops were: proximity
to home (50%), goodwill (29%), credit facility (27%), bargaining (23%),
lower price (22%), smaller/ loose quantities (20%), saving of time (20%),
better product quality (17%), convenient timings (17%), and home delivery
(13%).
The overall savings were estimated at 4%.
While, 71% of those already shopping at branded stores preferred opening
of more branded stores, 34% of those shopping at small neighbourhood stores
wanted opening of more branded stores.
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