Empowering the Blooming Buds

A PAPER ON RURAL RETAILING

EMPOWERING THE BLOOMING BUDS

SHILPA RANI .K.V. SHINY MATHEW.T.O. SANJAY SAMUEL. Y

shilpak9999@gmail.com sunshine_crony@yahoo.com

CMRTC 107RIE00 CMRTC 107R1E00 CMRTC 107R1E0049

RURAL RETAILING

sanjaysamu@gmail.com

EMPOWERING THE BLOOMING BUDS

Empowering the Blooming Buds

ABSTRACT: The Indian economy is a combination of both urban and rural areas. More of the development is being seen in urban areas. Rural markets are steadily gaining prominence in the economic structure of the country with most of the investors showing keenness in the service of the same. Retailing also is looking at gaining a competitive advantage by diversifying from the competitive urban, to the newer untapped rural segments. Retailing is evolving as one of the most profitable sectors in the Indian economy so much, so that it is considered as one of the strongest pillars of the nations economy. The rural market is definitely an opportunity for retailers. Retailers serve as the connecting link between the manufactures and the consumer, in the channel of distribution. The retailing giants like Reliance, Choupal, Pantaloon Godrejs joint venture (AADHAR), Hindustan Unilever (Shakti), DCM (Hariyali Kisaan Bazar) and Mahindra and Mahindra (SHUBLABH) are envisaging rural retailing as an equi-opportune sector as the urban and are hugely investing in the development and sustenance of the same. This article seeks to review various concepts in rural retailing, and to evoke the young entrepreneurs as to the strategies they need to follow in rural retailing. INTRODUCTION: India must prosper and so must the rural areas which depend on agriculture. Retail revolution is acting as a catalyst in improving the economy of India. Rural retailing has emerged as one of the most successful marketing concepts globally. If Rural is rich India is rich, if Rural is poor India is poor Retailing is the largest private sector industry. Retail is the sale of merchandise in small quantities to the ultimate consumer. Retailing can be defined as the set of activities that markets products or services to final consumers for their own personal or household use. This is done by organizing the availability of goods and then supplying them to consumers on a relatively small scale. The overall strategic marketing components of retailing are price, location,

Empowering the Blooming Buds

communications, merchandise, and physical attributes such as people services and personnel. These form the retail mix. Development of basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are bringing prosperity to rural households. Since the corporate are increasingly focusing rural areas as drivers of future growth, a young workforce and zooming consumer confidence will lead to the expansion of the rural retail sector. Therefore it is evident that Rural India is all set to witness an economic boom. Changes in the rural economy such as people moving from agriculture into manufacturing, pays better and is likely to lead to an economic progress. Retailing is classified into organized and unorganized retailing. Organized retailing refers to trading activities undertaken by licensed retailers, i.e., those who are registered for sales tax, income tax etc., and ex: publicly traded supermarkets, corporate backed hypermarkets, retail chains and also the privately owned large retail business. Unorganized retailing refers to the traditional formats of low cost retailing. Ex: the local mom & pop store, pan/beedi shops, convenience stores etc. Retailers have devised different models to serve rural markets. For instance ITC promoted Choupal Sagar has a hub-and-scope mode involving farmers. This model offers a rural shopping mall where they can sell their commodities and can buy almost anything including garments, cosmetics, electronics and even tractors. Other examples include Pantaloon Godrejs joint venture (AADHAR), Reliance Retail (Fresh & Fresh Plus), Hindustan Unilever (Shakti), DCM (Hariyali Kisaan Bazaar) and Mahindra and Mahindra (SHUBLABH). The Indian retail market is estimated at US $450 Billion and one of the top five retail markets in the world by economic value. OBJECTIVES: To study various concepts of Retailing in India. To study and determine the existing strategies in the Indian Rural Retailing. To provide beneficial strategies to the young entrepreneurs who are focusing in Rural Indian development.
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Empowering the Blooming Buds

RESEARCH METHODOLOGY: A sample size of 60 has been considered. Primary data has been collected through questionnaire and we are interpreting the study through secondary data by putting forth the findings, suggestions and Conclusion. DATA ANALYSIS: Data from the fitted in questionnaire have been tabulated by using simple statistical techniques. Wherever possible, percentages and graphical presentation have been worked out and displayed. DATA INTERPRETATION: 1.) If you were an entrepreneur would you like to start up your business in rural areas? Responses No. of respondents Percentage Yes No Total 51 9 60 85 15 100

2.) You think Rural Retailing would contribute to the Indian economy.

Responses No. of respondents Percentage SA A UD DA SDA Total 33 21 3 3 60 55 35 5 5 100

Empowering the Blooming Buds

3.) Rural Retailing is a profitable option for entrepreneurs in India. Responses No. of respondents Percentage SA A UD DA SDA Total 21 24 3 12 60 35 40 5 20 100

4.) You think rural customers would approve of rural retail stores. Responses No. of respondents Percentage SA A UD DA SDA Total 18 33 6 3 60 30 55 10 5 100

5.) Prices would be the determinants of rural retailing success in India. Responses No. of respondents Percentage SA A UD DA SDA Total 42 6 60 70 30 100

Empowering the Blooming Buds

6.) Rural retailing needs aggressive promotional campaign/advertising. Responses No. of respondents Percentage SA A UD DA SDA Total 21 36 3 60 35 60 5 100

7.) It is not an easy job to establish a retail store in Rural India. Responses No. of respondents Percentage SA A UD DA SDA Total 6 33 21 60 10 55 35 100

8.) Supply chain and logistics play a vital role in rural retailing. Responses No. of respondents Percentage SA A UD DA SDA Total 6 45 6 3 60 10 75 10 5 100

Empowering the Blooming Buds

9.) The layout of a retail store impacts the sales in rural areas. Responses No. of respondents Percentage SA A UD DA SDA Total 27 33 60 45 55 100

10.) Presentation of items need not be given prominence in rural segment. Responses No. of respondents Percentage SA A UD DA SDA Total 33 27 60 55 45 100

FINDINGS: The questionnaire based data conveys that most of the people in India are willing to start up a retail store in rural regions of the country and that the rural retailing would be approved by the rural customers. Rural retailing is found to be fruitful to the Indian economy. There is an utmost requirement for supply chain and logistics in rural retailing for an Entrepreneur and it has been observed that there is a great impact of retail layout on its sales. Word of mouth publicity is acting favorable over aggressive promotional campaign/advertising in rural retailing. The determinants like prices and presentation are considered to be inevitable in rural retailing.

Empowering the Blooming Buds

SUGGESTIONS: Along with FMCG and apparel merchandise, Pharma store is recommended. Stores must be located nearby the resources for easier supply chain and logistics. Generate employment to rural people. Advertising techniques like wall posters, hangings, discount availability, publishing in district editions and word of mouth publicity must be preferred. Stores must manufacture the products by themselves. Go for the same layout and floor area as in urban, as it is less costly in rural areas.

CONCLUSION: Rural retailing be given prime importance as it acts as a driving force to empower the upcoming entrepreneurs in terms of capital profitability and competitors. Think Rural Then Think India to avoid rural relegation rural retailing be considered at par with the urban in order to create charisma in the entrepreneur for the rural region to generate employment to contribute the Indian economy and to improve the conditions at rural living.

Empowering the Blooming Buds

ANNEXURE Name: Age:

_______________________________________________________________________
Kindly put tick mark in only answer from various alternatives given below. SA-Strongly Agree DA-Disagree A-Agree SDA-Strongly Disagree UD-Undecided

1.)If you were an entrepreneur would you like to start up your business in rural areas? SA A UD DA SDA

2.)You think Rural Retailing would contribute to the Indian economy. SA A UD DA SDA

3.)Rural Retailing is a profitable option for entrepreneurs in India. SA A UD DA SDA

4.)You think rural customers would approve of rural retail stores. SA A UD DA SDA

5.)Prices would be the determinants of rural retailing success in India. SA A UD DA SDA

6.)Rural retailing needs aggressive promotional campaign/advertising. SA A UD DA SDA

7.)It is not an easy job to establish a retail store in Rural India. SA A UD DA SDA

Empowering the Blooming Buds

8.)Supply chain and logistics play a vital role in rural retailing. SA A UD DA SDA

9.)The layout of a retail store impacts the sales in rural areas. SA A UD DA SDA

10.) Presentation of items need not be given prominence in rural segment. SA REFERENCES: Retail Management Shiva Kumar Marketing Management-Philip Kotler The Changing Face of India- SalujaNavneet, SinghalArvind A UD DA SDA

A.T. Kearney Report .ACII Retail In India Getting Organised to Drive Growth Sumit Gupta (2011) India After 200 Years http://en.wikipedia.org/wiki/Retailing_in_India http://www.atkearney.de/content/misc/.../pdf_retail_india_12075589113646.pdf http://www.analysees.co.uk/PDF/Emerging-Trends-in-Modern-Retail-Formats.pdf

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