Factors Influencing Purchase Of Apparels From

Organized Retail Outlets In Indore City

Abstract
Indian Organized Retail at the brink of Revolution, with the Scalable and Profitable Retail
Models are well established for most of the categories, with effect of Rapid Evolution of New-
age Young Indian Consumers. Now days, Retail Space is no more a constraint for growth. As per
the Partnering among Brands, retailers, franchisees, investors and malls are concern; India is
now, on the radar of Global Retailers Suppliers. The global trends have important implications
for Indian retailers. Organized retail landscape has painted the dynamic trading activities
undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc.
The Indian consumer remains value conscious. The consumer in most cases is willing to spend
money, but remains cost conscious, evaluating every rupee spent. It is therefore imperative for
retailers to offer price advantage via sourcing and operational efficiency and a strong private
label program to attract customers. Existing and new entrants need to achieve scale quickly for
driving efficiencies in procurement, supply chain and marketing. Else their risk being
marginalized by larger players. Rising Interest & growing expansion of organized retail market
leading to a success of a business depends solely on consumers urges that there is a need to study
their buying behavior functions in the Indore retail market. The frequent change in lifestyles,
trends , with changing fashion preferences of consumers is fed by the newer retail offerings’
coming from the organized retailers where apparel gets utmost importance . Keeping these facets
in view, this study makes an attempt to identify the factors of the consumers buying behavior
that is influenced by retail apparel segment & to access the importance of each of them to
consumers in selecting apparel from organized retail outlets in Indore city.
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Introduction:-

The Indian retail sector is highly fragmented with 97 per cent of its business being run by the
unorganized retailers like the traditional family run stores and corner stores. The organized retail
however is at a very nascent stage though attempts are being made to increase its proportion to 9-
10 per cent by the year 2010 bringing in a huge opportunity for prospective new players. The
sector is the largest source of employment after agriculture, and has deep penetration into rural
India generating more than 10 per cent of India’s GDP.
Literature Review:-

The retailing industry in india estimated at inr 930,000 crores (2003-04) is expected to grow at
5% p.a. And the organized retailing is well on its way to become an inr. 350 billion market by
2005 according to india retail report 2005: an images-ksa technopak study released at the ksa
retail summit 2005 ,by Mr. Kishore biyani, manging director of pantaloon retail, india's largest
retailer. “ the size of the organized retailing market stood at rs. 280 billion in 2004 , thereby,
making up a mere 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,” said mr. Arvind singhal, chairman, ksa technopak.

The Indian retail market is estimated at US$ 350 billion. But organized retail is estimated at only
US$ 8 billion. However, the opportunity is huge-by 2010, organized retail is expected to grow at
6 per cent by 2010 and touch a retail business of $ 17 billion as against its current growth level of
3 per cent which at present is estimated to be $ 6 billion, according to the Study undertaken by
The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Indian retailing is
clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is
names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up
the rankings soon. Organized retail in India has the potential to add over Rs. 2,000 billion
(US$45 billion) business by the Year 2010 generating employment for some 2.5 million people
in various retail operations and over 10 million additional workforces in retail support activities
including contract production & processing, supply chain & logistics, retail real estate
development & management etc.

Bibliography:-

(1) Corporate Catalyst India – “A report on Indian Retail Industry”

http://www.cci.in/pdf/surveys_reports/indias_retail_sector.pdf
(2) Sunday , jan 2005 – Indian retail industry 2005 posted by :- Shailesh Naik ,
http://retailguru.blogspot.com/
(3) http://www.scribd.com/doc/27403185/Indian-Apparel-Retail-Sector-an-Overview
(4) http://www.scribd.com/search?
cat=redesign&q=Organised+retail+outlet+of+apparels&x=0&y=0
(5) http://www.scribd.com/doc/19094989/Apparel-Retail-in-India-Ppt