Organized Retail (Spencer's) Vs Kirana Store

Assignment 2
Organized Retail (Spencer’s)
Vs.
Kirana Store

Indian Retail Market

India is the only one country having the highest shop density in the world, with 11 outlets
per 1000 people (12 million retail shops for about 209 million households). Rather we
can see the democratic scenario in Indian Retail (because of low level of centralization,
low capital input and due to a good number of self organized retail).
Indian retail is dominated by a large number of small retailers consisting of the local
kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops,
paan and beedi shops, hand-cart hawkers, pavement vendors, etc. which together make up
the so-called “unorganized retail” or traditional retail.5 The last 3-4 years have witnessed
the entry of a number of organized retailers6 opening stores in various modern formats in
metros and other important cities. Still, the overall share of organized retailing in total
retail business

Retailing Vs Kirana(Basics Only)

Contents
0. Abstract 4
1. Introduction 5
1.1 Traditional Retail Scene in India 5
1.2 Present Indian Scenario 6
1.3 Key Challenges 7
1.3.1 Location 7
1.3.2 Merchandise 7
1.3.3 Pricing 7
1.3.4 Target Audience 7
1.3.5 Scale of Operations 7
2. Overview of Kirana Stores in India 8
2.1 The 4-P marketing analysis of Kirana stores 8
2.1.1 Product 8
2.1.2 Place 8
2.1.3 Price 8
2.1.4 Promotion 9
3. Overview of Indian Retail Sector 10
3.1 Market Strategy of Retail Segment 11
3.1.1 Price 11
3.1.2 Product 11
3.1.3 Place: 12
3.1.4 Promotion 12
4. Survey 13
4.1 Income Levels of Shoppers: 13
4.2 Location Advantage: 14
4.3 Customer Survey 15
4.4 Customer Survey 15
5. Recent trends 16
6. Retail Stores v/s Kirana Stores 17
6.1 Retail Stores over Kirana 17
6.2 Kirana Stores over Retail Stores 17
7. Future Estimates and Prospects 18
8. Coexistence of Retail and Kirana (an option) 19
9. References: 20

Organized Retailing

special article

Organised Food retailing: a Blessing or a curse?

Vijay Kumar, Yogesh Patwari, Ayush H N

There are serious concerns about the entry of organised retailing in the Indian food
sector. What impact will it have on farmers, ‘kirana’ store owners, traders, commission
agents, consumers and the economy? Based on a study of the Indian food retailing
industry, this article indicates that while these concerns are valid, there are more winners
than losers in the process. The paper also defines business steps that the affected parties
can take as well as policy measures the government can adopt to resolve the issues
equitably.

n his 1845 book, Economic Sophisms, Frederic Bastiat, noted French economist,
statesman and a champion of free markets ridicules protectionism using wit, irony, satire,
dialogue and apologue to illustrate the absurdity of “erroneous ideas” [Frederic 1996].
One such illustration is a petition filed by an industry association to the

Indian Retail

Tarannum M Sarwar
October 11, 2006
1. An Overview of the Retail sector:
The Indian retail sector is highly fragmented with 97% 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% by the year 2010 bringing in a huge opportunity for
prospective new players 1. The sector is the largest source of employment after
agriculture, and has deep penetration into rural India generating more than 10% of India's
GDP 2.