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Analysis of the Retail Industry in India

Info: 3713 words (15 pages) Dissertation
Published: 12th Dec 2019

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Tagged: Retail

Many changes have occurred in the marketing environment in recent years. Undoubtedly, the marketing environment will continue to evolve and change, often in very significant ways, in the coming years. Shifts in consumer behavior, competitive strategies, government regulations or other aspects of the marketing environment can profoundly affect the fortunes of a retail sector. Besides these external forces, the industries may engage in a variety of activities and changes in strategic focus or direction that may necessitate minor or major adjustments. The research aim is to highlight the current situation of the Indian Retail Industry as well as to provide facts and figures regarding the probable loopholes and the scope for augmentation.

During the recent years of globalization, economies in Asia and the Pacific grew rapidly until the current global economic and financial crisis appeared in mid-2007. This acceleration of growth, in which international trade has played an important role, has helped Asian and Pacific countries to make impressive strides in economic development (ESCAP, 2009). At the same time, empirical evidence suggests that in some supply-constrained larger economies in Asia and the Pacific, such as China, India and Indonesia, wealth through trade has been accompanied by rise in inequality.

The basic aim of the paper would be to analyze the retail industry in India and to understand the issues prevailing in this industry and the future prospective of the retail industry. The aim of the paper would be to answer the following research questions;

  • Is Indian retail industry sustainable?
  • How does the Indian retail industry compete with the industries all around the World?
  • Is the retail industry more beneficial than other industries in India?
  • Does the involvement of government in this industry is satisfactory?
  • What improvements could be made in the Indian retail industry ?

The Literature Review

Like some other retail industries the Indian industry is divided in two sectors i.e. organised and unorganized one. The organised portion deals with the trading activities practiced while possessing licenses and having registrations for sales and income tax. This division includes corporate backed hypermarkets and retail chains and the privately owned large retail businesses. Secondly, the unorganized one who practices traditional style of low-cost retailing like grocery stores named as ‘Kiriana Stores’, general stores, Paan / Beedi shops, convince stores, hand carts and pavement, vendors, etc. Moreover, the traditional markets are preparing to adopt new designs like departmental stores, specialty stores and supermarkets.

The Indian retail sector is greatly split with 97 % of its being executed by the unorganized retailers like the traditional family run stores and corner stores. The organized retail however is at a very embryonic stage although efforts are being made to boost its share. 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.

The fact of China’s retail sector becoming saturated, international retailers considers India as the last retailing frontier left. Though, the Indian Government restrictions on the FDI are creating uncertainties among the international players like Walmart, Tesco and many other retail giants struggling to enter Indian markets. As of now the Government has allowed only 51 per cent FDI in the sector to ‘one-brand’ shops like Nike, Reebok etc. Therefore, other international players are taking alternative ways to pierce the Indian retail market indirectly via strategic licensing agreement, franchisee agreement and cash and carry wholesale trading (since 100 per cent FDI is allowed in wholesale trading).

The structure of Indian retail is emerging swiftly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150 new shopping malls by 2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to co-exist with the modern formats of retailing. Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby kiranas viz. Kolam for daily use. With the introduction of organized retail, it has been noticed that the sale of Basmati rice has gone up by four times than it was a few years back; as a superior quality rice (Basmati) is now available at almost the same price as the normal rice at a local kirana. Thus, the way a product is displayed and promoted influences its sales. If the consumption continues to grow this way it can be said that the local market would go through a metamorphoses of a change and the local stores would soon become the things of the past or restricted to last minute unplanned buying.

Research Methodology


This section spells out the procedures and the methods that the researcher can employ in achieving the objectives of the project so highlighted in the abstract of this paper. It defines location of the study, research procedures and analysis plan that would be put in consideration when carrying out this particular research. The research is supposed to start with the clear understanding of the research objectives as well as the hypothesis. Success of the project will depend on the provision of satisfying information in line with the objectives and hypothesis (Myers, 2002).

The objective of the research just as a recap is to identify the effective mechanisms risk exposure and fіnаncіаl policy considering the аnаlysіs of еmеrgіng markets used in order to gain the competitive. It is important to note here that this research was mainly based on the questionnaire even though other research methodologies were briefly discussed. Sample questionnaire used is as shown in the appendices.

Research methodology is a master plan specifying the methods and procedures for collecting and analyzing the data. It is a strategy or blueprint that plans the action for carrying through the research project data. A research design involves a series of rational decision-making choices depending upon the various options available to the researchers. Broadly it is composed of different elements like: the purpose of the study, the unit of analysis, time dimension, mode of observation, sampling design, observation tools, data processing, and data analysis. Mainly two techniques of research, Qualitative and quantitative are utilized. Though both of the methods have their own significance, the use of exploratory quantitative research design for this study appears to be appropriate.

Research Design

Research is an endless effort for truth. It certainly bring to light new knowledge or corrects previous errors and misconceptions and adds to the existing body of knowledge in an orderly manner. The research was aimed at highlighting the significance of branding for an organization and to evaluate the importance being given at pizza hut setup. This part deals with procedure adopted to conduct the study. The researcher had to depend on the related literature and structured questionnaires. Descriptive data were typically collected through a questionnaire survey, an interview or observation.

Primary research.

Primary research is the collection of data that does not exist. This can be through numerous forms: including questionnaires, telephone conversations, surveys, etc. As pertained to this project, the primary sources would likely be the risk exposure and fіnаncіаl policy considering the аnаlysіs of еmеrgіng markets. The major merit with conducting primary research is that it accurate. However, the disadvantage of primary research is that it may be time consuming, as it involves dealing with people from various regions, the human sources may only become resourceful out of their own willingness, and this may take them quit sometimes before making up their minds to tell you what they know or give you their side stories about your questions (Focardi & Fabozzi, 1998).

Secondary research on the other hand is the collection of existing data, that is, in contrast to primary research. For example: research on experiments or specific subjects. The merit of secondary research is that it’s not time consuming however a disadvantage is that the information retrieved may not be relevant.

Data Collection

In research studies, the source of data is two-fold. Data comes from the inner world of libraries as well as from the outer world of human being. It is either the shelved data or it is the data acquired live from the people involved in the study. This research being in the marketing, and the prime subject of the study is retail sector, the researcher aims to collect data mainly from the respondents.

After considering the various methods of data collection such as ethnographic style, survey, experimental style, and narrative enquiry, a questionnaire survey was chosen as it allows the collection of highest opinions within the time span of the project as well as the fact that the results could be accurately mapped and correlated to provide quantitative information.

Choice of research philosophy

Another aspect that is of great significance in this research would be the research strategy. It’s the research strategy shows which methods a researcher adapts to answer the research objectives or questions. There are types of research strategies that can be employed in conducting a research study. These include experiments, case studies, survey, theoretical perspectives, cross-sectional and longitudinal studies. It is imperative to examine some of these strategies while paying particular attention to the case study method which will be applied in this particular research.

Survey is another important research strategy that has was popular in conducting this research. Surveys ‘allow the collection of a large amount of data from a large population .This implies that the researcher can conduct surveys and question specific groups of people to obtain large amount of information relevant to the subject of the survey. The data is usually collected from the people either via questionnaire or orally. The purpose of the survey was to establish and analyze views of respondents in order to find what they think about particular situation, case or statement. However, despite the fact that the views from a large number of respondents can be gathered through the survey strategy, the data obtained may not all reflect to the objective of the research at depth (Kendrick, 2009).

Case study is a research strategy which involves investigation of a particular contemporary phenomenon in the real life situation using multiple sources of evidence. More elaborate explanation on the nature of the case study as a research strategy was given by Frenkel, Hommel, Dufey & Markus, (2005). in whose view case study represents ‘a specific way of collecting, organizing, and analyzing data’. Grounded theory represents a strategy which posits that the data is collected through observations and compared to various theoretical frameworks in order to discover which of the data is the most appropriate. This leads the researcher into making predictions about the studied phenomena prior to putting the findings into test. However, the aim of grounded theory is to make studied data records well-developed and understood and to verify relationships between the findings and the case study in question (Frenkel, Hommel, Dufey & Markus, 2005).


This research was mainly carried out by the use of a questionnaire. The questionnaire enabled the information to be gathered from many respondents who were directly involved in risk exposure and fіnаncіаl policy considering the аnаlysіs of еmеrgіng markets. Use of a questionnaire as a quantitative method for collecting data from the sources is the most appropriate method of collecting mass responses and as such, providing a good method of comparative analysis. The questionnaire will cover a number of data sources to find out opinions and views regarding the planning strategies required in risk exposure and fіnаncіаl policy considering the аnаlysіs of еmеrgіng markets. Designing good questionnaires requires significant skills and experience. The researcher embarks on the study by setting up survey questionnaires that address issues relevant to the interviews conducted. It is important to pilot or test the questionnaire as fully as possible before distributing them to the interviewees to fill them. A sample questionnaire is like the one shown in the appendices below. This questionnaire enabled elaborate information to be obtained from the players in the restaurant industry (Lam, 2003).


In order to achieve the purpose of the investigation, the key focus lies on finding out which techniques should be applied. Interviews were the best method for understanding this research. ‘A respondent interview is one where the interviewer directs the interview and the interviewer responds to the questions of the researcher’. And to add more weight on this observation, Borodzicz, (2004). added that the standard survey interview is itself essentially faulted and that it therefore cannot serve as the ideal ideological model against which to assess other approaches. He Borodzicz, (2004).also elaborates by describing interviews as the verbal exchange of information between two or more people for the principal purpose of one person or group gathering information from the other. And that Semi structured interviews enable one to fix and control circumstances in order to collect appropriate data while remaining flexible and responsive (Borodzicz, 2004).

In order to analyze the psychological and behavioral reasons for decisions of the sources, the collected primary data should be collected through the distribution of questionnaires. They however emphasized it is very important to note that questionnaires should reach the right people, to allow for an appropriate amount of information to be collected. Different types of interviews that the researchers may opt to apply to their studies. The three are inclusive of structured interviews, semi-structured interviews, and unstructured interviews. (Pritchard, 2005).

Structured interviews consist of closed-ended questions, where the structure of the questions, responses and the interview itself is decided prior to the interview. The interviewer has more control over the responses, and can lead the interview into the direction they want. However, the responses received are limited. Semi-structured interviews consist of closed and/or open-ended questions, allowing the interviewer to have some control over the responses and the interview. Although the open-ended questions allow the interviewee to express themselves and encourage them to present their views and opinions. Unstructured interviews consist of open-ended questions that do not restrict the interviewee’s responses, therefore collecting a wide range of information. This kind of interview is more supple in-terms of the questions being asked and their ordering, all depending upon the interviewees responses. After considering these different types of interviews, Questionnaires are considered more useful for this study. This is necessary, as it allows gaining a deeper understanding of the participants’ views. In the usage of the interview the management of organizations in еmеrgÑ–ng markets were interviewed to get there view on how they operate (Silva, 1995).

Data Analysis Process

The process involves the researched applying reasoning in order to understand and interpret the data collected. ‘In simple descriptive research, analysis may involve determining consistent patterns and summarizing the appropriate details revealed in the investigation’ (Zikmund, 2003, P. 73).

Sectors of the market chosen to research and why you chose these sectors

Use of research tools such as questionnaires, interviews, relevant journals, periodicals and data sampling and machines would be utilized in the process conducting the interview. Experts would be needed to conduct the research.

In implementing the activities, both the quantitative and qualitative approaches was considered, where by qualitative data are those that would be based on the spoken words while the quantitative data would be generated from the overall data collected based of accuracy and efficiency The research project was scheduled to run for a period of one year and a few Months within which industries in еmеrgіng markets would be put under scrutiny and rigorous investigations to ascertain the objectives of the research.

Research validity and reliability

A debate about the findings of the preceding literatures on retail industry considering the аnаlysÑ–s of еmеrgÑ–ng markets inevitably includes a discussion of ‘research’, normally referring to the way in which the data were collected’. This research being a phenomenological, all questions are related to theoretical characteristics discussed in literature preview. The process would therefore be accurate in collecting, analyzing and sampling data; hence the validity of result would be quite high. Considering that there are many different aspects of validity, which influence the validity of the research in general.

Relationship between your research aim, research questions, research objectives and research methods.

The methodology which was exploited here mainly through the questionnaires and the interviews were most appropriate as they enabled the most information to be obtained. Many respondents could be reached within a short period of time while sampling enabled a comparison to be carried out on the different organizations in еmеrgіng markets. They helped in the real understanding on retail industry considering the аnаlysіs of еmеrgіng markets has actually been carrying out its activities which have actually helped it in realizing a competitive in the market (Borodzicz, 2004).

Anticipated Outcomes

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four years, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. Despite the fact that the Indian retail market is expected to grow but some challenges are still required to be addressed. These challenges include the deficiency of sufficient infrastructure amenities, elevated prices of real estate, divergence in consumer groups, tax structure, limitations in Foreign Direct Investment (FDI), shortage of trained manpower and low retail management skills.

The research will focus to highlight all the challenges being faced to the Indian retail market and to suggest the strategies and methodologies to cater these challenges. The effective management of above said challenges will not only enable to achieve the projected growth in the retail sector but will also enable to enhance the factor of consistency in growth.

Appropriateness of triangulation to research

The essence of applying triangulation is for the sake of indications of applicability of several methods (excess of two) in the course of the study in consideration of checking double or even triples results checking otherwise known as cross examination. The idea behind the concept is for the researcher to express a high degree of confidence in consideration of the results of diverse methods that give similar results. In case a single method was applied by the researcher, there is a higher tendency of believing that the results are valid. The application of more that a single method may result to a clash of the results. The application of about three methods attempting to derive an answer may lead to a similarity of answers from two out of the three methods used. In case of an occurrence of a crash there is then a need of reframing the question (HSE, 2006).

Limitations of the research

Limitations are usually present in every research and these limitations actually tarnish the results of the research. Certain limitations are also associated with this research. One of the biggest limitations of this research is lack of budget and lack of time. Besides that there are certain other limitations like the non-serious attitude of the respondents might tamper the entire results of the research. The interviews that will be conducted and the questionnaire cannot be fully utilized in this scenario because the respondents are not serious in their attitude when they are filling out the questionnaires or when they are giving the responses to the researcher. The lack of time given by the respondents can also be another limitation of this research. If the respondents have lesser time than it is highly probable that they might not take the research properly and ultimately the final results of the research would be affected in this scenario. Finally, it can be said that certain chunks or sources of secondary research can also be treated as a limitation of the research. This is because of the fact that these sources are not valid or they are not updated therefore the data that is attained from these sources might affect the entire results of the research. Therefore, the researcher should take utmost care about all these constraints and try to minimize it.

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Retail can be described as the process of goods or services being sold directly to the end-user. The most common form of Retail is through selling products in brick-and-mortar stores.

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