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(A case study of Delhi and NCR)

Indian Youth Behaviour Towards Organised Retail Business (A case study of Delhi)
Mrs. Shishma Kushwaha Dr. M.K. Gupta Ms. Nidhi

Abstract of the paper:


Retail business is not just the business but it is all about the understanding the consumer behaviour to be successful. It is necessary to study the consumer behaviour in retail business as it provides the products manufactured by the manufacturer to the direct consumer and it is the only chain in the supply chain which directly interacts with the consumers. It attempts to understand the buyer decision making process, both individually and in groups. In todays retail business, organised retail business has found its own way. Organised retail business is much more attractive and convenient which provides good ambience for shopping. Youth is one of the groups of consumers who are interacting with the organised retail

stores. Youth generation is much more attractive towards todays organised retail business and the environment which it provides to its customers. The given research paper studies that how this youth generation reacts to the various parameters of the organised retail stores.

Ph.D research scholar, Pt. J. L. N. Govt. P. G. College, Department of Commerce, Faridabad-121002, Haryana,
India. (Affiliated to Maharishi Dayanand University, Rohtak, Haryana, India). E-mail: shish_kush@yahoo.co.in

Associate Professor in Commerce, Department of Commerce, Pt. J. L. N. Govt. P. G. College, Department of


Commerce, Faridabad-121002, Haryana, India. E-mail: mkgupta1965@yahoo.co.in

Indian Youth Behaviour towards Organised Retail Business (A case study of Delhi and NCR)
Introduction to Retail Business:
Retailing is the link under the supply chain of providing the manufactured goods to the consumer. It directly links to the every type of consumer. It deals with all the problems faced by a consumer and let it know to the manufacturer to meet the needs of the consumer. It is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small quantities or items. How the retail business gets started? In the early period, when men started to cultivate and harvest, then probably he would have been left with the surplus of production after satisfying his and his family needs. Then, the person with one good would have been started exchanging his goods with the other one who may have the goods of his demand. Thus, barter system of exchange had been started. After some period of time, when the exchange system increased a lot, then people may find difficulty as if they might not find their required good with the same person with whom they were exchanging their goods, then gradually money originated in various form and which is in the form of paper currency before us and which leads development of fairs and then, markets originated to satisfy the requirements of the men so that they can easily get the goods whatever they want in exchange of money from the market. Earlier, these fairs used to have some religious value as they used to be held at some religious places and on some religious occasion. As the time passed, producer would have seen profit in over-producing and selling the over-production in the market and the merchants and traders developed who used to travel from village to village for selling their over-produced goods at a profit and it has become a business for them to

earn their livelihood. While moving, they faced a lot of difficulties in carrying goods with easily, so they started their business at permanent place which has been called as shops and then the people who were not the producers even they have started these shops to distribute the production of producers and become auxiliary to producers and thus, retail trade have been started.

Why retail business is required? Retail outlets exist in every nook and corner of the country. They make shopping convenient to customers. It promotes product to ultimate consumers through promotion schemes, store displays and point-ofpurchase display. It provides long term relationship with the consumers. They also provide information about competitors activities relating to product, price and promotion to the consumers. They further assist in market surveys. Customers can match their needs and purchasing power with the product. They can get choice in terms of features, advantages and benefits of products. It also offers varieties of services such as delivery, installation, repair, maintenance, and supply of spare parts.

Retail business in India: India is on the fourth position on the global retail development index which means India is the fourth country to attract the organised retail industry at a global level. Asia has dropped in the rankings to make room for South America, even though India and China continue to lead the way out of the global recession to global recovery. Retailing is one of the pillars of the economy in India and accounts for 13% of GDP. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. Organized retail such supermarkets accounts for just 4% of the market as of 2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty regulations such as "signboard licences" and "anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for moving goods to states, from states, and even within states. India presents a large market opportunity given the number and increasing purchasing power of

consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution network, and little use of IT systems, limitations of mass media and existence of counterfeit goods. The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business giants such as Reliance, Bharti, Birla and others are now entering into retail sector. A number of factors are driving India's retail market which includes: Increase in the young working population, Hefty pay-packets, nuclear families in urban areas, Increasing working-women population, Increase in disposable income and customer aspiration, Increase in expenditure for luxury items, and Low share of organized retailing.

India's retail boom is manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer shopping, entertainment and food all under one roof.

Top ten Indian Retailers:

In India many retailers have opened up their retail stores out of them some are running really successfully. Of those top ten successful retailers are as follows: 1. Shoppers' Stop 2. Westside (Trent) 3. Pantaloon (Big Bazaar) 4. Lifestyle 5. RPG Retail (Foodworld, Musicworld) 6. Crossword 7. Wills Lifestyle 8. Globus 9. Piramals ( Pyramid & Crosswords) 10. Ebony Retail Holdings Ltd. Source: http://www.naukrihub.com/india/retail/top-companies/

Introduction to Youth Behaviour:


Ask the young, they know everything Joseph Joubert (1754-1824), French Moralist Youth are defined as women and men of age in between 15 to 24. As youth are not afraid of voicing their opinion and so, in turn they can make or break a brand. Main youth consumption drivers are as follows: Instantaneousness and spontaneity Novelty Peer pressure and peer group

Belonging Formation Identity Family

There are 16 major western youth tribes and each tribe varies from one another in terms of personality traits, music activities, style and brand use. Some youth dont go for branded products as they believe that they are cool. So they dont always find global brands. Music is central to youth identity. Youth in India1: 31% of youth women and 14% of youth men are illiterate or have very low educational attainment. 70% of youth women and 88% of youth men have at least weekly exposure to media or monthly exposure to the cinema. It is much lower in rural than in urban area. The most common form of

media for youth is television. 34% of women and 67% of men are employed at any time where majority of employed women are agricultural workers, with greater diversity in male employment. Kaustav sen Gupta(2011)2, has explained in his article that the Indian youth can be broadly classified into three categories: the bharatiyas, Indians and Inglodians. The bharatiyas estimated 67%of the young population live in the rural areas with least influence of globalisation, high traditional values. bollywood influenced generation. The Indian constitutes 31.5% & have moderate global influence .They are well aware of global trends but They are least economically privileged, most family oriented

rooted to Indian family values, customs & ethos. The Inglodians are the creamy & marginal in number though they are strongly growing inglodians are affluent and consumes most of the trendy & luxury items .They are internet savvy & the believer of global village & highly influenced by the western music, food, fashion & culture yet Indians at heart. He also studied that overall 72% young people access internet on a regular basis.

Review of Literature:
Dr. Somnath Chakrabarti3 (2010) has explained that consumers are becoming more aware and conscious. He studied that how a consumer reacts with the availability of various factors likewise health, curiosity, nutrition, taste, environment, unwell people, utility, reputation, and certification regarding organic food. The study has well explained the consumer purchase behaviour of organic food but not studied the youth behaviour.

Dr. Brajesh Kumar and Mintu Gogoi4 (2011) have examined the consumers buying behavior and brand loyalty with regard to processed liquid packed milk in Guwahati, Assam. The success of any marketing strategy lies in the post-purchase experience associated with the products/services. Expectation and actual delivery of consumers satisfaction are the basic elements of marketing strategy. It has ignored the youth consumers buying behaviour in special reference to retail industry.

K.C. Mittal and Anupama Parashar5 (2010) explained that irrespective of area, people prefer grocery stores to be nearby, product assortment is important for grocery. Ambience of the grocery stores has been perceived differently by people of different areas and prices are equally important for all grocery. Perception and preference towards importance of service was also different across different areas. In the given study, no special is given to the youth behaviour towards retail stores.

Dr. Bernadette DSilva, Dr. Stephen DSilva and Roshni Subodhkumar Bhuptani6 (2010) explained the perception of teenagers towards banking and their preference towards various parameters of internet

banking. They also explained that working of internet banking is also affected by the various demographic variables of teenagers.

Ankush Nagarwar, Ankit Kaldate and Arpit Mankar7 (2011) explains that customer satisfaction is the key factor inn knowing the success of any departmental stores or business for which the researchers have studied the various factors likewise merchandise factors, ambience factors and service factors which affects customer satisfaction for the departmental stores in Mumbai. They have explained that 61% of the

customers are satisfied in the area of study and they also suggested increasing the checkout workings with the proper placement of products.

Pavleen Kaur, Raghbir Singh8, (2007) explained that the changing lifestyle of the Indian consumer makes it imperative for the retailers to understand the patterns of consumption. The changing consumption patterns trigger changes in shopping styles of consumers and also the factors that drive people into stores. Hence, the researcher tries to uncover the motives that drive young people to shop in departmental stores or malls. The researcher finds that the Indian youth primarily shop from a hedonic perspective. They importantly serve as new product information seekers, and the retailing firms can directly frame and communicate the requisite product information to them. Shishupal Singh Bhadu and Pragya Priyadarshini Harsha9 , (2011) explained that consumer buying behaviour includes internal and external factors influencing the buyers decision making and consumption pattern. They have studied the information media for popularizing the electronic consumer durable goods, buying motives of consumers, influencer in buying decision. They find out that the companies must take into consideration the consumer behaviour towards their products while framing their marketing policies and according to the changing needs and demands of the consumer for a sustained development and acquisition of competitive advantage in the dynamic and changing competitive environment.

Research Methodology:
Research Methodology for the proposed topic Indian Youth Behavior towards Organized retail business: A

Case study of Delhi and NCR has been considered as both sources (i.e. Primary and secondary) of information for collection of information or data. NCR includes Faridabad, Noida, Ghaziabad, Gurgaon.

The relevant data for the study has been collected from both primary and secondary sources. Primary data was collected through field survey with structured questionnaires and personal interviews by taking structured, stratified convenient sampling. Use of secondary data has been made wherever it was available and necessary. technique. 120 youth customers were taken as sample size through convenient sampling

There are various types of retail stores and of all those type of retail stores, the researcher has considered the hypermarkets, departmental stores and discount stores for the study.

Details about Questionnaire for customers: The questions include the personal information about the youth. Various other questions on the frequency of visit, preference of the various factors of organized retail stores likewise prices charged by these retail stores from customer, quality of the product available there, safety of customers, behavior of staff, their opinion about transparency and schemes of these organized retail stores etc. Questions in the schedule were closed-ended and open-ended. behavior. The objective of the questionnaire was to determine the youth

Objectives of the study: To study the youth behavior the researcher has considered the study of; 1. Factors affecting youth behavior. 2. Association between various variables related to the youth. Statistical tools: In the study, the researcher has used the percentage to find the percentage of youth for studying the various variables. It has also used the mode to find out the maximum frequency of youth for a given variable. The association of attributes has also been used to study the relation between two variables of

youth. The coefficient of variation has been used to study the variability of youth for the various variables.

Data Facts and Findings:


Table 1: Showing frequency of youth visit to the organised retail stores Frequency of visit Number of customers Mode class Coefficient of variation 0-2 38 2-4 35 4-6 31 6-8 4 0-2 68% 8-10 12 Total 120

40 35 30 25 20 15 10 5 0 0-2 4-2 6-4 8-6 10-8 Number of customers

Graph 1: presenting frequency of visit of youth to organised retail stores From given table and graph, It is easily depicted that most of the youth under the survey, visited the organised retail store three times in a month. There is some youth population is there which never visited the organised retail store either due to high prices or due to unease accessibility or much better customer relationship with unorganised retailers. There are also some youth who visit the organised retail stores for eight to ten times or more than that in a month either going for purchasing durable goods like milk, bread or vegetables and fruits etc. The coefficient of variation of customers is 68% which is above 50% explains that the most of the

customers are visiting the organised retail stores regularly but still there is some scope for the organised retailers to grow.

Table 2: Showing timings of visit of youth to organised retail stores Timing of visit Never Morning Afternoon Evening Anytime Total Number of customer 16 3 31 60 10 120 Customer (%)approx. 13 3 26 50 8 120

From the above table and graph, it is depicted that; Maximum youth generation (i.e. 50%) prefer to visit the organised retail stores in the evening time. Least youth population (i.e. 3%) visit the organised retail stores in the morning time. As we discussed earlier, there is still some youth generation (i.e. 13%) which never visited the organised retail stores due to the reasons explained above.

Table 3: Factors affecting youth behaviour Factors Prices Quality Services Distance from house Variety availability Cleanliness Safety Behaviour of staff and mgt Goods availability Space availability Ratings by customers 842 981 759 731 692 573 506 514 568 342 7 8 6 6 6 5 4 4 5 3 Average rating

From the given table, it can easily analyse that; Youth also gives more preference to the quality of product available at the retail stores. After the quality, youth consumers gives preference to the prices if the product, as demand the best quality at the cheapest competitive prices. Youth gives equal preference to the services of retailer, distance of retailer, and availability of variety of the good to the retailer. After all these factors, youth gives preference to the hygiene factor and availability of goods to the retailer. Youth gives least preference to the safety, staff behaviour and availability of space factors.

Table 4: Qualification of customers Qualificatio n Number of customers


Note: senior level of qualification also includes undergraduate students.

Illiterate 0

Middle level 2

Secondary level 1

Senior level 66

Graduation 33

Postgraduation 18

The above table indicates that, The youth generation under the study is educated. The maximum youth visiting the organised retail stores are undergraduate, then graduate and post graduate.

Table 5: Showing association between age and the timings of visit Timings Age 15-18 18-21 21-24 Total Never 1 9 6 16 Morning 1 0 2 3 Afternoon 1 10 20 31 Evening 0 31 29 60 No time bar 2 5 3 10 Total 5 55 60 120

Note: age group has been classified as 15-18 = a age group; 18-21 = b age group; 21-24 = c age group

From the above table, indicates that The maximum customers visiting the organised retail stores in the evening belong to the b age group. The maximum customers visiting the organised retail stores in the afternoon belong to the c age group. The customers belonging to the a age group are not visiting to the organised retail stores so much may be possible as they normally belong to school students. The maximum customers who are visiting without any time bar generally belongs to b age group which is normally a college group. The value of phi coefficient () between these two variables is 42% which explains that there is 42% degree of association between age and timings of the visit of youth.

Table 6: Showing association between age and their frequency of visit Frequency 0-2 2-4 2 17 16 120 4-6 0 15 16 120 6-8 0 1 3 120 8-10 1 5 6 120 Total 64 64 120 120

Age 15-18 2 18-21 17 21-24 19 Total 120 The above table suggests that;

The maximum customers visiting the organised retail stores 0-2 times in a month but it also includes those 16 youth who never visited the organised retail stores.

After this the maximum frequency of youth is 2-4times in a month in which the youth generally belong to the age group of b and c.

The degree of association between age and the frequency of youth visit is 15% which represents the very low association between these two variables.

Table 7: showing association between gender and their timings of visit Timings Never Morning Afternoon Evening No time bar Total

Gender Male Female Total

8 8 120

0 3 120

16 15 120

27 33 120

5 5 120

64 64 120

The above table suggests that, The maximum youth customers are visiting the organised retail stores in the evening. There is about equal proportion of male and female in the study and they are also visiting the organised retail stores in equal proportion at the various time.

The coefficient of contingency in between these two variables is 16% which is again very low which represents that the youth is going to the organised retail stores as per the availability of time to them.

Table 8: showing association between qualification and their visit Visit Qualification Middle level Secondary level Senior level Graduation Post graduation Total The above table shows that, The maximum youth under the study are regularly visiting the organised retail stores irrespective of their qualification. But still, the maximum youth who are visiting the organised retail stores are at least senior level which also includes the undergraduate students. Regular Visit 1 1 59 26 17 120 No visit 1 0 7 7 1 120 Total 2 1 66 33 18 120

The coefficient of contingency between qualification of youth and their visit values only 21% explains the low association between qualification and the visit.

which

Table 9: Extracted Factors affecting youth behaviour

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.

.645 246.525 45 .000

The above table explains that KMO and Bartletts test of sphericity are accepted as it is above than 0.5.

Prices Quality Services Distance from house Variety availability Cleanliness Safety Behaviour of staff and mgt Goods availability Space availability

Communalities Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 .561 .666 .897 .731 .667 .675 .550

Extraction .606 .559

.595

Extraction Method: Principal Component Analysis. The sum of the squared factor loadings for all factors for a given variable (row) is the variance in that variable accounted for by all the factors, and this is called the communality. The communality measures the percent of variance in a given variable explained by all the factors jointly and may be interpreted as the reliability of the indicator. The factor solution should explain at least half of each original variables

variance, so the communality value for each variable should be 0.50 or higher. The above table explains the communalities of all the factors under the study which is also more than 0.5 which is acceptable.

Total Variance Explained Extraction Sums of Squared Component Initial Eigenvalues % of Cumulative Total 2.767 1.396 1.260 1.082 .976 .718 .583 .437 .397 .384 Loadings % of Cumulative

Rotation Sums of Squared Loadings % of Cumulative Variance % 19.470 19.470 18.180 37.650 16.017 53.667 11.390 65.057

1 2 3 4 5 6 7 8 9 10

Variance % Total Variance % Total 27.671 27.671 2.767 27.671 27.671 1.947 13.964 41.635 1.396 13.964 41.635 1.818 12.601 54.236 1.260 12.601 54.236 1.602 10.821 65.057 1.082 10.821 65.057 1.139 9.758 74.815 7.182 81.998 5.826 87.824 4.373 92.197 3.967 96.164 3.836 100.000 Extraction Method: Principal Component Analysis.

The above table explains that four factors have been extracted from the various factors under the study which are accepted by the customers.

Rotated Component Matrixa 1 .437 .609 .568 .150 .082 -.143 .040 -.007 -.675 -.745 Component 2 3 -.473 -.418 -.413 -.183 -.215 -.047 .821 .743 -.088 -.292 .154 -.124 .147 -.772 .047 -.149 .293 .816 .078 .110 4 -.131 .043 -.427 .037 .941 .119 -.167 .023 -.057 -.069

Prices Quality Services Distance from house Variety availability Cleanliness Safety Behaviour of staff and mgt Goods availability Space availability

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 5 iterations.

Youth consider the quality of the product as the most important factor for the organised retail industry to choose any retail store.

Now the consumers are becoming more aware about their health and hygiene, so they are also considering cleanliness of the product as the important factor for the organised retail industry.

As youth is with the new blood, and they more curious and particular about the various services and facilities. They want to compare and analyze the various products available in the retail stores for which they would like to gather information about those for which they need the help of the staff and management in the retail store. That is the reason; they also consider the behaviour of staff and management as the next important factor.

Youth is also experimental in nature, so they also want to have the availability of variety of various goods.

Conclusion and Suggestion:

From the above study, it can be concluded that there are still some youth generation who are not approaching to the organised retailers due to their own reasons as explained above, and they also require the best quality product at the cheap competitive prices, so it is suggested to the retailers that they should provide that maximum benefit to the youth generation as the researcher has also discussed that it is the youth generation which can either popularize or break down any brand. So, here it is applicable to the retail stores. To attract more and more consumers and youth the retailers should try to approach them at their nearest place if possible with the help of various strategies (either by providing franchisee to the local retailer with providing the training to them to avoid the heavy investment but in that case the organised retailer will earn only a part of the profit or they can open their own outlets at various areas approachable to consumers and youth).

The above study depicts that most of the youth are visiting the organised retail stores at various time available to them according to their convenience irrespective of their age, gender and qualification. Many youth suggested that these organised retail stores can improve more on their services and can also be more customers friendly. They also suggested to have a proper check on the products available in these organised as they should not be expired and damaged. Youth also faced a problem while billing at the counters on the weekends so the organised retail stores should manage in the manner that there should not be any chaos at the time of billing especially on weekends. As according to a study made by kaushtav sen gupta, 72% young people are accessing internet on a regular basis, so the retailers can also attract this Indian youth generation through advertisement on their emails or the youth are also addict of social networking websites so these retailers can also take help of these to promote themselves.

Bibliography/References:

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Mrs. Shishma Kushwaha

Dr. M. K. Gupta