Retail Management in India-23.pdf - Mimts.org

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ers may use non-price related cues like service offerings
and quality levels to form their price perceptions. Bell, Ho
and Tang (1998) found that location no longer explains
most of the variance in store choice decisions. Rather,
store choice decisions seem to be consistent with a model
where consumers optimize their total shopping costs,
effort to access the store location being one component of
their fixed cost of shopping. That is not to say however,
that location is unimportant. Consumers store choice may
be based on different factors. It is based upon the nature
of trip. For instance, small basket, fill in trips are very
unlikely to be made to distant or inconvenient locations.
Schlosser (1998) argues that since store atmosphere has a
social identity appeal pleasing atmosphere in the store
should influence perceptions of socially communicative
products in the store, not so much intrinsically rewarding
products.
Monroe and Lee (1999) developed a product price saliency
framework to examine how consumers from an overall
store price image.
Downloaded From IP - 115.248.73.67 on dated 29-Nov-2010
Grewal (2003) provides a good review of this research
and categories the elements of in store atmosphere into
physical features like design, lighting, and layout, ambient
features like music and smell, and social features like type
of clientele, employee availability and friendliness. They
note that atmosphere can affect consumer's perceptions
ofthe economic and psychological costs of shopping in a
store and find that pleasing physical design lowers both
economic and psychological costs while music lowers the
latter. Store atmosphere mediates consumer perceptions
of other dimensions of store image.
Large scale retailing is changing the way suppliers work,
and store brands are threatening established producers of
durable goods according to Bain and company Ericschw
AIm, Jean-Pierre Felenbok and Ashis Singh, Winning with
the Big Boxpetailers, Indian Management, P.No.28,
Jan.2007. Manufacturer ofconsumer goods have had little
choice in recent years but to adapt to the rapid growth of
hyper store retailers, the so-called big box chains. Stores
that push the limits of scale and selection have remade
their markets from France's decathlon in sporting goods,
to Britain's B&Q in do it yourself, to Germany's media
mart in electro domestics.
As per the survey reports of Bain and company
"indicating that two thirds of companies believe a strong
competitive cost position is more important than it once
was in order to achieve growth targets. European
companies showed an even higher level of concern about
JIMS 8M, January-March, 2008
achieving competItIve cost and pncmg than North
American firms an indication that executives expect the
European market place to become more prices
competitive in the future.
The entry into retail market is not an easy task. The
survival is the most important factor. The business
transactions in the malls depend upon local requirements.
Local knowledge is the most important and influencing
factor in survival of the business. India is a country with
many traditions and culture and different tastes. The
important constituents in the retail management is food,
beverage and tobacco account for 65% of the total
business followed by personal care products at 5% and
apparels at 7% , footwear, furnishings, consumer durables
and IT furniture, jeweler and watches, medical care and
recreation are the next most sought after items according
to a study by Technopak.
Geographical location is another important and
influencing factor in successful ofretail management. Retail
management is not only India but also throughout the world
they exist. The establishment of shopping mall location is
more important because the world wide experience
exposes much realty. For ex: in Malaysia, a hypermarket
is normally built about 3.5 km away from housing estates
or a city centre. In Indonesia, it is 2.5 kms from for
hypermarkets with a floor area of 40,000 sq.ft. Similarly
in Thailand, the distance is about 15 kms for stores that
are 10,000 square feet or more in area.
The following table 1indicates about various projects being
implementing in India in retail management. Entry into
business and retention of customer is also influencing
factor.
Impact of Shopping Malls on Small Shops and
Hawkers
Several studies have been conducted to study the impact
of shopping malls on small shops and street vendors. A
small sample survey of the impact of malls on small and
hawkers in Mumbai points to a decline in sales of
groceries, fruits and vegetables, processed foods, garments,
shoes, electronic and electrical goods in these retail
outlets, ultimately threatening 50% of them with closure
or a major decline in business. Only 14% ofthe sample of
small shops and hawkers has so far been able to respond
to the competitive threat ofthe malls with the institution of
fresh sales promotion initiative (Anuradha Kalhan, 2007).
The survey explored several facts about retail management.
Hawkers had been harassed by mall agents.
Hawkers have been selling goods at lower prices because
they have no overheads in selling goods. Small shops sales
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