Volume 2, Issue 11, November 2017
ISSN No:-2456 2165
A Comparison Study on the Attitude and Profitableness
of Organized and Unorganized Retail Sector In India- A
Case Study of Karnataka State Haveri District
Swapna Dundeppa Mudugal
Department of Commerce, Hindu Vivekanand University,
Sagar, M.P
Abstract:-This text seeks to grasp the attitude and
profitableness of Organized and Unorganized Retail
Sector. The study is descriptive humor analytical in
nature. The analysis was carried comparison study on
perspective and profitableness of organized and
unorganized retail sector in Karnataka state Haveri
district. The responses were taken from fifty of organized
and fifty of unorganized (100 sample from the city)
through a form. The mean, variance and t-test square
measure wont to get conclusion. the fashionable kids
square measure principally aiming to get purchase from
Malls and searching complicated. So, there's stiff
competition between organized and unorganized retailers.
The study found that reducing value, to form on the
market a lot of decisions and branded product square
measure the most important tool for unorganized retailers
to face competition. The study additionally useful in
understanding is there any distinction within the strategy
followed by the unorganized selling in 2 cities.
Keywords:-Comparison Study on Perspective and
Profitableness of Organized and Unorganized Retail Sector in
Karnataka State Haveri District.
I. INTRODUCTION
India started its Retail Journey since ancient time. In Ancient
Asian country there was an idea ofweekly HAAT, wherever
all the consumers and sellers take in an enormous marketplace
for bartering. It takes a fairly long times to and step to form
the fashionable retail. In between these 2 ideas (i.e.between
ancient retail construct and therefore the fashionable one there
exist fashionable Grocery/ mummy and pop outlets or Baniya
ki Dukan. Still it's predominating in Asian country therefore
the Indian retail business is split into 2 sectors- organized and
unorganized. The Indian retail business is currently starting to
evolve transformation that has swept different massive
IJISRT17NV35 www.ijisrt.com
International Journal of Innovative Science and Research Technology
Dr. Amaresh K. Nashi
M.Com, M. Phil, Ph.D
Department of Commerce, Hindu Vivekanand University,
Sagar, M.P
economies. there's a huge amendment in Indian retail, the
easement of the buyer merchandise business initiated within
the mid-80s and accelerated through the 90s has begun to
impact the structure and conduct of the retail business. The
construct retail, which has the tradesman to client interaction,
has taken several forms and dimensions, from the normal
retail outlet and street native market outlets to up market multi
whole outlets, particularly stores or division stores. Hence,
that specialize in 2 aspects of retail selling i.e. store selling and
non store selling. Store selling because the supermarket, that
could be a store or multi whole outlet, providing associate
degree array of product in varied classes beneath one roof,
making an attempt to cater to not one or 2 however several
segments of the society and Non store selling because the
direct mercantilism, marketing, automatic merchandising. The
foremost vital discussion regarding the implications for the
growth of the organized selling in Asian country revolves
around whether it's aiming to have positive impacts on the
economy as a full as compared to the normal unorganized kind
of selling. consistent with one camp, it's overall positive
impacts in terms of generating a lot of range of employments,
new heterogenous styles of employments, and up the character
of retail employment (higher regular payment, a lot of job
edges, security of job,employability etc).
This form of retail sector is additionally looked upon as an
enormous sector having vast business opportunities for
entrepreneurs and capital investors. Moreover, organized
selling is taken into account to be economical and apt to cater
to the heterogenous and dynamical nature of the buyer
demands in growing economies like Asian country. the final
edges of organized retail additionally embody improved
supply-chain, improved marketability of farmers manufacture
and it's additionally expected that it'll contribute to heightened
economic activity. The intensive analysis brought Pine Tree
State to conclude that division stores square measure before
long rising on the highest priority lists, amongst the searching
spree in metropolis, as they appear to derive vast pleasure as
searching is taken into account as a expertise currently instead
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of a task and exposure to selection beneath one roof in their
extraordinarily busy lives, after they dont have time for
things. The organized retail food and grocery stores build
constant efforts to induce customers to go to the shop by
discount offers. Most of those stores believe making not
simply a selling activity with its customers; however rather
favor relationship building with him therefore on convert 1st
time customers into a shopper. they supply higher parking
facilities to customers and therefore the facility to look at the
merchandise. They additionally provide a good vary of
payment choices to customers. Asian country is presently the
twelfth largest shopper market within the world. consistent
with a study by McKinsey world Institute, Asian country is
probably going to affix the premier league of the worlds
shopper markets by 2025 up its position to the fifth. however
this growth isn't aiming to happen is swish means. Any
amendment continuously comes up with some friction and
Indian retail sector is and can be witnessing constant friction.
Indian retail sector continues to be in its emerging type if we
tend to think about its full potential. whereas most of the
developed market folks and Europe and additionally some SE
Asian rising market economies have reaped the advantages of
contemporary retail, Asian country has not however entered
into advanced part of contemporary retail forms. Unorganized
selling, on the opposite hand, refers to the normal formats of
cheap selling, for instance, hand cart and payment vendors,
and mobile vendors, the native Grocery outlets, owner manned
general stores, paan / beedi outlets, convenience stores,
hardware sponsor the corner of your street mercantilism
everything from rest room fittings to paints tiny|and little|and
tiny} construction tools; or the marginally a lot of organized
medical store and a bunch of different small retail businesses
in attire, physics, food etc. Small-store selling has been one in
every of the simplest ways in which to come up with self-
employment, because it needs restricted investment in land,
capital and labor. it's usually family run business, lack of
standardization and therefore the retailers UN agency square
measure running this store they're lacking of education,
expertise and exposure. this is often one in every of the
explanations why productivity of this sector is around four
wheel drive that of the U.S. retail business. Unorganized retail
sector continues to be predominating over organized sector in
Asian country, unorganized retail sector constituting ninety
eight (twelve million) of total trade, whereas organized trade
accounts just for two. The road facet hawkers and therefore
the mobile (pushcart variety) retailers. The Grocery stores (the
Indian equivalent of the mummy and- pop stores of the US), at
intervals that are: i. Open format a lot of organized shops, ii.
tiny to medium food shops.
Retail markets and outlets have a really ancient history,
chemical analysis back to antiquity. selling involves the
method of mercantilism trade goods or services to customers
through multiple channels of distribution to earn a profit.
Retailers satisfy demand is known through a provide chain.
Any organization mercantilism to final customers whether or
IJISRT17NV35 www.ijisrt.com
International Journal of Innovative Science and Research Technology
ISSN No:-2456 2165
not it's a manufacturer, jobber or retailer-is doing selling. It
doesn't matter however the products or services square
measure sold-out (by person, mail ,telephone, slot machine, or
net or wherever they're sold-in a store, on the road, or within
the consumers home). A merchant so, provides worth making
functions like assortment of product and services to the
customers, breaking bulk, holding inventory and provides
services to customers, makers and wholesalers.
Retailing generally involves:
Understanding the consumers wants
Developing sensible merchandise assortment and
Show the merchandise in a good manner
So that shoppers notice it simple and enticing to shop for.
Selling so, is also understood because the final step within the
distribution of merchandise, for consumption by the top
customers. Simply, any firm that sells product to the ultimate
shopper is acting the operate of selling. It so consists of all
activities concerned within the selling of products and services
on to the customers, for his or her personal, family or home
use. In associate degree age wherever client is that the king
and marketers square measure that specialize in client delight,
retail is also redefined because the 1st purpose of client
contact.
II. METHODOLOGY
Type of Research: Descriptive: Description of the conditions
because it exists presently includes survey & fact- finding
enquiries of various types.
A. Research Method
Research ways square measure understood as all those ways
and techniques that square measure used for physical
phenomenon of analysis. analysis ways or techniques talk over
with ways or techniques talk over with ways the analysisers
use in acting research operation. In different words, all those
ways that square measure utilized by the analysisers
throughout the course of learning his analysis issues square
measure termed as research ways. Since the item of analysis,
significantly the applied analysis, is to gain an answer for a
offer drawback, on the market information and therefore the
unknown aspects of the matter ought to be associated with one
another to form an answer attainable. Keeping visible we tend
to took the subsequent 2 ways.
B. Data Collection
The information is collected through primary and secondary
technique.
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C. Primary information Collection
it's collected by direct technique through the interview and
form. Secondary information Collection: The secondary
information is collected from the books, journals, net and
different sources.
D. Sampling
Sampling Size =100 respondents
Sampling Method: Convenient Sampling
Sampling Area: Karnataka State Haveri District
III. PREVIOUS APPROACH
In order to grasp and gain a lot of insight concerning the
subject, the study of accessible literature has been conducted.
A. According to Ms. R. Lavanya and Nadar Saraswathi[1].
As per the paper, the expansion within the Indian organized
retail sector is especially due to amendment within the
consumers behavior. shopper prefers the place wherever he
will get food, recreation and searching all but one roof.
Majority of the customers square measure visiting organized
formats for selection, simple handiness, cleanliness with extra
facility of recreation for kids and convenient parking facility
and eating place etc. each organized still as unorganized
retailers ought to add worth additional services to form the
searching expertise lighter and worth oriented .
B. According To Academic Kalpana Singh [2].
The size of India's retail business is anticipated to over double
to $1.3trillion by 2020. more organized retails penetration in
Indias total retail is on increase. Recent policy changes and
bigger external easement of retail sector can bring more
foreign retailers to Asian country. it's expected that FDI can
accelerate the expansion of organized retail. Indias
Brobdingnagian population with massive proportion of young,
more and more brand- and fashion-conscious population, high
potential growth in shopper expenditure, growing socio-
economic class square measure a number of the factors owing
to that the macro trends for the world appearance favorable.
Among organized retail segments, Mass Grocery and attire
square measure segments growing quicker than different
segments. In next few years, multi-brand organized retail is
anticipated to expand in specialty stores like shopper physics,
Footwear, furnishings and Furnishing etc.
C. According to Meena Rajesh[3].
The major chance and challenges for each organized and
unorganized retailers stay same as they see one another as
their biggest threat. There would be a win-win scenario for
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International Journal of Innovative Science and Research Technology
ISSN No:-2456 2165
each if they mitigate the challenges and leverage on the
opportunities that would profit each sectors. to reinforce the
expansion the organized retailers must adopt ways with
relevancy investment in technology and in provide chain
management. Investment in technology would cut back their
wastage of your time, merchandise and efforts. the govt ought
to additionally guarantee one window clearance for chain and
allow FDI in retail in numerous phases. Government will
encourage surgical operation model for infrastructural
development It also can guarantee flexibility of labor laws
thereby making certain the provision of accomplished work
force for organized selling.
IV. OUR APPROACH
A. Objective of the Study:
To find the degree of comparison between the
organized and unorganized sector.
To determine the character and trends in shopping for
and arranged and unorganized retail sector
To identify perspective and profitableness toward
these sectors.
B. Hypothesis
The following hypothesis has been set to conduct the
analysis.
H0: there's no important association between
Organized & Unorganized Retail Sector.
Ha: there's important association between Organized
& Unorganized Retail
V. FINDINGS AND RECOMMENDATION
A. Findings
The organized retail sector is growing and therefore the
customers a lot of like this sector over the unorganized retail
sector.
Supported preference of 1 stop, cleanliness, discounted value,
style of product is incredibly sensible in organized sector.
The unorganized sector is powerful however the owing to
quick life there's a necessity to adapt some parameters of
organized sector ,which square measure providing over
unorganized in order that the buyer won't get attracted towards
organized sector.
There square measure sure factors like home delivery, quick
service that's lacking in each the sectors therefore there's want
offer these services to client for the expansion.
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Volume 2, Issue 11, November 2017 International Journal of Innovative Science and Research Technology
ISSN No:-2456 2165

The unorganized sector isn't that a lot of compact however in REFERENCES

coming back years may see the impact.

Customers square measure movement towards the organized

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[4]. Dr. Rajesh c. Jampala, Mr. M.Dhaduryanaik, July 2016,
A study on retail service quality in orgnised selling.
This study explores the assorted square measureas of
International journal of multidisciplinary advanced
organized retail sector wherever they need to focus so as to
analysis trends,ISSN : 2349-7408 volume II, issue 2(1).
extend their market additionally the sturdy factors that are
[5]. Meena Rajesh, Challenges and Opportunities two-faced
already adopted. The study show the weak issue for organized
by Organized Retail Players in Nagpur town. Twelfth
square measure the quick service, home delivery, location and
AIMS International Conference on Management, ISBN:
relationship factors additionally meat quality isn't sensible as
978-81-924713-8-9
per the respondents. These factors square measure to be taken
care of for the expansion in business .The sturdy factors for
organized sector square measure discounted value, offers,
variety ,one stop solution, service ,ambience and parking
.these factors square measure attracting the purchasers
additionally creating Brobdingnagian preference and therefore
the store cleanliness is incredibly sensible, superb regular
costs ,quality of product ,bakery product ,milk product are of
superb quality.

For the unorganized retail sector, the weak factors square

measure discounted value, one stop resolution, offers,
ambience, home delivery and parking. The unorganized retail
sector should target these factors so as to grow within the
market and retain the purchasers. The sturdy factors of the
unorganized retail sector square measure quality, location,
variety, relationship and quicker service. The unorganized
sector ought to target weak parameter in order that these won't
hamper the business.

From the study, it shows that there's a powerful association

between the organized and unorganized retail sector .The
weak factors of organized sector is that the sturdy factors of
unorganized retail sector the other way around.

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