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In the growing economy, retail sector has become one of the major contributors by
way of providing numerous employment opportunities to people. India is known as a
land of shopkeepers, which are easily seen at every nook and corner of the localities.
For opening up a retail store there is no minimum limit of investments, it depends
upon the investor, therefore a large number of people easily open up a retail store and
are employed in this sector. Retailing in India is one of the important pillars of its
economy, accounts for over 10 percent of Gross Domestic Product. India holds the
place of fifth largest global destination in the retail space. The retail sector in India is
continuously witnessing a big transformation from melas to haats to mom and pop
stores to supermarkets to hypermarkets, big glitzy malls to e-retailing to digital malls.
With the change in demographic profile of the customers and ever changing
expectations of the customers the retailers are expected to serve better everyday to its
customers. The Government of India on the other side in order to follow the norms of
LPG (liberalization, privatization, globalization), is opening up the economy for the
foreign players. The Indian retail sector is gaining importance for the foreign players
as India now a day is being considered as one of the lucrative market for making
investments. The country is having a vast geographical area, big population base and
a large customer base of young generation. The young generation is capable of easy
influence and is likely to accept new products offered in the market. The Government
has taken various steps from time to time to attract foreign investors to make
investment in the country. FDI is allowed in a country with an expectation that it with
help in the development of the country with improved infrastructure by way of
investments in the host country. The customers are having different perceptions
regarding FDI in Indian retail sector and retailers are having different perceptions for
it. Both the customers and the retailers are directly affected by the policies of the
Government related to FDI in Indian retail sector. The customers are having
expectations like access to foreign brands, improved quality of the products and
services. The retailers are concerned about opening up of the retail sector for foreign
players for a purpose that they would be acting as their competitors. The impact of
FDI in Indian retail sector is still a question to be answered, thus the present study
tries to explore about the perceptions of the retailers and customers regarding
allowing FDI in Indian retail sector. The main objective of the study is to study the
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impact of FDI in retail sector, with reference to National Capital Region (Delhi
NCR), keeping in view the perceptions of customers and retailers regarding impact of
FDI in Indian retail sector. The secondary data for the study is collected from reports
of Reserve Bank of India, Department of Industrial Policy and Promotion, Indian
Brand Equity Foundation, Priceware Copper, Technopak analysis, Earnest & Young,
Delloitte, KPMG(Klynveld Peat Marwick Goerdeler) etc. The primary data is
collected from the retailers and customers belonging to Delhi, NCR (National Capital
Region) region. The responses collected from customers are being analyzed by
converting into factors with the help of EFA (Exploratory Factor Analysis) and are
further confirmed with application of CFA (Confirmatory Factor Analysis). Total
eight factors are confirmed. The shopping behavior of the customers related to
organized retail outlets and unorganized retail outlets is being studied with the help of
ANOVA and Crosstab. The perceptions of customers related to opportunities,
challenges, positive and negative impact is analyzed with the help of factors
extracted. The responses collected from retailers of Delhi NCR region are analyzed.
To explore the relationship between education level of the retailers and the services
provided by them in the retail store, chi- square test and cross tab is used. The results
show that with increase in level of education the retailers are more likely to offer
improved services to the customers. The variables under the study are converted into
factors by applying EFA and CFA. Total five factors are confirmed. The factors are
analyzed further by way of descriptive analysis and reliability analysis to know the
perceptions of the retailers. Regression analysis is used to know the positive impact,
negative impact, opportunities and challenges related to FDI in Indian retail sector.
The study will help retailers to know about the perceptions of customers related to
FDI in Indian retail sector. This will help retailers to make up their strategies |
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