“Influence of Demographic and Exogenous Factors on Customer Shift from Unorganised to Organized Food Retailing”- Special reference to selected Tier II and Tier III cities of Karnataka

Abstract

The organized retail industry is about $60 billion, accounting for around 9% of the total retail sector, while the unorganized retail market accounts for the remaining 91 percent. The same is true in the food retail business, where the organized section accounts for only 3% of the total, while the unorganized segment accounts for 97% of the whole. India's organized retail sector is developing at a rate of 20-25 percent per year, indicating that it has a lot of room to grow in the future. Because of easy access to internet and satellite television, today's consumers are more informed and literate, and they have a better understanding of organized and unorganised market dynamics. With help of 413 respondents from Mysore, Shivamogga, Raichure and Hubbalii study conducted on the factors influence on customer shift from unorganised to organized food retailing & factors were categorized on demographic factors such as Gender, Age, Education, Family Type, Duration of Association & in-store and exogenous factors such as location, accessible, price, quality, quantity, and variety of products, return policy, operation hours, parking facility, discounts, offers, payment option and food retail shop environment, family type, lifecycle stage, status & value of the retail store.