A Comparative Study of Organized and Unorganized Retail Sectors in Bangalore

SIT Journal of Management Vol. 3, Special Issue, 2013. pp. 1-11.

12 Pages Posted: 5 Mar 2014

See all articles by Mihir Dash

Mihir Dash

Alliance University - School of Business

Sam Chandy

Independent

Date Written: December 25, 2013

Abstract

This study analyzes the challenges and opportunities faced by organized and unorganized retail players in Bangalore. It was found that organized retailers see competition from the unorganized sector as their biggest challenge, followed by competition between organized retailers and the inefficiency of distribution channels, internal logistical problem and retail shrinkage, while unorganized retailers see organized retailing as their major challenge, followed by cost of operation, logistical problems, competition between other kirana retailers and inefficient distribution channels. It was also found that organized retailers see Bangalore's growing middle class as their greatest opportunity followed by large number of earning youth customers, Bangalore having people from all over India, proportionate increase in spending with earnings and India's booming economy, while the kirana retailers see Bangalore having people from all over India as their biggest opportunity, followed by Bangalore's growing middle class, India's booming economy, large number of educational institutions in Bangalore and proportionate increase in spending with earnings. Thus, the study found that the major challenges as well as opportunities of organized and unorganized retail are almost the same. This means that mitigating the challenges and leveraging on the opportunities could benefit both sectors.

Keywords: retailing, organized and unorganized retailing, competition, distribution channels, logistics, retail shrinkage, cost of operation

JEL Classification: L60

Suggested Citation

Dash, Mihir and Chandy, Sam, A Comparative Study of Organized and Unorganized Retail Sectors in Bangalore (December 25, 2013). SIT Journal of Management Vol. 3, Special Issue, 2013. pp. 1-11., Available at SSRN: https://ssrn.com/abstract=2403858

Mihir Dash (Contact Author)

Alliance University - School of Business ( email )

Chikkahagade Cross,
Chandapura-Anekal Road, Anekal
Bangalore, Karnataka 562106
India
9945182465 (Phone)

Sam Chandy

Independent ( email )

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