Retailing, one of the largest sectors in global economy, is going through a transition phase in India. Of all categories of retailing, the one which is expected to witness a major boom, is food retailing. The unorganized sector has been playing a major role in food retailing but there seems to be a gradual shift towards organized retailing. The past few years have seen a number of MNCs like McDonalds, Domino's, and many others opening up chain restaurants. This study is an attempt to explore the key factors influencing customer preferences as applied to the concept of Amul Preferred Outlets (APOs). The factors identified in this study will also help other food retailers in designing their services in accordance with the preferences of customers.
According
to a study on food and grocery retail market by KSA Technopak, food retail sales
consists of about 63% of total retail sales. The report says that the food and
grocery sector now accounts for 14% of total organized retail, after clothing
and textiles (36%) and watches and jewellery (17%).
Food
and grocery retailing offer the biggest opportunity for growth within the Indian
retail industry. There are a large variety of retailers operating in the food
retailing sector in India. This is not surprising considering the massive size
of the food market. However, traditional retailers, operating in the unorganized
form, dominate this sector.This is because of low operation costs, low margins,
proximity to customers, long opening hours, and additional services to customers
(such as home delivery). In comparison, supermarkets as part of organized sector
occupy a very little place in the food retail sales. Nevertheless, supermarket
sales have expanded at a much higher rate. This is because a large number of high
salaried Indians prefer to shop at supermarkets due to convenience, hygiene and
the attractive ambience. |
