A STUDY OF CONSUMER SHOPPING BEHAVIOUR IN INDIAN RETAIL INDUSTRY

With the start of liberalization in 1991, Foreign Direct Investment (FDI) was limited to only a few sectors
like manufacturing, infrastructure etc. But change in FDI policy of India in 2012, allowing investment in multi-brand
retail stores, aviation sector and pension plan sectors, may bring revolutionary changes in these sectors. For
companies in the consumer products and retail industry, the pace of change is breakneck, global volatility is
guaranteed, and fierce competition comes at every turn. FDI acts as a major catalyst in the development of a country
through up-gradation of technology, managerial skills and capabilities in various sectors. Rise in purchasing power,
growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market
has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in the retail can
expand markets by reducing transaction and transformation costs of business through adoption of advanced supply
chain and benefit consumers and suppliers (farmers). Oppositions have raised concerns about employment losses,
promotion of unhealthy competition among organized domestic retailers resulting in exit of small domestic retailers
from the market and distortion of urban cultural development. The present paper focuses on the overview of the Indian
retail sector along with the survey to understand and compare consumer shopping behaviours and the use of different
retail channels in Chandigarh, Mohali and Panchkula (India).