PROJECT REPORT
ON
TRADERS AND CONSUMERS PERSPECTIVE ON FDI
(FOREIGN DIRECT INVESTMENT) IN INDIAN RETAIL
SECTOR
Submitted for Partial Fulfilment for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
(MBA 2010-12)
UNDER THE GUIDANCE OF
Dr. SUNITA JINDAL
ASSOCIATE PROFESSOR
Submitted by
SHWET KAMAL
ENROLMENT NO.: 07419103910
GITARATTAN INTERNATIONAL BUSINESS SCHOOL
(Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY)
ROHINI, NEW DELHI-110085
i
CERTIFICATE OF AUTHENTICITY
This is to certify that the Project Report titled “TRADER’S AND CONSUMER’S
PERSPECTIVE ON FDI(FOREIGN DIRECT INVESTMENTS) IN INDIAN RETAIL
SECTOR” is an original work submitted by Shwet Kamal, Enrolment No. 07419103910,
MBA IV semester student of Gitarattan International Business School (giBS) for the partial
fulfilment of Master of Business Administration (MBA) program of Guru Gobind Singh
Indraprastha University under the guidance of Dr. SUNITA JINDAL, Associate Professor
and the same has not been submitted to any other University or Institute for award of any
Degree / Diploma.
Dr. Sunita Jindal
Dr. S.S. Narula
Associate Professor
Director
Project Guide
Gitarattan International Business School
ii
DECLARATION
I, Mr. Shwet Kamal, Enrolment No. 07419103910, MBA IV Semester hereby declare that,
the project report titled “TRADER’S AND CONSUMER’S PERSPECTIVE ON FDI
(FOREIGN DIRECT INVESTMENT) IN INDIAN RETAIL SECTOR” is an original
work done by me under the guidance of Dr. Sunita Jindal, Associate Professor and has not
been submitted to any other university or institute for the award of any degree or diploma or
fellowship.
Dated-
Mr. Shwet Kamal,
En.No. 07419103910
iii
ACKNOWLEDGEMENT
Research is a venture that requires co-operation of many people I feel pleasure in
taking this opportunity to express my sincere regards to my supervisor Dr. Sunita
Jindal, Associate Professor, Gitarattan International Business School, New Delhi.
Without her guidance, valuable suggestions, constructive criticisms and
encouragement throughout the course of the project, the present shape of the work
would not have been possible.
I wish to place on record my gratitude to Dr. S.S. Narula, Director and Mr. Rajesh
S. Pyngavil, Program Coordinator, Gitarattan International Business School, N.
Delhi for their continuous encouragement and advice which were of immense help
to me. I am also thankful to all teachers, non-teaching staff and all my friends of the
institute for their kind help.
SHWET KAMAL
Enrolment No.: 07419103910
iv
TABLE OF CONTENTS
CONTENTS
PAGE NO.
Executive summary…………………..……………………………………….. ix
Chapter-1 Introduction……………..…………………………………………. 1
Chapter-2 Literature Review…………………………………………………... 10
Chapter-3 Research Methodology
•
Objective of the study………………………………………………….. 22
•
Scope of the study……………………………………………………… 22
•
Rationale of the study…………………………………………………... 23
•
Limitations of the study………………………………………………
23
•
Sample size…………….…………………………………………….
24
•
Research design……….……………………………………………..
25
Chapter-4 Analysis & Interpretation
•
Trader’s perspective………………………………………………….
29
•
Consumer’ perspective………………………………………………
54
•
Hypothesis Testing
a. Hypothesis-1…………………………………………………….
64
b. Hypothesis-2……………………………………………………..
67
Chapter-5 Major Findings and discussions……………………………….………70
Chapter-6 Conclusion and Recommendations…………………………….....
76
Reference and Annexure
•
Reference…..…………………………………………………………. 79
•
Annexure
o
Questionnaire 1- Traders……………………………………..
82
o
Questionnaire 2- Consumers………………………………….
88
v
LIST OF TABLES
TABLE NO.
TABLE NAME
PAGE NO.
1
SAMPLE SIZE
24
2
FORMAT OF OUTLET
29
3
PRODUCT CATEGORY
30
4
SUPPORT FOR FOREIGN RETAILERS
32
5
EASIER AVAILABILITY OF PRODUCTS
33
6
INFLOW OF INVESTMENTS
34
7
PRODUCTIVITY OF MANUFACTURERS
35
8
REGISTERED TRADER
36
9
FAIR PRICE TO MANUFACTURERS
37
10
EFFICIENCY IN WORK
38
11
TRADITIONAL UNORGANIZED RETAILERS
39
12
PROBLEMS WITH UNORGANIZED RETILER
40
13
GENERATING MORE EMPLOYMENT
42
14
BENEFIT IN TERMS OF PRICE
43
15
BENEFIT IN TERMS OF QUALITY
44
16
EASY ACCESSIBILITY
45
17
BENEFIT
46
18
FLOW OF FDI
47
19
BARRIER TO FDI
49
20
WEEKLY AVERAGE FOOTFALL
50
21
WEEKLY TURNOVER
51
22
EMPLOYEES
53
23
FOREIGN VERSUS TRADITIONAL RETAILER
54
24
BRANDED GOODS
55
25
FARMER AND YIELD
56
26
EMPLOYMENT OPPORTUNITIES
57
27
PRODUCT AND PRICE
58
28
TASTE AND DEMAND
59
29
RURAL INDIAN AND FDI
60
vi
30
SUPPORT FOR FDI
61
31
FACTOR AGAINST FDI
62
32
HYPOTHESIS-1 VARIABLE-1 FDI
64
33
HYPOTHESIS-1 VARAIBLE-2 TRADERS’
64
VIEWPOINT
34
HYPOTHESIS-1 TEST STATISTICS
65
35
HYPOTHESIS-1 T TEST STATISICS
65
36
HYPOTHESIS-1 ONE SAMPLE STATISTICS
65
37
HYPOTHESIS-2 VARIABLE-1 FDI
67
38
HYPOTHESIS-2 VARIABLE-2 CONSUMERS’
67
VIEWPOINT
39
HYPOTHESIS-2 TEST STATISTICS
68
40
HYPOTHESIS-2 T TEST ONE SAMPLE
68
STATISTICS
41
HYPOTHESIS-2 T TEST ONE SAMPLE TEST
68
42
FDI IN RETAIL
72
vii
LIST OF FIGURES
FIGURE NO.
FIGURE NAME
PAGE NO.
1
NO. OF STORES
30
2
PRODUCT CATEGORY
31
3
NO. OF RESPONDENTS
32
4
EASIER AVAILABILITY OF PRODUCTS
33
5
INFLOW OF INVESTMENTS
34
6
PRODUCTIVITY OF MANUFACTURERS
35
7
REGISTERED TRADER
36
8
FAIR PRICE TO MANUFACTURERS
37
9
EFFICIENCY IN WORK
38
10
TRADITIONAL UNORGANIZED RETAILERS
39
11
PROBLEMS WITH UNORGANIZED RETILER
41
12
GENERATING MORE EMPLOYMENT
42
13
BENEFIT IN TERMS OF PRICE
43
14
BENEFIT IN TERMS OF QUALITY
44
15
EASY ACCESSIBILITY
45
16
BENEFIT
46
17
FLOW OF FDI
48
18
BARRIER TO FDI
49
19
WEEKLY AVERAGE FOOTFALL
51
20
WEEKLY TURNOVER
52
21
EMPLOYEES
53
22
FOREIGN VERSUS TRADITIONAL RETAILER
54
23
BRANDED GOODS
55
24
FARMER AND YIELD
56
25
EMPLOYMENT OPPORTUNITIES
57
26
PRODUCT AND PRICE
58
27
TASTE AND DEMAND
59
28
RURAL INDIAN AND FDI
60
29
FACTOR AGAINST FDI
62
30
INVESTMENT IN INDIA, FDI PROJECTS AND
74
JOBS CREATION
31
FDI AS A SHARE OF GDP
viii
75
EXECUTIVE SUMMARY
Recent developments on the issue of FDI in single brand retail and multi-brand retail
have changed the retail market and the investors’ sentiments a lot. The FDI will have an
immense potential to change the market as such. This project on “traders and consumers
perspective on FDI in retail” is overviewing the market sentiments and the implications the
FDI can make on the consumers as such.
The FDI in retail is a kind of dream project that will enable to government to ensure its
global competency goals. Goal that will enable to flourish and improve the market conditions
as such. Also it will make even the competitive atmosphere and channelize the goodwill in an
appropriate manner.
This project focusses solely on the perspective of consumers and traders over the much
awaited government verdict on FDI in retail. FDI will both enhance and devalue the market. It
will change the basic strata of traders and the consumers. It will ensure relative factors have an
influence on the same.
This study is a motion towards the same analogy as seen in the individual sectors of the
Indian industry. The project covers 100 respondents each of the traders and consumers side.
And the study is made in the Dwarka, Palam and Najafgarh vicinity of New Delhi. This study
caters to the varied tastes and preferences of the researchers who wants to avail a generalized
know how of the people’s perspective.
Different questionnaires were developed to ensure that every perspective must be
covered with equal care. As we know that the government is having a direct control over the
issue. The course of action taken by the government is also a major attraction for the interested
stakeholders. The market sentiments changes with the every move the government takes. The
study also earmarks the requirement of the further study and research in the same field as the
government plays an important role in defining the further course of actions to be taken by the
stakeholders.
The hypothesis was made to test the significance of the probable results of the same
study. This enhances the result’s accuracy. Overall the traders are in against the motion mode.
But, the consumers seem a lot confused and will give a clear response only after the FDI is
introduced.
ix