PROBLEMS AND PROSPECTS OF RETAIL BUSINESS A STUDY WITH REFERENCE TO SIVAKASI TALUK

Transcription

1 394 ABSTRACT PROBLEMS AND PROSPECTS OF RETAIL BUSINESS A STUDY WITH REFERENCE TO SIVAKASI TALUK DR. M. SELVAKUMAR*; DR. A. MUTHUMONI** *Assistant Professor, PG and Research Department of Commerce, Ayya Nadar Janaki Ammal College, Sivakasi **Principal, M.G.R. College of Arts and Science, Hosur, Tamilnadu. Retail industry is the largest industry in India, with an employment of around 8 per cent to over 10 per cent of the country's Gross Domestic Product. Retail industry in India is expected to rise 25 per cent yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175 billion. India retail industry is one of the fastest growing industries with revenue expected to amount US$ 320 billion and is increasing at a rate of 5 per cent yearly. A further increase of 78 per cent is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 25 billion by 2010 from the current size of US$ 7.5 billion For a retailer, it is very difficult to retain the potential buyer. Because the buyers are scattered according to their convenience of purchasing. In order to keep possession of their sales volume, the retailer has to face a stiff competition in the retail business. Majority of functions have to be performed by owners themselves due to limitation of resources. So the researcher made sincere attempt to analyse the Problems and Prospects faced by retailer in the study area, during the course of starting and managing their enterprise. INTRODUCTION Retail industry is the largest industry in India, with an employment of around 8 per cent to over 10 per cent of the country's Gross Domestic Product. Retail industry in India is expected to rise 25 per cent yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175 billion. India retail industry is one of the fastest growing industries with revenue expected to amount US$ 320 billion and is increasing at a rate of 5 per cent yearly. A further increase of 78 per cent is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 25 billion by 2010 from the current size of US$ 7.5 billion

2 395 Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively, as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9 per cent annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60 per cent of the Indian grocery basket consists of non branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. SCOPE OF THE INDIAN RETAIL MARKET The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry contributes 10 per cent of the countries GDP and its current growth rate is 8.5 per cent. In the Indian retail market the scope for growth can be seen from the fact that it is increased to US$ billion in 9 from US$ 394 billion in 5. The organized retailing sector in India is only 8 per cent and is expected to rise to per cent by the year 201 There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. The growth of scope in the Indian retail market is mainly due to the change in the consumers behavior. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable. STATEMENT OF THE PROBLEM For a retailer, it is very difficult to retain the potential buyer. Because the buyers are scattered according to their convenience of purchasing. In order to keep possession of their sales volume, the retailer has to face a stiff competition in the retail business. Majority of functions have to be performed by owners themselves due to limitation of resources. So the researcher made sincere attempt to analyse the Problems and Prospects faced by retailer in the study area, during the course of starting and managing their enterprise. OBJECTIVES OF THE STUDY The main objectives of the study are To study the socio economic conditions of the retailer in Sivakasi Taluk

3 396 To known the business profile of the retailers in Sivakasi Taluk To analyse the problems faced by the retailers in Sivakasi Taluk To analyse the opportunities and prospects of retail Business To offer suggestions on the basis of the findings of the study. LIMITATION OF THE STUDY Due to paucity of time, the present study is conducted only retailers and nor covered the performance of customers and their satisfaction in retailing. This study is restricted to Sivakasi Taluk only and also applicable for a short period only. METHODOLOGY OF THE STUDY The study is designed as a descriptive and analytical one. Considerable data are available both from primary and secondary data. The study is carried out with the help of sample survey. The research problem and interview schedule have been formulated and tested on the basis of the research objectives. SOURCES OF DATA The required data for the present study are collected both from Primary and Secondary Sources. Primary data are collected during 9 with the help of schedule designed for the Interview Schedule. The Secondary data are also collected from the various standard text books, research articles, reports, leading newspapers, magazines and journals. These have constituted a supportive literature for the purpose of carrying out the research work. SAMPLING DESIGN The population of the current study is the retailer in Sivakasi Taluk. It is not feasible to collect data from the entire population. Therefore the researcher has used the sampling technique for data collection. The researcher has selected sample retailers on the basis of convenience sampling technique. PLAN OF ANALYSIS To analyse and interpret the collected data, the researcher has been used the tools like Percentages, Weighted Arithmetic Average Method, Chi Square Test, Kolmogrov Smirnov (KS) Test, Garrett Ranking Method, Sign Test. A five point scale has been used to measure the level of satisfaction in retail business. Chi Square test has been applied to test the significant difference in the level of satisfaction. Sign test, one of the non parametric methods, has been used to know whether there is any significant difference between the Yes and No responses of retailers for each of the given statements regarding problems faced by the retailer in retail business.

4 397 Kolmogrov Smirnov (KS) Test is used to analyse the Prospects of retail business in Sivakasi Taluk. HYPOTHESES OF THE STUDY The hypotheses framed for this study are as follows There is no significant difference in the opinion of retailers about the prospects of retail business in Sivakasi Taluk. There is no significant difference in the opinion of retailers about their problems. GENDER WISE CLASSIFICATION OF THE RESPONDENTS The researcher has classified the respondents on the basis of gender. The gender wise classification of respondents is displayed in Table 1 TABLE 1 GENDER WISE CLASSIFICATION OF THE RESPONDENTS S.NO. Gender No. of Respondents Percentage Male Female Total The above table shows that out of respondents, 185 are male respondents (95 %) and 15 respondents are female (7.5 %) COMMUNITY WISE CLASSIFICATION OF THE RESPONDENTS The researcher has also analysed the community of the respondents. The data regarding community of the respondents is highlighted in Table 3 TABLE 3 COMMUNITY WISE CLASSIFICATION OF THE RESPONDENTS S.NO. Community No. of Respondents Percentage Forward Most Backward Backward

5 SC / ST Total It is lucid from the above Table 3 that 82 (41%) respondents are backward community,58 (29%) respondents are belong to backward community, 40 (20%) of them are SC / ST and 20 (10% ) respondents are forward community. RELIGION WISE CLASSIFICATION OF THE RESPONDENTS area. Table.4 points out the Religion wise classification of the respondents in the study TABLE 4 RELIGION WISE CLASSIFICATION OF RESPONDENTS S.NO. Particulars No. of Respondents Percentage Hindu Muslim Christian Total The above Table 4 brings in view that, 135 (67.50%) respondents are Hindu, 45 respondents (250%) are Muslim, and the remaining 20 (10%) of them are Christian. LITERACY LEVEL OF THE RETAILERS The literacy level is one of the important factors which also influence the behaviour, tastes, living standards and aspirations. To ascertain the literacy level of the respondents, a study was made and the findings are presented in the following Table 5

6 399 TABLE 5 LITERACY LEVEL OF RESPONDENTS S.NO. Particulars No. of Respondents Percentage Up to SSLC HSC Undergraduate Postgraduate Diplomo Professional 5 50 Total It is observed from the above table that, exactly 35 per cent of the respondents are undergraduate, 21 per cent of the respondents are Post graduate, 17.5 per cent of the respondents are having qualification up to SSLC, 14 per cent of the respondents are Diploma holders, 15 per cent of the respondents are Higher Secondary and remaining 5 per cent of the respondents are Professionals. INCOME PROFILE OF THE RESPONDENTS Money is an important source to make use of any things. Generally the rich people are having higher purchasing power than that of poor people. So the researcher has classified the various informants according to their level of income. The following Table 6 bears out an evidence of the data. TABLE 6 INCOME PROFILE OF THE RESPONDENTS S.NO. Community No. of Respondents Percentage Less than Rs 10, Rs 10,000 Rs 20, Rs 20,000 Rs 30, Rs 30,000 and above Total

7 400 Table 6 shows that out of respondents, per cent are earning less than Rs 10,000 per month, followed by per cent of respondents who earn Rs 10,000 to Rs 20,000 per month, 250 per cent of the respondents earn between Rs 25,000 and Rs 30,000 and the remaining per cent of the respondents earn Rs 30,000 and above per month. CATAGORIES OF RETAILERS The researcher categorized the retailers according to the nature of goods and services they deal. The highlights of this analysis is shown in Table 7 TABLE 7 CLASSIFICATION OF RETAILERS ON THE BASIS OF THE PRODUCT DEALED S.NO. Particulars No. of Respondents Percentage Grocery Shop Stationery Food Fireworks Electronic Products Textile Fancy Store Food wear Gold & Gift items Medical Products Durables 5 50 Total It is understood from the Table 7 that 45 respondents are Grocery shop retailers which occupies 250 per cent, 16 per cent of the respondents are Stationery retailers, 150 per cent of the respondents are Gold and Gift items retailers, 9 per cent of the respondents are Medical products retailers, 7.5 per cent of the respondents are Food, Fireworks, and Textile retailers, 5.50 per cent of the respondents are Fancy store retailers, 5 per cent of the respondents are Footwear retailer, 4.5 per cent of the retailers are Electronic products, and remaining 5 per cent of the respondents are Durables retailers.

8 401 PREVIOUS EXPERIENCE OF THE RETAILER The researcher has also found out the previous experience for doing the business. Table 8 shows the Experience of the retailers in their business. TABLE 8 PREVIOUS EXPERIENCE OF THE RETAILERS S.NO. Particulars No. of Respondents Percentage Experienced Not Experienced Total It is inferred from the above table that per cent of respondents do not have previous experience in their business whereas the remaining per cent have previous experience in their business. NATURE OF THE BUSINESS Table 9 represents the information regarding the Nature of Business of the sample retailers in the study area. TABLE 9 NATURE OF BUSINESS S.NO. Particulars No. of Respondents Percentage Hereditary First Generation Total The above table upholds that 75 per cent of the respondents are doing the retail business as hereditary and remaining 25 per cent of the respondents are the first generation businessman. NATURE OF DECISION MAKING Decision Making is an important role in business activities. The researcher has also collected the information about the business decisions of the retailers. Table 10 reveals this analysis.

9 402 TABLE 10 NATURE OF DECISION MAKING S.NO. Particulars No. of Respondents Percentage Independent decision Consult with family members Consult with employees Professional advice Total It is noted from the above table that 120 respondents (60 %) have taken independent decision; 45 respondents (250%) have consult with family members; 27 respondents (13.50%) seek professional advice for decision and remaining 8 respondents (4%) have consulted with employees. BUSINESS AFFECT THE FAMILY LIFE The researcher has investigated about the business which affects the family life of the respondents. The piece of information about the influence of business on family is displayed in Table 11 TABLE 11 BUSINESS AFFECT THE FAMILY LIFE S.NO. Particulars No. of Respondents Percentage Affect Not Affect Total The Table 11 elicits the fact that 178 respondents (89%) feel that the business activities not affect the family life and remaining 32 respondents (16%) feel that the business activities affect the family life.

10 403 FORM OF HELP IS PROVIDED BY FAMILY MEMBERS Manpower is the main pillar of an organization. Depending upon the needs and requirements, family members help the retailers. Table 12 shows the form of help provided by the family members. TABLE 12 FORM OF HELP PROVIDED BY THE FAMILY S.NO. Particulars No. of Respondents Percentage Manual Help Financial Help Advice Business Tips Others Helps 2 06 Total Note : Out of respondents only 189 respondents have received family support. It has been found from the above table that out of 189 respondents, per cent of respondents have received financial help from their family members, per cent of respondents have received manual help, per cent of respondents have received advice from their family members and 170 per cent of respondents have received business tips from their of family members and remaining 05 per cent of respondents have getting other helps from their family. PLACE OF ESTABLISHMENT The physical environment exercises a significant role on the attitude of the customers. Hence the researcher analyses the place of establishment and its influence in business of retail shop. Table 13 exhibits the details about the place of retail shop.

11 404 TABLE 13 PLACE OF ESTABLISHMENT S.No. Particulars No. of Respondents Percentage Home based Nearer to residence Industrial area Residential area Total It is lucid from the Table 13 that 96 (48%) respondents have the business units in residential area, 44 (22%) respondents locate the business units nearer to their residence, 35(17.5%) respondents do the business home based and remaining 25 (15% ) respondents have the business units in industrial area. FORM OF ORGANISATION Table 14 shows the form of organization of retail business. TABLE 14 FORM OF ORGANISATION S.No. Particulars No. of Respondents Percentage Sole Trader Partnership Limited company Others Total It is clear from the Table 14 that 55 per cent of the respondents are doing the business under sole trader form whereas 450 per cent of the respondents are forming the partnership for doing the business, 50 per cent of the respondents are running the business as limited company form

12 405 REASONS FOR SELECTING RETAIL BUSINESS The retailers are choosing retail business for different reasons. The researcher has identified some reasons like previous experience, technical qualification, and family business and so on. Moreover, to identify the reason which is the most vital one to the researcher has used Garret s Ranking Test. Table 15 shows the responses of retailers about the reason for selecting retail business in Sivakasi Taluk. TABLE 15 REASONS FOR SELECTING RETAIL BUSINESS Rank S.No. Reason Total Previous Experience TechnicalQualifiaction Family Business Support from family members Owing facilities infrastructure Demand for the product or services To avail Government concessions Total There are large numbers of reasons for choosing the retail business. Seven reasons that choosing retail businesses by the retailers. They are previous experience, technical qualification, family business, and support from family members, owing infrastructure facilities, demand for the product or services, to avail government concessions. The respondents are asked to rank the reasons on their willingness. The opinion of the respondents is given in Table 15. Table 16 furnishes the Garret s scores awarded to each reason for selecting the retail business. The highest score is awarded to Family Business, followed by Previous Experience, the least score is awarded to Demand for the product or service.

13 406 TABLE 16 REASONS FOR SELECTING RETAIL BUSINESS GARRETS RANKING S.No. Reasons Garrets Score Average Score Garrets Rank Previous Experience II Technical Qualifiction V 3. Family Business I 4. Support from family members IV 5. Owing infrastructure facilities III 6. Demand for the product or services VII 7. To avail Government concessions VI Source: Primary Data Table 16 shows the Garret Scores and the average scores. The average scores are ranked according to their values. The first rank is given to Family Business, Previous Experience got the second rank, Owing infrastructure facilities places the third rank, the fourth rank is given to Support from family members, Technical Qualification got the fifth rank, To avail Government concessions got the sixth rank and the last rank is given to Demand for the product or services. UTILISATION OF THE CAPACITY The research study has brought lime light on information relating to the utilization of entire capacity made by the retailer. This detail is presented in Table 17 TABLE 17 UTILISATION OF THE CAPACITY S.No. Particulars No. of Respondents Percentage Utilised Not utilized Total

14 407 It is observed from the Table 17 that 160 respondents (80%) have utilized their entire capacity and remaining 40 respondents (20%) have not utilized their entire capacity. CAUSES FOR UNDER UTILISATION The researcher has identified the causes for under utilization of resources. Table 18 shows the details of under utilization of resources. From the above details the researcher has enlisted the causes as under TABLE 18 RANKING OF CAUSES FOR UNDER UTILISATION S.NO. Particulars Weighted Arithmetic Mean Rank Non availability of raw material Stock accumulation Lack of working capital Labour problems Technical problems Low profit margin Source : Processed Data It is inferred from the ranking proposal that the lack of working capital got the rank with theweighted Arithmetic Mean of 4.40, labour problem got second rank with 3.85, Non availability of raw material got third rank with the score value of 3.75 and least score value 55 is got by technical problems. SOURCES OF PURCHASE OF MATERIALS Generally the retailers have many sources to purchase the materials of the business. To know the major source of purchase, this analysis is made and presented in Table 19. TABLE 19 SOURCES OF PURCHASE OF MATERIAL S.No. Particulars No. of Respondents Percentage Open Market Government Quota Other Sources

15 408 Total It is clearly exhibited in the above table that 173 (86.50%) respondents have purchased the material from the open market, 16 respondents have procured the materials from other source like directly from the producers or manufacturers and only 11 retailers purchased the raw material from government quota. MODE OF PURCHASES The retailers are purchasing the raw material both for cash and credit. It depends upon the quantum of purchase. The researcher has analysed and the results are exhibited in the following Table 20 TABLE 20 MODE OF PURCHASES S.No. Particulars No.of Respondents Percentage Cash Credit Both Total It is apparent from the above Table 20 that 78 respondents (39%) have purchased the products under credit, 70 respondents (35%) have purchased the materials for both cash and credit terms and remaining 52 respondents (26%) have purchased products only against cash SOURCES OF FINANCE Finance holds the key to all business activity. No business activity can ever prosper without adequate financial support. The researcher has made an attempt to analyse the sources of finance for retail business in the Sivakasi Taluk. The following Table 21 shows the sources of finance.

16 409 TABLE 21 SOURCES OF FINANCE S.No. Particulars No. of Respondents Percentage Owned funds Borrowed funds Owned and Borrowed Total It is clear from the Table 21 that per cent of respondents have used borrowed funds, 30 per cent of respondents have used both owned and borrowed funds for their business and remaining 250 per cent of respondents have used owned funds for their business. SOURCES OF BORROWED FUNDS Usually the funds are borrowed from commercial banks, money lenders, friends, relatives and so on. The researcher has analysed and presented the resulted in Table 22 TABLE 22 SOURCES OF BORROWINGS S.No. Particulars No.of Respondents Percentage Relatives Friends Commercial Banks Cooperative Banks Financial Institutions Money Lenders Any other Total Source:PrimaryData Note : Out of respondents, 95 respondents have used borrowed funds.

17 410 It is evident from the above Table 22 that, per cent of respondents have borrowed funds from their relatives, per cent of respondents have borrowed funds from friends, per cent of respondents have borrowed funds from money lenders per cent of respondents have borrowed funds from financial institutions, 8.43 per cent of respondents have borrowed funds from commercial banks and remaining 4.21 per cent of respondents have borrowed funds from cooperative banks. AVAILMENT OF GOVERNMENT ASSISTANCE Table 23 represents the information regarding the avail of government assistance by the retailers. TABLE 23 AVAILMENT OF GOVERNMENT ASSISTANCE S.No. Particulars No. of Respondents Percentage Availed Not Availed Total The above table upholds that 64 per cent of respondents are not availed the government assistance and remaining 36 per cent of respondents are availed government assistance for the business purposes. FORMS OF ASSISTANCE The researcher has focused the information about forms of assistance availed by the retailers. Table 24 shows the information about the form of assistance. TABLE 24 FORMS OF ASSISTANCE S.No. Particulars No. of Respondents Percentage Loan Subsidy Power concession Any other Total

18 411 Note : Out of respondents, 72 respondents have avail government assistance It is observed that 32 respondents (44.44%) has got power concession from government assistance, 22 respondents (30.56%) got loan from government institution and remaining 18 respondents (25%) got government subsidy for their business. MOTIVATING FACTORS OF RETAILERS Several factors motivate the respondents to select the retail business. The distribution of respondents according to the motivating factors is presented in Table 25 TABLE 25 MOTIVATING FACTORS S.No. Particulars No. of Respondents Percentage Partners Wife or Husband Other family members Friends Relatives Government officials Others Total It is evident from the Table 25 that 29 per cent of respondents are motivated by their parents, per cent of respondents are motivated by their friends, 18 per cent of respondents are motivated their wife or husband, 14 per cent of respondents are motivated from relatives, 11 per cent of respondents are motivated their family members and remaining 4.50 per cent of respondents are motivated by government officials to become retailers. PROBLEMS OF RETAILERS The retailers have so many problems out of which the research taken into account the problems like Personal, Labour, Marketing and Finance. The details of problems of retailers are given in Table 26

19 412 TABLE 26 PROBLEMS OF RETAILERS S.No. Problems No. Respondents Total Respondents Percentage 1 Personal Problems Labour Problems Marketing Problems Finance Problems 100 Source: Primary Data It is observed from the above table that 91 per cent and 87.5 per cent of retailers face the personal problems and labour problems respectively. The above table also reveals that 100 per cent retailers face marketing and finance problems in their retail business OPINION OF RETAILERS ABOUT PERSONAL PROBLEMS In order to know the Personal Problem faced by the retailers they were given 11 statements and were asked about their opinion. The responses of retailers about Personal Problems are shown in Table 27 TABLE 27 OPINION OF RETAILERS ABOUT PERSONAL PROBLEMS S.No Particulars Yes No Total Poor risk taking ability 112 (654) Lack of proper training * 49 (26.92) 70 (38.46) 133 (73.08) Lack of leisure* 57 (332) 4. Health problems 108 (59.34) 125 (68.86) 74 (40.66) Excessive burden of work and responsibility 132 (753) 50 (27.47) 182

20 Excessive tensions and challenges 175 (96.15) 7. Lack of knowledge about competition 158 (86.81) 8. Lack of knowledge about technology 119 (65.38) 9. Occupational mobility 144 (79.12) 10. Dual duties 111 (60.99) 1 Non cooperation from family members 75 (421) Note : The figures in brackets show percentage to total 7 (3.85) 24 (13.19) 63 (34.62) 38 (20.88) 71 (39.01) 107 (5.79) Table 27 shows the details about the Personal problems of retailers in Sivakasi. Among 182 retailers, those who have the personal problems, 112 respondents (654% ) have the problem of Proper risk taking ability, 49 respondents (26.92%) have the problem of Lack of proper training, 57 respondents (332%) have the problem of Lack of leisure, 108 respondents (59.34% ) have the problem of Health problem, 132 respondents (753% ) have the problem of Excessive burden of work and responsibility, 175 respondents (96.15%) have the problem of Excessive tensions and challenges, 158 respondents (86.81%) have the problem of Lack of knowledge about competition, 119 respondents (65.38% ) have the problem of Lack of knowledge about the various improved technology, 144 respondents (79.12% ) have the problem of Occupational mobility, 111 respondents (60.99% ) have the problem of Dual duties and remaining 75 respondents (421%) have the problem of Non cooperation from family members. OPINION OF RETAILERS ABOUT LABOUR PROBLEMS In order to know the Labour problems in Sivakasi Taluk, the retailers were given 6 statements and were asked about their opinion. These responses of retailers about Labour problems are shown in Table 28 TABLE 28 OPINION OF RETAILERS ABOUT LABOUR PROBLEMS S.No. Particulars Yes No Total Absenteeism 120 (68.59) 55 (48.57) 175

21 414 Labour Turn over* 72 (415) 103 (58.85) Union Activities * 45 (25.71) 130 (74.29) Retention of Labour* 32 (18.29) 143 (871) Negative attitude of Labour 144 (829) 31 (17.71) Higher Wages 111 (63.43) 64 (36.57) 175 Source:PrimaryData Note: The figures in the brackets show percentage to total Table 28 shows the details about the Labour Problems of retailers in Sivakasi Taluk. Among 175 retailers, those who have the Labour problems, 120 respondents (68.59%) have the problem of Absenteeism of Labour, 72 respondents (415%) have the problem of Labour Turn Over, 45 respondents (25.71%) have the problem of Union Activities, 32 respondents (18.29 %) have the problem of Retention of Labour, 144 respondents (829%) have the problem of Negative attitude of Labour and remaining 14 respondents (63.43% ) have the problem of Higher Wages. OPINION OF RETAILERS ABOUT MARKETING PROBLEMS In order to know the Marketing problems in Sivakasi Taluk, the retailers were given 5 statement and were asked about their opinion. These responses of retailers about Marketing problems are shown in Table 29 TABLE 29 OPINION OF RETAILERS ABOUT MARKETING PROBLEMS S.No. Particulars Yes No Total Competition from other retailers 168 (84.00) 32 (16.00) Competition from Supermarkets 175 (87.50) 25 (150) 3. Lack of information about changing market 133 (66.50) 67 (33.50) 4. Availability of sub standard product in the market 144 (700) 56 (28.00)

22 Credit sales 180 (90.00) 20 (10.00) Note : The figures in the brackets show percentage to total Table 29 show the details about the Marketing Problems of retailers in Sivakasi Taluk. Among retailers, those who have the Marketing Problems, 168 respondents (84% ) have the problem of Competition from other retailers, 175 respondents (87.50%) have the problem of Competition from Supermarkets, 133 respondents (66.50%) have the problem of Lack of information about changing market, 144 respondents (72%) have the problem of Availability of sub standard product in the market and remaining 180 respondents (90% ) have the problem of Credit Sales. OPINION OF RETAILERS ABOUT FINANCIAL PROBLEMS In order to know the Financial problems in Sivakasi Taluk, the retailers were given 6 statement and were asked about their opinion. These responses of retailers about Financial problems are shown in Table 30 TABLE 30 OPINION OF RETAILERS ABOUT FINANCIAL PROBLEMS S.No Particulars Yes No Total Inadequate fixed capital 133 (66.50) 67 (33.50) Inadequate working capital 170 (85.00) 30 (15.00) 3. Problem of bad debts 165 (850) 35 (17.50) 4. Difficulties in getting Government concessions/subsidies 183 (950) 17 (8.50) 5. Inability to provide securities for loan 144 (700) 56 (28.00) 6. Reluctance of financial Institutions to extend credit to retailers 175 (87.50) 25 (150) Source :PrimaryData Note : The figures in brackets show percentage to total. Table 30 shows the details about the Financial Problems of retailers in Sivakasi Taluk. Among retailers, those who have the Marketing Problems, 133 respondents (66.50%) have the problem of Inadeqate of fixed capital, 170 respondents (85%) have the

23 416 problem of Inadequate of working capital, 165 respondents (850% ) have the problem of Bad debts, 183 respondents (950%) have the problem of Difficulties in Government concessions, 144 respondents (72 %) have the problem of Inability to provide securities for loan and remaining 175 respondents (87.50%) have the problem of Reluctance of financial Institutions to extend credit facilities to retailers. SIGN TEST Sign Test is one of the Non parametric methods in statistical work that can be used with either nominal or ordinal data. It requires less restrictive assumptions concerning the level of data measurement. The sign test has been used to test the following Null Hypothesis was framed for this study. There is no significant difference between the Yes and No responses of the Retailers regarding the various problems faced by the retailers in Sivakasi Taluk. HYPOTHESIS TESTING PROCEDURE For recording the responses of sample retailers, + Sign will be recorded if the retailers response is Yes for each statement framed for this study or a recorded if the retailers response is No for that statement. Using this procedure the responses of all the sample retailers are recorded in terms of + or signs. If the difference is due to chance effects, the probability of a + sign for any statement is 0.50 as is the probability for sign. The purpose of this study is to determine whether or not the Yes and No responses of retailers for each statement are equal. Letting P indicate the proportion of the retailers response Yes we would like to test the following hypothesis: Hypothesis Null hypothesis H o : P =.50 Alternate hypothesis H 1 : P =.50 Conclusion No Significant difference in the responses of Retailers A Significant difference in the responses of Retailers Sign Test can be applied for the small sample case ( n < 20 ) and for large sample case ( n > 20 ). Here n refers to number of retailers who responded to each statement as Yes and No. For all the statements which relate to Problems faced by Retailers for this study, the number of Yes and No responses of employees are greater than 20 that is n >20 ( large sample). LARGE SAMPLE Using the Null Hypothesis H o : P =.50 and a sample size n > 20 the normal approximation of the sampling distribution for the number of + sign as follows: Mean µ = 0.5n

24 417 Standard Deviation σ = 0.25n The value of standardized test statistic Z is calculated as follows: Number of + signs µ Z = σ Testing the Null hypothesis ( H o ) of no difference using 5 per cent level of significance, the acceptance region will be Z = 96 to PROBLEMS OF RETAILERS APPLICATION OF SIGN TEST In order to know whether there is any significant difference in the responses of retailers for each of the statement regarding Personal Problems, Labour Problems, Marketing Problems and Finance Problems, Sign test has been applied. The results of Sign Test with regard to responses of retailers in Sivakasi for each of the statement of Problems are given in Table 31 TABLE 31 PROBLEMS OF RETAILERS APPLICATION OF SIGN TEST S.No. Problems Result Personal Problems Labour Problems Marketing Problems Finance Problems Significant Significant Significant Significant From the above table, it is understand that there is a significant difference between the opinions of responses of retailers about the problems of retail business. Therefore it is concluded that the null hypothesis framed for this purpose is rejected. PROSPECTS OF RETAIL BUSINESS IN SIVAKASI The drivers aiding the growth of the industry are called as Prospects. The following Prospects are aiding the growth of the retail industry in Sivakasi Taluk. These Prospects are presented in Table 32

25 418 TABLE 32 PROSPECTS OF RETAIL BUSINESS IN SIVAKASI S.No. Opinion SA A No DA SDA Total Sivakasi is suitable to retail business 132 (66) 56 (28) 8 (4) 4 (2) Chance to earn more profit 156 (78) 39 (19) 3 (2) 2 (1) 3. Needs lesser investment 102 (51) 86 (43) () 8 (4) 4 (2) 4. Low competition in retail business 25 (12) 42 (21) 75 (38) 32 (16) 26 (13) 5. Does not needs advanced technology 134 (67) 52 (26) 4 (2) 10 (5) 6. Government support to retail business is enough 106 (53) 48 (24) 40 (20) 6 (3) 7. Financial assistance from Institution is enough 86 (43) 69 (34.5) 38 (19) 7 (3.5) 8. Availability of sufficient labour force 122 (61) 68 (34) 10 (5) 9. Better chance to growth 132 (66) 58 (29) 6 (3) 4 (2) 10. Less political influences 137 (68.5) 43 (25) 18 (9) 2 (1) 1 Low cost of factors of production 111 (55.5) 32 (16) 39 (19.5) 18 (9) 1 Lesser or No formalities of Registration 69 (34.5) 89 (17.8) 32 (16) 7 (3.5) 3 (5) 13. No speculation affect in retail business 96 (48) 27 (13.5) 42 (21) 35 (17.5)

26 Sufficient Transport facilities 127 (63.5) 41 (20.5) 28 (14) 4 (2) 15. Better chance to business expansion 108 (54) 63 (35) 18 (9) 11 (5.5) 16. Higher Quantum of population 138 (69) 48 (24) 9 (4.5) 5 (5) 17. Other infrastructure 101 (50.5) 59 (29.5) 29 (14.5) 11 (5.5) 18. No need for any specified knowledge 55 (27.5) 75 (37.5) 15 (7.5) 50 (25) 5 (5) 19. Experience in these field does not yields growth 96 (48) 56 (28) 32 (16) 16 (8) 20. Sufficient Natural resources 125 (65) 43 (25) 28 (14) 4 (2) Source:PrimaryData Note : The figures in the brackets show percentage to total SA Strongly Agree, A Agree, No NO opinion, DA Disagree, SAD Strongly Disagee Table 32 exhibits the Prospects of retail business in Sivakasi Taluk. Retailers tell their opinion about 20 statements of retail business in sivakasi like chance to earn more profit, needs lesser investment, low competition in retail business, does not needs advanced technology, better chance to growth and so on. To rank the prospects of retail industry in sivakasi, the weighted arithmetic mean method has been used. The result of ranking is given in Table 33 TABLE 33 WEIGHTED ARITHMETIC MEAN FOR THE RANK S.No. Opinion SA A NO DA SDA Total Total Average Rank Sivakasi is suitable to retail business

27 420 Chance to earn more profit 3. Needs lesser investment 4. Low competition inretail business 5. Does not need advanced technology 6. Government support to retail business is enough 7 Financial assistance from Institution is enough 8 Availability of Sufficient labour force chance to growth Less political influences 11 Low cost factors of prodution 12 Lesser or no formalities of registration 13 No speculation affect in retail business 14 Sufficient Transport facilities 15 Better chance to business expansion

28 Higher Quantum of population Other infrastructure No need for any specified knowledge 19 Expereince in these field does not yields growth 20 Sufficient Natural resources Source : Processed Data It is noted that among the 20 statement, chance to earn more profit is most important factors because retail business has a lot of chance to earn more profit. Retailer is the final stage in the channel of distribution, retailers can satisfy the customer needs and wants, and earn more profit in their retail business. A second important factor is Higher Quantum of population. Competition plays an important role in each and every business. In retail business there should be shift competition. To overcome the competition the retailers can satisfy the needs and wants of the customer. KOLMOGROV SMIRNOV ( K S ) TEST Kolmogrov Smirnov ( KS) is a non parametric test. It requires less assumption. This test can be applied when the sample size is more than 40. This is used to find out whether an empirical distribution agrees with an assumed theoretical one or not. There are Twenty Statements and each statement has Prospectus of Retail business in Sivakasi. The following formula is applied in this test. D 2 = O E D = refers to calculated value ANALYTICAL FRAMEWORK O = refers to cumulative observed proportion E = refers to cumulative expected proportion In Kolmogrov Smirnov (KS) Test, the cumulative observed proportion is calculated on the basis of observed number. In each case the observed properties are calculated by dividing the respondents. For all gradations, the same method of calculation is followed. On the basis of observed proportion cumulative proportion is calculated. Cumulative expected

29 422 proportion is calculated on the basis of expected proportion. Since there are five gradations, each gradation (ie 0.20 ) is assigned as expected proportion on the basis of observed proportion and the cumulative expected proportion is calculated. For each gradation, the difference between cumulative observed proportion and cumulative expected proportion is calculated. The largest difference will be taken as calculated value. The Table value at both 95 per cent and 99 per cent confidence level is 36/ n, ie 36/ = If the calculated value is greater than the table value, the null hypothesis is rejected otherwise accepted. APPLICATION OF KOLMOGROV SMIRNOV ( K S ) TEST In order to study the opinion of the retailers about the various prospects statements regards with Retail Business, the Kolmogorov Smirnov ( KS ) Test has been used. For the purpose of this study, the following Null hypothesis is framed. There is no significant difference in the opinion of the Retailers about the statements regard with prospects retail business in sivakasi The result of Kolmogrov Smirnov test is given in Table 34 TABLE 34 RESULT OF KOLMOGROV SMIRNOV (K S) TEST S.No. Opinion Calculated D Value Table Value Result Sivakasi is suitable to retail business Significant Chance to earn more profit o Significant 3. Needs lesser investment Low competition in retail business Significant Significant 5. Does not needs advanced technology Significant 6. Government support to retail business is enough Significant 7. Financial assistance from Institution is enough Significant

30 Availability of sufficient labour force Significant 9. Better chance to growth Less political influences Significant Significant 1 Low cost of factors of production Significant 1 Lesser or No formalities of Registration 13. No speculation affect in retail business Significant Significant 14. Sufficient Transport facilities Significant 15. Better chance to business expansion Significant 16. Higher Quantum of population Other infrastructure Significant Significant 18. No need for any specified knowledge Significant 19. Experience in these field does not yields growth Significant 20. Sufficient Natural resources Significant Overall Not Significant The result of Kolmogrov Smirnov (KS) test gives clear idea about the opinion of retailers about the prospects of retail industry in sivakasi. According to KS Test the retailers have different opinion about the individual statement of prospects of retail industry but in total all the retailers feel that the retail industry of sivakasi has good prospects. Therefore it is concluded that there is significant difference between the opinions of retailers about individual statement about prospects of retail industry and there is no significant different between the opinions of retailers about prospects of retail business in sivakasi in total.

31 424 FINDINGS OF THE STUDY The findings of the study is summarized below It is inferred that more number of retailers are male, lie under the age group of 35 years to 45 years, backward community, Hindu, married, undergraduate. It is vivid that retailers with a monthly income of Rs 10,000 ( 33.50%) are found more in the Sivakasi Taluk. Most of the respondents are Grocessary shop retailers which occupy 250 per cent. It is clear that most of the respondents are not having previous experience in the retail business. It is understood that majority of the respondents are supported by the family members. It is known that most of the respondents have stated that they receive financial help from family members. It is inferred that majority of the respondents doing their forefathers business. It is lucid that, the majority of respondents (60%) have taken the decision independently. Majority of the respondents (75%) have business unit at urban areas. It enlightens the fact that the majority of the respondents (48%) located their shop in residential area. It is found that 55 per cent of the respondents are doing the business under sole trader form It is concluded that 29 per cent of the respondents are withstand in these field from 15 to 20 years. It is inferred that most of the respondents (80%) have utilized their full capacity. The lack of working capital is the cause for under utilization of resources. It is realised that majority (86.50%) of the retailers procure the raw materials from open market. It is known from that most of the respondents (39%) have purchased products against credit. Most of the respondents (73%) have adequate marketing facilities. It is inferred that most of the respondents (36%) are made credit sales to their customer.

32 425 It is clear that most of the respondents (578%) having the problem of bad debts. It is known that majority of the respondents (67.50% ) not advertise their product. It is vivid that majority per cent of respondents have used borrowed funds for their business and per cent of respondents have borrowed funds from their relatives. It is known that majority of the respondents are not availed government assistance and per cent of the respondents get power concession from government. There is no significant difference among the opinion of retailers about the problems of retail business. According to the Kolmogrov Smirnov (K S) Test, there is a significant difference in the opinions of retailers about the individual 20 statements about prospects of retail business. There is no significant difference among the opinion of retailers about the prospects of retail business in Sivakasi. SUGGESTIONS OF THE STUDY The following suggestions are offered to improve the retail business position in Sivakasi. The location of the stores should be convenient and easy to access. The distance that the consumer must travel to shop is the basic criteria. The goods should be properly packaged. Certain specialized item which are used or consumed on special occasions or festivals or local celebrations should be available in the shops. Effective control system must be introduced for controlling purchases, storing and inspection of goods, it is highly useful for maintaining quality of goods sold. The out of date inventories are to be immediately identified and removed from the store. Motivating the staffs for improving the performance of their work. The quality of service is a key factor and winning a higher share of customer. Staff must be trained and motivated to recognize their best customers and to offer them superior service. The quality of management of the customer is becoming an increasingly important source in improving the customer service. Education and training of staff needs to be done to enhance service. The frequent buyers should be maintained with the personalized report. The promotional measures such as advertising in local television, banner etc. This result in confidence and trust by customers on the store about the availability of the specialized items or products. The amount of promotion done by a shop depends on a

33 426 number of factors such as store policy, how frequently they bring in new products and new stocks conducting of promotional schemes, general awareness of the shop, the market segment catered to and the budget available for promotion. Technology and innovation will serve as the fuel in enabling the customer s shopping experience. Hence new technology may be adopted in serving the customers. The Government should reduce the Registration formalities and Regulation. The customers expect best shopping experience so the management should take care of environment. The key indictors such as product offering, physical characteristics of the store, store personnel, location convince, prices, customer s services. The retailer should effectively utilize the natural resources. The retailers should clarify the customers doubt about the product and services and then purchase the product. The retailers should properly pay the loan and advances to the financial institutions or government institutions they reduce the interest rates. CONCLUSION Today retailers must differentiate themselves by meeting the needs of their customers better than the competitors. Retailers should prepare marketing plans that include decision on target market, product assortment and procurement, services and stores atmosphere, price promotion and proper placement of products inside the retail shops. There is a general agreement that a basic retailing strategy for creating competitive advantage is the delivery of high service quality. Therefore, by giving better service and product, definitely the retailers can taste the success. REFERENCES BOOKS Gandhi, J.C Marketing Management, Tata McGraw Hill Publishing, New Delhi, Year Kotler Philp., Marketing Management, Sultan Chand and Company Private Limited, New Delhi, Twelth Edition, 3. Pillai., R.S.N and Bhagavathi, Marketing Management, Sultan and Chand and Sons, New Delhi, Second Edition Jain., J.N and Singh.,P.P, Modern Retail Management, Tata McGraw Hill Publishing, New Delhi, Year 6. Agarwal.,B.L, Basic Statistics, Wiley Eastern Limited, New Delhi, Second Edition,1996.