Does Hyper and Speciality Shopping malls place any business threat for Traditional Market centres"-Please discuss the prospects of Traditional business?

Well It depends a lot on Demographic profile of the location. But I firmly believe it is not threat for a economy like India or any such developing economy. Because

1.  Generally Middle class and lower class are the main targets of Traditional Markets, and their income is uneven
2. People with uneven income are more dependent on Traditional markets  because they get credit facility as and when needed
3. They enjoying bargains at traditional markets
4. Price sensitive coustomers prefer traditional markets.
5. Hyper and Malls may create some threats due to their turnover economies but still they need more efforts to meet their operational cost.
6. They Also enjoy a relationship with tradinational Baniya, which helps them in their Ups n Down.

This is my observation , Hyper n Malls r best for Lifestyle n Hi Tech Products , , I wind up here due to limitations that it depends a lot on Demographic situation of a location.

The question to be deliberated upon now is whether we take this confrontation as a competition or a conflict?

India is a price sensitive market. And in such a scenario the question which arises is that can the ambience and shopping experience of shopping malls beat the 'kirana' stores? Do you see this competition moving beyond just a price war?

Looking at the situation from a different perspective 'Kirana' stores target the masses whereas organized retail services cater to a specific class of people. It would be unfair to apply the same rules at both places, when they cater to two different sets of people.

The mall going consumers are more or less global, that is, they have moved from price to value. This section is more value conscious, as they will buy the most exclusive item, and concurrently will want to acquire the finest price for it. A price conscious consumer, alternatively, will look at price alone and choose a product which is the cheapest. The consumer's taste and choice are becoming global. Even the food cooked in their households need ingredients which is available only in the supermarkets. 

On the other hand as the options increase, consumers will demand extra and constraint of space will become a problem for the 'kiranas'. Possibly, what will come about is that the generalized retailer will convert into a specialized one. We can presume that the 'kirana' store will be around for the next3-4 decades easily, as it is the neighborhood store and convenience works in its favor. It also has two channels to buy from – traditional suppliers and hypermarkets.

So to conclude, we can say that the 'kiranas' might have a layout and product threat, but not under any business threat.

Where the prices are concerned, a consumer is motivated to buy more quantity of the goods and there is an immense scope for impulsive shopping in the organized retail shops. Eliminating the impulse shopping factor a consumer saves money in the supermarkets as they offer best prices, however that is not what happens. The consumers more or less end up doing an impulse purchase in the alluring set up of these stores.  

agreed with MR.VINOD,,,

Appreciate the in depth analysis of Mr.Vinod and Mr.Manoj. As the perspective differ so are the views.

I feel the traditional markets shall evolve to some extent, it shall be the survival of the fittest and the smartest. In simple terms I would like to compare the scenario with that of the transport system, several modes of transport have evolved, some totally got replaced, some have been evolving in the same segment in terms of comfort, speed, accessibility, cost; in segments like Railways, Road transport, sea and Airlines. Customers shall opt depending on cost viability, time and compfort.

Malls are the in thing, offers fentastic comfort, choice, entertainment, food and easy parking. The other interesting factor is that the Malls offer better value in comparison to the traditional markets, every product is tagged with price unlike most unorganized markets, offer guarantee and have strong return policy. Due to plenty of choice customer explores and buys what is best for him. The other important aspect is customer not troubled or compelled to buy as it happens most of the time in the traditional old markets. Customer is the KING in true sense in the organized retail.

The only apprehension is that it may displace most of the small time shop keepers in developing countries, in fact small time shop keepers may still survive for longer period in comparison to medium size retail business owners who may find their customers shifting loyalty to the vibrant Malls. As a CSR activity, organized retail should have free training sessions to the working staff of displaced retail units so that they can be provided employment to some extent.

Well I would say as per my experience, these shopping malls or superstores threats and influence the small under developing economies, where they widened the demand and supply gap by hoarding thus create an artificial scarcity of different necessities of life in traditional market, they make undue profits and cause inflation.   

Growing retailing business and urbanization have prompted development of shopping malls in fast developing cities in developing countries. However, the traditional market formats also coexist along with shopping malls though they contribute to increasing traffic congestions and security threats in urban areas. The coexistence of street markets and shopping malls in urban areas has been accepted by the consumers based on the socio-cultural beliefs even if it generates many operational conflicts.

I'll answer as a producer, I think that shopping centers like hypermarkets and malls are an opportunity to increase my sales, as well as put all options for the consumer and this is a good thing, at the same time to increase the rate of economic growth of the country. I think it will not threatens small business owners, because there are in certain places not everywhere, on the other hand, allows to create opportunities for small business to specialize and this could represent an advantage for them cause that hypermarkets and shopping centers include everything, and thus the customer may find it difficult to get what he wants, or also because of time constraints, this helps and gives the owners of small shops advantage from which to continue in the competition

Traditional market depends on the quality without consideration of the appropriate price for the citizen who lives in this region Policy is based on the traditional products of the scarcity of the product and deprive the market While there is now a very quick alternatives for products and more than other product fulfills the same purpose, and its price is cheaper

Good Day!!!

Agreed to Mr. Madhusudan Rao Sriperambuduru.......  appreciated