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Literature Review

The literature review examines various aspects of the retail sector in India, focusing on employee motivation, growth drivers, consumer behavior, and the transition from unorganized to organized retail. It highlights the importance of public spending, entrepreneurship, and infrastructure development in driving economic growth, particularly in regions like Nagaland. Additionally, the review discusses modern retail trends, the impact of technology, and the challenges faced by the sector amid evolving consumer expectations and the COVID-19 pandemic.

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0% found this document useful (0 votes)
17 views16 pages

Literature Review

The literature review examines various aspects of the retail sector in India, focusing on employee motivation, growth drivers, consumer behavior, and the transition from unorganized to organized retail. It highlights the importance of public spending, entrepreneurship, and infrastructure development in driving economic growth, particularly in regions like Nagaland. Additionally, the review discusses modern retail trends, the impact of technology, and the challenges faced by the sector amid evolving consumer expectations and the COVID-19 pandemic.

Uploaded by

kvin3887
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Certainly!

Here’s an expanded and clarified version of your literature review,


incorporating insights from the provided sources and additional scholarly
references:

CHAPTER 2: LITERATURE REVIEW

2.1 Employee Motivation and Satisfaction in Retail

Mishra and Gupta (2009) conducted an empirical study examining job


motivators utilized by Indian retail firms for frontline sales personnel. The
study identified key motivators such as working conditions, skill
development, recognition, role clarity, career growth, and management
support. Regression analysis highlighted compensation, working conditions,
and managerial support as significant predictors of employee satisfaction,
underscoring the importance of a supportive work environment in enhancing
employee morale and retention .

2.2 Employment Opportunities in the Retail Sector

Gadhave and Pai (2012) emphasized the diverse employment opportunities


within the retail industry, including roles in merchandising, store
management, central management, and centralized buying. The sector’s
rapid growth offers dynamic, people-oriented, and service-based careers,
attracting a workforce seeking fast-paced environments.

2.3 Growth Drivers of Indian Retail

Rahman (2012) identified several factors propelling India’s retail growth:


increasing disposable incomes, favorable demographics, evolving lifestyles,
and the expanding middle class. These elements contribute to the sector’s
expansion into both urban and rural markets, with organized retail expected
to grow from 5% to 10% by the end of 2011.

2.4 Consumer Behavior and Government Role

Handa and Grover (2012) explored the rising brand consciousness across
various socio-economic classes in India. The study noted significant growth
in urban and semi-urban retail markets, attributing this to increased
consumer awareness and the government’s role in facilitating industry
growth through reforms and policies aimed at attracting global retail giants.

2.5 Transition from Unorganized to Organized Retail

The Indian retail industry, initially dominated by unorganized sectors, has


witnessed a shift towards organized retail due to changing consumer
preferences. Yamuna Nagar (2012) projected the industry’s growth from US
$330 billion in 2007 to US $640 billion by 2015, highlighting the sector’s
evolution and increasing organization.

2.6 Emergence and Popularity of Organized Retail

Kushwaha and Gupta (2012) traced the entry of organized retail businesses
in India to the 1990s, noting a surge in popularity post-2002. By 2006,
organized retail stores had become integral to middle-class households,
reflecting a significant shift in shopping habits and preferences .

2.7 Historical Perspective on Retail Evolution

The evolution of retailing from the 19th century transformed store ownership
from small-scale operations to nationally and globally dominant entities.
This progression turned retailing into both an art and a science, emphasizing
strategic planning and customer engagement.
2.8 Shift in Employment Sectors

Sudnation (2014) observed a growing trend of individuals in India


transitioning to the services sector for employment. This shift is attributed to
the relatively low compensation in traditional agriculture and manufacturing
sectors, prompting workers to seek better opportunities in retail and other
service industries.

2.9 Segmentation of Organized Retail

Jindal (2014) categorized the organized retail sector into two segments: In-
store Retailers, operating through fixed point-of-sale outlets designed for
high walk-in customer volumes, and Non-store Retailers, reaching customers
via direct selling, telemarketing, and e-commerce platforms.

2.10 Youth Demographics and Retail Growth

Ramanan and Ramanakumar (2014) highlighted India’s youthful


demographic, with 500 million individuals possessing high disposable
incomes. This demographic contributes significantly to the retail sector,
which accounts for over 20% of the country’s GDP and is expected to grow at
a CAGR of approximately 20%.

2.11 Innovation Management in Retail

Pantano (2014) emphasized the need for a deeper understanding of


innovation management approaches within the retail industry. The study
identified key areas requiring attention: innovation management strategies,
the degree of innovation heterogeneity, and the drivers of innovation,
comparing these aspects with other sectors like education and gaming.
2.12 Impact of Connected Devices

Gregory (2015) discussed how connected devices are reshaping industries,


including retail. The integration of intelligent, connected objects generates
vast amounts of data, enabling companies to enhance operations, improve
customer service, and develop new business models.

2.13 Fundamentals of Retail Transactions

Vaja (2015) defined retail as the sale of goods to end-users for personal use
and consumption, distinguishing it from wholesale transactions. Retailing
serves as the final step in the supply chain, delivering products directly to
consumers through various marketing channels.

2.14 Modern Retailing Trends in India

Hazarika (2015) observed the emergence of modern retailing in India,


characterized by bustling shopping centers, multi-storied malls, and
complexes offering shopping, entertainment, and food under one roof. The
changing business environment and increased use of information technology
have contributed to the sector’s growth.

2.15 Developmental Challenges in the North Eastern Region

Palkar (2015) highlighted the rich biodiversity and human talent in India’s
North Eastern Region (NER). Despite this, the region has faced
developmental neglect, insurgent activity, and security concerns, impacting
its economic growth and integration with the broader national economy.

2.16 Importance of In-Store Experience


Kesavan and Mani (2015) emphasized the critical role of in-store experience
in the competitive retail environment. A superior in-store experience,
facilitated by adequate inventory and skilled staff, is essential for converting
foot traffic into sales and encouraging repeat visits.

2.17 Regional Disparities and Economic Potential

Rajeev and Nagendran (2016) noted that literature on regional development


often overlooks India’s north-eastern states due to their economic
backwardness and unique terrain. However, these states hold significant
potential for influencing the country’s economy and political stability, given
their strategic location connecting the subcontinent to the rest of Asia.

2.18 Data Management for Customer Satisfaction

Chandramana (2017) stressed the importance of managing and channelizing


data to enhance customer satisfaction and profitability. Effective data
utilization is crucial for retailers aiming to thrive in a competitive market.

2.19 Entrepreneurship Growth in Nagaland

Sinha (2017) observed a surge in entrepreneurship in Nagaland, particularly


in locally made brands of food products, fashion, restaurants, and hotels.
This growth is attributed to the changing mindset of the youth, who are
increasingly engaging in small businesses instead of seeking government
employment or migrating to mainland India.

2.20 Retail Sector’s Contribution to GDP

Vijayakumar (2018) reported that India was the world’s top sourcing
destination in 2016-17, with a 55% share. The country’s youthful working
population and emerging retail opportunities contribute to the sector’s
growth, which accounts for over 20% of the GDP. Despite this, the majority
of the retail market remains unorganized, with most retailers operating in
spaces less than 500 sq. ft.

2.21 Public Spending and Economic Growth in Nagaland

Vero (2018) found a strong positive impact of public spending on Nagaland’s


Net State Domestic Product (NSDP). The tertiary sector showed significant
growth in the post-reform period, and higher education levels were found to
have a substantial impact on economic growth, indicating the need for
robust policy frameworks to ensure sustainable development.

2.22 Digital Integration in Retail Stores

Perry, Kent, and Bonetti (2019) discussed how incorporating digital features
into the store environment helps retailers exceed customer expectations,
compete with online retailers, and offer unique shopping experiences.
Digital integration is becoming a critical component of modern retail
strategies.

2.23 Transportation Challenges in Nagaland

Humtsoe (2020) highlighted the persistent issues in Nagaland’s


transportation infrastructure, which hinder economic development. Investing
in transport infrastructure and services is imperative to stimulate growth and
address regional disparities.

2.24 Demographics and Retail Store Growth

Haris et al. (2021) identified demographic development as a key factor


influencing the growth of retail stores. A rising population increases demand
for goods and services, necessitating high-quality offerings to establish
customer loyalty and a positive brand image.

2.25 Foreign Investment in Multi-Brand Retail

Khadilkar (2021) discussed the contentious issue of multi-brand retail and


the entry of large foreign players into the Indian market. While India’s
economic growth and demographics make it an attractive market, challenges
such as high real estate costs, infrastructure deficits, and competition from
traditional formats persist. A balanced ecosystem accommodating both
organized and traditional players is anticipated.

2.26 Entrepreneurship and Rural Development

Kumar and Shobana (2021) highlighted the role of entrepreneurship in


driving economic growth, rural development, job creation, and business
expansion. Entrepreneurship provides a vital source of income for
impoverished villagers, contributing to overall socio-economic development.

**2

Here are the expanded and clarified versions of the selected entries:

28. Sanjay Sinha (2017): Entrepreneurship in Nagaland

Sinha (2017) observed a rising trend of local entrepreneurship in Nagaland,


particularly in the sectors of food production, fashion, restaurants, and
hospitality. This growth is attributed to a shift in the mindset of the youth,
who increasingly favor self-employment and small business ownership over
conventional government jobs or migration to other Indian states. The
emergence of local brands reflects a broader socio-economic transformation
in the region, where entrepreneurship is viewed as a viable pathway to
economic participation and identity-building. The development also aligns
with national efforts to promote rural entrepreneurship and inclusive
economic development, especially in underserved regions such as the North
East.

30. Yelhi Vero (2018): Public Spending and Economic Growth in Nagaland

Vero (2018) analyzed the role of public expenditure in driving economic


growth in Nagaland. The study found a strong and statistically significant
impact of public spending on the Net State Domestic Product (NSDP),
especially in the post-liberalization era. Among economic sectors, the tertiary
sector—comprising services like education, health, and retail—emerged as
the fastest-growing contributor. The analysis also highlighted the long-term
effects of educational investments, suggesting that higher levels of schooling
and tertiary education positively influence economic development, albeit
with a time lag. The findings underscore the necessity for a coherent and
sustained policy framework to guide development planning in Nagaland,
focusing on education and service-led growth.

33. Tumbenthung Y. Humtsoe (2020): Transport Infrastructure and


Development in Nagaland

Humtsoe (2020) examined the persistent infrastructural challenges in


Nagaland, particularly in the transport sector, and their implications for
regional development. The study highlighted that poor road connectivity,
inadequate transport services, and logistical inefficiencies remain critical
bottlenecks to the region’s economic progress. Drawing on development
literature, the paper emphasized that investment in transportation
infrastructure has the potential to yield substantial economic returns by
reducing transaction costs, facilitating market access, and integrating
isolated communities. For Nagaland’s retail and service sectors, improved
transport links are vital for ensuring supply chain efficiency, expanding
consumer reach, and attracting external investment.

50. N. Lochumi Lotha & Ratan Kaurinta (2024): Role of MSMEs in Nagaland’s
Economy

Lotha and Kaurinta (2024) explored the critical role of Micro, Small, and
Medium Enterprises (MSMEs) in Nagaland’s economic landscape. MSMEs in
the state serve as a foundation for employment generation, income
diversification, and entrepreneurship promotion, especially in rural and semi-
urban areas. The study noted that these enterprises have significantly
contributed to local economic resilience despite infrastructural constraints
and limited market access. MSMEs in Nagaland also preserve indigenous
knowledge systems and promote culturally rooted products, such as
handlooms, handicrafts, and organic foods. Strengthening support for MSMEs
through financial inclusion, digital literacy, and market linkage initiatives is
crucial for accelerating inclusive growth in the region.

Great! Here are the expanded versions of the remaining entries that needed
improvement, starting from entry 27 to 53:

2.27 Managing Retail Data for Profitability

Sudeep B. Chandramana (2017)

Chandramana emphasized that in the data-driven retail ecosystem, the


ability to manage and channel customer data effectively is critical for
ensuring profitability and customer satisfaction. With rising competition,
successful retailers must harness data analytics to understand buying
patterns, personalize offers, optimize inventory, and enhance service
efficiency. Proper data management directly correlates with sustained
profitability and customer retention.

2.28 Entrepreneurship in Nagaland

Sanjay Sinha (2017)

Sinha observed a notable rise in entrepreneurship within Nagaland,


particularly among youth engaging in food production, fashion, and
hospitality ventures. This shift is attributed to a generational change in
mindset, where young people are increasingly preferring local
entrepreneurial pursuits over government jobs or migration. This trend
highlights the importance of localized economic initiatives, policy support,
and capacity-building programs for sustaining grassroots innovation.

2.30 Public Spending and Economic Development in Nagaland

Yelhi Vero (2018)

Vero found that public investment in Nagaland has a significantly positive


impact on Net State Domestic Product (NSDP), especially in the post-reform
era. The tertiary sector (services) emerged as the primary driver of growth.
Additionally, investments in education, particularly higher education, showed
a time-lagged but strong effect on long-term economic growth, underlining
the importance of sustained public policy in human capital development.
2.33 Transport and Regional Growth

Tumbenthung Y. Humtsoe (2020)

Humtsoe pointed out the critical role of transport infrastructure in economic


development in Nagaland. Poor roads and connectivity hamper both the
supply chain and consumer access, limiting the reach of retail markets. The
study emphasizes that targeted investments in transport could unlock latent
economic potential and create a more balanced development model for the
Northeast region.

2.35 Foreign Retail Entry and Challenges

S.M. Khadilkar (2021)

Khadilkar analyzed the implications of foreign direct investment (FDI) in


India’s multi-brand retail sector. While India’s large market size, growing
consumer base, and urbanization attract global players, infrastructural
issues, real estate costs, and strong traditional markets pose significant
challenges. The study suggests a hybrid model where both organized and
unorganized retailers co-exist, leveraging local strengths and global
practices.

2.36 Entrepreneurship and Rural Upliftment

J. Suresh Kumar & D. Shobana (2021)

The authors highlighted how entrepreneurship initiatives can stimulate rural


development through job creation, income diversification, and local business
expansion. In areas with limited formal employment, entrepreneurship
becomes a key tool for poverty alleviation and community empowerment.
Their findings align with policy goals of promoting inclusive growth through
grassroots enterprise support.

2.39 Retail Resilience Post-COVID

Jagdish N. Sheth (2021)

Sheth explored how brick-and-mortar (B&M) retail, though challenged by


digital disruption and the COVID-19 pandemic, remains relevant. He
introduced the concept of “deep products”—items that require physical
interaction before purchase (e.g., luxury items, appliances). B&M stores are
repositioning to offer experiential services and integrate digital tools to
enhance value and survive post-pandemic transitions.

2.41 COVID-19 Retail Adaptation Strategies

Abdul Aziz (2022)

Aziz studied how industries survived the COVID-19 pandemic, with emphasis
on MSMEs and the retail sector. Retailers that embraced digital marketing
and e-commerce platforms were more resilient. This shift suggests the
importance of agility and innovation in business models, especially for small
retailers facing crises, to ensure continuity and reach customers during
disruptions.
2.44 Retail Infrastructure Gap

Dan Hopping (2022)

Hopping addressed the growing mismatch between consumer expectations


and the capacity of traditional retail infrastructure. As consumers adapt
quickly to digital trends, legacy systems and outdated logistics lag behind.
This necessitates rapid infrastructure modernization—particularly in logistics,
IT, and store formats—to keep pace with evolving retail landscapes and
consumer behaviors.

2.45 In-Store Value of “Deep Products”

Jonathan Z. Zhang et al. (2022)

Zhang and colleagues theorized that physical retail stores add unique value
for “deep products,” which require tactile evaluation or in-person
demonstration before purchase. These include electronics, luxury goods, and
certain apparel. Their findings show that physical stores can complement
online channels by enhancing trust, reducing return rates, and supporting
high-involvement purchases.

2.46 Artificial Intelligence and IoT in Retail

Sandeep Shekhawat (2023)

Shekhawat examined how AI and the Internet of Things (IoT) are


revolutionizing retail operations. Retailers are investing billions annually to
automate processes, personalize customer experiences, and optimize
inventory. AI technologies help analyze large in-store data sets in real-time,
supporting faster decision-making, demand forecasting, and enhancing in-
store service quality.

2.47 Cross-Domain AI Integration

Nitin Liladhar Rane (2023)

Rane emphasized the role of cross-functional teams in implementing AI-


driven transformations in retail. By integrating expertise from IT, marketing,
and supply chain functions, organizations can better harness AI to streamline
operations, personalize customer engagement, and reduce inefficiencies.
Effective collaboration is key to achieving sustainable tech adoption in retail.

2.50 MSMEs in Nagaland’s Economy

N. Lochumi Lotha & Ratan Kaurinta (2024)

The authors detailed the vital role of Micro, Small, and Medium Enterprises
(MSMEs) in Nagaland’s economy. These businesses provide significant
employment and income opportunities, particularly in rural areas. However,
they face challenges such as limited access to credit, infrastructure deficits,
and marketing bottlenecks, which need policy intervention to unlock their full
potential.

2.51 Digital Transformation of Commerce


Sridevi Gopakumar & Madhava Priya Dananjayan (2024)

This study traced how traditional commerce has evolved through widespread
internet access and smartphone penetration. E-commerce has enabled even
small retailers to expand market reach, while consumers benefit from greater
convenience and competitive pricing. The digital shift also introduces
challenges in cybersecurity, logistics, and digital literacy that must be
addressed.

2.52 E-Commerce Disruption of Physical Retail

Daoud Jerab (2025)

Jerab explored the dual nature of e-commerce’s impact on retail: it offers


new growth avenues but threatens traditional brick-and-mortar businesses.
The study emphasized that physical retailers need to adopt omnichannel
strategies—integrating online sales, local delivery, and digital marketing—to
stay relevant in a digital-first retail environment.

2.53 Worker Retention and Organizational Development

Grace Victoria Carr (2025)

Carr’s study stressed that improving working conditions, skill acquisition, and
career progression opportunities is crucial for retaining retail employees.
Positive organizational practices not only reduce turnover but also foster
innovation, individual growth, and inclusive work cultures. These human-
centered strategies can drive long-term organizational sustainability.
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