Consumers’ Preferences for Traditional and Organised Fresh Food Retailing in India: Evidence and Implications

This study has attempted to investigate consumers’ preferences for purchase of fresh fruits and vegetables and processed food from organised retail chains vis-à-vis traditional retailers and the factors that influence their decisions to buy from alternate supply channels. The analysis was based on a primary survey of 150 consumers in West Delhi in 2010. Broad findings indicate that multiple factors namely economic, social, cultural and psychological shape urban consumers shopping pattern. Despite fast penetration of organised retail chains, consumers would continue to buy fresh and processed food from traditional retailers primarily due to convenience, quality, free home delivery and provision of products on credit. This analysis can serve as a base for initiation of appropriate measures and policies to upgrade the urban retailing systems and address outreach constraint of organised retail chains.