Introduction

        Before the rise of malls about 6 years ago, competition between local clothes retail stores and branded clothes retail stores wasn’t very apparent. Local and branded retail stores both seemingly shared an equal amount of market share. But ever since the set up of shopping, there has been a change in the demand of clothing of the general public.

        To investigate the changing demand pattern of jeans in both branded retail stores and local stores the research question is formed to be –

What is the impact of the sale of branded jeans in malls on sale of jeans in local clothes stores in the city of Mumbai?

        The area of research was Irla Bridge, Andheri. The sale of jeans was chosen as it is currently one most of the most common types of clothing purchased in shops of Mumbai. Many store owners also agreed on the fact that the sale of jeans proved to be a significant percent of the final revenue. This effectively means that a change in demand for jeans would definitely affect the revenue earned by shop owners by a significant amount. Thus we examine the effect of the sale of jeans in branded retail stores on the revenue earned by local stores.

        Using the data collected, consequences of the set up of malls will be found. This will tell us whether or not the branded retail stores (which are present in the mall itself) have made an impact on local clothes stores, and whether it was positive or negative.

        How did the malls affect the demand for the products in the local retail stores?

This is an example of the different aspects that could be examined during this investigation. Another aspect to be looked at could be whether the local stores would be able to endure the heavy competition brought in by the new malls set up in the area. It is important to realize that malls have an advantage in terms of advertising and capital (in terms of labor). Malls also bring along with them a variety of choices, and many different pricing ranges. Based on this fact, it would seem that sale of clothing in general would be worth investigating as it give information as to whether and how the set up of malls affected the local stores.

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        This research question helps one develop on the aspects of demand and market structure. One can examine the different strategies and policies used by local store owners to maintain or increase sale of jeans that might have affected due to the malls.    

Relevant Theories to Economics –

A market is a situation where potential buyers are in contact with potential sellers. It enables the needs and wants of both parties to be fulfilled whilst establishing a price and allowing an exchange to take place.

To define ...

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