A study on consumer’s buying behavior and factors affecting the same: small non-branded vs branded sweet shops in ahmedabad

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are an important part of the economy of a country or region. The development of the Small and Medium Enterprises (MSME) sector provides its meaning in efforts to increase economic growth and in efforts to reduce a country's poverty rate. According to the National Sample Survey (NSS) 73rd round conducted during 2015-16, there were 633.88 lakh unincorporated non-agricultural MSMEs in the country engaged in various economic activities, with a significant number in manufacturing, trade, and other services sectors. Also, according to the Ministry of Statistics and Programme Implementation, the share of MSME Gross Value Added (GVA) in all India GDP was 30.50% in the fiscal year 2018-19, 30.50% in 2019-20 and 26.83% in 2020-21. Confectionery products are sweets that have a high nutritional value. They are beautifully decorated and very palatable. The composition of such products most often includes sugar or its substitutes, fats, flour, nuts, cocoa, food coloring or other additives used to enhance the appearance of fresh and processed sweets. Small sweet shops offer delightful offerings which satisfy the cravings and fill the heart of the consumers. In this context, we will understand about the small sweet shop industry, knowing their characteristics, market dynamics, challenges they faced and business strategies in order to compete and stay in the market. These businesses, in contradiction to large-scale retailers, put an emphasis on handmade craftsmanship and frequently focus on regional or traditional delicacies that highlight the area's culinary legacy. But the small sweet shops, mostly family run businesses, are characterized by a small or very close atmosphere, personalized services and their commitment to provide quality products to their customers. Small sweet shops prioritized making handmade and freshly prepared sweets. They produce all the products right from the chocolates, candies, pastries and all kinds of sweets, through handmade processing which are filled with their passion. These sweet shops not only sell their products but also provide gathering space to their customers so that they can celebrate certain occasions and can create good memories. Adding to this, they also support various local charities, events and certain initiatives to get connected with the locals as well. Small sweet shops take care of the diverse needs if their customers as customers play a significant role and every customer has a different need. Such as, some prioritized affordability and convenience and some preferred premium service. Therefore, we will focus on small scale industry in the context of sweet shops by looking into their market prospects, consumer preference, competitors, challenges and strategies to become successful in this business.