The retail sector is one of the fastest moving sectors in India. Its target audience is mainly youth who constitute 50% of the Indian population. Retail brands need to be positioned for this segment, and one of the strategies used is celebrity endorsement. Television Audience Measurement (TAM) Media Research found a 49% growth in celebrity advertising in 2007. There are many studies that have been conducted on celebrity endorsements, but there is no study which has been done exclusively to understand the perception of consumers about celebrity advertising for retail brands. The present study aims to mitigate this gap in the existing literature. For the present study, the survey method, using a structured questionnaire, was employed on a sample of 186 respondents. The findings of the study revealed that customers prefer female celebrities over male celebrities. The preference for celebrities was more for sensory products than cerebral products. Customers want celebrities to entertain them as well as give information pertaining to the products in the advertisements. The factors that customers perceived to be important in selecting the celebrities for retail brands were proficiency, reliability, pleasantness, elegance, distinctiveness, approachability and non-controversial.

Economic liberalization gave India a swift takeoff to become an economic powerhouse. Over the last decade, augmented investments made by firms in the retail business have made the sector one of the fastest growing in India. Rapid changes in Indian consumerism can be attributed to economic growth (implying greater disposable income), demographic factors, urbanization and credit availability (Ernst and Young, 2006). With a contribution of 14% to the national Gross Domestic Product (GDP) and employing 7% of the total workforce (only agriculture employs more) in the country, the retail industry is one of the pillars of the Indian economy (CPA, 2005). The government has allowed 51% Foreign Direct Investment (FDI) in cash-and-carry format for a single retail brand. With this approval Indian enterprises can collaborate with global majors to enter into organized retail businesses.

The retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers. Unorganized retailing refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner-manned general stores, convenience stores, hand cart and pavement vendors, etc. India has the most unorganized retail market in the world. Currently, the organized retail sector accounts for only 2%, indicating a huge potential market opportunity. The organized retail sector share is forecasted to be 13% by 2010, which implies good business propositions for the long term. Both multinational and Indian firms have succeeded in getting shares of the organized retail market. Front-runners in Indian firms are Pantaloons Retail, Big Bazaar, Trent's Westside, Wills Lifestyle stores, etc., which are present across India in different retail formats.

Brand Management Journal, Economic Liberalization, Gross Domestic Product, GDP, Foreign Direct Investment, FDI, Public Relations , PR, Celebrity Endorsement, Psychological Attributes, Structured Questionnaire, Retail Brands, Organized Retail Sector, Television Audience Measurement, TAM.