First came the supermarkets, then the malls, and the next big thing : emergence of Biyani. So where's Indian retail headed? Do you need some new flavors? Bored of your vanilla? Lets see what are the options. Walmart with Bharati? Tesco with Tata? Burger King with Pantaloon? These were the combos how about some plain flavors. Want Friuli? Puma? Starbucks? Louis Vuitton? Hmmm…. Didn't it satiate your sweet tooth? So what do these mammoth retailers look for before venturing into a new market? Here are some insights:
- Window of opportunity - that is simply the big bang entry at the right time. Indian retail is still in the nascent stage, so opportunities of growth are high. Companies can use this time frame to plan their future strategies. This window is pretty wide in India for retailer to form JVs, M&As and expansion strategies for existing retailers.
References : Business Standard dated 31st July 2007 and A.T. Kearney GRDI 2007 report
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2 comments:
hello Mr. icecool,according to the article, no. of big tycoons are entering in our country in collaboration with Indian biggies; its good for organised sector & middle & high level customers but have u think about the situation of small mom/pop shops, departmental stores & huge unorganised sector....
another point is that Walmart known for its EDLP concept; do it will b able to apply same concept in India also....
well Mr. Anonymous, firstly, you r right in having a concern for the unorganized sector or the kiranas. They did get a blow when the organized sector started, but the point is they survived that blow and maybe they have become more competitive. This time when these foreign retailers enter Indian market our home grown retailers like pantaloons will b hit, but if they r unto the challenge they will become more competitive.
About Walmart being successful wit its ELDP concept, I'm sure it will succeed. Indian consumer is very price sensitive, its nothing new for us and its been the USP of Big Bazaar which made it successful.
I would like to add one more point, on the lighter note. I hope you don't have any political aspirations. Its been the politicians more bothered abt foreign retailer entering India. Yesterday I read an article about FDI in retail sector. It mentions abt a report by Indian Council for Research on International Economic Relations (ICRIER) on impact of organised retail on small retail stores. It said that organized retail was not harming Indian farmers and was unlikely to have an adverse impact on small stores. This research was conducted on the demand of Congress President Sonia Gandhi.
The biggest beneficiary of opening up of the retail sector would be the Indian farmer. He's the one exploited by the middle men in the value chain of the unorganized retail, with more players competing for his crop he will have more bargaining power and will get the right price for his produce.
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