Introduction: India as we all know lives in villages but this market has always been underestimated. Substantial improvement in purchasing power, increasing brand consciousness, changing consumption patterns and rapid spread of communication networks in rural areas has presented a growing potential for the corporate sector. According to a National Council of Applied Economic Research (NCAER) […]
Global retailers like Wal-Mart and Tesco do it all the time. Now it’s the turn of Indian retail chains, who’re exploring ways to step up global sourcing of merchandise for shoring up margins and offering the best price to consumers. These days, the likes of Big Bazaar, Ebony, Shoppers’ Stop, Westside or even Subhiksha are
Safety concerns, competitive pressures and regulatory requirements are creating demand for more traceability in the food service industry than ever before. Also use of IT for tracking the sales and demand forecasting is widely accepted. The above are some of the obvious activities for collaboration. There are several others such as training, financing, standards development
Logistics Movement of materials in the food supply chain is an important element for the success. Several international logistics companies such as have expertise in this area. This is an area for active consideration. This is also highly asset intensive. Temperature controlled warehouses, warehouse management systems (WMS) and Transport management systems (TMS), Refrigerated trucks, Hygiene
Retail There is a huge opportunity in this space. However, 100 percent FDI is not allowed for foreign companies. The foreign company needs a joint venture partner. Cold storage is a joint partner with Food World. Here again there are issues that need to be considered. The first one is the products on the shelf:
Mall Construction Retail boom in India is going to result in mall construction of Rs 112 billion over the next five years (2005-10). Current explosion in investments in retail by Indian power houses will result in additional mall space of 110 mn sqft by 2010. Mall construction in the country is expected to grow at
Product Development: Need Gaps India has a large repository of traditional foods which have a health benefit. There is a huge opportunity for developing and commercializing innovative forms of traditional Indian healthy foods with long shelf life for exports. e.g. herbal products, ethnic drinks and functional drinks. Given the increasing demand for global food products
Formats for Entry into India Direct participation in Indian retail business is still not permitted under India’s regime of FDI controls. A few international retailers in India have adopted different strategies for operating in India. These strategies and models include the following: 1. Franchise agreements: Franchising is the most widely used entry route by international