Carrefour in India (Again?)

It has been more than three years that Carrefour has been entering into Indian retail market. And finally, it has declared opening of its first operational Cash&Carry outlet in Delhi. Yes, that's true. How can we forget the time taken to 'announce the policy' on 'FDI in Retail' by Indian government?

The discussion paper on 'FDI in multi-brand retail' was made available on 7th July 2010. I also remember, some similar exercise was carried out in 2006 as well where 'Department of Industrial Policy and Promotion' (DIPP) put across a discussion paper.

So far the status quo remains, at least 'the discussions' are leaning toward having FDI in retail are appears to be positive. It will take some time for government to have a clear policy on FDI in retail.

One should be able to notice that this delay in making a policy on retail has proved to be far more beneficial for home grown retailers like '(Big Bazaar, Pantaloon, Food Bazaar), Spencers Retail, More, Shoppers Stop, Life style, Home, etc'. How would have opposed FDI in Multi-Brand Retail (MBR) with the justification of 'level playing field for domestic players' Definitely Mr. Kishor Biyani leading the pack among these major retailers. Since he-Future Group has been been very aggressive in increasing the presence across cities not just in terms of numbers but also in terms of offerings, i.e. different formats. Though he has focused direction of his group to Modern retail.

The new entrants like Carrefour, even Walmart through Bharti will find difficult to catch up with these home grown players in terms of 'marking cost effective presence' across major cities. The reason is, the higher & still increasing prices of real estate. And I am wondering if Wal-Mart would take the same strategy that it applied in US i.e. go to smaller cities .... in India as well. Since the consumer psychologies differ drastically from major cities to smaller cities in India.

But just for note: The Carrefour has grown very aggressively in China since 2007. It has 163 hypermarts in China, highest in any other country apart from home country 'France'. Going by this statistics, I wouldn't wonder if it has similar plans for India and it's just preparing on its own & waiting for Indian government to declare appropriate policy !!
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Carrefour is International chain of hypermart headquartered in France. It's Largest hypermart by size and second largest retail group in terms of revenue & third largest in therms of profit !

[Source- Wiki, Carrefour, WSJ.]