The Indian retail market scene is predicted to change significantly, in the coming years because of a large number of foreign retailers entering the retail industry.
The Indian retail market scene is predicted to change significantly, in the coming years, not only due to new domestic entrants in the Indian retail industry, but also because of a large number of foreign retailers entering the retail industry. Thus new players in the retail sector are chalking out a new retail industry chart. Existing rules prevent foreign retailers to enter the gates of the Indian retail industry. However, now with change in policies, marketing and franchising is seen a lucrative way for foreign firms to make their presence in India.
For instance UK retail major Argos also known as Home Retail Group (HRG) has proclaimed plans to come in India in last quarter of 2007 after signing a franchise agreement with a joint venture company owned by Hypercity Retail India and Shopper's Stop as per the news published by Times On Line.
The first domain of retail stores called Hypercity-Argos, is to be in Mumbai. Argos plans for Indian retail market to providing its brand, IT support, catalogue and expertise in connecting High street and home shopping.
As per the research Analyst at RNCOS, "As UK retailer is teaming up with two major retailers of Indian firm to launch its business in India. Many of other top retailers are also eyeing over the large Indian retail market, as India’s quick economic growth and increasing income level boost consumer-spending levels".
The current contract comes as worldwide retailers compete to come in the Indian retail market, something that they aren't permitted to do alone. Wal-Mart newly signed a contract with local firm Bharti Enterprises, and is projected to spend an approx. US$ 2.5 Billion in developing a chain in Indian retail market. Another major global retailer, Tesco, is rumored to be in discussion with the Tata Group to develop a partnership and enter the Indian market.
Home Retail Group (HRG) will invest around 10 Million GBP to start its Indian business. In the first two years it will not obtain any revenues, but will shift to a revenue sharing accord in the year 2009 if the move has been considered a success.
Home Retail Group chief executive Terry Duddy said HRG had settled on India after ruling out Eastern Europe and China because of the potential it offered. "It is exciting because strategically it will help us answer the question of what could happen to Argos in emerging markets." The "Mangalorean" published this statement.
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