IMM_Case 3 - CASE 3 CARREFOUR ENTRY INTO INDIA Kim June...

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Unformatted text preview: CASE 3 CARREFOUR: ENTRY INTO INDIA Kim, June Eun (RA6997422) 1. What lessons should Carrefour India learn from the Japanese and Chinese markets? Chinese market: Key success factors  Know what people want most  Localization  Strong bargaining power  Government marketing Japanese market: Key failure factors  Ignorance of Japanese retail culture  Its inability to expand its business  The lack of consumer trust  The drop in popularity in Japan of the GMS(General Merchandise Store) format Learning point  The common element of the successful markets- There were no large-scale chain stores or large- scale discount shops selling electrical household appliances or clothing  The common attributes of these markets- The fact that small-scale retail has not progressed and the absence of large scale retail- The absence of potential competitors that carry specialty items- Inexpensive retail space- “ Developer- friendly” government laws and regulations 2. Is it the right time to enter the Indian retail market? High potential in conducting retail business in India  This industry expected to grow driven by strong income growth, changing lifestyles, and favorable demographic patterns.  Traditionally, India has had a very unorganized retail sector consisting of small shops, indicating a huge potential market opportunity for the consumer-savvy organized retailer.  The increase in disposable income as well as the country’s booming economy has caused Indian households to gradually increase The favorable consumer buying patterns are positive  Traditional stores continue to account for a dominant share of all food and grocery purchases, however, they are in decline.  Recent usage of hypermarkets/supermarkets has increased and consumers tend to welcome these kinds of modern shopping stores.  Indian shoppers values large format, a wide selection, efficient loyalty programs, pricing and visual merchandising, store accessibility, and quality products. Indirectly through franchise agreement and cash-and-carry wholesale trading If so, what is the best entry mode? Decision criteria for mode of entry: The major external criteria  Market Size and Growth- India’s market size and current growth trends make it one of the best retail opportunities in the world.- Recent research indicates that India will be a nation of upwardly mobile middle class households within the next generation and will eventually be the world’s fifth largest consumer market.  Risk- One of the world’s most terrorist afflicted countries and recent events have shown that some attacks have also been fueled by poverty....
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This note was uploaded on 08/28/2011 for the course IMBA 101 taught by Professor Trott during the Spring '11 term at National Cheng Kung University.

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IMM_Case 3 - CASE 3 CARREFOUR ENTRY INTO INDIA Kim June...

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