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

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CASE 3 CARREFOUR: ENTRY INTO INDIA Kim, June Eun (RA6997422)
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1. What lessons should Carrefour India learn from the Japanese and Chinese markets?
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Chinese market: Key success factors Know what people want most Localization Strong bargaining power Government marketing
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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
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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
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2. Is it the right time to enter the Indian retail market?
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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 consumption of durable goods.
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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.
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Indirectly through franchise agreement and cash-and-carry wholesale trading If so, what is the best entry mode?
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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.
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Risk - One of the world’s most terrorist afflicted countries and recent events have shown that some attacks have also been fueled by poverty. - Confronted with the huge recession, as surge in inflation hit the high.
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