Retail Chains Growing Across India On Changing Tastes Of Customers
News: A new report has found that the Indian retail industry is one of the highest grossing revenue industries in the country, as it lends a significant amount of gross domestic product to the Indian economy, reports FNB news. The trend has been attributed to increasing awareness of consumers with different tastes, and the current population showing a greater interest in Western food products.
BMI View : India is fundamentally an attractive market, given the current dominance of mom-and-pop type stores and the fact that retail sales are growing from a reasonably low base. However, there are regulatory factors that are unique to India, especially compared with other high-profile emerging markets. In our opinion, these regulatory challenges will continue to keep the really big players, such as Carrefour, Tesco and Walmart, from entering the market for now. In the case of France-based Carrefour and UK-based Tesco, we believe they have more pressing concerns to address in their domestic markets. Moreover, they probably see more value in devoting resources to existing growth markets such as Brazil, China and Turkey rather than taking on India at this moment in time.