Carrefour Indiar

Carrefour India

Introduction

Carrefour is known to be a huge brand-retailer worldwide after Wal-Mart. For several years the company has been trying to penetrate the Indian retail market because India is known to possess the largest retail market in the world. India has a massive population of 1.22 billion and its known to be the second in the world with a population of over 200 million of people who are middle class and has a continual rise in house hold (Indiaolinepages.com, 2012). Its GDP rate is about 10 percent, 8 percent employment and the annual growth rate of the industry is 25 percent . With regards to that, this makes the Indian’s current market to be lucrative, attractive and pose potential for big retailers such as Carrefour to enter and invest. However, there are some certain problems that Carrefour will face when trying to enter the Indian market.

WORKINGS OF CARREFOUR IN JAPAN, CHINA

Despite the fact that Indian retail industry is huge, it is much unorganized and made up of small stores and housing stores. Often this is would be an advantage for a large retailer like Carrefour, but the retailer needs to proceed cautiously when trying to initiate hypermarkets to India‘s culture. Carrefour has gone through a huge failure and success in some Asian markets before, especially in China & Japan. In japan Carrefour company failed to adhere to Japanese‘s culture but rather they became completely ignorant. Baek (2005) noted that, Carrefour japan lacked the inability to grow its business, could not find space enough in the real estate to build its large stores and had trust issues with its consumers. As result of this failure, Carrefour incurred costs close to 300 million dollars.

Even though Carrefour failed in Japan it was successful in China. In 1995 Carrefour managed to enter the Chinese market when the retail sector was opened partially by the government. (Wrigley 2009, p.50) explained that, “Through localization policy and government...