After Wal Mart’s entry into India, through joint venture with domestic Indian player Bharti, world’s second biggest retailer, Carrefour, is also on the lookout for similar tie-ups with local players, to get maximum exposure.
Carrefour was earlier in talks with Dubai-based Landmark group for its India foray. However, Bharti-Wal Mart has set different precedent, which made the management decide to partner with local Indian players, and call off its plans with Landmark.
Strategically, a through a domestic player, Carrefour would get larger coverage of the Indian market, as is in the case of Wal-Mart. Wal-Mart, has joined forces with Bharti, which through its telecom network connects to 28 million high spending consumers throughout the country. Landmark, in comparison has neglible reach in India.
Sources informed that the French retail chain may also consider its entry via the 51% FDI in single-brand retailing route. This way, the company may retail a single product in the Indian market after extending a private label to it.
Almost half a century in retail business, Carrefour employs 436,000 people and derives more than 85% of its $177 billion worldwide revenues from its European operations. Carrefour mainly operates in four major retail formats: Hypermarkets (58.8%), Supermarkets (17.8%), Hard Discount stores (8.6%) and Convenience stores (14.8%).
Although, as much as 76.6% of its revenues are generated by value and mass retail formats Carrefour, however, according to sources, may initially focus on entering India through convenient stores, each of which stores may occupy retail space of up to 3,000 square feet.