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Overview
Indian Retail Sector





International Retailers in India
Major retail players like Walmart, Tommy Hilfiger, Carrefour, Marks & Spencer, Nike, etc. are going to foray into the booming retail
industry in India. Indian fashion industry would see the advent of fashion brand DKNY through a franchisee agreement with S. Kumar's. In the food & beverages sector, McDonald's is going to penetrate the markets through 100 new outlets across the country. Encouraged by the huge success of Pizza Hut, McDonald's, and Dominos, another organization known as Starbucks has expressed its interest in opening up outlets in India through franchising. There are various kinds of restrictions on FDI in the Indian retail sector, but organizations can enter the industry through Strategic License agreements, Franchising and Cash and carry wholesale trading.
The recent initiatives taken by the government to open up the sector for foreign players have lured many companies to enter the industry. Big players like Reliance Retail, Walmart-Bharti combination, Tesco, AV Birla group and Future group are all gearing up for huge investments and aggressive business strategies. The government is considering the introduction of multi brand specialty formats like consumer electronics, building, sports goods and construction and stationery. The government has allowed 51 percent foreign direct investment (FDI) in single brand retail outlets. Reliance Retail has announced its plan to open 5000 stores over the next 5
years. Many companies like Lee Cooper, Starbucks and Walmart have put forward their FDI proposals to the government.

At present, the 12 million mom-and-pop and kirana stores dominating the retail landscape suffer from certain limitations, such as small size of operations, low cost format and pervasive use of tax evasion techniques. They also suffer from capital shortage, labour and real estate problems. Some experts believe that the influx of major retail chains would wipe out millions of these shops. This might leave a lot of people jobless. Legal, political, infrastructural, cultural and educational constraints would have to be considered if the sector truly desires to achieve the kind of future it has planned for itself.