such as Wal-Mart and Metro AG are also undergoing discussions
to set up shop in India and since the allowance of only one-brand
stores has made the e entry of global retail giants difficult, Wal-Mart
and Metro AG are trving to enter this sector indirectly through
franchise agreements and cash-and-carry wholesale trading
The growth of the retail sector is heavily dependent on the
role of supply chain and as such, the Indian Supply Chain
Council has been formed to explore the challenges faced by
retailers and to find possible solutions. The role of the supply
chain in the organized retail sector should be a shelf-centric
partnership between the retailer and the manufacturer. as this
will create operations that are loss free. The infrastructure in
India in terms of road, rail, and air transportation is presently
in bad shape and so warehousing will play a major role in
supply chain operations. To overcome these problems, the
Indian retailer is trying to reduce transportation costs and is
investing in logistics directly or through partnerships' Overall,
as the Indian organized retail sector grows the role of supply
chain is becoming all the more important.
CARREFOUR'S DECISION TO DATE
Carrefour is still struggling to finalize an Indian partner after
six years of persistent search. After two years of market
evaluation. Carrefour decided to postpone its plans due to
the countrv's lack of clarity and direction on foreign direct
investment. However. in 2007. the company rekindled its
Indian retail plans and resumed looking for a local partner'
Carrefour now plans to enter the Indian retail market through
the franchise route by 2009, and three potential local partners
are being considered. The company has now formed Carrefour
WC&C India and Carrefour India Master Franchise Company
to begin both Cash-and-Carry and front-end retailing in lndia'
and up until now, talks are still ongoing with Bharti Enterprises.
the Wadia Group, and Delhi-based realty companies
such as Parsvnath and DLF to finalize plans.
DISCUSSION QUESTIONS
L .What lessons should Carrefour India learn from the Japa-
nese and Chinese markets?
2. Is it the right time to enter the Indian retail market? If so,
What
3. Due to the cultural diversity in India, how should Carrefour
segment the market and cater to customer needs?
4. How can Carrefour improve and make use of the current
infrastructure in India?