Professional Documents
Culture Documents
Pre-1947
1947
1970s
1980s
1991
1991-95
1995--99
2000-05
2005
2006
2006-10
Initiation
Conceptualization
I
Size of Industry
Manufacturers opening their own outlets
II
Pure play Retailers, realizing the potential start to test waters,
III
Large Investment Commitments by large Indian corporate
IV
More than 25-30 retail businesses with Revenues in excess of US $ 1 Billion Specialty Formats based on finer segmentation of the market Private brands getting established
Pre 1995
1995 to 2005
2005 to 2010 4
2010 Onwards
STRATEGIC LICENSE AGREEMENTS Foreign company enter into a licensing agreement with a partnering with Indian promoter owned companies
CASH & CARRY WHOLESALE RETAILING 100 % FDI allowed in wholesale trading which involves building a large distribution network
DISTRIBUTION An international company can set up a distribution office in India and supply products to local retailers
FRANCHISEE ROUTE This is widely used with a number to international brands in order to set shop in India
MANUFACTURING A company can setup manufacturing units in India along with stand alone retail outlets
JOINT VENTURES International firms can enter into agreements with domestic players and set up base in India. Share of MNC is restricted to 49% over here
DEPARTMENT STORES
How to compensate for facilities that mom and pop stores provide namely Home Delivery and Monthly Credit? Immense Competitions, building scale to achieve cost efficiencies will be critical
Price Discount and Wide Varieties act as key attractions Key to success will be efficient Supply Chains and Store locations
Stress on branding
PRESENT SCENARIO
CURRENT FDI POLICY
FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route
FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of Single Brand products(2006 Series)