Metro

Cash & Carry

By
Anamitra Bhattacharya
Ankona Mondal
Krishnendu Mondal
Naina Singh
Quartas Sumbul Alam
Saurav Sanganeria
Experience Of
Metro Cash & Carry
1. Russia

Mayor of Moscow Yuri Luzzhkov invited Logistics cost was high due to poor
Metro C&C into their city to help improve infrastructure and tough
living standards, reduce black market activity geographical condition.

Russia’s population forecast

During entry there was very less
showed a decline in half by 2050
competition for Metro C&C
Quality and hygiene of goods and
services provided were not high
 2. Germany
Experience Protest by German retailers regarding
unfair competition by Metro C&C as
One Stop Wholesaler

3 .China
No distinction between wholesale and
hypermarkets
Real estate price was relatively high

Inefficient distribution system & restriction

on Inter provincial trade
Political relationships had to be built from
the ground up in every new place

During entry metro C&C faced a lot of

competition due to widespread spirit of
entrepreneurship
 Value Proposition Of
Metro Cash & Carry
B2B Segment Target group - HORECA,small
businesses

One stop shop- covering all business solutions under

one roof

Low operational cost- by managing inventory, to

minimize out of stock and excess inventory

High Quality product with low price

Scale of operations
Lesson Learnt From Experience Of
Other Countries
Having an efficient distribution system can be costly in
places with tough geographical conditions

Educating the masses properly about MCC’s value

proposition was needed where every new store was
planned to open

Adjusting of store format according to available real estate

was important in cost-saving

Learning the cultural differences in various countries was

important in forming relationships
Entry Strategy
Should conduct a detailed PESTLE analysis before
entering into the Indian market

Should enter the Indian market through a joint venture with

a local player to gain local consumer knowledge and build
relationships

Should have a B2B target group like HORECA segment,

Institutions and offices and retailers including more than a
million mom&pop stores
Challenges Faced In India
Lack of cold storage facilities

India’s decentralized political system created disparity

among central and state ruling parties that posed a
challenge to Metro to build political relationships

Strong protest by the local wholesaling traders and

wholesalers association

Delay and risk in bureaucratic and legal procedures

Increased land cost and problems in acquisition

Inefficiency of Mandi system led to wastage

Limitation of the APMC Act

Recommendation
Build an “Ecosystem” for its business in India
by educating farmers and retailers, and
improving government and public relations

Communicate MCC value proposition to

masses
Management should ensure integration
between India operations and HQ

Establishing strong media relations to handle

situations of dispute

Opening vertical (multistorey format) stores

and basement stores to compensate for high
real-estate cost
Thank
You