Magazines Archives - 2007 December
Carrefour breaks into Indian market via the wholesale and franchising routes
FRANCE-BASED global retail chain Carrefour SA has broken into Indias wholesale merchandise market with a 100%-owned wholesale division. It has also embarked on the franchise route to setting up its multi-brand retail outlets countrywide.
The French retailer has established Carrefour India Master Franchise Company Pvt Ltd and Carrefour WC&C India Pvt Ltd to manage the respective operation formats.
In an announcement released late last month, the groups managing director for India, Herve Clech, said:Carrefour WC&C India ... will set up a cash-and-carry business in India. We are planning for one or two stores by the second half of 2009, and will add [on] as the business grows.
While the nations strict regulations, designed to protect the interests of domestic retail, have prevented foreign multi-brand operators from venturing into the market, these companies areallowed total control over cash-andcarry or wholesale operations. This gives Carrefour free reign to extend its technical expertise, supply-chain management and support to its Indian franchisees.
Said Gerard Freiszmuth, general manager of Carrefour India: We are speaking to three Indian corporates a financial institution, a retailer and a conglomerate and should announce our partner by early next year. The groups focus is still on the hypermarket segment in the sub-continent.
These are stores spread over 5,000-8,000sqm. The Indian customer can get the same shopping experiencein any Carrefour store, be it in Milan (Italy) or Kuala Lumpur (Malaysia), but with a lot of local flavour, he averred.
Although Clech is unable to place a value on the groups investment, as plans have yet to be finalised, he stressed: We are here for the long haul, so money will not be a constraint.
Carrefours first 50,000sqf hypermarket is slated to open in northern India by mid-2009.