Magazines Archives - 2007 December

Carrefour breaks into Indian market via the wholesale and franchising routes
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FRANCE-BASED global retail chain Carrefour SA has broken into India’s 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 group’s managing director for India, Herve Clec’h, 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 nation’s 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 group’s 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 Clec’h is unable to place a value on the group’s investment, as plans have yet to be finalised, he stressed: “We are here for the long haul, so money will not be a constraint.”

Carrefour’s first 50,000sqf hypermarket is slated to open in northern India by mid-2009.