Jean Noel Bironneau, MD, Carrefour India
Precisely one year later since Bentonville Retailer Walmart opened its first wholesale cash-and-carry store in Amritsar (christened as Best Price Modern Wholesale) in a joint venture with Bharti enterprises, the world’s second largest retailer, France-based Carrefour announced that it would launch its first Cash & Carry outlet at Seelampur in Delhi in the next two-three months. With Germany’s Metro already operating in the Indian market since 2001, Carrefour is the third foreign player to set its foot into the C&C space. While Metro is still unable to hold a firm ground in the Indian market and is struggling with its venture, Walmart on the other hand has so far been successful in partnering with resellers, retailers and horecas (hotels, restaurants and catering sector). Eyes are now set on which way Carrefour heads – the Metro way or the Walmart way. Carrefour’s Delhi C&C store will cover an area of 55,000 sq. feet and house close to 30,000 SKUs, 90% of which will be sourced from India. Just like Walmart’s recent announcement of making India its global export hub, Carrefour too is currently sourcing goods worth $150-170 million for its international operations. Metro failed in the Indian market primarily because it could not sustain low prices given the high cost of infrastructure. On the face of it, Carrefour’s strategy is quite similar to that of Walmart’s. With Britain’s Tesco coming in a JV with Tata’s Trent by the year-end, the action has started.
Precisely one year later since Bentonville Retailer Walmart opened its first wholesale cash-and-carry store in Amritsar (christened as Best Price Modern Wholesale) in a joint venture with Bharti enterprises, the world’s second largest retailer, France-based Carrefour announced that it would launch its first Cash & Carry outlet at Seelampur in Delhi in the next two-three months. With Germany’s Metro already operating in the Indian market since 2001, Carrefour is the third foreign player to set its foot into the C&C space. While Metro is still unable to hold a firm ground in the Indian market and is struggling with its venture, Walmart on the other hand has so far been successful in partnering with resellers, retailers and horecas (hotels, restaurants and catering sector). Eyes are now set on which way Carrefour heads – the Metro way or the Walmart way. Carrefour’s Delhi C&C store will cover an area of 55,000 sq. feet and house close to 30,000 SKUs, 90% of which will be sourced from India. Just like Walmart’s recent announcement of making India its global export hub, Carrefour too is currently sourcing goods worth $150-170 million for its international operations. Metro failed in the Indian market primarily because it could not sustain low prices given the high cost of infrastructure. On the face of it, Carrefour’s strategy is quite similar to that of Walmart’s. With Britain’s Tesco coming in a JV with Tata’s Trent by the year-end, the action has started.
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Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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