Globalization of The Indian Retail Market
Market Expertz | March 10, 2019
Modernization of developing countries has made them a target for businesses looking to expand their consumer base. Cross-border expansion of businesses aids both the parties and their respective economies. The Indian retail market has upped its game with the arrival of several international chains over the past few years. The country has also witnessed a momentous rise in the digital retail market. With retail giants like Amazon becoming a household name in the last decade, other foreign brands have attempted to set up base in the Indian market. The institution of these companies brings with itself tremendous employment opportunities aiding the economy’s growth. The internet era has further helped publicize the global industry and its leading companies resulting in a well-formed worldwide consumer base for these brands. In 2018, Ikea opened its first home furnishings store in Hyderabad and following its success, now plans to open its second store in Kolkata. Ikea, the Sweden-based furniture and other appliances store, gained quick popularity for its fresh designs and affordable prices. The brand aims to own 25 stores across the nation. US-based, Japan-owned 7-Eleven is next.
7-Eleven is one of the biggest chains of convenience stores with business in more than fifteen countries across the globe. It recently launched the drink ‘Chai Tea Latte,’ inspired by the Indian beverage of the same name, in its US stores. Parented by the Japanese Seven & I Holdings Co., 7-Eleven plans to collaborate with Future group, which parents Big Bazaar, HyperCity and Future retail among others, to establish their business in India. A Master Franchise Agreement between the two organizations entails the institution of its first store this year. It also involves the conversion of small stores to 7-Eleven outlets and the absorption of the brand into other retail stores.
In 2018, US-based Walmart acquired 77% shares in Flipkart, one of the leading digital retail platforms in India. The advent of such retail brands has given India further exposure and revolutionized the retail business. Food companies like Yum! Brands Inc. and McDonalds’s have built a reputable industry. The country has attracted more than just retail stores. Recently, the music-streaming app Spotify entered India. Spotify AB launched the app in the year 2008 and has been listed on the New York Stock Exchange since 2018. The globalization of the Indian market is expected to continue, but we are yet to see its impact on local retailers and the nation’s economy in the long run.