In 2006 AT Kearney’s Global Retail Development Index ranked Asia as the region with the most promising prospects. Among 30 emerging countries worldwide, India ranked number one and China ranked number five.
India’s retail sector is quite fragmented with the top five retailers accounting for less than 2 percent of the $350 billion market, one of the ten largest in the world. There are over four million retail outlets in the country with one million located in urban areas.
Single-brand foreign retailers can now own 51% of an India operation. Indian and foreign companies are making highly ambitious plans for large multi-brand retail operations.
Foreign retailers entered China some years ago and today about 45 companies from Japan, Korea and the West operate in the country.
Carrefour has announced hopes of setting up large stores under its “Market” banner and perhaps 30 convenience stores under the Carrefour express banner in India.
As of 2009, India had 37 publicly-traded retail companies. The largest Indian companies are led by Pantaloon (which owns Big Bazaar, Food Bazaar and Pantaloon’s chains) with sales exceeding $2 billion. Other leaders are Shoppers Stop and Vishal Retail. Spencers, Reliance, More and others are active as well.
