September 2005 management briefing
India is one of the fastest growing economies in the world and one of the largest in terms of Purchasing Power Parity. Global brands are re-starting the hype of a decade ago, as they envisage how to take advantage of the massive population and rapidly growing income and consumption to create new business streams, sales and profits. But several challenges remain before companies can grab the big prize in India – fragmented chains, poor infrastructure plus policy and regulation issues make it difficult for retailers to make their move. However, things are improving as the Indian government start to make effective and coherent efforts to bring about change in the perishables supply chain. So can such strong potential progress to significant business opportunities? This month’s briefing looks at consumer opportunity, the retail structure, emerging developments and addressing the risks and challenges involved in entering the Indian market. Case studies and industry forecasts are also offered.