Category — Market Entry

India to Exceed 200 Million Smartphone Users by 2016

Citing the U.S.-based global research firm eMarketer, SiliconIndia reports that India will overtake the U.S. as the second largest market for smartphones in the world by 2016, due to increasing penetration of affordable smart devices in the country.

China will continue to lead the world rankings in 2016 with 624.7 million smartphones, followed by India, the U.S., Russia and Japan,” the report said.

“While smartphones are shifting the paradigm for consumer media usage in mature markets, cheaper handsets are creating opportunities in emerging markets where many users of smart devices had no access to the Internet,” the report added.

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January 3, 2015   No Comments

Amway to Make India a Hub for Neighboring Countries

Amway is setting up a $96 million (600 Crores) unit in the southern state of Tamil Nadu, and it is also looking for further expansion by way of an additional plant in India, reports The Times of India.

Amway’s managing director and CEO William S. Pinckney said, “We are looking outside Indian markets, like Sri Lanka, Bangladesh, UAE, and Middle East. We think and believe that India can be an export hub to those market. That could cause us more quickly for look for more investments to support that manufacturing push. We do think that more investments are coming in,” he added.

Amway, which is targeting business of $1 billion (Rs 6,000 crore) by 2020, said that its Tamil Nadu unit would be operational by end of March next year and it would focus on health and beauty products.

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December 31, 2014   No Comments

Wal-Mart Is Clearing a Wider Passage to India

After a two-year hiatus, Wal-Mart, the $476-billion Bentonville, Arkansas chain, is getting ready to open its 21st store in India. The new store will be located in Agra, home to the Taj Mahal, in November 2015, Bloomberg reported citing two people familiar with the matter. Wal-Mart is also considering opening a wholesale outlet in Jaipur, capital of the northern state of Rajasthan.

The cash-and-carry category in India is more popular with International retailers because of its easier rules and also since 100% FDI is allowed in this segment. The current central government, is opposed to foreign investment in multi-brand retailing. So international majors such as Wal-Mart are ensuring a foothold in India through cash-and-carry, while awaiting easier rules in multi-brand consumer stores.

Wal-Mart is launching an e-commerce Website designed to supply goods to India’s small retailers, and piloting it in its Best Price stores in Lucknow in the north and Hyderabad in south India. This B2B Website is available only to members of its 20-store Best Price Modern Wholesale cash-and-carry chain, a model similar to its Sam’s Club warehouse in the states (except that it is only available to small resellers and not to consumers).

Walmart India’s Best Price Wholesale Store

Wal-Mart India’s Best Price Wholesale Store

Even with the expansion of the cash-and-carry business, Wal-Mart is unlikely to make India a big focus of this business model, because Wal-Mart and other similar retailers still need to have local partners if they want to focus on consumers. That requirement and other restrictions have discouraged companies from taking the plunge. Of the big foreign retailers, British chain Tesco (TSCO:LN) has plans to open supermarkets in India in partnership with India’s Tata Group.  And Ikea of Sweden is going ahead with its expansion plans.

Wal-Mart is still hopeful, saying it has plans to open 50 wholesale stores in India in the medium term.

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December 30, 2014   No Comments

Papa John’s Expands Presence in India

Headquartered in Louisville, Kentucky, Papa John’s International, Inc. announced the acquisition of Pizza Corner stores in South India. This merger will significantly expand Papa John’s presence by a minimum of 40 stores with conversions beginning in late 2014 and continuing into 2015, reports restaurantnewsresource.com.

The Quick Service Restaurant segment in India is a $2.5 billion industry, accounting for 43 percent of the overall Food Services business in India and growing at a rate of approximately 25 percent; it’s the fastest growing segment within the food industry.

Joseph Cherian, CEO of GFA Global, of which Pizza Corner is a part, said, “This consolidation is a unique opportunity for Papa John’s to take a major pie in the market share in the Indian pizza segment. Owing to a majority of younger population under 30 with a liking for international food gives us the right opportunity to address the need gap for true international brands.”

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December 28, 2014   No Comments

Carl’s Jr., to Open Shop in India

CKE Restaurants Holdings, Inc., parent company of Carl’s Jr., and Hardee’s, signed a development agreement with India’s CybizCorp that owns BrightStar Restaurants Private Limited. The initial agreement is for up to 100 new Carl’s Jr., restaurants. The deal is the first in India for the burger chain that believes there is potential for more than 1,000 Carl’s Jr., restaurants in India over time.

Ned Lyerly, President of International at CKE Restaurants. “We see tremendous potential in the Indian market, and CybizCorp’s proven track record in the franchise sector in both real estate and food and beverage gives us great confidence in the partnership and our future success in the country.”

For India, Carl’s Jr. has developed a full line of vegetarian options that speak to Indian tastes and preferences. Many of these new items that are unique to the India market will be launched in addition to several signature Carl’s Jr., menu items known around the world.

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December 28, 2014   No Comments