To Commit or Not: The Retail Market in India

Jaya Halepete , Marina Alexander
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0053
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India is a country with over a billion people and is one of the world’s fastest growing markets with many global retailing opportunities. The market is expected to grow to a worth of over $1 trillion by 2020. This growth is being led by lifestyle changes and a growing middle class with rising incomes. India is expected to become the world’s fastest growing e-commerce market, driven by robust investment and a rapid increase in the number of internet users. Changes in government regulations, particularly foreign direct investment, have opened the market to foreign commerce and investment, which is expected to benefit the economy and improve customers’ shopping experience. With increased competition, local companies will be challenged. As India’s fast-moving economy brings opportunity, the great diversity within the country also brings the challenge of identifying consumer needs. Global companies need to evaluate the market opportunities and decide the level of investments, joint-venture options, and risks to take in this country. Students will evaluate the retail industry within India. They will consider both the growth potential associated with this market and the impact that increased foreign competition might have on existing local retailers.

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