Metro in India: Can It Carry Forward With Its Cash & Carry Model?



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Code :BSM0065

Year :
2009

Industry : Retailing

Region : India

Teaching Note:Available

Structured Assignment :Available

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Introduction:Organised retailing, India's most under-explored sector, has been attracting many global retail giants by 2009. After a small set off caused by the global recession during 2008, Indian retail sector has regained agility faster than general expectations and has become the hotbed for global retailers. However, Indian retailingwas kept exclusively domestic, denying any chance for the entry for global retailers who saw the large potential in the young Indian population and the increasing disposable income of the Indian consumers. Global retailers were desperate for an entry into Indian retailing, but the government regulationswere stringent and offered little chance. However, entry into wholesale business was not restricted entirely. Indian organised wholesale business, commonly referred to as cash and carry, offered a huge potential with around 12 million Kiranas waiting to be served. Metro Cash & Carry (Metro, a wholly-owned subsidiary of Metro AG, the German retailer) was the first one to exploit the untouched organised wholesale trading in India in 2003. By the end of 2009, bigger players such as Wal-Mart started foraying into Indian wholesale market, but Metro, the long standing incumbent in the Indian cash and carry wholesale market is tough to battle with.

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