Carrying Forward

I came across a news article on Carrefour entering Indian market with Cash N Carry business. While a lot of foreign entrants are looking at domestic JVs to get into the retail space in India, this move by Carrefour seems to be more cautious and sensible. The round about way to get to one of the world's largest pool of consumers is mainly because of Indian laws that prohibit foreign retailers from running 100% ownership ventures unless they sell single brands. But the interesting part is that setting up a cash and carry operation helps in creating the supply chain infrastructure that can be easily ramped up to support retail network when it is put into place. Currently the Indian retail environment is in a state of flux where retailers like Reliance are facing a stiff opposition from smaller mom and pop stores who happen to form a large political constituency. A wait and watch game might be the right way to go till the promised land starts reaping retail bonanza