Download to read offline
More Related Content
Similar to Carrefour's India Operation
Carrefour's India Operation
- 1. GROUP 6 Anusha Kurakula(16010121811) Govind Narayan Roy (16010121824) Manoj Sivadasan (16010121843) Rahul Prabhu (16010121852) Viskash Kumar (16010121899)
- 2. CARREFOUR:THE MULTINATIONAL • French,multinational retailer • Headquarters: Boulogne, Billancourt, France • One of the first to open a hypermarket – supermarket and departmental store under same roof.
- 3. HISTORY • In 1950s,the retail business in France were family owned and there were very few stores with free services and all of them charged heavy prices. • Realizing the growing popularity of the concept of free service, Carrefour was founded by Marcel Fournier and Louis Defforey in 1959 at Annecy, France. • It was named Carrefour (Crossroads) as the store was located at the convergence of 5 roads. • By 1960s, Carrefour expanded into various regions in France, alongside launching a campaign to familiarize customers the concept of supermarkets
- 4. • Moved theirstores to sub-urban areas to avoid congestion at prime locations of the city and to provide parking space for the cars. • Fournier and Defforey took a trip to the US to study and observe the retail practices and adopt relevant practices in France. • In 1963, started a 2500 sq feet store and that facilitated parking for 400 cars. • The concept of hypermarket found instant acceptance among younger people, suburban dwellers and price conscious consumers.
- 5. • In 1965it was split into divisions, one headed by Defforey and Fournier's son (Grands Magasins Carrefour) and the other by Fournier and Denis (Carrefour Supermarché). • From 1966, they expanded through out France . • Opened up 10,000 sq. feet store in Lyon and 20,000 sq. feet store in Vitrolles . • Opened up an office in Paris to coordinate all the operations . • In 1971 they had 16 wholly owned stores , equity in 5 stores and 7 frachise model stores .
- 6. GOING GLOBAL • Carrefourdecided to expand globally because in 1963 a law was passed to restrict the growth of large stores. • The first expansion was to Belgium by partnership with a local partner, Delhaize Freres-Le-Lion. • In 1975, they expanded outside Europe by entering Brazil. • They were careful in customizing their operations to the preferences of the local customers. • In 1978, started hard discount stores under banner Ed
- 7. • By 1985,they were operating in 10 countries and had launched private labels which were priced 10-20 percent less than other brands . • In 1991, they have opened store in Philadelphia (USA) which was of 330,000 sq. Feet area. • In mid 1990s, special law was passed in France restricting food wholesalers from giving any extra discounts to hypermarkets. They were to charge an equal price from all retailers. • By then they had expanded globally. By the end of 1990s they opened up 30 stores globally
- 9. LOCALIZATION • Biggest strengthof Carrefour in the countries it operates -from local tie-ups to hiring local executives to run stores, local sourcing to merchandising • Designed stores and launched private labels to suit Chinese consumers and each store ran independently SUPPLY CHAIN STRATEGIES • Mostly uses 'direct procurement strategy' in the markets it operates. • Currently works with about 90 suppliers/ farmers in Uttar Pradesh, Andhra Pradesh, Delhi, Punjab and Haryana; directly dealing with the farmers for quality production and effective supply chain management • Keeps its supply chain very economical and flexible - trucks to bikes depending on the need & cost • Integrated Composite Application Network (ICAN) software to integrate its stores, distribution centres and supply chain partners in various countries STORE OPENINGS • Decentralisation is another key strategy of Carrefour • Set up regional offices in each of the Chinese provinces and that office took care of shops in that particular region • Adapting stores to local needs GLOBAL STRATEGY OF CARREFOUR
- 10.
- 11. GLOBAL OPERATIONS EUROPE -Armenia -Belgium -France -Italy -Poland -Romania -Slovakia -Spain SOUTH AMERICA -Argentina - Brazil -Dominican Republic ASIA -China -Indonesia -Taiwan AFRICA -Algeria -Egypt -IvoryCoast -Kenya -Tunisia -Morocco -Turkey MIDDLE EAST -Bahrain -Kuwait -Qatar -Saudi Arabia -Oman -Jordan -Iran -Iraq -Lebanon -UAE
- 12.
- 13.
- 14. ENTRY INTO INDIA- 2010 • The store, Carrefour Wholesale Cash&Carry - located in the Seelampur area, east of New Delhi in the Shahadara neighbourhood • The store’s merchandise area of about 5,200 square metres, offers more than 10,000 stock keeping units in the food and non-food products to independent retailers, businessmen, institutions and local restaurants. • The Paris-based retailer planned to enter the country’s multi-brand retailing through a joint venture with India’s largest retail group, Future Group.
- 15. • In 2014,the country’s current regulations don’t allow foreign direct investment (FDI) in multi-brand retail to safeguard the interests of traditional general (kirana) stores. • The current policy of the Indian government only allows foreign groups to develop cash-and-carry format. • The Indian government allows 51 per cent FDI in single-brand retail and 100 per cent in the cash-and-carry segment, but none in multi- brand retail. • As a result, Carrefour shut their 5 wholesale cash and carry stores and therefore exiting from an underperforming market.
- 16.
- 17. CARREFOUR’S COMPETITORS • Wal-MartStores, Inc. • Costco Wholesale Corporation • Kroger Company • Walgreens Co. • Tesco PLC • Metro Group AG • The Home Depot, Inc. • Target Corporation • Lidl Stiftung & Co. KG • Aldi Einkauf GmbH & Co. oHG • Groupe Auchan SA • Woolworths Limited • Aeon Ltd. • CVS Caremark Corp. • Amazon.com, Inc.
- 18. REASONS FOR FAILURE •Failure to satisfy local demands. • Absence of local partner. • Store layout and ambience. • Products and services. • HR practices. • Problems in SCM. • Government Policies.