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Jawaharlal Nehru Technological University, Kakinada *

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Marketing

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Nov 24, 2024

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The fragmented nature of India’s retail sector and the benefits and cost of this system The retail sector in India is renowned for its fragmented nature, which is essentially characterized by many small, independent retailers rather than one consolidated, centralized set-up. This necessitates questioning on what phenomena account for the fragmented Indian retail industry (Mishra et al., 2021). At one end of the spectrum, certain experts define this fragmented scenario as one which extends predictably from a lack of prior focus on integrating markets coupled with inadequate foresight on modifications seen translating across sectors of commerce relating to global use patterns in changing times at the present times. This may be driven based on adherence to practices founded on presumed issues amplified through traditional belief systems existing in communities, familial connections more standard process that are somewhat familiar in an acquisition steady economy, driven by gradual, corporate-scale mechanisms along familiar as distinguished margins compared rather contrasted between city and s country angles instead of competing along advanced targets. The political and economic realities in India, what is the best entry strategy for a foreign retailer Considering the political and economic realities in India, the best entry strategy for a foreign retailer would be a joint venture or a franchise agreement with a local partner. A joint venture with a local partner would provide the foreign retailer with local expertise and knowledge of the market. This would help the foreign retailer to understand the local cultural differences and consumer preferences. Additionally, a joint venture would provide the foreign retailer with access to the local supply chain and distribution channels. Franchising is another popular entry strategy for foreign retailers (Pereira et al., 2019). A franchise agreement with a local partner would provide the foreign retailer with access to an established brand and

business model. Additionally, franchising would provide the foreign retailer with local expertise and knowledge of the market. However, the foreign retailer needs to ensure that the franchise agreement is structured correctly, and the local partner is reliable. Conclusion: In conclusion, the Indian retail sector presents various challenges for foreign retailers looking to enter the market. The lack of clarity in the policy framework and cultural differences make it challenging for foreign retailers to understand the local market. Therefore, a joint venture or a franchise agreement with a local partner would be the best entry strategy for a foreign retailer in India.

References Mishra, R., Singh, R. K., & Koles, B. (2021). Consumer decision‐making in Omnichannel retailing: Literature review and future research agenda. International Journal of Consumer Studies , 45 (2), 147-174. Pereira, V., Munjal, S., & Ishizaka, A. (2019). Outsourcing and offshoring decision making and its implications for businesses-A synthesis of research pursuing five pertinent questions. Journal of Business Research , 103 , 348-355.

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2 set 2

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