The India Market Is Becoming The Most Popular Market For Retailers

Faced with China's slowing economy and weak consumption, India

Alibaba is becoming the most popular market for retailers. Alibaba is also actively expanding its development opportunities.

In the past few years, India has continuously released the Foreign Direct Investment (FDI) policy. Since 2012, India has begun to approve foreign single brand retailers to establish wholly-owned businesses in India, but they are required to purchase 30% of local merchandise locally.

In addition, in 2014, the government of India indicated that it planned to relax the entry threshold for foreign e-commerce business, which gave the retail industry great investment opportunities, and at the same time, the competition was also strengthened.

Earlier this month, Japan

Groceries,

Group Ryohin Keikaku Co.Ltd. (7453.T) Co., Ltd., its brand MUJI, Muji has been officially registered. Besides, H&M, Gap, Zara, SA, Forever21, Marks&Spencer Group Group (Marx), Marsha general store and so on have all entered the market.

India, which has a population of 1 billion 300 million, has a population of 250 million -3 billion. According to McKinsey, the middle class population in India will reach 547 million in 2025.

Such a huge population will spawn a lot of consumption growth, which is what retailers are struggling for under the global consumption environment.

In addition, the average age of India's population is only 29 years old, of which 65% is below 35 years old, which is rare in China and in the global trend of aging.

According to World Bank estimates, India's GDP reached US $2 trillion in 2015, and will grow faster than China in 2016. If it continues to grow at a rate of about 8%, it will surpass Germany and Japan in 2019.

In addition to the retail environment, India's technological innovation environment is also not available in China.

Although China has many giant and large technology companies such as Alibaba, Jingdong, music, and millet, China's unique environment and development models still do not have the ability to innovate.

On the contrary, international technology and retail giants have moved the innovation and incubation center to India.

At present, the large retail giants that set up innovation and incubation centers in Bangalore, India include J.C.Penney Co.Inc. (NYSE:JCP) Penny department store, TargetCorp. (NYSE:TGT) Taghit, Wal-Mart StoresInc. (NYSE:WMT) WAL-MART, Tesco PLC (TSCO:L) Tesco.

Despite being the third largest city in India, Bangalore has the world's richest technology talent pool after Silicon Valley.

J.C.Penney Co.Inc., Penny's multi channel executive vice president MichaelAmend, said the company sees India as a place where talent is gathered, not just for a growth in sales, but also for some tip ends in India, such as platform redevelopment and redesign.

TargetCorp. NavneetKapoor, general manager of India, Taghit, also said that the company worked with local innovation companies through research and development from originality to concept.

Wal-Mart KarenannTerrell, chief information officer of WAL-MART and Jeremy King, chief technology officer of global e-commerce, both said they will invest in India at any cost, especially in the field of digital and analytical talent.

It is reported that Wal-Mart WAL-MART annual budget in the IT area of not less than 1 billion U.S. dollars, mainly for supporting the development of online business, according to Jeremy King, Wal-Mart Walmart own payment system products Walmart Pay is developed in Bangalore, India.

Muji MUJI India first store

As early as 2010, the world's largest apparel group Inditex SA (ITX.MC) Indo Textile Co., Ltd., a joint venture of India local retailer Tata Group, helped Zara to enter the India market. Although the FDI direct investment policy was liberalized, InditexSA did not change its direct mode.

MUJI, who has just moved to India, also said that it would not adopt the direct camp mode to accommodate 30% of India's procurement restrictions.

In addition, at the end of May last year, Gap also chose New Delhi New Delhi Select Citywalk shopping center to open India's first store to announce its entry into the India market. GapInc. (NYSE:GPS) Gai Pu group also did not choose direct investment. Instead, it set up a joint venture with India's largest textile group Arvind Limited's retail companies Arvind Lifestyle Limited to operate its brand in India.

In addition to traditional retailers in India business, the competition for electricity providers is even more intense.

Following the announcement in mid April of holding 1 billion US dollars to control the Lazada Group SpA in Southeast Asia, it is reported that Alibaba has also seen the India fashion business Jabong (Xerion Retail Private Private) created by Rocket Internet SE (RKET.DE).

The India authorities have relaxed foreign investment in the field of electricity supplier, so Alibaba can enter the India market regarded as "future" through holding or wholly-owned acquisition of Jabong, increasing the proportion of overseas business through international expansion to offset the possible danger of slowing domestic growth in China.

At present, Amazon.comInc. Amazon group, Flipkart Online Services PvtLtd. and Snapdeal are the three largest electricity supplier groups in India.

{page_break}

Despite its 1 billion 300 million population, India's Internet penetration rate is only 25%, and has huge growth potential behind it. China's high-speed electricity supplier industry in the past 10 years is in the past. Therefore, the international business tycoon is keen to compete for the India industry.

Amazon.comInc. Amazon announced in 2014 that it had invested $2 billion to expand its business in India. The group's chief executive, Jeff Bezos, said that this is just the beginning and there is no upper limit on India's investment.

Behind this is the fastest growth of India's Amazon.comInc. Amazon group's regional market, and India is the fastest growing market in the group of 1 billion dollars.

Amazon.comInc. Amazon group is also the main sponsor of India fashion week in the past two years.

The only concern now is India's infrastructure.

Once infrastructure investment is increased, retailers will only invest more and more in the India market. As for the Chinese market, the closing trend in recent years is only beginning.