Question

13-5. When the three big global retailers--Walmart, Carrefour, and Tesco--have entered the same country, only one has generally succeeded. Are the markets in China and India so big that all can succeed there? Support your conclusion.

Answer 1

Yes, the market in India and China are big enough to accommodate and ensure the success of all three companies.

The reason is simple enough. The combined population of both countries is around 2.7 billion people. It is expected to grow further in years. Also, the area of the countries is higher too. This means there is ample opportunity for companies to set up, operate and grow into a successful venture in these countries. More people means more requirements and therefore, more demands for the products. With the advent of globalization, most of the people in these countries are aware of the foreign companies, brands and their products and consumers are inclined to buy these products.

All of this translates into the companies having a higher chance of being successful in these countries. However, the 3 companies also must ensure that they understand the market they are trying to enter. Not only the Asian culture is different from the rest of the world, even within these countries specifically India, there are also micro-cultures and a different approach is required to appeal to the masses.

If done properly, there is no end to the growth of these companies in the countries because they provide exponential growth opportunities owing to their large population.