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ARTICLE · 29 OCTOBER 2009

India A Most Attractive Retail Destination

According to a recent study produced by global management consulting company, A.T. Kearney, India is the world’s most attractive retail destination after Russia, even ahead of China.

AustraliaCorporate/Commercial Law

According to a recent study produced by global management consulting company, A.T. Kearney, India is the world's most attractive retail destination after Russia, even ahead of China. The retail sector is currently valued at between US$350 billion, of which only 5% is classified as "organised retail". Further, there are a large number of shopping malls that have been, or are in the process of, being developed in and around major cities. These "pull factors", combined with the fact that foreign direct investment in certain sectors, such as retail, is restricted, means that franchising is increasingly being used as a market entry strategy for international franchisors and retailers.

There are now over 800 franchise systems in India including several Australian franchise systems. These include Gloria Jean's, Cookie Man, LJ Hooker, Just Cuts and Cartridge World. Some of the key industry sectors that have embraced the franchising concept include healthcare, food and

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