As the world’s second-largest market in the world, India has been attracting a number of foreign retail chains. While some are succeeding, others have had a tough time. The “mom-and-pop” store remains extremely popular in India.
Here is a recent example. It involves the inability of stationery chains to flourish in India. According to Rasul Bailay, writing for the Economic Times:
“The legions of tiny neighborhood stores selling pencils, staplers, and other stationery may be oblivious to it, but they are forcing multinational stationery retailers that have ventured into the country to shut shops, sell out, or change strategies. Reliance Retail is folding up all four retail stores of American office supply chain Office Depot, while Staples. Inc is in the process of selling most of its 49% stake in its cash-and-carry joint venture with Future Group. Prior to that, a third U.S. stationery retailer, Office 1 Superstore International shut its India franchisee operations run by New Delhi-based Indo Rama Group.”
“Experts say India’s consumer stationery market is ruled by tiny stationers in crowded neighborhood bazaars, and consumers don’t seem particularly keen to buy stationeries from branded stores in malls.”
Click the image to read more from Bailay.