In the recent decades, falling barrier to cross-border trade and investment, together with technological change, promotes the modern trend of globalization of both market and production. An increasing number of firms enter foreign countries to target their customers in the global world. Similar with other foreign giants, a British company called Sainsbury is considering doing business in China and India. Therefore, it is of significant necessity to evaluate whether Sainsbury should expand to these two emerging markets in order to expand its business. In this report, both opportunities and risks of Sainsbury to enter retail markets in China and India will be logically analyzed by using detailed persuading data and facts. To be specific, based on some analytical frameworks and models, the economic, political and legal, as well as cultural environments of the retail markets will be separately and thoroughly evaluated. Lastly, according to the consistent analysis, concise recommendations will be given to Sainsbury.
Sainsbury, founded in London in 1869, is now the UK third largest supermarket group that stocks the daily manufacture’s products and sells them to the individual customer at a marginal profit. Among the international retail markets, the retail sectors in China and India are growing at a phenomenal pace and have attracted much attention. On the one hand, China’s retail market is the fastest growing in the world, expanding by 18% every year (International Supermarket News, 2012). On the other hand, Global Retail Development Index 2012 stated that India ranks fifth among the top 30 fastest growing retail markets (The Times of India, 2012). Meanwhile, the value of India retail sector is estimated to soar to $1.3 trillion by 2020 because of the growth in consumerism in urban areas, increased disposable incomes in middle class, and a steep rise in rural consumption (Reuters, 2012).
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