Project On Effects Of Foreign Products Over Indian Products 6ze6h

Introduction: When India opened its economy to foreign competition in the early 1990s, it was termed a phased liberalization. Government decided to retain full control over certain sectors deemed sensitive by not allowing any foreign investment. Insurance, retail, domestic airlines and telecommunications were some of those sensitive industries that were protected for a long time. Telecommunications and insurance were the first of these sectors that were gradually opened to foreign direct investment (FDI). Domestic airlines followed suit in the last two years and the resulting boom is proof enough of the future potential of that industry. The retail sector is protected against any FDI. But a couple of developments recently have created a lot of buzz in the Indian business community. A quick look at the Indian retail sector gives reason for such buzz. The Indian retail market is valued at US$200 billion and is projected to increase substantially in size over the 10-15 years. Organized retail - or well established retail chains - s for only a meager US$8 billion. The rest of the bulk is ed for by the more than 12 million neighborhood outlets and mom and pop shops. Given the huge current market and the future potential, it is only natural for the retail biggies such as Wal-Mart, Carrefour and others to look for entry modes into the Indian market. Recently the Indian government allowed t ventures (JV) in the retail sector where by a foreign company can set up a JV with an Indian company, with the Indian company being the majority shareholder in the venture. As such globalization has become a corporate buzz word in international business. But is all such cases, the brands have been careful to project a unified brand image with its brand identity and brand personality intact. After all that is the underlying logic of globalization - standardize the brand identity and experiences across markets so as to offer customers the overall brand experience but customize the brand communications, points of and personal interaction to suit the tastes and preferences of local cultures.

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Foreign Direct Investment in Retailing in India: After the waves of globalization, liberalization and privatization marketing scenario particularly retailing has changed radically. These changes have resulted in emergence of new environment for buyers’ behavior and purchasing habits. The upper and upper middle strata of the society now prefers to purchase well established branded goods from standard showrooms and it has transformed the entire picture and perception not only in the metro cities but almost in all big cities of our country. It is worth mentioning that retailing in India has been hailed as one of the sun-rise sectors in the economy. “India is the second most attractive retail designation globally, among thirty emergent markets.” Till now unorganized retailing sector was dominating retail trade in India by constituting 98% of all retailing trade but now not only traditional Indian retailers but giant Indian retailers like Reliance has entered in the area and is planning to expand its activities in this sector in a big wag. Even world renowned retailing organization like Wal-Mart has decided to enter in India via t venture with Bharti and French retailer Carrefour is busy in chalking out strategy to enter the hyper market and supermarket retail format in India through Dubai based retail major Landmark group.

Why Global Retailers are Interested in India? More specifically the global players are interested in India due to following reasons:

I) Strategic Location & Geography: India enjoys unique geographical advantage. It is strategically located in Asia with access to all leading markets of the World. With total area of 32, 87,590 Sq. Km, Coastline of 7000 Km and borders with six countries India becomes most promising destination for the foreign direct investment.

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II) Versatile Demographics: Demographically with a population of more than 1.1 billion and diverse culture, India is a land of all seasons. India presents a real cosmopolitan population with diverse religions and culture. Hinduism, Buddhism, Jainism, Sikhism, Christianity and Islam are the main religions of India. This variety of religions provides India with a diverse culture. Besides, India has versatile population of urban and rural nature. This versatility of population makes India a ready made market for foreign retailers.

III) Vast growing Economy: On economic front, India the largest democracy of the world, have a stable Govt. with robust programme of economic reforms. India with a foreign exchange reserve of more than US $120 billion, FDI of more than US $9.9 billion ,average GDP growth of more than 7% per annum, rupee appreciation Vs U.S dollar of more than 2% in last two years and with a rapidly growing investment in infrastructure has all the ingredients of a emerging economic super power. India is tipped to be third largest economy in of GDP by the year 2050.

Evolution of Retail Market in India: In the beginning there were only kirana stores called Mom and Pop Stores, the Friendly Neighborhood stores selling every day needs. In the 1980s manufacturer’s retail chains like DCM, Gwalior Suiting’s, Bombay Dyeing etc started making its appearance in India. Multi brand retailers came into the picture in the 1990s. In the food and FMCG sectors retailers like Food world, Subhiksha, are some of the examples. Shopping Centers began to be established from 1995 onwards. The millennium year saw the emergence of super markets and hyper markets. Now big players like Reliance, Bharti, Tata’s, HLL, and ITC are entering into the organized retail segment. The big international retail bigwigs are waiting in the wings as the present FDI guidelines do not allow them to own retail outlets in the country.

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INDIA RETAIL ON THE GLOBAL STAGE CAN WE BE SUCCESSFUL: POSITIVES FOR INDIAN COMPANIES IN RETAIL INDUSTRY: 1. Have knowledge of the Indian Market, which could help them a lot as they are aware of the Indian mindset. 2. The Laws are clearly on the side of Indian Players as currently FDI has been blocked in direct Retailing thus controlling competition. 3. The initial set up has already been done by them, thus they won’t be newcomers by the time foreign players set up their base. 4. They have the experience of dealing with employees in India as most of them are already established players in their respective fields. This can be of great help for employing skilled as well as un-skilled labour. 5. Indian companies have a better recall value than their foreign counterparts and this can help to gain loyalty. This factor can be of a help in the rural areas as well as for the illiterate people.

DOWNSIDES FOR THE INDIAN COMPANIES IN THE RETAIL INDUSTRY: 1. The Indian organized retail industry is still in its initial phases and the concept is relatively new for Indian companies when compared to Foreign Retailers. 2. Opposition from small traders. They have formed their own unions and are revolting in a huge way. 3. Political pressure has been seen in many areas like U.P. and Kerela where the Government has not allowed some formats of retail trade.

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POSITIVES FOR FOREIGN PLAYERS: 1. They can bring in huge investment which is not possible by many local players. 2. Having their base in developed nations and retailing since a long time they have better technology which will be of great help when they enter India. 3. There is a class of Indian population which has likeness to foreign brands and will buy them with a misconception that they are of better quality. 4. They have the opportunity to bring in lower priced goods as they can command over their suppliers by buying products in bulk for their global sales.

DOWNSIDES FOR FOREIGN PLAYERS: 1. Stringent FDI Laws. Current laws allow only 51% FDI and that too for Single Brands. Thus stopping them from setting up retail outlets. 2. They are comparatively new to India and the Indian conditions like vast differences in culture, high percentage of rural population. 3. Vast geographies making it difficult for new companies to set up a pan India presence.

Indian Retail Industry Attracts Top International Brands: You need not have to take a trip to a foreign country to pick your favourite brand, any more. Many international brands have launched their brands in India and many are planning to. Numerous international brands have already made a strong position in the Indian retail market. International brands in India are present across various verticals within retail like apparel, shoes, electronics, cosmetics, food and entertainment. The brands in India are available for various price ranges. Footwear retail has attracted many international brands to India. Many brands like Aldo, Nine West, have already won a lot of loyal customers. Though 5

the fashion footwear brands entered India quite late, but the brands into sports footwear like Nike, Adidas and Reebok have been available since long. India was the first among these to enter India in 1995, followed by Nike and Adidas. Ninewest a fashion footwear brand entered India in 2002. Another footwear brand in the Indian market is Bally. Aldo, one of the most desired brands in India was launched in Mumbai, in 2005. These brands not just supply the footwear but offer accessories as well. International apparel brands, also, have ventured the Indian retail market. Brands like Mango, Nautica, Channel, Guess, and Tommy Hilfiger etc. have tremendously hit the market. India has witnessed foreign investments and t ventures on a large scale in the food and beverages industry. Food brands like McDonald’s, Pizza Hut are very popular among the youth. McDonald’s tops the list of popularity as it offers low cost food products, which are affordable by common man. Luxury retail shops, which were initially found only in the five star hotels, are now present in almost every mall. International brands which took the initial risks are making a massive profit, today. India surely has a great potential to be the best in the retail business.

Foreign brands dominating in India: Optical sector and lenses: Esprit, Giorgio Armani, Cartier, Tommy Hilfiger, Ray-Ban, Police, Dolce & Gabana and Calvin Klein are all renowned international eyewear brands which have a significant presence in the Indian market. In the ophthalmic segment, the world's leading players - Essilor, Bausch & Lomb, Johnson & Johnson, and others are also important players. And companies that have stayed out of the market are now taking steps to enter this complex and multi-storied Indian sector. Hong Kong optical brands could soon be making a beeline in large squadrons for the Indian market, which is growing at a rate of almost 20% per 6

annum. There are already some 60 Hong Kong brand names available, including Ocean Eyewear (Hong Kong), Auto-Winner and Uni-Clip Custom Clip-Ons, with the territory controlling about 6% of the import market. That share could grow exponentially, as could the raw materials, individual frames and lens segments, with the opening up of the entire Indian optical sector. In fact, the Indian eyewear market is hugely untapped, even as the market is witnessing growth driven mainly by sales in the country's bigger cities.

Foreign investment in print media: The process of economic liberalization in India, which began more than a decade ago, has taken another significant step, namely opening up a very sensitive sector. The print media. Government of India in June 2002 had decided to allow 26 per cent foreign. Direct investment (FDI) in news and current affairs print media. Technical and Medical publications have been allowed a higher FDI of 74 per cent. The decision, taken by the Union Cabinet, reverses the 1955 Cabinet resolution prohibiting any foreign investment in print media. A detailed policy statement on FDI in print would be issued shortly. Foreign Investments in news agencies, however, remain barred. The government has attempted to address the concerns of political parties that fear FDI in print might lead to foreigners controlling the Indian media.

The Initial Euphoria: Now that the doors to foreign investors in print media have been thrown open, one can expect some action in the sector. Already, some publications have taken the leap. Among the first to do so was Business Standard. Companies such as Pearson, Haymarket, Time India, News Corp., and Dow Jones have eyed India’s big, English-reading market. So the day the new policy was announced, stocks of five newspaper companies shot up 10%. Bankers in Bombay began asking other media concerns if they want to go public. ICICI Ventures, which holds stakes in three media companies, is quite bullish about the industry’s prospects. Trade books offer the best openings, since as much as 74% FDI has been permitted in them. Britain’s Haymarket Publishing Group already has ties to 7

Autocar India, with 80,000 subscribers. Haymarket doesn’t own a stake, but helps with research and management. Now, it can invest, provide funds to print more copies, market more strongly and use Autocar as a platform to bring its other brands. Bombay’s Tata Infomedia, a $30 million publisher of yellow pages and trade magazines, also has already started to solicit business with foreigners, sources say.

Motor car industry in India: It was one of only a handful of cars licensed for sale by the Indian government and is still one of the most common sights on Indian roads. Old shells litter the streets of many villages where broken Hindustan’s have been stripped for every possible part to use as a spare. Indians still look for the characteristics of the Hindustan an easily repaired workhorse in their motoring transport. The need for reliability is obvious modern dealer networks, though rapidly expanding, remain sparse and in rural areas a breakdown can put livelihoods at risk. Into this tough motoring climate, several foreign brands have made impressive in roads. Dominating the Indian car market is the t-venture of local brand Maruti with Japanese small-car maker Suzuki, which holds a 50.4 per cent share. Next up is a surprisingly strong foreign entry: Hyundai. The Koreans, who have made enormous strides in the US of late, have so far secured a 20.4 per cent market share in India, building on a reputation for small-car reliability, well-suited to the local demands. The Koreans have also pursued production opportunities on the Indian sub-continent. Some 10 years ago Hyundai opened a production facility on the outskirts of the south eastern city of Chennai, formerly known as Madras. Here the firm now turns out over 643,000 new cars a year, 240,000 of which end up in the local market. The rest, such as the recently launched i10 and i20 models, are exported across the globe, including to Ireland. Its 535-acre plant is a Korean oasis of modern industrial technology in a semi-rural dustbowl. Outside the gates, modern India struggles with the seismic challenges of moving from agrarian to industrial society. Inside, verdant gardens surround production facilities that house robots as advanced as in any car plant in Europe or Asia. Locals work alongside Korean counterparts, having trained for several months in sister plants in Korea. Costs are one critical benefit. The average wage remains high for the area and the 8

jobs, with their technical and engineering qualifications, are highly sought after. But there are tax benefits to producing cars locally that make it attractive for the Korean brand to have local market access. Aside from the usual array of robots and modern plant technology that could as easily be in Cologne as Chennai, the facility also features a large test facility that includes an outdoor track, on which every car that comes off the production line is tested. That means every i10 or i20 built in Chennai and sold in Europe has completed not only the usual quality inspections but also a series of suspension and cornering tests on the track before leaving the Chennai plant.

Indian PC brands losing out to foreign brands: Personal computers manufactured by global companies have overtaken local Indian-made PCs in of sales and growth rates, an industry research body said on Wednesday. Indian branded vendors such as HCL Infosystems, Zenith Computers Wipro and PCS for only 14 percent of the Indian desk-based computing market and six percent of the Indian mobile-based computing market in the first half of 2007. Unable to withstand the pressure of the marketing blitz and the reach of the MNC brands, the local brands have almost exited the consumer segment and are rethinking their strategy to focus more on government, education, and small and mid-size business (SMB) segments, Personal computer makers in India are divided into three groups those made by multinational companies, local brands and assembled product makers. Indian vendors' sales rose 18 percent in 2006 while those of overseas companies rose 73 percent. The statement said foreign bands are also dominating the mobile-PC segment in India. Gartner has suggested that Indian brands can improve local market share by improving product line-up using cheaper processors and increase brand visibility.

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Electronics brands dominating in India: Leading multinational players like Samsung, LG, Sony, Panasonic and Whirlpool have cornered more than 65 per cent of the market a sea change from just three years ago when Indian brands like BPL, Videocon and Onida controlled 70 per cent. The domination of the foreign hand is most visible in the Rs. 7,500 crore colour television (CTV) segment. The Indian brands grew at 30 per cent from 3.9 million sets to 5 million sets over the past 2-3 years.Mid-1999 onwards, the growth tapered off in the market as whole, though the Korean cost continued to grow.While the collective share of BPL, Videocon, Onida and others has dropped from 48 per cent in 1998 to 42 per cent in 1999, MNC brands have gained from 52 per cent in 1998 to 58 per cent in 1999. LG and Samsung have grown the fastest among the MNC brands. Once prominent regional brands like Keltron, EC and Uptron have closed shop while Crown, Texla and Beltek are known only in the Delhi market.In the consumer durable segment, MNC brands have wiped out domestic competition. In the above 300 litres refrigerator segment for instance, the MNCs now control over 90 per cent.There is not much comfort in the 165-litre segment either, with strong brands like Godrej and Voltas steadily losing ground. In the audio segment, the market share has merely gone from one MNC to another. Philips has lost market share to Aiwa, Sony and Panasonic. Indian audio brands like BPL and others never were strong contenders in this segment. While foreign brands have more than 90 per cent of market share in the segment, they are fast threatening the middles class by launching lesser priced brands. But even Whirlpool, a subsidiary of the US consumer durables giant, which went through a bit of a depression, seems to have turned around to emerge as a clear winner in the washing machines segment, though Videocon and BPL are still strong contenders. In the microwave ovens market, LG and Samsung have literally squeezed out all the Indian brands. While strong manufacturer brands like Samsung, LG, Whirlpool, Sony, Sharp and Panasonic have made deep inroads into the colour television, audio and refrigerator market, distributor brands like Aiwa, Akai and Sansui are sweeping out little known regional brands in the market.

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Franchising in India: India is one the world’s largest and the fastest-growing emerging markets, and franchising has become a successful business model for many local companies. Globalization and market liberalization has fuelled brand awareness among the Indian masses making the importation of foreign brands to Indian shores an attractive business opportunity for local businessmen. Foreign brands such as McDonald's and Pizza Hut have studied India's tastes and needs and customized their products and menus to suit local preferences. Many foreign companies consider franchising to be a convenient method of entry into the geographically vast and culturally diverse Indian market, which offers a very favorable franchising environment.

Franchising in various sectors in India: Foods and beverages: Some of the well-known brands in this sector that have received an overwhelming response in India include Baskin Robbins, Subway, McDonald's, TGI Friday's, Taco Bell, Pizza Hut, Dominos Pizza, Ruby Tuesdays, Barista, Costa, Wetzel Pretzel, Papa John's and KFC.A study has revealed that more than one third of new food outlets are operated through the franchise system. The rapid development of mall culture has also encouraged the growth of food and beverage franchises. Fine dining restaurants, quick service restaurants, cafes and juice bars are among the leading franchised food segments in India.

Beauty and health care: Beauty and health care Fitness clubs such as VLCC and Talwalkers have established chains while hair and beauty salons offering domestic branded products including Shanaz Hussein, Biotique and Habibs, and international brands, example, L'Oreal and Tony & Guy, have marked their presence through the franchise model. 11

Education: The increased acceptance of the importance of education by the Indian population and the proven success of education franchising in India has led to a boom in the amount of business owners wanting to expand their education brands using the franchise route. According to a recent survey, India is one of the largest markets for education in the world in of the number of students, offering vast franchising opportunities. Currently, out of the 1,200 franchises in the country, 32 per cent are in the education sector. Professional and vocational courses in the fields of aviation, hospitality, retail, financial services and insurance capture almost a third of the total share of education provided through franchises, followed training in the IT sector. Franchising in the pre-school sector has grown particularly in the past decade. For an emerging market such as India, franchising has the effect of creating cross-border economic relationships and helps foreign franchisors establish themselves and cater for a diverse population in the fastest way. It is evident that foreign franchisors have realised the unparalleled potential for franchising in India, and there is no doubt that franchising as a business concept has a very bright future in this country.

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Article of india today:

PROCESSED FOOD Import cost and conditions: Customs duty of 35-70 per cent; products must carry maximum retail price in rupees and details of the manufacturer. Impact: Many global brands of juices, syrups, ketchups, biscuits and sweets already in metro markets. Imports will expand to cover more products and cities. Prices will standardise, may even fall. Comment: "Choice for consumers will multiply and competitions for producers increase." DAIRY AND POULTRY PRODUCTS Import cost and conditions: Customs duty of up to 60 per cent on milk and 100 per cent on poultry products. Impact: A flood of European cheese, mostly in category. Chicken legs to be imported cheap. New varieties of meat products, but prices may not fall. Comment: "Expect new varieties of cheese and meat. Prices will standardise after MRP is imposed. FRUITS AND FOODGRAINS Import cost and conditions: Customs duty of 35-80 per cent; classified sensitive for close monitoring of imports.Grain imports only through state agencies. Impact: American and Japanese apples (price range Rs 100-300 a kg), kiwi fruit (Rs 240 a kg) already available in select markets. More imports, low prices. Comment: "Prices of imported fruits will continue to fall." 13

AUTOMOBILES Import cost and conditions: Customs duty of up to 105 per cent on cars, 35 per cent on bikes; Import only from country of manufacture and through Mumbai port. Used cars not to be more than three years old. Impact: Car imports more prohibitive and expensive than before; auto companies could import new models. Imported bikes may be cheaper. Comment: "Car makers have been treated fairly." APPLIANCES Import cost and conditions: Customs duty of 35-40 per cent. Impact: Cheap imports of products like calculators, lamps, irons and telephones will intensify-mostly from China. Comment: "Appliances not covered by any warranties will be imported heavily”. LIQUOR Import cost and conditions: Customs duty of 100 per cent on beer and wine, 210 per cent on rum, whiskey, gin and vodka. Impact: Imports will be expensive, but pub owners and restaurateurs expect beer and wine imports to rise. Comment: "My customers are looking forward to newer brands of beer.

STATIONERY & WATCHES Import cost and conditions: Customs duty of 35 per cent. Impact: Domestic stationery industry does not face threat. Only and new kinds of products like magnetic clips, correction tapes and heavy-duty staplers will be imported. Most watch brands already in India, but import of cheaper wrist watches and wall clocks will intensify. Comment: “We can now import watches to test-market in India.” 14

CONSUMER ELECTRONICS Import cost and conditions: Customs duty of 35 per cent. Impact: No surge in imports likely since most foreign brands already in India. Companies could import some high-price, low-volume models from their manufacturing facilities for sale in India. White goods like frost-free refrigerators already being imported by foreign companies. Comment: “There is no threat of imports to consumer electronics companies.” CLOTHES & FABRICS Import cost and conditions: Customs duty of up to 35 per cent; in some cases specific duties per meter or kilo of imported fabric. Impact: No increase in imports of brands of clothing likely, but non-branded garments from east Asia could come in. Deluge of Chinese fabric very likely. Comment: “Garments imports won’t surge.” TOYS Import cost and conditions: Customs duty of 35 per cent Impact: Imports of most types of toys has been opened in the past three years. Chinese toys of all kinds electric, non-electric, metallic, non-metallic already flood the market. Even big Indian brands like Leo and Funskool India facing the heat. Comment: “Indian toy makers can’t compete with the Chinese in price or quality.”

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How Consumers Value Global Brands: A detailed analysis revealed that consumers all over the world associate global brands with three characteristics and evaluate them on those dimensions while making purchase decisions

1. Quality Signal: Consumers watch the fierce battles that transnational companies wage over quality and are impressed by the victors. A focus-group participant in Russia told us: "The more people who buy [a] brand…the better quality it is." A Spanish consumer agreed: "I like [global] brands because they usually offer more quality and better guarantees than other products." That perception often serves as a rationale for global brands to charge s. Global brands "are expensive, but the price is reasonable when you think of the quality," pointed out a Thai participant. Consumers also believe that transnational companies compete by trying to develop new products and breakthrough technologies faster than rivals. Global brands "are very dynamic, always upgrading themselves," said an Indian. An Australian added that global brands "are more exciting because they come up with new products all the time, whereas you know what you'll get with local ones." That's a significant shift. Until recently, people's perceptions about quality for value and technological prowess were tied to the nations from which products originated. "Made in the USA" was once important; so were Japanese quality and Italian design in some industries. Increasingly, however, a company's global stature indicates whether it excels on quality. We included measures for country-of-origin associations in our study as a basis for comparison and found that, while they are still important, they are only one-third as strong as the perceptions driven by a brand's "globalness."Consumers all over the world associate global brands with three characteristics.

2. Global Myth: Consumers look to global brands as symbols of cultural ideals. They use brands to create an imagined global identity that they share with like-minded people. Transnational companies therefore compete not only to offer the highest value 16

products but also to deliver cultural myths with global appeal. "Global brands make us feel like citizens of the world, and … they somehow give us an identity," an Argentinean consumer observed. A New Zealander echoed: "Global brands make you feel part of something bigger and give you a sense of belonging." A Costa Rican best expressed the aspirations that consumers associate with global brands: "Local brands show what we are; global brands show what we want to be." That isn't exactly new. In the post-World War II era, companies like Disney, McDonald's, Levi Strauss, and Jack Daniel's spun American myths for the rest of the world. But today's global myths have less to do with the American way of life. Further, no longer are myths created only by lifestyle and luxury brands; myths are now spun by virtually all global brands, in industries as diverse as information technology and oil.

3. Social Responsibility: People recognize that global companies wield extraordinary influence, both positive and negative, on society's well-being. They expect firms to address social problems linked to what they sell and how they conduct business. In fact, consumers vote with their checkbooks if they feel that transnational companies aren't acting as stewards of public health, worker rights, and the environment. As infamous cases have filled the airwaves—Nestlé's infant-formula sales in Africa since the 1980s, Union Carbide's Bhopal gas tragedy in 1984, the Exxon Valdez spill in 1989, the outcry over Shell's plan to sink its Brent Spar oil rig and the protests at its Nigerian facilities in 1995—people have become convinced that global brands have a special duty to tackle social issues. A German told us: "I still haven't forgiven Shell for what they [did] with that oil rig." An Australian argued: "McDonald's pays back locally, but it is their duty. They are making so much money, they should be giving back." The playing field isn't level; consumers don't demand that local companies tackle global warming, but they expect multinational giants like BP and Shell to do so. Similarly, people may turn a blind eye when local companies take advantage of employees, but they won't stand for transnational players like Nike and Polo adopting similar practices. Such expectations are as pronounced in developing countries like China and India as they are in developed countries in Europe.

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PRIMARY DATA (SURVEY): METHODS USED IN MARKET RESEARCH: Methodologically, marketing research uses the following types of research designs:

Based on questioning: Qualitative marketing research: Generally used for exploratory purposes, small number of respondents not generalizable to the whole population, statistical significance and confidence not calculated. Examples include focus groups, in-depth interviews, and projective techniques Quantitative marketing research : Generally used to draw conclusions, tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population, involves a large number of respondents. Examples include surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis. The following is a research conducted in our locality as to what are the opinion of people about Indian brands and Foreign brands, their usage pattern, way of adapting it, utility provided and many such aspects. The size of the sample is 30 people and the questionnaire was distributed to them and was obtained.

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The forms are then classified in various diagrammatic forms like chart, pie diagram, bar graphs etc. 1. What do you prefer the most?

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Indian brands Foreign brands

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2. Do you think government should allow more foreign brands in our country? 17 16 15

Series1

14 13 YES

NO

3. Do you think Indian brands suffer because of foreign brands?

No Series1 Yes 0

5

10

15

19

20

4. Do you think Indian brands have the capability of meeting the standards of foreign brands?

Yes 15

15

No

5. Do you think foreign brands are affordable to the rich class only?

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Yes No

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6. What do you think are the main reasons for the increase of foreign brands in India? 20 15 10

Series1

5 0 Better Quality

Reliability

s FDI

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All

7. When you talk about popular foreign brands, which category of the following comes first to your mind?

1

Electronic items

7

6

Clothing Food products Any other

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8. Do you cross-culture exchange serves an important link in improving relations among nations at the global level?

NO Series1 Yes 0

10

20

30

9. What would you ?

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Videshi over Swadeshi Swadeshi over Videshi

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10. According to you which foreign brand is dominating in India? We got different brands name such as: Mobile sector. Automobiles sector. Electronics sector. Sports wear. Fashion wear. Laptops and desktops. Perfumes and watches. Furniture sector. Cosmetics. Optical sector. Print media. FMCG products.

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CONCLUSION: This project gave us a wider knowledge about the different brands existing in India with both foreign and Indian brands. We also came to know about foreign brands which are dominating Indian brands. The topics which we had included in our project such as dominating brands, various franchise existing in India, consumer behavior towards international brand, retailing sector in India etc. gave us a vast information about the market. And also the primary data conducted by us gave an opinion about the impact of foreign brands on Indian brands, consumer preference, what should be done to stop foreign brands to dominate Indian market. Atlast we would like to conclude by saying that government should do something to stop foreign brands to dominate Indian brands. And also Indian brands should match the quality standard like international brands so that people purchase Indian brands. There should be more export then import our brands should also dominate foreign market.

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RECOMMENDATIONS: 1. Atleast allow controlled FDI in the form of JV’s with local players. 2. To cater to the local needs of each area and have a multiple format stores as per the requirement of the region. 3. Invest in technology and supply chain management, especially in Cold Storage facilities as food constitutes about 62% of retail sales. 4. Put in place a system of Reverse Logistics which is pretty non-existent in India. 5. Look for potential in the rural areas. 6. 700 million Sq. Ft. of quality retail space will be required by year 2010 as compared to a supply of 200 million Sq feet creating a gap of 500 million Sq. ft. 7. Have high Quality measures so as to keep the confidence of the retail customers. 8. Big retail players should participate with local Kirana stores by giving them franchises and smaller outlets. 9. Invest enough in education & training to sustain the boom and have proper man power to handle it. 10.Giving the sector an Industry status by the Government. Despite some of the negative areas of the retail boom it seems INDIA CAN SURELY SUSTAIN THE COMPETITION ON THE GLOBAL STAGE.

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BIBLIOGRAPHY:

The information of this project has been taken from following sources:

www.emeraldinsight.com www.wikipedia.com www.idoub.com www.managementparadise.com www.india today.com

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