India to open access to global retailers

ONE OF THE essentials for any sponsorship market to develop is a strong retail sector. Love them or hate them, supermarkets and retail chains are the multipliers that consumer brands need to activate their sponsorships through point of sale promotions and special offers. India has long been plagued by a fragmented retail sector with thousands of ‘mom and pop’ stores dominating outlets. When LG, for example, wanted to use its ICC cricket sponsorship to encourage Indian retailers to stock its goods it ended up entertaining hundreds of small electrical retailers. So, in a development that is likely to have a big impact on sports marketing, the Indian government has paved the way for international supermarkets and department stores to establish joint ventures in the country. This is a major step in opening one of the last great consumer markets that has been off-limits to many of the world's biggest retailers, and where the retailers go, consumer goods brands are sure to follow. If a Walmart or Tesco has outlets across the country, it will set up the supply chain logistics and central buying that will benefit everything from alcohol and beverages to soap and snack brands.