MARKET-ENTRY STRATEGY

New Market-Entry Strategy in Indonesia for Fast Retailing

[Name of the Institute]

New Market-Entry Strategy in Indonesia for Fast Retailing

Overall strategy that should be adopted by Fast Retailing for market-entry in Indonesia

Indonesia is a fourth biggest country of the world in terms of population, and the largest country in the Muslim world. Along with other specialities, it has the sea-lanes that link Indonesia to major regional and International markets, and is blessed with a huge amount of natural resources. The Indonesian government is playing a vital role in development of its industries, but according to new democratic scenario and quite stable political setup, Indonesia inviting multinational companies for the spread in a speedy highly competitive environment. The retail sector of Indonesia has great potential for food chains and ready to cook food as consumers are moving towards retail stores for a complete shopping solutions. Fast retailing should sell packed food item s in the Indonesian market as a market entry strategy. The growth of economic and rising Indonesian trend towards urbanization from the last 10 years has been aligned by a rapidly-growing sector of food retailing and by modifications in the pattern of food consumption. Because of being the fourth most popular country of the world, Indonesia gives an example of the links among consumption of food, investment, trade, and sales. In this paper, the examination of changes in the pattern of consumption of food is done along with measurement of the modernized retail food chains' growth, growth in purchases of packaged food, and imports of food in Indonesian retail industry throughout the last decade (Pearce, Blakely, Witten, & Bartie, 2007, pp.375-382).

Pattern of food consumption in Indonesian have modified in the late 1990s, along with growth in consumption of meat and dairy and falling consumption of grain on a basis of per-person. Sale of prepared, and packaged food has increased significantly. Income growth of household and a maintained population shift from a rural area to urban areas added to these pattern modifications. Changes in consumption of food of Indonesia is constant with proof that the global pattern of consumption of food have been transforming toward further sugar, dairy, and meats, products. Though, consumption of animal product per person stays under the neighbouring countries' level, and intake of calorie has changed slightly over the previous 10 years of strong growth of the economy.

At the same time, most of the purchase of Indonesians from conventional outlets of retail items, retail stores of modern food sell a rising share of products of food, mainly packaged products, to consumers of the urban area. Modern food retailers' sale boosted from around USD1.5 billion in the year 1999 to USD5.6 billion in the year 2009, and the whole retail food's share in sales rise from 5% to 11% in the last decade (Pearce, Blakely, Witten, & Bartie, 2007, pp.375-382). Quality assurance, air conditioning, and refrigeration are offered in the retail sector that are not found typically in conventional retail stores. Refrigeration, particularly for dairy and meats products, ...