With Best Buy (NYSE: BBY) already operating a huge mega-store in China, the consumer electronics retailer is considering entering the Indian market, according to reports. Minneapolis-based Best Buy is talking to privately owned Vivek Ltd., an established electronics retailer in India, to determine if a retail experiment or a full entry into India would be a good move for the retailer. India's increasing affluence and growing middle class make major urban centers ripe for larger retailers looking to diversify their businesses internationally.
In addition to connecting with Vivek, Best Buy folks were recently in India to talk to manufacturers like LG, Samsung and Sony Corp. (NYSE: SNE) -- that is, to feel out these companies for what it is like to operate in India. Although the possible partnership between Best Buy and Vivek would most likely be a sourcing and technical arrangement instead of a way for Best Buy to "test the waters" of Indian retail, the potential for a Vivek partnership is still intriguing.
It gives Best Buy knowledge of the market dynamics without a huge risk and allows the company to prepare for a national store launch with the best planning possible should it decide to enter the Indian market. If so, Best Buy's international plans in both China and India will have the retailer singing a happy tune not just in the U.S., but globally.
Best Buy seeks partnership to enter India
Posted May 30th 2007 11:30AM by Brian White
Filed under: Deals, Good news, Rumors, Best Buy (BBY)
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