Contemporary Developments - Essay Example

Some of the competitors of Café Coffee day are Barista, Café Mocha and Costa Coffee. India is a growing economy and has shown stability over the past decades in terms of economic growth. The GDP (gross domestic product) of 6% has been maintained in the past ten years and India has become the fourth largest economy in the world (Government of India, 2005). Along with having increased the per capita income of a large number of its people, especially the middle classes, India now has a vast middle class with large amount of disposable income (Aguilar, 2006).

This makes the country a choice for consumer product producers and retailers. AT Kearneys annual Global Retail Development Index (A.T. Kearney, 2008) lists India at the top and the country is hailed as the 5th largest retail investment destination (with expected growth of investments to US$ 427 billion by 2010 and US$ 637 billion by 2015) (A.T. Kearney, 2008). It also has the largest number of retail outlets at 12 million, out of which 5 million retailers cater for the food and beverage requirements (India Brand Equity Foundation, 2008).

In addition to the proliferation of the retail business in urban India, there is tremendous potential provided by the smaller towns and cities. A very large section of the Indian masses reside in the semi-urban regions that border the metros as well as in the villages. These people are as yet not introduced to the retail boom that urban India is experiencing, and offer a large market that can be tapped. According to Brand Equity Survey, the there investment through franchising in rural India is expected to double by 2010 (India Brand Equity Foundation, 2008).

The indigenous coffee organizations however face increased competition from foreign brands and retailers who are getting a stronghold in India. India started its economic reforms in 1991 and deregulated economy that led to an influx of foreign