METRO Cash & Carry is an international self-service wholesaler. It operates across Europe and in some countries of Asia and Northern Africa. It is the largest sales division of the German trade and retail giant Metro AG.
3. Mission
From professionals for professionals
Business concept is targeted towards professional customers rather than end
consumers.
The cash-and-carry concept is based around self-service and bulk buying.
Serves to registered customers only (hotels, restaurants, caterers, traders)
4. Concept
METRO cash & carry
Traders / Hotels / Cafes / Small Businesses
Consumer / End User
Supplier / Manufacturer / Farmer
6. Problems facing in India
It cannot directly purchase fruits & vegetables from farmers in most states.
Customers are reluctant to shift from existing suppliers despite being assured
pricing advantages.
Purchase of land for stores.
Regulatory hurdles (licence delays)
Poor infrastructure for transportation
Lack of awareness among Indian consumers
No cold storage facilities
9. Recommendations
Transaction facilitator – provide infrastructure connecting buyers and sellers
The lone wolf error – had no strategy to involve local partners preventing the
company from local knowledge, connections and relationships.
Understand the political environment and work around the APMC act.
Adjust the store format to reflect local needs and local real estate price constraints
Build an ecosystem for its business in India by educating farmers and retailers and
improving government and public relations
Communicate MCC value proposition to masses through media, lobbying etc