The largest US-based consumer electronics and IT retail chain Best Buy is entering the Indian market.

Financial Express via NewsEdge Corporation :

The largest US-based consumer electronics and IT retail chain Best Buy is entering the Indian market. The retail chain, which has more than 940 stores across US and in Canada, and clocked revenues of $30.8 billion in 2006, is meeting consumer durables firms like Samsung, LG and Videocon, among others, in Mumbai on March 14 to understand the regulatory environment and explore opportunities. Since Indian regulations do not allow foreign direct investment in specialty retail, Best Buy would have to look for a back-end collaboration with the consumer durable companies here. As per regulations, 100% FDI is allowed in back-end operations and cash & carry formats. Further, foreign companies can have up to 51% equity in single brand retail ventures. At present, companies like Infiniti Retail (Tata venture in collaboration with Woolworths) through its Croma stores, Pantaloon's E-Mart stores, Videocon's Next, and regional players like South-based Viveks, Vijay Sales, Sony Mony and others are present in the consumer durable retail. Reliance Retail is also opening its first durbales store on March 31 in Shipra Mall, Ghaziabad. Minneapolis-headquartered Best Buy entered China in December to to tap the $100 billion consumer electronics market there, the second largest in the world after US' $150 billion. Best Buy stores reach to approximately 300 million consumer households in US. The Indian consumer electronics market, which is worth Rs 30,000 crore ( $6.76 billion) offers a good potential for Best Buy since organized retail has just taken off in the country with big retail giants like Tata Woolworths, Reliance Retail, AV Birla Group, Bharti Enterprises making a foray into the segment. The share of organized retail in the country at present is a meagre 3% and is expected to grow to around 40% by 2010, thereby offering ample opportunity for growth to organised retailers.