Target's Direct Investment Plans In India

does target have direct investment in india

Target Corporation, the seventh-largest retailer in the United States, has a significant presence in India. The company operates a global capabilities centre in Bangalore, India, which was set up in 2005. This centre employs around 2,100 people and is an essential part of Target's global expansion strategy, providing critical problem-solving capabilities in retail analytics, marketing, and technology. During the COVID-19 pandemic, Target also demonstrated its commitment to its Indian teams and communities by offering additional support and resources. While Target does not currently have any retail stores in India, the country is an important part of its global sourcing network, with offices in New Delhi and Bangalore.

Characteristics Values
Direct Investment in India None
Global Capabilities Center in India Yes
Number of Team Members in India 3,400

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Target's Bangalore captive centre

Target Corporation, the seventh-largest retailer in the United States, has a global capabilities centre in Bangalore, India, known as the Bangalore captive centre. The centre was set up in 2005 and employs around 2,100 people.

The Bangalore captive centre is an important part of Target's global expansion strategy and is considered a long-term strategic asset for the company. It serves as an extension of the corporate headquarters in Minneapolis, providing critical problem-solving capabilities in retail analytics, marketing, and technology.

The centre has been involved in several strategic initiatives, including business intelligence systems initiatives and the TGT 100 enterprise-wide initiative, a financial SAP systems implementation. Additionally, the Bangalore team has played a key role in the company's pharmacy push, moving from a third-party to a Target-owned and operated pharmacy system.

Target has expanded its facilities in India to three offices across 0.5 million sq ft in Bangalore. The company's operations in India have contributed to its success in creative marketing, analytics, and reporting for improved productivity and key technology implementations.

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Target India's role in the company's global expansion

Target India, established in 2005, is a vital component of the Target Corporation's global expansion plans. As the second-largest discount retailer in the US, the company views its Indian operations as crucial to its international growth strategy.

Target India serves as a strategic asset and an extension of the corporate headquarters in Minneapolis. With offices in Bangalore, New Delhi, and expanded facilities across 0.5 million sq ft in Bangalore, Target India provides critical problem-solving capabilities in retail analytics, marketing, and technology. The Indian offshoot spearheads various business intelligence systems initiatives and plays a pivotal role in the company's pharmacy push.

The talent pool and time difference advantage in India have positioned Target India at the forefront of creative marketing, analytics, and reporting, contributing to improved productivity and key technology implementations. Additionally, Target India has been driving business intelligence systems initiatives ranging from store organisation to merchandising.

While Target Corporation's immediate expansion plans focus on North America, the company recognises the importance of the Indian market in the long term. Target India's role as a long-term strategic asset is underscored by its contribution to enterprise-level opportunities, global sourcing network, and the company's overall growth strategy.

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Target's COVID-19 relief efforts in India

Direct Support and Donations:

  • Target contributed to the "Feed the Daily Wager" initiative, a joint endeavour with Zomato and Grofers to deliver ration kits to families of daily wage workers across 26 cities in India. Each kit, costing 500 INR, can sustain a family of five for a week.
  • Target supported the "Together We Can" campaign by YUVA, which raised funds and provided in-kind support to offer emergency relief food supplies to the urban poor in Mumbai, starting with the most marginalised families.
  • Target collaborated with the Gurgaon Nagrik Ekta Manch to provide rations to daily wage workers and their families in Gurgaon.
  • Target aided the KMC-Ramjas Collective, working with local community organisers to provide relief materials in Delhi since the outbreak of violence in North East Delhi in February 2020 and during the COVID-19 lockdown.
  • Target partnered with the Urban Company and Srinidhi Foundation to establish a relief fund for gig workers and their families, providing sustenance support during the pandemic.
  • Target supported the Cuddles Foundation, aiding underprivileged child cancer patients across 33 cities in India, including Delhi, Mumbai, Bangalore, Chennai, and Hyderabad.
  • Target contributed to the Mumbai Food Project by Pratham, addressing the needs of the underprivileged in Mumbai who lacked access to basic necessities during the lockdown.

Support through Other Organisations:

  • Target worked with the India Care Collective, a group of citizens with a background in social service, to help families impacted by wage loss due to the coronavirus pandemic.
  • Target collaborated with the Sarvodaya Mitra Mandali and Bizongo to supply essential personal protective equipment (PPE) to frontline healthcare workers fighting the pandemic.
  • Target supported the PharmEasy initiative, pledging to gift an N95 mask for every mask purchased and gifted to frontline doctors, nurses, and hospital staff.
  • Target aided the WeMakeIt campaign, raising money outside India for daily wage workers through a bottom-up approach, promoting volunteers to help their local communities.
  • Target contributed to the Angel Xpress Foundation (AXF), a social movement educating underprivileged children and providing life skills. During the lockdown, AXF volunteers raised funds to support the families of the children they educate, who were daily wage earners.
  • Target supported the ImpactGuru initiative, encouraging people to join hands and provide timely support and relief to the COVID-19 hit sections of society.

These efforts by Target, in collaboration with various organisations and campaigns, helped provide essential relief to vulnerable communities in India during the COVID-19 pandemic.

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Target's subsidiaries

Target Corporation, the seventh-largest retailer in the United States, has four subsidiaries as of 2018: Target Brands, Inc., Target Capital Corporation, Target Enterprise, Inc., and Target General Merchandise, Inc. These subsidiaries are all Minnesota-based corporations.

Target Brands, Inc. is the company's brand-management division that oversees the company's private-label products. Target Capital Corporation is a subsidiary of Target Corporation, though the specifics of its function are unclear. Target Enterprise, Inc. is likely the global capabilities centre in Bangalore, India, that was mentioned in a 2010 article. Finally, Target General Merchandise, Inc. is presumably involved in the sale and distribution of Target's merchandise.

Target Corporation also has a financial and retail services division, formerly known as Target Financial Services, which issues Target's credit cards and oversees gift card balances. Additionally, the company has a sourcing division, Target Sourcing Services, which has offices worldwide and is responsible for locating and importing merchandise.

Target Corporation has attempted to expand internationally, including into Canada and Australia, but these attempts have been largely unsuccessful.

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Target's private-label brands

Target has over 45 private-label brands, which it calls "owned brands". These brands are core to the company's strategy and what guests expect from Target. The company's private labels include groceries, clothing, and kitchen appliance brands.

In addition to product categories and exclusive collaborations, Target's private-label brands cater to specific demographics and lifestyles. For instance, Universal Thread is a women's lifestyle brand grounded in denim that is completely size-inclusive, offering a variety of styles, lengths, and rises. Another example is All in Motion, an activewear brand designed to celebrate the joy of movement for all guests, regardless of their speed, style, or ability, focusing on quality, sustainability, and inclusivity.

Frequently asked questions

Target Corporation has a global capabilities center in Bangalore, India, which was set up in 2005. The Bangalore center employs 2,100 people and is an extension of Target's headquarters in Minneapolis.

Target's Indian operations focus on critical problem-solving capabilities in retail analytics, marketing, and technology.

Target donated $500,000 to UNICEF USA to improve access to oxygen treatments and testing resources in India. They also donated to local nonprofits providing aid across the country.

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