December 23, 2008
From "will they, won't they?" dilemma, it was finally to "they will!" kind of certainty that the Indian retail industry was a witness to in 2008, with the emerging shape of things over the year suggesting that both neighbourhood stores and organised retailers are here to stay.
In the start of the year, there was a feeling that with firming up of real estate rentals, the brouhaha of Indian retail may not last long.
But as the year moved on and the rentals started softening, there was optimism in the air, paving way for hectic activities by various retail players, who announced investments to the tune of Rs 14,200 crore (Rs 142 billion) in the near future
Tuesday, December 30, 2008
Hindware launches Wood Art Collection
Gurgaon-based sanitaryware leader Hindware has launched a new collection for bathrooms under the nomenclature Wood Art Collection. The range that comes with a solid wood cabinet, wash basin and mirror console comes in six different ranges — Viola, Floret, Aster, Rosette, Anther and Azara. Available in two colours — Cedar and Wenge — the collection is priced at Rs 31,195. The collection is exclusively available at EVOK, Crown Interiorz Mall, Faridabad and EVOK, West Gate Mall, Delhi in addition to a wide network of retailers of Hindware across India. Hindustan Sanitaryware is the flagship company of the Somany Group and is a joint venture of the Group with Twyfords, UK.
Hindware launches Wood Art Collection
31 Dec 2008
Gurgaon-based sanitaryware leader Hindware has launched a new collection for bathrooms under the nomenclature Wood Art Collection. The range that comes with a solid wood cabinet, wash basin and mirror console comes in six different ranges — Viola, Floret, Aster, Rosette, Anther and Azara. Available in two colours — Cedar and Wenge — the collection is priced at Rs 31,195. The collection is exclusively available at EVOK, Crown Interiorz Mall, Faridabad and EVOK, West Gate Mall, Delhi in addition to a wide network of retailers of Hindware across India. Hindustan Sanitaryware is the flagship company of the Somany Group and is a joint venture of the Group with Twyfords, UK.
Gurgaon-based sanitaryware leader Hindware has launched a new collection for bathrooms under the nomenclature Wood Art Collection. The range that comes with a solid wood cabinet, wash basin and mirror console comes in six different ranges — Viola, Floret, Aster, Rosette, Anther and Azara. Available in two colours — Cedar and Wenge — the collection is priced at Rs 31,195. The collection is exclusively available at EVOK, Crown Interiorz Mall, Faridabad and EVOK, West Gate Mall, Delhi in addition to a wide network of retailers of Hindware across India. Hindustan Sanitaryware is the flagship company of the Somany Group and is a joint venture of the Group with Twyfords, UK.
Vishal negotiates rent reduction for 50 stores
29 Dec 2008
New Delhi-based supermarket chain Vishal Retail has successfully negotiated rentals of about a third of its stores across the country, reports Business Standard.Out of the current 178 stores across India spreading across an area of 29,61,400 square feet (approx.), Vishal retail has been able to negotiate lower rentals for at least 50 stores. This has helped the retailer to bring down rentals by as much as 35 per cent. “We told the store owners that we will relocate our stores to other places if they don’t bring the rentals down. We managed to get rentals down between 20 and 35 per cent,” said Ambeek Khemka, president, Vishal Retail.“Today the market situation is exactly the opposite of what it was a year ago. Supply of retail space far exceeds the demand and we have an upper hand,” Khemka added. The company plans to increase the number of stores from 178 to 200 in the next three months.
New Delhi-based supermarket chain Vishal Retail has successfully negotiated rentals of about a third of its stores across the country, reports Business Standard.Out of the current 178 stores across India spreading across an area of 29,61,400 square feet (approx.), Vishal retail has been able to negotiate lower rentals for at least 50 stores. This has helped the retailer to bring down rentals by as much as 35 per cent. “We told the store owners that we will relocate our stores to other places if they don’t bring the rentals down. We managed to get rentals down between 20 and 35 per cent,” said Ambeek Khemka, president, Vishal Retail.“Today the market situation is exactly the opposite of what it was a year ago. Supply of retail space far exceeds the demand and we have an upper hand,” Khemka added. The company plans to increase the number of stores from 178 to 200 in the next three months.
Footwear retailer Vi-Ga goes abroad
30 Dec 2008
Footwear manufacturer and retailer Vi-Ga has announced its foray into overseas market. Talking to IndiaRetailing, Vinayak Mahtani, CEO, Vi-Ga, has disclosed that the company will make its maiden entry abroad with first store in Kathmandu. The store to be operational in the capital city of Nepal this February, will spread across a retail space of 3,000 square feet, informed Mahtani. Meanwhile, he did not disclose the amount of investment for the store.With 10 stores of Vi-Ga operational in north India including Delhi, NCR and Lucknow, the new outlet in Kathmandu will be based on franchisee model in partnership with the local players.Meanwhile, the company also eyes further to fledge its muscles abroad. "We are talking with companies in Middle East and in gulf region. Earlier, we planned to get it done by this year-end. Unfortunately we could not as the regions are among the major victims of global crisis. However, we are hopeful of our foray in these markets soon," shares Mahtani.Moreover, for the Noida-based footwear retailer – having foothold restricted prominently to north India – it looks quite early to move abroad before it could strengthen its presence in its unexplored rest of India market. "In India, real-estate rentals have hardly gone down. Good properties are still charging heavy prices today. When looked at overseas market like Nepal, besides rental being cheaper there, the market do has huge potential which ultimately gives us an opportunity to explore it," reasons out Mahtani.
Footwear manufacturer and retailer Vi-Ga has announced its foray into overseas market. Talking to IndiaRetailing, Vinayak Mahtani, CEO, Vi-Ga, has disclosed that the company will make its maiden entry abroad with first store in Kathmandu. The store to be operational in the capital city of Nepal this February, will spread across a retail space of 3,000 square feet, informed Mahtani. Meanwhile, he did not disclose the amount of investment for the store.With 10 stores of Vi-Ga operational in north India including Delhi, NCR and Lucknow, the new outlet in Kathmandu will be based on franchisee model in partnership with the local players.Meanwhile, the company also eyes further to fledge its muscles abroad. "We are talking with companies in Middle East and in gulf region. Earlier, we planned to get it done by this year-end. Unfortunately we could not as the regions are among the major victims of global crisis. However, we are hopeful of our foray in these markets soon," shares Mahtani.Moreover, for the Noida-based footwear retailer – having foothold restricted prominently to north India – it looks quite early to move abroad before it could strengthen its presence in its unexplored rest of India market. "In India, real-estate rentals have hardly gone down. Good properties are still charging heavy prices today. When looked at overseas market like Nepal, besides rental being cheaper there, the market do has huge potential which ultimately gives us an opportunity to explore it," reasons out Mahtani.
Dabur enters into health drink segment
30 Dec 2008
FMCG major Dabur India has announced its entry into the malted food drink market with the launch of its new health drink Dabur Chyawan Junior across the country. “Dabur is putting in a concerted effort towards offering the benefit of Chyawanprash to a wider audience with the national roll out of this innovative product,” said KK Rajesh, executive vice president – marketing (healthcare), Dabur India, in a release.Further, the company says that it hopes to capture about 10 per cent share of the Rs 19 billion malted food drink market within the next two years.Dabur Foods, a business division of Dabur India, operates on the naturals platform with a product portfolio consisting mainly of packaged fruit juices, cooking pastes, sauces and items for institutional food purchases.Meanwhile, Dabur India in its latest filing to Bombay Stock Exchange has also announced that Q3 results of the company will be out on Jan 28, 2009.
FMCG major Dabur India has announced its entry into the malted food drink market with the launch of its new health drink Dabur Chyawan Junior across the country. “Dabur is putting in a concerted effort towards offering the benefit of Chyawanprash to a wider audience with the national roll out of this innovative product,” said KK Rajesh, executive vice president – marketing (healthcare), Dabur India, in a release.Further, the company says that it hopes to capture about 10 per cent share of the Rs 19 billion malted food drink market within the next two years.Dabur Foods, a business division of Dabur India, operates on the naturals platform with a product portfolio consisting mainly of packaged fruit juices, cooking pastes, sauces and items for institutional food purchases.Meanwhile, Dabur India in its latest filing to Bombay Stock Exchange has also announced that Q3 results of the company will be out on Jan 28, 2009.
Future Group to buy Le Marche
30 Dec 2008
In a major development, Kishore Biyani-led Future Group is all set to acquire Fu-Com Retail India promoted hypermarket chain Le Marche, reports ET. However, it is not clear whether Le Marche will be a part of Future Group’s value retailing business Big Bazaar or it will be moved under its venture capital arm Future Ventures, the report adds.Le Marche is an upscale version of a meat shop combined with a grocer. It offers an average of 45,000 product lines including imported foods, fresh baked foods, processed meats and cheeses as well as regular grocery supplies like cooking oil and detergent. Le Marche is currently operational in cities including Mumbai and New Delhi.Incorporated in August 2005, Fu-Com Retail India was set up by Fu-Com International, a Dubai-based company that operates supermarkets across West Asia in association with the French retail chain Groupe Casino.
In a major development, Kishore Biyani-led Future Group is all set to acquire Fu-Com Retail India promoted hypermarket chain Le Marche, reports ET. However, it is not clear whether Le Marche will be a part of Future Group’s value retailing business Big Bazaar or it will be moved under its venture capital arm Future Ventures, the report adds.Le Marche is an upscale version of a meat shop combined with a grocer. It offers an average of 45,000 product lines including imported foods, fresh baked foods, processed meats and cheeses as well as regular grocery supplies like cooking oil and detergent. Le Marche is currently operational in cities including Mumbai and New Delhi.Incorporated in August 2005, Fu-Com Retail India was set up by Fu-Com International, a Dubai-based company that operates supermarkets across West Asia in association with the French retail chain Groupe Casino.
ITC to expand its spices business
30 Dec 2008
ITC is looking to expand its spices business in a big way. The company is planning to set up modernised processing infrastructure in Rajasthan for grading, sorting and cleaning of seed spices like cumin, coriander and pepper, reports ET. The new facility will be in addition to ITC’s spices cleaning, grinding, packing and steam sterilisation facility at Guntur. The facility will give thrust to ITC’s planned foray into the growing value-added exports market for spices. It will also enable ITC to position itself as an integrated spices player. Additionally, ITC is also planning investments to mechanise its various operations in its supply chain, especially for grading and sorting of chillies, turmeric and pepper, the report adds. It is also looking to set up a pepper garbling and steam-washing facility in Kerala as well as a 'blended spices' facility in the next two years. The total outlay on these facilities is expected to be around Rs 40-50 million. The location for the blended spices facility is yet to be finalised. ITC's spices business works with farmers, NGOs and self help groups for developing farm-to-factory spices supply chain. With the current portfolio of chilli, turmeric, coriander, pepper, cumin, nutmeg, mustard, fennel, and fenugreek, the business is setting up a state-of-the-art spices grinding and sterilisation facility to support growth in the domestic and export markets.
ITC is looking to expand its spices business in a big way. The company is planning to set up modernised processing infrastructure in Rajasthan for grading, sorting and cleaning of seed spices like cumin, coriander and pepper, reports ET. The new facility will be in addition to ITC’s spices cleaning, grinding, packing and steam sterilisation facility at Guntur. The facility will give thrust to ITC’s planned foray into the growing value-added exports market for spices. It will also enable ITC to position itself as an integrated spices player. Additionally, ITC is also planning investments to mechanise its various operations in its supply chain, especially for grading and sorting of chillies, turmeric and pepper, the report adds. It is also looking to set up a pepper garbling and steam-washing facility in Kerala as well as a 'blended spices' facility in the next two years. The total outlay on these facilities is expected to be around Rs 40-50 million. The location for the blended spices facility is yet to be finalised. ITC's spices business works with farmers, NGOs and self help groups for developing farm-to-factory spices supply chain. With the current portfolio of chilli, turmeric, coriander, pepper, cumin, nutmeg, mustard, fennel, and fenugreek, the business is setting up a state-of-the-art spices grinding and sterilisation facility to support growth in the domestic and export markets.
Friday, December 26, 2008
6Ten retail to open 3,500 stores by 2011
26 Dec 2008
India’ leading basmati rice processing company REI Agro's retail venture 6Ten has planned to invest Rs 15 billion to open 3, 500 stores in next three years across the country, said a top company official. Speaking to media, Danish Beg, chief financial officer, REI Agro, said, "Presently, we have 473 stores and we would close the fiscal with 700 stores.""Targeting a turnover of Rs 4.5 billion in the first half of 2009, we would concentrate in west and north India, moving to south gradually," added Beg.The 3,500 stores will spread across 32,80,000 square feet of space as 6Ten stores are small-sized, housed primarily in residential colonies, with average store space ranging between 300-2,500 square feet. "Our strategy is to locate our stores in populated middle class areas," concluded Beg.
India’ leading basmati rice processing company REI Agro's retail venture 6Ten has planned to invest Rs 15 billion to open 3, 500 stores in next three years across the country, said a top company official. Speaking to media, Danish Beg, chief financial officer, REI Agro, said, "Presently, we have 473 stores and we would close the fiscal with 700 stores.""Targeting a turnover of Rs 4.5 billion in the first half of 2009, we would concentrate in west and north India, moving to south gradually," added Beg.The 3,500 stores will spread across 32,80,000 square feet of space as 6Ten stores are small-sized, housed primarily in residential colonies, with average store space ranging between 300-2,500 square feet. "Our strategy is to locate our stores in populated middle class areas," concluded Beg.
6Ten retail to open 3,500 stores by 2011
26 Dec 2008
India’ leading basmati rice processing company REI Agro's retail venture 6Ten has planned to invest Rs 15 billion to open 3, 500 stores in next three years across the country, said a top company official. Speaking to media, Danish Beg, chief financial officer, REI Agro, said, "Presently, we have 473 stores and we would close the fiscal with 700 stores.""Targeting a turnover of Rs 4.5 billion in the first half of 2009, we would concentrate in west and north India, moving to south gradually," added Beg.The 3,500 stores will spread across 32,80,000 square feet of space as 6Ten stores are small-sized, housed primarily in residential colonies, with average store space ranging between 300-2,500 square feet. "Our strategy is to locate our stores in populated middle class areas," concluded Beg.
India’ leading basmati rice processing company REI Agro's retail venture 6Ten has planned to invest Rs 15 billion to open 3, 500 stores in next three years across the country, said a top company official. Speaking to media, Danish Beg, chief financial officer, REI Agro, said, "Presently, we have 473 stores and we would close the fiscal with 700 stores.""Targeting a turnover of Rs 4.5 billion in the first half of 2009, we would concentrate in west and north India, moving to south gradually," added Beg.The 3,500 stores will spread across 32,80,000 square feet of space as 6Ten stores are small-sized, housed primarily in residential colonies, with average store space ranging between 300-2,500 square feet. "Our strategy is to locate our stores in populated middle class areas," concluded Beg.
HomeStop arrives in Vashi, Navi Mumbai
26 Dec 2008
HomeStop, the premium home concept store from Shoppers Stop, has opened a new store in Vashi, Navi Mumbai. Located at Inorbit Mall, Vashi, the store offers 17,000 square feet of shopping space. Speaking on the occasion, CK Nair, customer care associate and business head-home division, Shoppers Stop, said, “HomeStop is the ideal one-stop shop for home décor products, and we are positive that Vashi customers will find the prolific variety to be in tandem with all their aspirations.”HomeStop is a specialty store for home décor and furniture by Shoppers Stop. Besides the newly launched store, the comcept is already present in Bengaluru, Mumbai and Delhi. The concept offers products including bed, bath linen, appliances, kitchen needs, modular kitchens, home adornments, furnishings and furniture. Meanwhile, the concept also offers exclusive labels like Fern, Ivy and Stop offering merchandise across categories and furniture under the exclusive label Living World.
HomeStop, the premium home concept store from Shoppers Stop, has opened a new store in Vashi, Navi Mumbai. Located at Inorbit Mall, Vashi, the store offers 17,000 square feet of shopping space. Speaking on the occasion, CK Nair, customer care associate and business head-home division, Shoppers Stop, said, “HomeStop is the ideal one-stop shop for home décor products, and we are positive that Vashi customers will find the prolific variety to be in tandem with all their aspirations.”HomeStop is a specialty store for home décor and furniture by Shoppers Stop. Besides the newly launched store, the comcept is already present in Bengaluru, Mumbai and Delhi. The concept offers products including bed, bath linen, appliances, kitchen needs, modular kitchens, home adornments, furnishings and furniture. Meanwhile, the concept also offers exclusive labels like Fern, Ivy and Stop offering merchandise across categories and furniture under the exclusive label Living World.
HomeStop arrives in Vashi, Navi Mumbai
26 Dec 2008
HomeStop, the premium home concept store from Shoppers Stop, has opened a new store in Vashi, Navi Mumbai. Located at Inorbit Mall, Vashi, the store offers 17,000 square feet of shopping space. Speaking on the occasion, CK Nair, customer care associate and business head-home division, Shoppers Stop, said, “HomeStop is the ideal one-stop shop for home décor products, and we are positive that Vashi customers will find the prolific variety to be in tandem with all their aspirations.”HomeStop is a specialty store for home décor and furniture by Shoppers Stop. Besides the newly launched store, the comcept is already present in Bengaluru, Mumbai and Delhi. The concept offers products including bed, bath linen, appliances, kitchen needs, modular kitchens, home adornments, furnishings and furniture. Meanwhile, the concept also offers exclusive labels like Fern, Ivy and Stop offering merchandise across categories and furniture under the exclusive label Living World.
HomeStop, the premium home concept store from Shoppers Stop, has opened a new store in Vashi, Navi Mumbai. Located at Inorbit Mall, Vashi, the store offers 17,000 square feet of shopping space. Speaking on the occasion, CK Nair, customer care associate and business head-home division, Shoppers Stop, said, “HomeStop is the ideal one-stop shop for home décor products, and we are positive that Vashi customers will find the prolific variety to be in tandem with all their aspirations.”HomeStop is a specialty store for home décor and furniture by Shoppers Stop. Besides the newly launched store, the comcept is already present in Bengaluru, Mumbai and Delhi. The concept offers products including bed, bath linen, appliances, kitchen needs, modular kitchens, home adornments, furnishings and furniture. Meanwhile, the concept also offers exclusive labels like Fern, Ivy and Stop offering merchandise across categories and furniture under the exclusive label Living World.
HomeStop arrives in Vashi, Navi Mumbai
26 Dec 2008
HomeStop, the premium home concept store from Shoppers Stop, has opened a new store in Vashi, Navi Mumbai. Located at Inorbit Mall, Vashi, the store offers 17,000 square feet of shopping space. Speaking on the occasion, CK Nair, customer care associate and business head-home division, Shoppers Stop, said, “HomeStop is the ideal one-stop shop for home décor products, and we are positive that Vashi customers will find the prolific variety to be in tandem with all their aspirations.”HomeStop is a specialty store for home décor and furniture by Shoppers Stop. Besides the newly launched store, the comcept is already present in Bengaluru, Mumbai and Delhi. The concept offers products including bed, bath linen, appliances, kitchen needs, modular kitchens, home adornments, furnishings and furniture. Meanwhile, the concept also offers exclusive labels like Fern, Ivy and Stop offering merchandise across categories and furniture under the exclusive label Living World.
HomeStop, the premium home concept store from Shoppers Stop, has opened a new store in Vashi, Navi Mumbai. Located at Inorbit Mall, Vashi, the store offers 17,000 square feet of shopping space. Speaking on the occasion, CK Nair, customer care associate and business head-home division, Shoppers Stop, said, “HomeStop is the ideal one-stop shop for home décor products, and we are positive that Vashi customers will find the prolific variety to be in tandem with all their aspirations.”HomeStop is a specialty store for home décor and furniture by Shoppers Stop. Besides the newly launched store, the comcept is already present in Bengaluru, Mumbai and Delhi. The concept offers products including bed, bath linen, appliances, kitchen needs, modular kitchens, home adornments, furnishings and furniture. Meanwhile, the concept also offers exclusive labels like Fern, Ivy and Stop offering merchandise across categories and furniture under the exclusive label Living World.
Food Bazaar to cut prices of its private labels
26 Dec 2008
Food Bazaar, part of Kishore Biyani-led Future Group, is learnt to be reducing prices of its private labels by 2-5 per cent. "There will be an over all price cut on products across categories,” quoted Sadashiv Nayak, CEO, Food Bazaar in ET.Currently, the company has its offer in seven private labels that include Tasty Treat, Fresh & Pure, Care Mate, Clean Mate, Quit, Wow and Maniarrs.
Food Bazaar, part of Kishore Biyani-led Future Group, is learnt to be reducing prices of its private labels by 2-5 per cent. "There will be an over all price cut on products across categories,” quoted Sadashiv Nayak, CEO, Food Bazaar in ET.Currently, the company has its offer in seven private labels that include Tasty Treat, Fresh & Pure, Care Mate, Clean Mate, Quit, Wow and Maniarrs.
Thursday, December 25, 2008
Luxury brands a tough sell in wealthier India
25 Dec 2008
On a recent evening at a luxury Mumbai hotel, shoppers tried on sequined sandals and handmade moccasins at Joy Shoes, an Indian family
business that has sold out of its only shop for nearly 70 years. Around the corner, a Moschino store with stylish displays of apparel and accessories off the Milan runways stood empty. Starting at 3,500 rupees ($70) for a pair of men's shoes, Joy is not cheap. But the key to its enduring popularity, says Munna Javery, the third-generation owner, knows what customers want and maintaining relationships with them over the years. These are just two of the already considerable challenges facing global luxury retailers in India. Despite its growing number of millionaires, India lags emerging market peers China and Brazil because of a lack of quality retail space, high import duties on luxury goods, a cap on ownership in local units, excessive red tape and piracy. India had 123,000 millionaires in 2007 and showed the fastest pace of expansion, a Merrill Lynch/Capgemini report said, but that was the smallest number in the "BRIC" emerging markets quartet, with China already having more than triple that number of super-rich. BRIC comprises Brazil, China, India and Russia. Luxury goods in India also make up the smallest proportion of the overall retail market, just 0.4 per cent, according to a Bain & Co report, compared to 2.7 per cent of China's retail market. "For luxury in India, the path is bumpy and long," said Mohan Murjani, chairman of the Murjani Group which launched Gloria Vanderbilt jeans and Tommy Hilfiger globally, and partners such brands as Gucci, Calvin Klein and Jimmy Choo in India. "You need size, experience and patience for the long haul." Allowing global retailers access to India has long been a controversial topic because of concerns of job losses, and it was only in 2006 that foreign single-brand retailers were permitted to take up to 51 per cent in a local venture, opening the doors to brands such as Gucci, Versace, Chanel and Burberry. But most brands have been forced to curtail their grand ambitions despite an economy that grew about 9 per cent in the last three years, with Louis Vuitton only having four shops to show for its five years in the country, compared to 25 in China, already the world's No. 3 market for high-end goods. "In any emerging market you can only target a very small part of the market for luxury," said Claudia D'Arpizio, a partner with Bain & Co in Milan, who authored a re
On a recent evening at a luxury Mumbai hotel, shoppers tried on sequined sandals and handmade moccasins at Joy Shoes, an Indian family
business that has sold out of its only shop for nearly 70 years. Around the corner, a Moschino store with stylish displays of apparel and accessories off the Milan runways stood empty. Starting at 3,500 rupees ($70) for a pair of men's shoes, Joy is not cheap. But the key to its enduring popularity, says Munna Javery, the third-generation owner, knows what customers want and maintaining relationships with them over the years. These are just two of the already considerable challenges facing global luxury retailers in India. Despite its growing number of millionaires, India lags emerging market peers China and Brazil because of a lack of quality retail space, high import duties on luxury goods, a cap on ownership in local units, excessive red tape and piracy. India had 123,000 millionaires in 2007 and showed the fastest pace of expansion, a Merrill Lynch/Capgemini report said, but that was the smallest number in the "BRIC" emerging markets quartet, with China already having more than triple that number of super-rich. BRIC comprises Brazil, China, India and Russia. Luxury goods in India also make up the smallest proportion of the overall retail market, just 0.4 per cent, according to a Bain & Co report, compared to 2.7 per cent of China's retail market. "For luxury in India, the path is bumpy and long," said Mohan Murjani, chairman of the Murjani Group which launched Gloria Vanderbilt jeans and Tommy Hilfiger globally, and partners such brands as Gucci, Calvin Klein and Jimmy Choo in India. "You need size, experience and patience for the long haul." Allowing global retailers access to India has long been a controversial topic because of concerns of job losses, and it was only in 2006 that foreign single-brand retailers were permitted to take up to 51 per cent in a local venture, opening the doors to brands such as Gucci, Versace, Chanel and Burberry. But most brands have been forced to curtail their grand ambitions despite an economy that grew about 9 per cent in the last three years, with Louis Vuitton only having four shops to show for its five years in the country, compared to 25 in China, already the world's No. 3 market for high-end goods. "In any emerging market you can only target a very small part of the market for luxury," said Claudia D'Arpizio, a partner with Bain & Co in Milan, who authored a re
Rural India speaks volumes for durables
26 Dec 2008
High-value goods such as televisions, refrigerators, washing machines and microwave ovens have seen double-digit volume growth during the
year to October. The performance mirrors the robust growth trends seen in basic consumer goods such as soaps and shampoos and was lifted by buoyant demand in rural and semi-urban markets. Data released by market researcher ORG-GFK on Thursday showed that television sales rose 29.3% to 10.3 million sets, while growth in refrigerator sales was 12%. Washing machines sales grew 15% while microwave ovens and air conditioners grew 26% and 17%, respectively. Industry officials say the growth is on the back of entry-level products and largely driven by rural and semi-urban markets. “Acceptance of branded products in the rural market, which is largely driven by first-time purchases and replacement, has resulted in higher sales of entry-level products,” said Samsung India Electronics deputy managing director Ravinder Zutshi. Higher purchasing power among affluent consumers was driving growth in mid- and high-end items in urban markets, where the focus is more towards upgrading products, Mr Zutshi said. The data are in sharp contrast to a steady stream of gloomy official economic figures, and will provide a welcome cheer to policymakers looking for evidence of continuing demand growth in the economy. India’s economic growth is expected to slow to around 7% this fiscal, down from the 9%-plus growth seen in the previous three years. “Growth in demand shows that the consumer durables industry has not been hit by the economic meltdown so far,” said Godrej Appliances’ vice-president (marketing) Kamal Nandi. But he added that consumers in urban areas were postponing purchases and not upgrading products, which could hit demand in the replacement market in future. But some industry officials accept the data with a pinch of salt. The ORG-GFK data showed that among televisions, sales of more expensive LCD and plasma categories, which account for about 5% of total TV sets sold in the country, showed high growth. LCD TV sales surged 153.5% to 4.6 lakh units while there was 90.1% increase in plasma TV sales to 26,700 units. Amitabh Tiwari, head of consumer appliances at LG India, however, said the data on TV sales were on the higher side. “As
High-value goods such as televisions, refrigerators, washing machines and microwave ovens have seen double-digit volume growth during the
year to October. The performance mirrors the robust growth trends seen in basic consumer goods such as soaps and shampoos and was lifted by buoyant demand in rural and semi-urban markets. Data released by market researcher ORG-GFK on Thursday showed that television sales rose 29.3% to 10.3 million sets, while growth in refrigerator sales was 12%. Washing machines sales grew 15% while microwave ovens and air conditioners grew 26% and 17%, respectively. Industry officials say the growth is on the back of entry-level products and largely driven by rural and semi-urban markets. “Acceptance of branded products in the rural market, which is largely driven by first-time purchases and replacement, has resulted in higher sales of entry-level products,” said Samsung India Electronics deputy managing director Ravinder Zutshi. Higher purchasing power among affluent consumers was driving growth in mid- and high-end items in urban markets, where the focus is more towards upgrading products, Mr Zutshi said. The data are in sharp contrast to a steady stream of gloomy official economic figures, and will provide a welcome cheer to policymakers looking for evidence of continuing demand growth in the economy. India’s economic growth is expected to slow to around 7% this fiscal, down from the 9%-plus growth seen in the previous three years. “Growth in demand shows that the consumer durables industry has not been hit by the economic meltdown so far,” said Godrej Appliances’ vice-president (marketing) Kamal Nandi. But he added that consumers in urban areas were postponing purchases and not upgrading products, which could hit demand in the replacement market in future. But some industry officials accept the data with a pinch of salt. The ORG-GFK data showed that among televisions, sales of more expensive LCD and plasma categories, which account for about 5% of total TV sets sold in the country, showed high growth. LCD TV sales surged 153.5% to 4.6 lakh units while there was 90.1% increase in plasma TV sales to 26,700 units. Amitabh Tiwari, head of consumer appliances at LG India, however, said the data on TV sales were on the higher side. “As
X’mas cheer for retailers
26 Dec 2008
Some of India’s biggest retailers have reasons to smile. Sales this Christmas season have topped their expectations, raising hopes of a
revival in consumer sentiment after disappointing shopping numbers during Diwali some two months ago. Falling inflation and interest rates, along with aggressive promotions and discounts, are expected to result in sales growth of 10-15% during the Christmas shopping season, which begins in earnest in the first week of December and runs till New Year, according to the Retailers Association of India. Gibson Vedamani, CEO of the group representing India’s organised retail trade, said the middle class, which accounts for 60-70% of retail spending, has not shown any big change in its expenditure pattern. A recent Assocham study estimated the size of India’s retail market at $343 billion (Rs 17 lakh crore) and forecast that it would grow up to $416 billion by 2010. “The strong spending class is still spending. Indian retailers are in a far better position than their global counterparts, who have been badly hit this Christmas,” Mr Vedamani said. The National Retail Federation of the US has predicted a near 50% decline in holiday sales growth this year while in the UK retailers such as Marks & Spencer and Debenhams are seen posting their worst Christmas sales in years. Landmark, the Tata Group’s books and music retail chain, has seen sales grow by 15% despite an indifferent start to the season. “Unlike previous years, when sales start picking up from November-end, this year it has been from mid-December. Our average bill sizes have remained intact, at around Rs 900-1,000 per consumer,” said chief operating officer Himanshu Chakrawarti. Although retailers were expecting a better consumer sentiment after a depressing November, when sales fell by 20-30%, the extent of improvement has come as a surprise. Mr Vedamani even thinks that “things are back on track” in India’s small cities. “Thanks to Christmas, sales have been better in December compared to last month. We are also running some consumer promotions this month,” said ITC’s Lifestyle retailing business vice-president (marketing), S Ray. The Future Group’s Pantaloon Retail, which launched a 23-day ‘shopping festival’ on December 13 at its over 1,000 stores, expects to generate sales of Rs 700 crore during the period by luring shoppers with discounts and special offers. If everything goes according to plan, sales from the year-end shopping festival should account for about a tenth of the annual revenue of India’s biggest retailer. Pantaloon’s retail brands include the Big Bazaar hypermarket chain, e-zone consumer electronics stores and the Pantaloons chain of fashion outlets. “Christmas sales have been fantastic. On same store-to-store basis, we are seeing double-digit sales growth,” said Pantaloon’s CEO Sanjeev Agrawal.
Some of India’s biggest retailers have reasons to smile. Sales this Christmas season have topped their expectations, raising hopes of a
revival in consumer sentiment after disappointing shopping numbers during Diwali some two months ago. Falling inflation and interest rates, along with aggressive promotions and discounts, are expected to result in sales growth of 10-15% during the Christmas shopping season, which begins in earnest in the first week of December and runs till New Year, according to the Retailers Association of India. Gibson Vedamani, CEO of the group representing India’s organised retail trade, said the middle class, which accounts for 60-70% of retail spending, has not shown any big change in its expenditure pattern. A recent Assocham study estimated the size of India’s retail market at $343 billion (Rs 17 lakh crore) and forecast that it would grow up to $416 billion by 2010. “The strong spending class is still spending. Indian retailers are in a far better position than their global counterparts, who have been badly hit this Christmas,” Mr Vedamani said. The National Retail Federation of the US has predicted a near 50% decline in holiday sales growth this year while in the UK retailers such as Marks & Spencer and Debenhams are seen posting their worst Christmas sales in years. Landmark, the Tata Group’s books and music retail chain, has seen sales grow by 15% despite an indifferent start to the season. “Unlike previous years, when sales start picking up from November-end, this year it has been from mid-December. Our average bill sizes have remained intact, at around Rs 900-1,000 per consumer,” said chief operating officer Himanshu Chakrawarti. Although retailers were expecting a better consumer sentiment after a depressing November, when sales fell by 20-30%, the extent of improvement has come as a surprise. Mr Vedamani even thinks that “things are back on track” in India’s small cities. “Thanks to Christmas, sales have been better in December compared to last month. We are also running some consumer promotions this month,” said ITC’s Lifestyle retailing business vice-president (marketing), S Ray. The Future Group’s Pantaloon Retail, which launched a 23-day ‘shopping festival’ on December 13 at its over 1,000 stores, expects to generate sales of Rs 700 crore during the period by luring shoppers with discounts and special offers. If everything goes according to plan, sales from the year-end shopping festival should account for about a tenth of the annual revenue of India’s biggest retailer. Pantaloon’s retail brands include the Big Bazaar hypermarket chain, e-zone consumer electronics stores and the Pantaloons chain of fashion outlets. “Christmas sales have been fantastic. On same store-to-store basis, we are seeing double-digit sales growth,” said Pantaloon’s CEO Sanjeev Agrawal.
Tuesday, December 23, 2008
UniverCell to take advantage of falling rentals
23 Dec 2008
With just around 10 per cent of the sales happening from organised retail currently, there is a definite opportunity for organised trade which is still to boom. There is a great scope for organised trade to grow especially during the next two years” said Satish Babu, Founder, UniverCell, Chennai-based large-format mobile retail store.However, Babu feels that most of the retailers currently are not providing a comfortable ambience, and touch feel and buy experience. “In the coming days retailers who do not upgrade their stores will perish,” said Babu.Into the business of mobile handset sales for over 11 years, UniverCell currently has 200 touch points. Talking about the sales figures, Babu disclosed, “The sales this year when compared with last year April to November have grown by 55 per cent. Over all we will be growing by 45 to 50 per cent over last year.”
With just around 10 per cent of the sales happening from organised retail currently, there is a definite opportunity for organised trade which is still to boom. There is a great scope for organised trade to grow especially during the next two years” said Satish Babu, Founder, UniverCell, Chennai-based large-format mobile retail store.However, Babu feels that most of the retailers currently are not providing a comfortable ambience, and touch feel and buy experience. “In the coming days retailers who do not upgrade their stores will perish,” said Babu.Into the business of mobile handset sales for over 11 years, UniverCell currently has 200 touch points. Talking about the sales figures, Babu disclosed, “The sales this year when compared with last year April to November have grown by 55 per cent. Over all we will be growing by 45 to 50 per cent over last year.”
Raymond introduces a model hunt for kids
23 Dec 2008
The trend for spotting a child super-star is the latest buzz and no wonder Raymond too wants to join the league. In an attempt to hype up their proposed campaign for a new face to the brand Zapp!, the kids wear brand from Raymond, the apparel major has announced a model hunt for kids between the age limit of 1 to 12 years. The contest is being organised for the brand’s Spring Summer 2009 collection and the final winner will be splashed across all Zapp! photo shoots and ad campaigns for Zapp! Spring Summer 2009 range. Open to general public, the selection process will take place across all the Zapp! stores in the country and the jury will comprise of Silvia Bugna, designer from Zapp!’s design studio in Italy, Shahana Hameed, fashion designer, Zapp! and Rajeev Ravindranathan, creative director, Saatchi and Saatchi, Bangalore. The search is expected to take about 2 months before presenting Indian with its next child supermodel. Flagging the first season of this hunt, Vineeth Nair, director, Kids Wear, Raymond Apparel Ltd shared, "The world of retail and brands are perpetually on the search for fresh and unique talent. This is not an ordinary model hunt as we will be showcasing a face that speaks a thousand words; we will also be focusing on a child who is capable of nationally representing a renowned fashion brand. Moreover we will lookout for on a child artist with a right mix of attitude, creativity and adventure who represents the brand with utmost confidence. This indeed will be a stepping stone for children who wish to foray into the glamour fraternity as there will be some amount of training and moulding involved from the experts in the fashion industry."
The trend for spotting a child super-star is the latest buzz and no wonder Raymond too wants to join the league. In an attempt to hype up their proposed campaign for a new face to the brand Zapp!, the kids wear brand from Raymond, the apparel major has announced a model hunt for kids between the age limit of 1 to 12 years. The contest is being organised for the brand’s Spring Summer 2009 collection and the final winner will be splashed across all Zapp! photo shoots and ad campaigns for Zapp! Spring Summer 2009 range. Open to general public, the selection process will take place across all the Zapp! stores in the country and the jury will comprise of Silvia Bugna, designer from Zapp!’s design studio in Italy, Shahana Hameed, fashion designer, Zapp! and Rajeev Ravindranathan, creative director, Saatchi and Saatchi, Bangalore. The search is expected to take about 2 months before presenting Indian with its next child supermodel. Flagging the first season of this hunt, Vineeth Nair, director, Kids Wear, Raymond Apparel Ltd shared, "The world of retail and brands are perpetually on the search for fresh and unique talent. This is not an ordinary model hunt as we will be showcasing a face that speaks a thousand words; we will also be focusing on a child who is capable of nationally representing a renowned fashion brand. Moreover we will lookout for on a child artist with a right mix of attitude, creativity and adventure who represents the brand with utmost confidence. This indeed will be a stepping stone for children who wish to foray into the glamour fraternity as there will be some amount of training and moulding involved from the experts in the fashion industry."
Restaurant 'Influence' to be operational soon in Chennai
24 Dec 2008
Naresh Jain-led Evolution Lifestyle Homes promoted Influence Lifestyle Store, in association with designer Manish Malhotra, has announced the launch of its first fine dining restaurant in Chennai. Branded as Influence, the store will be operational by the second week of January 2009 and offer international vegetarian cuisine, said a company press release.Sumanth Cuppala, COO, Evolution Lifestyle Home, said, “Chennai is an untapped market with a lot of potential and not many luxury retail and service offerings are available. We have found it the right time to enter and give the consumers what they have been searching for.” For the store which is spread across 5,000 square feet, the company has invested Rs 25 million and expects a turnover of Rs 150 million by December 2009-end.Further, the company is looking for opening stores in multiple locations in Chennai and targets expansion across south India including cities like Hyderabad and Coimbatore and also in cities like Delhi and Mumbai. It expects to be operational in four other locations in Chennai by 2011. The store will also house a luxury spa and a boutique retailing designer wear from India’s leading designers, added the release.
Naresh Jain-led Evolution Lifestyle Homes promoted Influence Lifestyle Store, in association with designer Manish Malhotra, has announced the launch of its first fine dining restaurant in Chennai. Branded as Influence, the store will be operational by the second week of January 2009 and offer international vegetarian cuisine, said a company press release.Sumanth Cuppala, COO, Evolution Lifestyle Home, said, “Chennai is an untapped market with a lot of potential and not many luxury retail and service offerings are available. We have found it the right time to enter and give the consumers what they have been searching for.” For the store which is spread across 5,000 square feet, the company has invested Rs 25 million and expects a turnover of Rs 150 million by December 2009-end.Further, the company is looking for opening stores in multiple locations in Chennai and targets expansion across south India including cities like Hyderabad and Coimbatore and also in cities like Delhi and Mumbai. It expects to be operational in four other locations in Chennai by 2011. The store will also house a luxury spa and a boutique retailing designer wear from India’s leading designers, added the release.
Vishal Retail promoters mull to raise stake by 10 pc
24 Dec 2008
In a major development, promoters of Vishal Retail are planning to raise their stake in the company by10 per cent over the next two years. According to media reports, the promoters are contemplating to hike stake by 10 per cent as allowed by Securities and Exchange Board of India (Sebi) rules. According to Sebi regulation, creeping acquisition up to 5 per cent in a financial year is allowed to persons holding 55 per cent stake and above but below 75 per cent, if such an acquisition is carried out through open market purchases in the normal segment. Earlier promoters held 64 per cent stake in Vishal Retail till September 30.
In a major development, promoters of Vishal Retail are planning to raise their stake in the company by10 per cent over the next two years. According to media reports, the promoters are contemplating to hike stake by 10 per cent as allowed by Securities and Exchange Board of India (Sebi) rules. According to Sebi regulation, creeping acquisition up to 5 per cent in a financial year is allowed to persons holding 55 per cent stake and above but below 75 per cent, if such an acquisition is carried out through open market purchases in the normal segment. Earlier promoters held 64 per cent stake in Vishal Retail till September 30.
McDonalds India MD on RAI’s governing board
Retailers Association of India (RAI) at its recent governing board meeting inducted Vikram Bakshi, managing director, McDonalds India (North and East) into the board.
C Subramaniam joins Gitanjali Group
Gitanjali Group has announced the appointment of C Subramaniam as the group president human resources of Gitanjali Group. Subramaniam comes with eighteen years of experience in the HR function. He was earlier employed with Siyarams Silk Mills, Ashai Glass, Videocon International Ltd, Mirc Electronics Ltd (Onida).
Simon Tang joins Datamax O'Neil as vice president
Datamax O'Neil, a subsidiary of Dover Corporation, announced the appointment of Simon Tang to the position of vice president of the Asia-Pacific region. Tang will be responsible for leading the company's market growth throughout the region.
Ashok Bhasin joins Wadhawan Retail
as MDWadhawan Food Retail Pvt Ltd (WFRL) has announced the appointment of Ashok Bhasin as its new managing director for its entire business.
Partha Datta Gupta quits Barista as CEO
Partha Datta Gupta, the chief executive officer of Barista, has left the company to join the Swatch Group.
Retailers Association of India (RAI) at its recent governing board meeting inducted Vikram Bakshi, managing director, McDonalds India (North and East) into the board.
C Subramaniam joins Gitanjali Group
Gitanjali Group has announced the appointment of C Subramaniam as the group president human resources of Gitanjali Group. Subramaniam comes with eighteen years of experience in the HR function. He was earlier employed with Siyarams Silk Mills, Ashai Glass, Videocon International Ltd, Mirc Electronics Ltd (Onida).
Simon Tang joins Datamax O'Neil as vice president
Datamax O'Neil, a subsidiary of Dover Corporation, announced the appointment of Simon Tang to the position of vice president of the Asia-Pacific region. Tang will be responsible for leading the company's market growth throughout the region.
Ashok Bhasin joins Wadhawan Retail
as MDWadhawan Food Retail Pvt Ltd (WFRL) has announced the appointment of Ashok Bhasin as its new managing director for its entire business.
Partha Datta Gupta quits Barista as CEO
Partha Datta Gupta, the chief executive officer of Barista, has left the company to join the Swatch Group.
people movment
Aditya Birla Retail's marketing head joins TatasTrexa,
the mall management company of Tata Group's retail arm Trent and a global private equity firm The Xander Group, has hired Sanjay Badhe as its new CEO, according to sources. Badhe will be making the shift from Aditya Birla Retail where he served as head of marketing. Badhe has earlier worked with companies such as Shoppers Stop, Raymond, Al Futtaim Watches & Jewellery and MARG Marketing Group.
Gitanjali Group appoints Dhiresh Sharma as retail headGitanjali Group,
country's leading integrated jewellery maker, has announced the appointment of its new retail head - Dhiresh Sharma.Sharma, on his appointment said, "I am extremely excited to have been entrusted with the task of leading the retail function at the Gitanjali Group. I am confident that all together we will write yet another page of the success story of the Gitanjali Group."
Zhongpin appoints Feng Wang as new CFOZhongpin,
a leading meat and food processing company in China, has named Feng Warren Wang as its new chief financial officer (CFO). Yuanmei Ma, company's former CFO, had earlier resigned from the post for personal reasons. Wang's career spans over 10 years with key leadership positions in finance, audit, accounting, strategic planning, and mergers and acquisitions. He most recently served as group finance controller for Agria Corporation, an agri-solutions provider.Zhongpin is a meat and food processing company. With over 2,960 retail outlets across China, the company also sells fruits and vegetables.
LSG appoints new VP, Middle East
LSG Sky Chefs has announced that Michael Malchartzeck will take on the role of vice president - sales and services, Middle East, based in Abu Dhabi, UAE. Malchartzeck will take the charge on November 1. Michael Malchartzeck has been VP sales and services for the company's Asia/Pacific region since August 2006. Previous to that, he held various sales and managerial positions with LSG Sky Chefs as well as in-flight positions at Etihad Airways in Abu Dhabi. LSG Sky Chefs is the world's leading provider of in-flight services that include airline catering, in-flight equipment and logistics as well as the management of onboard service and in-flight retail.
Kesa Electricals appoints new CEO
Kesa Electricals, Europe's third largest electrical retailing group, has announced that Jean-Noel Labroue has decided to retire. He will leave after a handover period to Thierry Falque-Pierrotin who is joining the Group on January 5, 2009 as CEO. Falque-Pierrotin joins from PPR Group where he has been chairman and CEO since 2001 of Redcats Group.
the mall management company of Tata Group's retail arm Trent and a global private equity firm The Xander Group, has hired Sanjay Badhe as its new CEO, according to sources. Badhe will be making the shift from Aditya Birla Retail where he served as head of marketing. Badhe has earlier worked with companies such as Shoppers Stop, Raymond, Al Futtaim Watches & Jewellery and MARG Marketing Group.
Gitanjali Group appoints Dhiresh Sharma as retail headGitanjali Group,
country's leading integrated jewellery maker, has announced the appointment of its new retail head - Dhiresh Sharma.Sharma, on his appointment said, "I am extremely excited to have been entrusted with the task of leading the retail function at the Gitanjali Group. I am confident that all together we will write yet another page of the success story of the Gitanjali Group."
Zhongpin appoints Feng Wang as new CFOZhongpin,
a leading meat and food processing company in China, has named Feng Warren Wang as its new chief financial officer (CFO). Yuanmei Ma, company's former CFO, had earlier resigned from the post for personal reasons. Wang's career spans over 10 years with key leadership positions in finance, audit, accounting, strategic planning, and mergers and acquisitions. He most recently served as group finance controller for Agria Corporation, an agri-solutions provider.Zhongpin is a meat and food processing company. With over 2,960 retail outlets across China, the company also sells fruits and vegetables.
LSG appoints new VP, Middle East
LSG Sky Chefs has announced that Michael Malchartzeck will take on the role of vice president - sales and services, Middle East, based in Abu Dhabi, UAE. Malchartzeck will take the charge on November 1. Michael Malchartzeck has been VP sales and services for the company's Asia/Pacific region since August 2006. Previous to that, he held various sales and managerial positions with LSG Sky Chefs as well as in-flight positions at Etihad Airways in Abu Dhabi. LSG Sky Chefs is the world's leading provider of in-flight services that include airline catering, in-flight equipment and logistics as well as the management of onboard service and in-flight retail.
Kesa Electricals appoints new CEO
Kesa Electricals, Europe's third largest electrical retailing group, has announced that Jean-Noel Labroue has decided to retire. He will leave after a handover period to Thierry Falque-Pierrotin who is joining the Group on January 5, 2009 as CEO. Falque-Pierrotin joins from PPR Group where he has been chairman and CEO since 2001 of Redcats Group.
peole movment
Avery India appoints new chairmanAvery India, a leading electronic scale manufacturer and supplier of weighing machines and weighing automation, has named Andrew Caffyn as the new chairman of the company in place of Carl Cramer. The company made the announcement today in its filing to the Bombay Stock Exchange (BSE). Further, the company also announced about the resignation of Rajiv K Luthra as a director on the board of the company.
Titan appoints Parthasarathy as additional directorTitan Industries, India's leading manufacturer of timewear and jewellery, has appointed V Parthasarathy as an additional director in the board of the company. The annoncement came as a company filing to the Bombay Stock Exchange.Parthasarathy is senior general manager - finance at Tamilnadu Industrial Development Corporation Ltd (TIDCO).Further, the company said that S Susai, nominee director, TIDCO has resigned as director of Titan Industries.
Timex appoints Gopalratnam Kannan as new presidentTIMEX, one of the world's leading watchmakers, has appointed of Gopalratnam Kannan as president for India operations. Kannan would be reporting to Kapil Kapoor, MD, TIMEX Group India Limited (TGIL).Prior to joining TIMEX, Kannan has more than 18 years of experience as country manager for the Swatch Group, with the responsibility of all India operations for esteemed brands like Omega, Longines, Rado, Blancpain, Tissot and Swatch.
AK Dasgupta joins Grasim Industries Grasim Industries, a part of Aditya Birla Group, has appointed AK Dasgupta as the additional director of the company. The decision was taken in the board meeting held today. Grasim is world's second largest producer of Viscose Rayon Fiber with about 21 per cent market share and contributes to 15 per cent of the Aditya Birla group turnover.
Additional role for BIGFlix COO; to head BIG Pictures distribution tooKamal Gianchandani, chief operating officer (COO), BIGFlix, now, has a wider portfolio to his name under the Reliance BIG Entertainment brand.Apart from heading BIGFlix.com, the DVD rental business, Gianchandani will also head the distribution of BIG Pictures. He replaces Manoj Chauhan, COO, BIG Pictures, who has quit the organisation.
Titan appoints Parthasarathy as additional directorTitan Industries, India's leading manufacturer of timewear and jewellery, has appointed V Parthasarathy as an additional director in the board of the company. The annoncement came as a company filing to the Bombay Stock Exchange.Parthasarathy is senior general manager - finance at Tamilnadu Industrial Development Corporation Ltd (TIDCO).Further, the company said that S Susai, nominee director, TIDCO has resigned as director of Titan Industries.
Timex appoints Gopalratnam Kannan as new presidentTIMEX, one of the world's leading watchmakers, has appointed of Gopalratnam Kannan as president for India operations. Kannan would be reporting to Kapil Kapoor, MD, TIMEX Group India Limited (TGIL).Prior to joining TIMEX, Kannan has more than 18 years of experience as country manager for the Swatch Group, with the responsibility of all India operations for esteemed brands like Omega, Longines, Rado, Blancpain, Tissot and Swatch.
AK Dasgupta joins Grasim Industries Grasim Industries, a part of Aditya Birla Group, has appointed AK Dasgupta as the additional director of the company. The decision was taken in the board meeting held today. Grasim is world's second largest producer of Viscose Rayon Fiber with about 21 per cent market share and contributes to 15 per cent of the Aditya Birla group turnover.
Additional role for BIGFlix COO; to head BIG Pictures distribution tooKamal Gianchandani, chief operating officer (COO), BIGFlix, now, has a wider portfolio to his name under the Reliance BIG Entertainment brand.Apart from heading BIGFlix.com, the DVD rental business, Gianchandani will also head the distribution of BIG Pictures. He replaces Manoj Chauhan, COO, BIG Pictures, who has quit the organisation.
people movment
S K Bhatt resigns; V Srinivasan is appointed Godrej's newcompany secretary December 2, 2008S K Bhatt, executive vice president (corporate services) and company secretary, Godrej Industries, has resigned from his post. V Srinivasan, executive vice president — finance & estate — Godrej Industries, has been appointed the new company secretary of the company with effect from December 01, 2008. The announcement came through a company filing to the Bombay Stock Exchange.Godrej Industries, under the group umbrella, involves in a wide range of businesses — from locks and safes to typewriters and word processors, from refrigerators and furniture to machine tools and process equipment, from engineering workstations to cosmetics and detergents, from edible oils and chemicals to agro products.
Carrefour appoints Lars Olofsson as CEONovember 25, 2008French international hypermarket chain, Carrefour has enticed Swiss Nestle’s executive vice president Lars Olofsson to lead Carrefour as CEO replacing José Luis Durán from January 1, said the group. On this development, Amaury de Seze, Carrefour chairman said, "Lars Olofsson has exceptional experience in consumer markets, built over more than 30 years, both in France and internationally, within the number one global food industry group."
Mike Duke to be Wal-Mart’s next CEONovember 24, 2008Wal-Mart Stores Inc, the world's largest retailer, has said that its CEO Lee Scott will retire next February. Scott will be succeeded by Mike Duke, who heads its company’s international operations.Scott, 59, has served as CEO for more than eight years. Scott became president and CEO of Wal-Mart's US division in 1998 and president and CEO for the corporation in 2000. Scott will continue serving as chairman of the executive committee of the board.
Former COO, Style Spa - Birla Group, joins Ebony GautierNovember 21, 2008Ebony Homes– the specialty retail venture of the USD 3 billion DS Corp, has announced the appointment of KA Parameswaran as the CEO of Ebony Gautier. Parameswaran, former COO of Style Spa Furniture Limited - a KK Birla group company, has been specifically mandated to drive the home adornment retail business of Ebony Gautier. In his new role as the CEO of Ebony Gautier, Parameswaran will spearhead the company’s long term and development strategy which would include undertaking expansion of Ebony Gautier specialty retail stores across the country over the next two years.
Tesco HSC appoints Sandeep Dhar as CEOTesco Hindustan Service Centre (HSC), the global services arm of the global retailer Tesco, has appointed Sandeep Dhar as its new CEO. Prior to this, Dhar, served as the managing director of the India operations for technology consulting company, Sapient Technologies. Dhar replaced Meena Ganesh at Tesco HSC, who quit to start her own venture.
Carrefour appoints Lars Olofsson as CEONovember 25, 2008French international hypermarket chain, Carrefour has enticed Swiss Nestle’s executive vice president Lars Olofsson to lead Carrefour as CEO replacing José Luis Durán from January 1, said the group. On this development, Amaury de Seze, Carrefour chairman said, "Lars Olofsson has exceptional experience in consumer markets, built over more than 30 years, both in France and internationally, within the number one global food industry group."
Mike Duke to be Wal-Mart’s next CEONovember 24, 2008Wal-Mart Stores Inc, the world's largest retailer, has said that its CEO Lee Scott will retire next February. Scott will be succeeded by Mike Duke, who heads its company’s international operations.Scott, 59, has served as CEO for more than eight years. Scott became president and CEO of Wal-Mart's US division in 1998 and president and CEO for the corporation in 2000. Scott will continue serving as chairman of the executive committee of the board.
Former COO, Style Spa - Birla Group, joins Ebony GautierNovember 21, 2008Ebony Homes– the specialty retail venture of the USD 3 billion DS Corp, has announced the appointment of KA Parameswaran as the CEO of Ebony Gautier. Parameswaran, former COO of Style Spa Furniture Limited - a KK Birla group company, has been specifically mandated to drive the home adornment retail business of Ebony Gautier. In his new role as the CEO of Ebony Gautier, Parameswaran will spearhead the company’s long term and development strategy which would include undertaking expansion of Ebony Gautier specialty retail stores across the country over the next two years.
Tesco HSC appoints Sandeep Dhar as CEOTesco Hindustan Service Centre (HSC), the global services arm of the global retailer Tesco, has appointed Sandeep Dhar as its new CEO. Prior to this, Dhar, served as the managing director of the India operations for technology consulting company, Sapient Technologies. Dhar replaced Meena Ganesh at Tesco HSC, who quit to start her own venture.
people movment
Kumar Jayant resigns Titan boardDecember 12, 2008Kumar Jayant, nominee director of Tamil Nadu Industrial Development Corporation (TIDCO), has resigned as an additional director from the board of Titan Industries, a joint venture between Tata group and TIDCO, the company said in a filing to the Bombay Stock Exchange.TIDCO is a governmental agency in Tamil Nadu, responsible for the development of industries by formulating policies that help industry growth, and also by establishing industrial estates.Titan Industries is a manufacturing company that produces wide range of personal accessories – watches, jewellery, sunglasses and prescription eye wear.
VF Corp elects Karl Heinz Salzburger as corporate VPDecember 10, 2008VF Corporation, North Carolina-based global lifestyle apparel major, has elected Karl Heinz Salzburger as a corporate vice president effective from January 4, 2009. Further, Salzburger has also been promoted to president of VF International and named a member of VF’s operating committee, said a company press release.As part of his new office, Salzburger will continue to be responsible for driving the growth of VF’s brands throughout Europe, the Middle East, Africa and the Asia-Pacific region and will report to Eric Wiseman, chairman and CEO of the company.Currently, VF Corporation offers a diverse portfolio of jeanswear, outdoor, imagewear, sportswear and contemporary apparel brands including Wrangler, Lee, Riders, Vans, Reef, Eagle Creek, JanSport, Nautica and Red Kap.
Parmalat SpA appoints Antonio Vanoli as new COODecember 6, 2008Parmalat SpA, one of Italy’s food major, has appointed industry veteran Antonio Vanoli as c0-hief operating officer. He has been appointed after Carlo Prevedini resigned from the post.Vanoli, 62, will start the job immediately, a spokeswoman for Collecchio, Italy-based Parmalat said today. Vanoli stepped down last month as chief executive officer of Ferrero SpA, the closely held maker of Tic Tac breath mints and Nutella chocolate-and- hazelnut spread, after 14 years at the company. On the appoinment, Luca Bacoccoli, an analyst at Intesa Sanpaolo SpA in Milan with an 'add' rating on Parmalat, said, “It is a strong sign of change. The decision to bring in someone with significant experience in the industry who can deliver results in this market is very important for the stock."
Bombay Dyeing: Change in directorateDecember 5, 2008In a latest filing to Bombay Stock Exchange, Bombay Dyeing & Manufacturing Company has informed that SK Gupta has ceased to be a member of the board and thereby the director of the company.Gupta’s movement comes to effect from December 4, 2008.A part of the Wadia Group, Bombay Dyeing is India's leading producer and retailer of textile. It operates mainly through company-owned showrooms across India apart from franchise stores.
Dabur’s retail arm loses its CEODecember 2, 2008Peter Baker, CEO, Health & Beauty (H&B) stores, retail venture of FMCG major Dabur India , has quit the company. Baker had joined Dabur from Lee Cooper group over a year ago where he served as group head. According to company sources, in the absence of a CEO, H&B Stores’ management committee will manage the day-to-day operations of Dabur's retail venture. While the sources denied to comment on the appointment of a new CEO, the company spokesperson remained unavailable to comment on the development.
VF Corp elects Karl Heinz Salzburger as corporate VPDecember 10, 2008VF Corporation, North Carolina-based global lifestyle apparel major, has elected Karl Heinz Salzburger as a corporate vice president effective from January 4, 2009. Further, Salzburger has also been promoted to president of VF International and named a member of VF’s operating committee, said a company press release.As part of his new office, Salzburger will continue to be responsible for driving the growth of VF’s brands throughout Europe, the Middle East, Africa and the Asia-Pacific region and will report to Eric Wiseman, chairman and CEO of the company.Currently, VF Corporation offers a diverse portfolio of jeanswear, outdoor, imagewear, sportswear and contemporary apparel brands including Wrangler, Lee, Riders, Vans, Reef, Eagle Creek, JanSport, Nautica and Red Kap.
Parmalat SpA appoints Antonio Vanoli as new COODecember 6, 2008Parmalat SpA, one of Italy’s food major, has appointed industry veteran Antonio Vanoli as c0-hief operating officer. He has been appointed after Carlo Prevedini resigned from the post.Vanoli, 62, will start the job immediately, a spokeswoman for Collecchio, Italy-based Parmalat said today. Vanoli stepped down last month as chief executive officer of Ferrero SpA, the closely held maker of Tic Tac breath mints and Nutella chocolate-and- hazelnut spread, after 14 years at the company. On the appoinment, Luca Bacoccoli, an analyst at Intesa Sanpaolo SpA in Milan with an 'add' rating on Parmalat, said, “It is a strong sign of change. The decision to bring in someone with significant experience in the industry who can deliver results in this market is very important for the stock."
Bombay Dyeing: Change in directorateDecember 5, 2008In a latest filing to Bombay Stock Exchange, Bombay Dyeing & Manufacturing Company has informed that SK Gupta has ceased to be a member of the board and thereby the director of the company.Gupta’s movement comes to effect from December 4, 2008.A part of the Wadia Group, Bombay Dyeing is India's leading producer and retailer of textile. It operates mainly through company-owned showrooms across India apart from franchise stores.
Dabur’s retail arm loses its CEODecember 2, 2008Peter Baker, CEO, Health & Beauty (H&B) stores, retail venture of FMCG major Dabur India , has quit the company. Baker had joined Dabur from Lee Cooper group over a year ago where he served as group head. According to company sources, in the absence of a CEO, H&B Stores’ management committee will manage the day-to-day operations of Dabur's retail venture. While the sources denied to comment on the appointment of a new CEO, the company spokesperson remained unavailable to comment on the development.
VISHAL MEANS 'BIG', LITERALLY
Timely decisions, defined strategy, and a futuristic approach, clubbed with an understanding of consumers' needs as also the ability to create one, are the qualities that mark out the best retail companies.From a nondescript 50 square feet shop to a chain of stores carpeting roughly 1,735,000 square feet, Vishal Retail India Limited (VRIL) is a company that probably overturned every stone to create milestones in the business of retail. Ramchandra Agarwal, managing director, VRIL, in an exclusive talk with Ranjan Kaplish, shares his strategic mantras.Q: Where do the roots of VRIL lie, and how did this journey of mapping retail space start?A: I had no prior experience of retailing, but always wanted to do a business of my own. My first try in the business of retail was through Vishal Garments, set up in 1985 as a mere 50 square feet store in Kolkata. That was a time when consumers’ focus was shifting towards readymade garments. The concept was simple; I picked up lots of seconds from branded stores, along with not-so-popular labels from different parts of the country. As I bought bulk and paid in cash, I had the advantage of higher profit margins, providing an edge over competitors. Since I offered more variety and that too on lower prices, Vishal Garments got going. I even started putting up sales at various locations, wherever I thought a potential buyer could be. Later, we opened our biggest store at Tiger Cinema Hall, Kolkata. The store became very popular for its ambience, variety and value-for-money proposition; this was reiterated by the profits it made. Q: From apparel to consumer goods, and now speciality stores perhaps… What encouraged you to diversify into other segments of retailing? A: I made it a point to closely monitor the business of retail across the globe. I studied the Wal-Mart concept, thoroughly peeped into the Carrefour system, and then tried placing these in the context of the Indian mindset. We believed that we understood the needs of mass consumers in India, and tried bringing all his requirements under one roof. From apparel business we diversified to the mega mart format and brought everything from apparel to consumer durables, to grocery and even sports and fitness equipment, under the Vishal brand name. The policy of value-for-money was retained. Every product under Vishal brand name was picked, liked and trusted. The confidence in our pricing policy and product quality prompted us to expand. A business that was started with internal accruals finally went public. Our growth from grassroots was known, and people invested with confidence, resulting in a successful IPO.Q: VRIL is a public listed company, which means it is not only you who’s concerned about performance. So many unknown investors too keep a close eye... With foreign giants entering the business, how do you see the competition in future? Any planned programme to tackle the expected challenge?A: Clichéd though it sounds, competition is good. When we entered the business, there was competition of a different sort at a different level. Vishal emerged as a successful brand. Now that we are much more organised and established, we have different obstacles to deal with, and that is what will help us grow. However many companies enter the business, we will always have the first-mover advantage. The retail space that we have acquired and the loyalty of consumes that we have build over the years, will be our advantage. We are also in the process of strengthening our private labels portfolio. Our apparel and home appliances labels are very popular, and in the recent past we have launched water, flour and toilet-cleaner labels also. Secondly, irrespective of who enters the business of retail, they all will have to source from the same vendors and will have to retail the same products, at the same operating costs. We collect our products from leading manufacturers in India and abroad. So, if the product quality and the operating costs remain same, even we can pose threat to the giants in the business of retail.Q: Is it possible that a private label becomes bigger than the brand under which it is nurtured? For instance, can a private label for shirts from Vishal become a bigger brand than Vishal, and move out of Vishal store to retail through its own exclusive outlets?A: This should be the focus actually. Strengthening of labels means making them so strong that they have their own appeal and generate customer loyalty. This is what we are focusing on. We hope our labels, be it an apparel label or a grocery, become so popular that we open speciality or exclusive stores to retail only those labels. As the volume of sales increases, a private label will become a national brand, too. Q: You mentioned speciality stores. Are they also on the cards?A: Yes, our next target is speciality stores; soon, you will see us opening exclusive stores for various segments including apparel, grocery and durables. We are working on the concept. We might open only jewellery or footwear stores, or they can be a combo of footwear and apparel, or a lifestyle store as a whole. Q: Expansions require space. The real-estate rates are rising, is it a deterrent to growth?A: Right now, we are buying all our property and also working on a lease model. Real-estate rates are not hampering the growth as such; it is a parallel industry that is growing with the retail industry. If the need arises, we might launch our own real-estate company that will benefit us in acquiring good retail space and also be an additional revenue generator. Q: There’s a lot of potential in our traditional handicraft. Every state has at least one famous craft. Have you ever thought of branding any of the traditional or ethnic product? This can benefit the craftsmen, who’ll have a buyer, and also Vishal as it gets a unique product to retail under its banner.A: This sounds like an interesting idea. We can think of this as a unique SKU in the store. We had not thought about it, but certainly will look into the potential of retailing handicrafts. We can actually use our chain of stores for promotion of our heritage and also make business out of them.Q: What does VRIL have in reserve for its consumers in the near future?A: We are expanding and our aim is to have about one crore square feet of retail space by 2010. Also coming up are the speciality stores, and later we will launch a hypermarket, offering value for moneyAlso in queue is Vishal Minimart, which will be the small format of a hypermarket. It will be spread across 10,000-20,000 square feet, and will retail all product categories.
Growth chart of unorganised footwear retailers is more robust’
Sumit K Lal, Director & GM, ECCO Shoes, on how to address the issues of burnout in the footwear sectorAt a time when the economic downturn has become a global concern, one sector in the retail arena feeling the heat the most perhaps, is footwear retail. However, even before the organised players in the segment started to enjoy their honeymoon period the majority of the market being uptapped, a slowdown has affected the industry. This, and the country’s hostile import policy, have been much highlighted by the media time and again. How is the industry dealing with these problems and what is the way forward? IndiaRetailing gets a perspective from Sumit K Lal, Director & GM, Ecco Shoes India. Lal has the responsibility of spearheading ECCO India operations, including the strategic direction and focus for customers management. He has over 15 years of diverse footwear industry experience. Prior to joining ECCO, Lal was the National Sales Manager with the TATA Group, responsible for their footwear business. Excerpts from an interview:IndiaRetailing: How do you see the footwear retail industry in India?Sumit K Lal: One word, growing! It is growing at a phenomenal pace. With branded segment growing at 25-30 per cent, there is a tremendously promising market in the premium category out there IR: How do you differentiate unorganised footwear retail in India with oraganised one?SL: I have grown up in this trade and have spent close to 15 years here. Earlier instances had unscrupulous retailers making 300 per cent profit and perhaps give a discount of 30-40 per cent to the consumer on the selling price thereby making the consumer feel good about it and still enjoyed huge profits. The consumer hence could not really get the value for his spends. When big brands like Mescos, Woodland etc. came in with the aim to organise the footwear retail market and to provide the Indian consumer with a value for their money they pressurized the local retailers to fall in line with the trade policies being dictated by these biggies. Today to an extent all of footwear trade is getting fast organized and it is key to their survival.Further, major international brands are also foraying Indian market, which are making this segment grow not only in quantity but also in quality. IR: Do you expect more players to come in the near future?SL: I know that there are already more players planning to enter the Indian market and are waiting at the fringes. Due to global recession -- some may have delayed their plans; where as some others are in a wait and watch mode, analysing the market and waiting for the opportune moment to strike and some are actually in the process of entering. In terms of numbers more than five global brands will enter the Indian market by 2009 for sure, irrespective of slowdown or otherwise.. IR: Despite the fact that organised footwear retail does not enjoy healthy figures in India, a tough competition still exists. How is it shaping the market? SL: The organised market is increasing at a never before rate. At the end of the day it is for the consumers that the company offers the product. The companies have defined the product line according to their target consumers. Hence, most of the organized trade has been able to address their own niches. Clearly the key focus area for all organized trade is going to be further refining their segments and making their offerings even more unique to the consumers. The more they refine, the more will they consolidate and secure their future. IR: How about targeting the bottom of pyramid market?SL: There are enough players to cater to this burgeoning segment like Bata, Relaxo, Liberty, Action etc. and they are doing a great job. Premium segment is where ECCO feels comfortable in operating in worldwide and see its future.
IR: At any point of time do you believe these organised retailers will overpower and diminish the market of unorganised retailers?SL: Small retailers have also modernised themselves now. They sell brands like Lee Cooper, Red Tape along with other leading domestic brands. Additionally, small wholesalers source from China, give them in-house labels/brands and offer value for money to retailers and consumers. This ultimately adds to the competition. In fact, the growth chart of these retailers is incredibly robust. But yes, organisation is key to survival for the footwear trade.IR: How has the current economic scenario affected the footwear industry in India? SL: Economic slowdown has affected every industry. However, I believe it is a sentiment driven situation in India. India has a healthy consumption of its own which will take care of the recessionary trend that is affecting the rest of the world and we should see tremendous improvement by the third quarter of 2009. Our only job currently should be to focus on making the people come out of their confines and shop. Apart than the global crisis, terrorism has also turned people off from the purchasing mode and since there is no festivity around people refuse to come out and shop. Typically this should have been a boom time for footwear sales on account of festivities but the difference is apparent. These times will go and things will be better very soon and will pick up as soon as the sentiment picks up. IR: What according to you is the solution?SL: I think a huge PR exercise is required to break this impending sense of gloom and to prove that the Indian economy is relatively un-affected both in terms of impact and duration of the economic slowdown. Also, I would advocate a very proactive approach in building positives by the fourth estate. We should also focus on creating festivities in the market place in terms of events and promotions. This should be a time where ‘acting local’ at the market place should be of tremendous value and we should see some likely and some unlikely alliances in the short term to address the challenges facing us. IR: How effective are CRM activities during these tough times?SL: CRM has paid us well in the pastas this helps us establish a direct consumer touch point and in our case 90 per cent of people who buy from us come back to us, thanks to our CRM exercise. CRM could be just what the doctor ordered for these time.
IR: At any point of time do you believe these organised retailers will overpower and diminish the market of unorganised retailers?SL: Small retailers have also modernised themselves now. They sell brands like Lee Cooper, Red Tape along with other leading domestic brands. Additionally, small wholesalers source from China, give them in-house labels/brands and offer value for money to retailers and consumers. This ultimately adds to the competition. In fact, the growth chart of these retailers is incredibly robust. But yes, organisation is key to survival for the footwear trade.IR: How has the current economic scenario affected the footwear industry in India? SL: Economic slowdown has affected every industry. However, I believe it is a sentiment driven situation in India. India has a healthy consumption of its own which will take care of the recessionary trend that is affecting the rest of the world and we should see tremendous improvement by the third quarter of 2009. Our only job currently should be to focus on making the people come out of their confines and shop. Apart than the global crisis, terrorism has also turned people off from the purchasing mode and since there is no festivity around people refuse to come out and shop. Typically this should have been a boom time for footwear sales on account of festivities but the difference is apparent. These times will go and things will be better very soon and will pick up as soon as the sentiment picks up. IR: What according to you is the solution?SL: I think a huge PR exercise is required to break this impending sense of gloom and to prove that the Indian economy is relatively un-affected both in terms of impact and duration of the economic slowdown. Also, I would advocate a very proactive approach in building positives by the fourth estate. We should also focus on creating festivities in the market place in terms of events and promotions. This should be a time where ‘acting local’ at the market place should be of tremendous value and we should see some likely and some unlikely alliances in the short term to address the challenges facing us. IR: How effective are CRM activities during these tough times?SL: CRM has paid us well in the pastas this helps us establish a direct consumer touch point and in our case 90 per cent of people who buy from us come back to us, thanks to our CRM exercise. CRM could be just what the doctor ordered for these time.
Monday, December 22, 2008
Tata’s Croma launches private label
22 Dec 2008
Croma, the consumer durables and electronics retail arm of Tata group, has launched its private label of electronic goods under the brand name Croma. Further, the company has tied up with Australia’s leading electronics retail chain Woolworths to run the label and targets 20 per cent Croma turnover from these labels, said a top company official.“After a stringent selection process of sourcing, quality testing and identifying unique lifestyle products, we have finally launched our private label brand Croma. We will be outsourcing products from China and evaluate the option of India as well,” said Ajit Joshi, CEO and managing director, Infiniti Retail, which runs Croma. Infiniti Retail is a 100 per cent subsidiary of Tata Sons.Croma would offer niche lifestyle products like wine cellars, foot spa besides the mainstream durables and appliances including air conditioners, irons and vacuum cleaners in all the 24 cities in India.
Croma, the consumer durables and electronics retail arm of Tata group, has launched its private label of electronic goods under the brand name Croma. Further, the company has tied up with Australia’s leading electronics retail chain Woolworths to run the label and targets 20 per cent Croma turnover from these labels, said a top company official.“After a stringent selection process of sourcing, quality testing and identifying unique lifestyle products, we have finally launched our private label brand Croma. We will be outsourcing products from China and evaluate the option of India as well,” said Ajit Joshi, CEO and managing director, Infiniti Retail, which runs Croma. Infiniti Retail is a 100 per cent subsidiary of Tata Sons.Croma would offer niche lifestyle products like wine cellars, foot spa besides the mainstream durables and appliances including air conditioners, irons and vacuum cleaners in all the 24 cities in India.
Foreign retailers may get to dilute stake in Indian JVs to PE firms
23 Dec 2008
The government is considering a proposal that would allow single-brand foreign retailers such as Diesel, Louis Vuitton and Marks & Spencer to dilute stakes in their Indian ventures in favour of foreign Private Equity (PE) firms, reports ET. The government also holds the view that in the wake of the global credit squeeze, such a proposal would give a fillip to retail ventures through infusion of PE funds. The government has cleared over 100 single brand retail JVs since January 2006, when the sector was thrown open for foreign investment, the report adds. However, such deals would be within the current overall foreign direct investment (FDI) cap of 51 per cent. As of now, foreign PE funds are not allowed to invest in the Indian retail ventures of global brands. Under the current norms, only foreign brand owners can invest in such ventures. These JVs have to sell all products in their outlets under a single global brand. Meanwhile, a proposal to hike the FDI limit in single brand retail to 100 per cent is currently pending with the Union cabinet. The current proposal is aimed at offering some relief to the retailers till 100 per cent FDI is allowed in the sector.
The government is considering a proposal that would allow single-brand foreign retailers such as Diesel, Louis Vuitton and Marks & Spencer to dilute stakes in their Indian ventures in favour of foreign Private Equity (PE) firms, reports ET. The government also holds the view that in the wake of the global credit squeeze, such a proposal would give a fillip to retail ventures through infusion of PE funds. The government has cleared over 100 single brand retail JVs since January 2006, when the sector was thrown open for foreign investment, the report adds. However, such deals would be within the current overall foreign direct investment (FDI) cap of 51 per cent. As of now, foreign PE funds are not allowed to invest in the Indian retail ventures of global brands. Under the current norms, only foreign brand owners can invest in such ventures. These JVs have to sell all products in their outlets under a single global brand. Meanwhile, a proposal to hike the FDI limit in single brand retail to 100 per cent is currently pending with the Union cabinet. The current proposal is aimed at offering some relief to the retailers till 100 per cent FDI is allowed in the sector.
Gitanjali Gems board approves buy back
22 Dec 2008
Further to its proposal to buy back of shares last week, Gitanjali Gems has decided to buy back upto a maximum of 1,20,00,000 equity shares of the company of Rs 10 each upto a maximum price of Rs 120 per share, aggregating to Rs 1.44 billion. The amount is less than 10 per cent of the total paid-up equity share capital and free reserves of the company, claimed the company in a filing to Bombay Stock Exchange. The decision was taken at a board of directors meeting, the company added further. The buy back was being proposed in line with the company’s desire to enhance overall shareholder value.The Mumbai-based Gitanjali Gems is a pioneer in branded jewellery in India and owns brands including D'Damas, Asmi, Sangini, Nakshatra and Gili.
Further to its proposal to buy back of shares last week, Gitanjali Gems has decided to buy back upto a maximum of 1,20,00,000 equity shares of the company of Rs 10 each upto a maximum price of Rs 120 per share, aggregating to Rs 1.44 billion. The amount is less than 10 per cent of the total paid-up equity share capital and free reserves of the company, claimed the company in a filing to Bombay Stock Exchange. The decision was taken at a board of directors meeting, the company added further. The buy back was being proposed in line with the company’s desire to enhance overall shareholder value.The Mumbai-based Gitanjali Gems is a pioneer in branded jewellery in India and owns brands including D'Damas, Asmi, Sangini, Nakshatra and Gili.
Carlsberg eyes at doubling its mkt share in India
23 Dec 2008
Danish beer company Carlsberg, after one year of its operations in India, plans to double its market share to 10 per cent. “India is a long term strategic market for Carlsberg. Last year was the first phase of the foundation year wherin we set up the breweries and launched the brands. The second phase now is to go pan-India with both our brands and achieve 10 per cent market share,” said Pradeep Gidwani, managing director, Carlsberg India to Business Standard.The two brands Gidwani talked about are –Okocim Palone in the strong beer category and and Carlsberg in the mild beer category.Carlsberg is now undertaking phase two of its India strategy ie expanding its national presence
Danish beer company Carlsberg, after one year of its operations in India, plans to double its market share to 10 per cent. “India is a long term strategic market for Carlsberg. Last year was the first phase of the foundation year wherin we set up the breweries and launched the brands. The second phase now is to go pan-India with both our brands and achieve 10 per cent market share,” said Pradeep Gidwani, managing director, Carlsberg India to Business Standard.The two brands Gidwani talked about are –Okocim Palone in the strong beer category and and Carlsberg in the mild beer category.Carlsberg is now undertaking phase two of its India strategy ie expanding its national presence
Vishal partners with Mother Dairy for fruit, vegetable biz
23 Dec 2008
India’s discount retail chain Vishal Retail has entered into a strategic tie-up with the leading milk and milk-based products retailer Mother Dairy to strengthen its fruit and vegetable business, reports ET.As part of the plan, Mother Dairy will retail fruits and vegetables in shop-in-shops within Vishal stores, besides selling the products in its own outlets. A pilot project has already been launched in four Vishal stores in which both supply and retail of fruit and vegetables is being looked after by Mother Dairy, the report adds.Ram Chandra Agarwal, chairman and managing director, Vishal Retail, said, “We want to use Mother Dairy’s expertise for our fruit and vegetable business. But the final deal will happen if the pilot project turns successful.”Currently, Vishal Retail operates around six stores for fruits and vegetables in select cities in India.
India’s discount retail chain Vishal Retail has entered into a strategic tie-up with the leading milk and milk-based products retailer Mother Dairy to strengthen its fruit and vegetable business, reports ET.As part of the plan, Mother Dairy will retail fruits and vegetables in shop-in-shops within Vishal stores, besides selling the products in its own outlets. A pilot project has already been launched in four Vishal stores in which both supply and retail of fruit and vegetables is being looked after by Mother Dairy, the report adds.Ram Chandra Agarwal, chairman and managing director, Vishal Retail, said, “We want to use Mother Dairy’s expertise for our fruit and vegetable business. But the final deal will happen if the pilot project turns successful.”Currently, Vishal Retail operates around six stores for fruits and vegetables in select cities in India.
HyperCITY CEO Levermore quits
23 Dec 2008
HyperCITY chief executive Andrew Levermore, after four years in the position, has quit. As CEO, Andrew Levermore was responsible for the entire gamut of operations at HyperCity. With 23 years of experience in luxury and value retail, Levermore was in executive buying and merchandising management with Macro, South Africa, prior to joining K Raheja Corp.However, HyperCity had already made an annoucement earlier in August about Levermore. According to the company statement issued in August this year, Levermore, along with his family, will be returning back to South Africa at the end of December 2008 for domestic reasons. However, Levermore will remain on the board of HyperCity as a non-executive director. Meanwhile, Levermore is understood to be joining Woolworth, South Africa, sources said. HyperCITY Retail is part of Mumbai-based K Raheja Corp Group. Late last week, K Raheja group promoted Shoppers Stop has been allowed by the promoters of HyperCity Retail (India) Ltd to acquire the remainig 32 per cent equity share capital of HyperCity till June 30, 2010. Earlier, the option was valid till December 31, 2008. HyperCity offers food and grocery, general merchandise and apparel to its customers at great value in a large and modern format. It also offers other value added services like consumer finance, ATM facility, telecom services, pharmacy, bakery and restaurants, all under one roof. Currently, HyperCITY operates three stores in Mumbai, Navi Mumbai and Triton Mall in Jaipur, Rajasthan
HyperCITY chief executive Andrew Levermore, after four years in the position, has quit. As CEO, Andrew Levermore was responsible for the entire gamut of operations at HyperCity. With 23 years of experience in luxury and value retail, Levermore was in executive buying and merchandising management with Macro, South Africa, prior to joining K Raheja Corp.However, HyperCity had already made an annoucement earlier in August about Levermore. According to the company statement issued in August this year, Levermore, along with his family, will be returning back to South Africa at the end of December 2008 for domestic reasons. However, Levermore will remain on the board of HyperCity as a non-executive director. Meanwhile, Levermore is understood to be joining Woolworth, South Africa, sources said. HyperCITY Retail is part of Mumbai-based K Raheja Corp Group. Late last week, K Raheja group promoted Shoppers Stop has been allowed by the promoters of HyperCity Retail (India) Ltd to acquire the remainig 32 per cent equity share capital of HyperCity till June 30, 2010. Earlier, the option was valid till December 31, 2008. HyperCity offers food and grocery, general merchandise and apparel to its customers at great value in a large and modern format. It also offers other value added services like consumer finance, ATM facility, telecom services, pharmacy, bakery and restaurants, all under one roof. Currently, HyperCITY operates three stores in Mumbai, Navi Mumbai and Triton Mall in Jaipur, Rajasthan
UniverCell to take advantage of falling rentals
23 Dec 2008
With just around 10 per cent of the sales happening from organised retail currently, there is a definite opportunity for organised trade which is still to boom. There is a great scope for organised trade to grow especially during the next two years” said Satish Babu, Founder, UniverCell, Chennai-based large-format mobile retail store.However, Babu feels that most of the retailers currently are not providing a comfortable ambience, and touch feel and buy experience. “In the coming days retailers who do not upgrade their stores will perish,” said Babu.Into the business of mobile handset sales for over 11 years, UniverCell currently has 200 touch points. Talking about the sales figures, Babu disclosed, “The sales this year when compared with last year April to November have grown by 55 per cent. Over all we will be growing by 45 to 50 per cent over last year.”
With just around 10 per cent of the sales happening from organised retail currently, there is a definite opportunity for organised trade which is still to boom. There is a great scope for organised trade to grow especially during the next two years” said Satish Babu, Founder, UniverCell, Chennai-based large-format mobile retail store.However, Babu feels that most of the retailers currently are not providing a comfortable ambience, and touch feel and buy experience. “In the coming days retailers who do not upgrade their stores will perish,” said Babu.Into the business of mobile handset sales for over 11 years, UniverCell currently has 200 touch points. Talking about the sales figures, Babu disclosed, “The sales this year when compared with last year April to November have grown by 55 per cent. Over all we will be growing by 45 to 50 per cent over last year.”
Senior Bachchan, Dhoni share screen in Dabur advt
19 Dec 2008
India's leading natural healthcare company Dabur India is bringing together two of India’s biggest celebrities — Bollywood legend Amitabh Bachchan and cricketing star Mahendra Singh Dhoni — in a new campaign to promote the health benefits of Dabur Honey. The campaign — slated to hit the screens on December 22, will see Amitabh and Dhoni sharing screen space for the first time ever.Announcing the new campaign, KK Rajesh, executive vice president-marketing (health care), Dabur India, said, “Amitabh Bachchan has been advocating the health benefits of honey for over three years now, and has successfully helped in getting more and more people to switch to Dabur honey for a healthier lifestyle.”The launch of this new campaign is a part of Dabur Honey’s ongoing initiative — “Cheeni Ko Maaro Dhakka”. The new advertisement has been created by ad agency Lowe. The promotion of the product by Dabur is based on the plank that honey contains fewer calories as compared to sugar and, thus, can be incorporated in daily diet without any guilt.Dabur India is one of the leading FMCG companies in India with a consolidated turnover exceeding Rs 23.96 billion. Dabur has powerful brands in diverse categories of health and personal care such as Dabur, Vatika, Hajmola and Real.
India's leading natural healthcare company Dabur India is bringing together two of India’s biggest celebrities — Bollywood legend Amitabh Bachchan and cricketing star Mahendra Singh Dhoni — in a new campaign to promote the health benefits of Dabur Honey. The campaign — slated to hit the screens on December 22, will see Amitabh and Dhoni sharing screen space for the first time ever.Announcing the new campaign, KK Rajesh, executive vice president-marketing (health care), Dabur India, said, “Amitabh Bachchan has been advocating the health benefits of honey for over three years now, and has successfully helped in getting more and more people to switch to Dabur honey for a healthier lifestyle.”The launch of this new campaign is a part of Dabur Honey’s ongoing initiative — “Cheeni Ko Maaro Dhakka”. The new advertisement has been created by ad agency Lowe. The promotion of the product by Dabur is based on the plank that honey contains fewer calories as compared to sugar and, thus, can be incorporated in daily diet without any guilt.Dabur India is one of the leading FMCG companies in India with a consolidated turnover exceeding Rs 23.96 billion. Dabur has powerful brands in diverse categories of health and personal care such as Dabur, Vatika, Hajmola and Real.
Reliance Retail opens 3 format stores in Delhi
20 Dec 2008
Mukesh Ambani-led Reliance Retail has opened four stores in three different formats at Agarwal Funcity Mall in the national capital. The formats include Reliance Trends, Reliance Digital and Reliance Living, said a company press release.The Reliance Living store offers an extensive range of trendy, innovative and comfortable lifestyle furniture and a host of furnishings keeping with international design trends under its sub-brands Reliance Living Furniture and Reliance Living Furnishings respectively. Raghu Pillai, president and CEO, operations and strategy, Reliance Retail, said, “We are pleased to launch four of our formats in a single mall. Spread across various product segments and services, complemented with unmatched affordability and guaranteed quality, we provide an array of choices. This launch marks yet another milestone in our effort to unleash the retail revolution across India.” Arun Sirdeshmukh, chief executive, Reliance Trends, said, “The store will deliver to the customer the best value for their money.”The Reliance Living Furnishings store in Agarwal Funcity Mall is the second store of the chain, which has opened its first store in Noida recently. The company also plans to open 100 Reliance Trends stores by 2011, which is currently operational with seven stores across five cities in India.
Mukesh Ambani-led Reliance Retail has opened four stores in three different formats at Agarwal Funcity Mall in the national capital. The formats include Reliance Trends, Reliance Digital and Reliance Living, said a company press release.The Reliance Living store offers an extensive range of trendy, innovative and comfortable lifestyle furniture and a host of furnishings keeping with international design trends under its sub-brands Reliance Living Furniture and Reliance Living Furnishings respectively. Raghu Pillai, president and CEO, operations and strategy, Reliance Retail, said, “We are pleased to launch four of our formats in a single mall. Spread across various product segments and services, complemented with unmatched affordability and guaranteed quality, we provide an array of choices. This launch marks yet another milestone in our effort to unleash the retail revolution across India.” Arun Sirdeshmukh, chief executive, Reliance Trends, said, “The store will deliver to the customer the best value for their money.”The Reliance Living Furnishings store in Agarwal Funcity Mall is the second store of the chain, which has opened its first store in Noida recently. The company also plans to open 100 Reliance Trends stores by 2011, which is currently operational with seven stores across five cities in India.
Shoppers Stop extends its option of acquiring 51 pc of Hypercity
20 Dec 2008
In a major development, K Raheja group promoted Shoppers Stop has been allowed by the promoters of HyperCity Retail (India) Ltd to acquire the remainig 32 per cent equity share capital of HyperCity till June 30, 2010. Earlier, the option was valid till December 31, 2008. The report came through Shoppers Stop's filing to Bombay Stock Exchange.As part of company's option agreement executed with the promoters of HyperCity Retail (India) Ltd to acquire upto 51 percent of the equity share capital of HyperCity, Shoppers Stop has already acquired 19 per cent of the equity share capital of Hypercity.Speaking on the extension option, B S Nagesh, customer care associate and managing director, Shoppers Stop, said, "Considering the present scenerio, we have requested the promoters of Hypercity and they have agreed and provided an extension upto June 30, 2010."
In a major development, K Raheja group promoted Shoppers Stop has been allowed by the promoters of HyperCity Retail (India) Ltd to acquire the remainig 32 per cent equity share capital of HyperCity till June 30, 2010. Earlier, the option was valid till December 31, 2008. The report came through Shoppers Stop's filing to Bombay Stock Exchange.As part of company's option agreement executed with the promoters of HyperCity Retail (India) Ltd to acquire upto 51 percent of the equity share capital of HyperCity, Shoppers Stop has already acquired 19 per cent of the equity share capital of Hypercity.Speaking on the extension option, B S Nagesh, customer care associate and managing director, Shoppers Stop, said, "Considering the present scenerio, we have requested the promoters of Hypercity and they have agreed and provided an extension upto June 30, 2010."
Sunglass Hut forays India mkt; plans 100 stores by 2015
22 Dec 2008
Sunglass Hut, one of Luxottica’s retail brands, has entered Indian retail market with the launch of its maiden store in national capital. Further, the Italian eyewear chain also plans to launch 100 exclusive outlets by 2015. The company would open the stores through its franchising agreement with Delhi-based real estate major DLF Group."We started with the first store in Delhi this week with a Christmas theme and plan to have at least 100 exclusive outlets by the end of 2015. Our stores would have an average area of 700-800 square feet, we are first seeking the metros and tier I cities and then we will look into the smaller cities,” said Pradeep Bhanot, India brand head, Sunglass Hut.Sunglass Hut offers 24 international brands including Versace, Bulgari, Burberry, Prada, Tiffany, Persol, Revo and Salvatore Ferragamo. Concluded Bhanot, “There are brands like Tiffany and Persol which will be introduced for the first time in the Indian market. Our sunglasses will have a price range of Rs 2,600 to Rs 50,000.”
Sunglass Hut, one of Luxottica’s retail brands, has entered Indian retail market with the launch of its maiden store in national capital. Further, the Italian eyewear chain also plans to launch 100 exclusive outlets by 2015. The company would open the stores through its franchising agreement with Delhi-based real estate major DLF Group."We started with the first store in Delhi this week with a Christmas theme and plan to have at least 100 exclusive outlets by the end of 2015. Our stores would have an average area of 700-800 square feet, we are first seeking the metros and tier I cities and then we will look into the smaller cities,” said Pradeep Bhanot, India brand head, Sunglass Hut.Sunglass Hut offers 24 international brands including Versace, Bulgari, Burberry, Prada, Tiffany, Persol, Revo and Salvatore Ferragamo. Concluded Bhanot, “There are brands like Tiffany and Persol which will be introduced for the first time in the Indian market. Our sunglasses will have a price range of Rs 2,600 to Rs 50,000.”
Wednesday, December 17, 2008
Van Heusen unveils Ghajini collection
18 Dec 2008
With Aamir Khan's much awaited movie Ghajini about to release on December 25, Van Heusen unveiled a special collection under the name 'Van Heusen Ghajini Collection'. The designs are inspired by Aamir's personality as well as the character he plays in the upcoming movie Ghajini. In the movie Aamir will be seen in the sporting shirts, trousers, waist coats, ties, suits, blazers, cufflinks from Van Heusen. Shital Kumar Mehta, chief operating officer, Van Heusen, elucidates, "India and the Middle East are our core markets. We are expecting a 25 per cent increase in sales from this latest collection. We believe that Ghajini is going to be the biggest blockbuster. Aamir is playing the CEO of a telecom company and the collection, we have designed, is exclusive. We are proud to partner with Ghajini and dress none other than Aamir Khan, the man himself, who embodies the sentiments of Van Heusen as a brand. Thus it was a strategic opportunity for us."Priced at Rs 1,299 onwards, Van Heusen Ghajini collection is available at the company stores. Unveiling this exclusive collection Aamir Khan also walked the ramp as the show stopper for a fashion show held in Mumbai.
With Aamir Khan's much awaited movie Ghajini about to release on December 25, Van Heusen unveiled a special collection under the name 'Van Heusen Ghajini Collection'. The designs are inspired by Aamir's personality as well as the character he plays in the upcoming movie Ghajini. In the movie Aamir will be seen in the sporting shirts, trousers, waist coats, ties, suits, blazers, cufflinks from Van Heusen. Shital Kumar Mehta, chief operating officer, Van Heusen, elucidates, "India and the Middle East are our core markets. We are expecting a 25 per cent increase in sales from this latest collection. We believe that Ghajini is going to be the biggest blockbuster. Aamir is playing the CEO of a telecom company and the collection, we have designed, is exclusive. We are proud to partner with Ghajini and dress none other than Aamir Khan, the man himself, who embodies the sentiments of Van Heusen as a brand. Thus it was a strategic opportunity for us."Priced at Rs 1,299 onwards, Van Heusen Ghajini collection is available at the company stores. Unveiling this exclusive collection Aamir Khan also walked the ramp as the show stopper for a fashion show held in Mumbai.
GJEPC comes out with crisis solution
18 Dec 2008
The wish list, as put forth by the Gems and Jewellery Export Promotion Council (GJEPC) before the government, is aimed to make sure that the gems and jewellery industry is pulled out from the recent crisis surrounding it due to the slump in demand from the US and also sharp rise in price of raw materials for almost a year now. “Status holders should be allowed to import directly and sell gold to exporters. This will help alleviate the crisis of inequitable gold supply being faced by the industry and will also enable smaller exporters to fulfill their requirements of gold in smaller lots,” said GJEPC in its appeal to the government.The overall exports of gem and jewellery at USD 987.10 million in the month of November 2008 has shown a decline of 34.25 per cent as compared to USD 501.27 million during the corresponding period last year.“Increase of recently announced measure of rupee interest subvention from 2 per cent to 4 per cent and this facility to be extended to dollar credit,” added GJEPC. “Further, the government should release dollars from their dollar reserve for credits to the industry”“The current practice of declaring an exporter’s account as NPA (Non Performing Asset) due to delayed collections and thereby bringing the rating down should be discontinued”, concluded GJEPC. The suggestions have come at a time when figures suggest that in just three months (August – October, 2008); close to 65,000 workers engaged in the cutting and polishing business have lost their jobs due to the above mentioned reasons. On the manufacturing font also, exports of cut and polished diamonds are down 10.18 per cent as compared to the same period last year. All this put together has resulted in an average reduction of over 20 per cent in orders for the period April-October 2008.
The wish list, as put forth by the Gems and Jewellery Export Promotion Council (GJEPC) before the government, is aimed to make sure that the gems and jewellery industry is pulled out from the recent crisis surrounding it due to the slump in demand from the US and also sharp rise in price of raw materials for almost a year now. “Status holders should be allowed to import directly and sell gold to exporters. This will help alleviate the crisis of inequitable gold supply being faced by the industry and will also enable smaller exporters to fulfill their requirements of gold in smaller lots,” said GJEPC in its appeal to the government.The overall exports of gem and jewellery at USD 987.10 million in the month of November 2008 has shown a decline of 34.25 per cent as compared to USD 501.27 million during the corresponding period last year.“Increase of recently announced measure of rupee interest subvention from 2 per cent to 4 per cent and this facility to be extended to dollar credit,” added GJEPC. “Further, the government should release dollars from their dollar reserve for credits to the industry”“The current practice of declaring an exporter’s account as NPA (Non Performing Asset) due to delayed collections and thereby bringing the rating down should be discontinued”, concluded GJEPC. The suggestions have come at a time when figures suggest that in just three months (August – October, 2008); close to 65,000 workers engaged in the cutting and polishing business have lost their jobs due to the above mentioned reasons. On the manufacturing font also, exports of cut and polished diamonds are down 10.18 per cent as compared to the same period last year. All this put together has resulted in an average reduction of over 20 per cent in orders for the period April-October 2008.
Reliance Retail opens Reliance Super express format
18 Dec 2008;'
Mukesh Ambani-led Reliance Retail (RRL) has announced the launch of a mini express format store under the brand name Reliance Super in Bhavanipuram, Andhra Pradesh. The mini-mart store offers over 13,150 products including clothing and footwear, jewellery, cosmetics, electronics and stationary among others, said a company official. Further, the store offers a range of private labels in select categories like accessories for Rs 39 and footwear for Rs 99 onwards, added the official. Currently, RRL operates eight Reliance Super stores across India.
Mukesh Ambani-led Reliance Retail (RRL) has announced the launch of a mini express format store under the brand name Reliance Super in Bhavanipuram, Andhra Pradesh. The mini-mart store offers over 13,150 products including clothing and footwear, jewellery, cosmetics, electronics and stationary among others, said a company official. Further, the store offers a range of private labels in select categories like accessories for Rs 39 and footwear for Rs 99 onwards, added the official. Currently, RRL operates eight Reliance Super stores across India.
Lotus becomes Religare Asset Management Co
18 Dec 2008
In a major development, Lotus India Asset Management Company has become a step down subsidiary of Religare Securities Ltd (RSL), a wholly owned subsidiary of Religare Enterprises Ltd (REL), after the latter acquired 100 per cent share holding of the former.Further, consequent to the acquisition, the name of Lotus has been changed to Religare Asset Management Company, said REL in a statement to Bombay Stock Exchange.REL is currently operational across three verticals that include retail, institutional and wealth management. Besides its pan-India presence in over 1,550 locations across 460 cities and towns, REL operates from 10 countries globally following its acquisition of London’s brokerage and investment firm, Hichens, Harrison & Co.
In a major development, Lotus India Asset Management Company has become a step down subsidiary of Religare Securities Ltd (RSL), a wholly owned subsidiary of Religare Enterprises Ltd (REL), after the latter acquired 100 per cent share holding of the former.Further, consequent to the acquisition, the name of Lotus has been changed to Religare Asset Management Company, said REL in a statement to Bombay Stock Exchange.REL is currently operational across three verticals that include retail, institutional and wealth management. Besides its pan-India presence in over 1,550 locations across 460 cities and towns, REL operates from 10 countries globally following its acquisition of London’s brokerage and investment firm, Hichens, Harrison & Co.
Schwarzkopf Professional unveils autumn-winter hair style collection
18 Dec 2008
As part of its bi-annual essential looks show, Schwarzkopf Professional, part of Henkel Group and one of the leading suppliers of hairdressing products worldwide, has launched the autumn-winter collection of hair styles in the national capital. Named as ‘Eclectic Collection 2008-09’, the collection is presented in four different fashion moods — country life, eccentric vintage, gothic romance and sculptured form. Murali Sundar, country manager, Schwarzkopf Professional India, said, “Essential collection is our enduring commitment to placing fashion driven skills directly into the hands of hair professionals around the world. The collection is our best bet to storm the Indian grooming scene.”Speaking about the approach of Indian customers in styling hair against their western counterparts, Najeeb Ur Rehman, national technical head, Schwarzkopf Professional, said, “In India, people are tradition bound, but they are equally conscious about trends which are prevalent in western countries. So, we have to manage a sweet blending of trend and tradition for Indian customers.” Answering to the queries about the prospect of the brand in tier II and II cities, Rehman commented, “Every city is now cosmopolitan and the cities like Bangalore (Bengaluru), Chennai and Pune have been growing very fast and people are much more aware about our brand.”Schwarzkopf Professional is currently operational in over 80 countries and offer international brands including Igora Royal, Igora Vibrance, BC Bonacure, Osis, Silhouette and Glatt and services like strait therapy and natural styling. "In India, over 1,000 salons currently use Schwarzkopf Professional products," concluded Rehman.
As part of its bi-annual essential looks show, Schwarzkopf Professional, part of Henkel Group and one of the leading suppliers of hairdressing products worldwide, has launched the autumn-winter collection of hair styles in the national capital. Named as ‘Eclectic Collection 2008-09’, the collection is presented in four different fashion moods — country life, eccentric vintage, gothic romance and sculptured form. Murali Sundar, country manager, Schwarzkopf Professional India, said, “Essential collection is our enduring commitment to placing fashion driven skills directly into the hands of hair professionals around the world. The collection is our best bet to storm the Indian grooming scene.”Speaking about the approach of Indian customers in styling hair against their western counterparts, Najeeb Ur Rehman, national technical head, Schwarzkopf Professional, said, “In India, people are tradition bound, but they are equally conscious about trends which are prevalent in western countries. So, we have to manage a sweet blending of trend and tradition for Indian customers.” Answering to the queries about the prospect of the brand in tier II and II cities, Rehman commented, “Every city is now cosmopolitan and the cities like Bangalore (Bengaluru), Chennai and Pune have been growing very fast and people are much more aware about our brand.”Schwarzkopf Professional is currently operational in over 80 countries and offer international brands including Igora Royal, Igora Vibrance, BC Bonacure, Osis, Silhouette and Glatt and services like strait therapy and natural styling. "In India, over 1,000 salons currently use Schwarzkopf Professional products," concluded Rehman.
Organised retail to grow at 13 pc to $ 496 billion by 2011-12: Report
18 Dec 2008
The real GDP is expected to grow at 8 to 10 per cent per annum in the next five years. As a result, the consuming class with annual household incomes above Rs 90,000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. Consequently, the retail business in India is estimated to grow at 13 per cent annually from USD 322 billion in 2006-07 to USD 590 billion in 2011-12,” states the findings of the report furnished by the Indian Council for Research on International Economic Relations (ICRIER).The study also shows that the unorganised retail sector is expected to grow at about 10 per cent per annum with sales rising from USD 309 billion in 2006-07 to USD 496 billion in 2011-12. “Given the relatively weak financial state of unorganised retailers, and the physical space constraints on their expansion prospects, this sector alone will not be able to meet the growing demand for retail,” analyses the ICRIER report. “Hence, organised retail which now constitutes a small four per cent of total retail sector is likely to grow at a much faster pace of 45-50 per cent per annum and quadruple its share in total retail trade to 16 per cent by 2011-12.” The majority of unorganised retailers surveyed in this study, indicated their preference to continue in the business and compete rather than exit. “This represents a positive sum game in which both unorganised and organized retail not only coexist but also grow substantially in size,” said the report.The study comprised of a survey of all segments of the economy that could be affected by the entry of large corporates in the retail business. The findings are based on a survey of 2020 unorganised small retailers across 10 major cities; 1318 consumers shopping at both organised and unorganised retail outlets; 100 intermediaries; and 197 farmers. In addition, a ‘control sample’ survey was done of 805 unorganised retailers who are not in the vicinity of organised retail outlets in four metro cities. On the impact on unorganised retailers, main findings suggest, “Unorganised retailers in the vicinity of organised retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organised retailers. However, the adverse impact on sales and profit weakens over time.” Meanwhile, the report did not find an evidence of a decline in overall employment in the unorganised sector as a result of the entry of organised retailers. Further, the rate of closure of unorganised retail shops in gross terms is found to be 4.2 per cent per annum which is much lower than the international rate of closure of small businesses, the report said. On the impact on consumers, the study revealed that consumers have definitely gained from organised retail on multiple counts and their overall spending has increased with the entry of the organised retail. While all income groups saved through organised retail purchases, the survey revealed that lower income consumers saved more. “Unorganised retailers have significant competitive strengths that include consumer goodwill, credit sales, amenability to bargaining, ability to sell loose items, convenient timings, and home delivery,” he study added.
The real GDP is expected to grow at 8 to 10 per cent per annum in the next five years. As a result, the consuming class with annual household incomes above Rs 90,000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. Consequently, the retail business in India is estimated to grow at 13 per cent annually from USD 322 billion in 2006-07 to USD 590 billion in 2011-12,” states the findings of the report furnished by the Indian Council for Research on International Economic Relations (ICRIER).The study also shows that the unorganised retail sector is expected to grow at about 10 per cent per annum with sales rising from USD 309 billion in 2006-07 to USD 496 billion in 2011-12. “Given the relatively weak financial state of unorganised retailers, and the physical space constraints on their expansion prospects, this sector alone will not be able to meet the growing demand for retail,” analyses the ICRIER report. “Hence, organised retail which now constitutes a small four per cent of total retail sector is likely to grow at a much faster pace of 45-50 per cent per annum and quadruple its share in total retail trade to 16 per cent by 2011-12.” The majority of unorganised retailers surveyed in this study, indicated their preference to continue in the business and compete rather than exit. “This represents a positive sum game in which both unorganised and organized retail not only coexist but also grow substantially in size,” said the report.The study comprised of a survey of all segments of the economy that could be affected by the entry of large corporates in the retail business. The findings are based on a survey of 2020 unorganised small retailers across 10 major cities; 1318 consumers shopping at both organised and unorganised retail outlets; 100 intermediaries; and 197 farmers. In addition, a ‘control sample’ survey was done of 805 unorganised retailers who are not in the vicinity of organised retail outlets in four metro cities. On the impact on unorganised retailers, main findings suggest, “Unorganised retailers in the vicinity of organised retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organised retailers. However, the adverse impact on sales and profit weakens over time.” Meanwhile, the report did not find an evidence of a decline in overall employment in the unorganised sector as a result of the entry of organised retailers. Further, the rate of closure of unorganised retail shops in gross terms is found to be 4.2 per cent per annum which is much lower than the international rate of closure of small businesses, the report said. On the impact on consumers, the study revealed that consumers have definitely gained from organised retail on multiple counts and their overall spending has increased with the entry of the organised retail. While all income groups saved through organised retail purchases, the survey revealed that lower income consumers saved more. “Unorganised retailers have significant competitive strengths that include consumer goodwill, credit sales, amenability to bargaining, ability to sell loose items, convenient timings, and home delivery,” he study added.
Nestle to reposition its Maggi brand
18 Dec 2008
Nestle India, a subsidiary of Nestlé SA of Switzerland, is learnt to be working on repositioning its maggi brand of noodles as a healthy snack option for the entire family. “Till now the focus of Maggi has been almost entirely on children below 12 years. But we have found Maggi is consumed by all members of the family and we are planning to reposition it following the guidelines of our parent company,” quoted a company spokesperson in ET. Maggi variants that strengthen Maggi’s image as a healthy snack include Maggi’s new dal atta, veg atta and rice noodles using the tag-line ‘taste bhi health bhi’. Ads for rice Maggi noodles show a teenager. It’s noodles-in-a-cup, introduced this summer, are also aimed at teenagers. Nestle has recently joined the league of the to15 food and beverages companies among others including Unilever, Kraft, Kellogg’s, PepsiCo, Coca-Cola, McDonald’s and Mars, that are committed to ensuring responsible advertising to children. Nestle's products are spread across baby food, coffee, dairy products, chocolates, sauces and pastes and its brands include KitKat, Munch chocolates, Polo mint, Nescafe, Cerelac and Lactogen.
Nestle India, a subsidiary of Nestlé SA of Switzerland, is learnt to be working on repositioning its maggi brand of noodles as a healthy snack option for the entire family. “Till now the focus of Maggi has been almost entirely on children below 12 years. But we have found Maggi is consumed by all members of the family and we are planning to reposition it following the guidelines of our parent company,” quoted a company spokesperson in ET. Maggi variants that strengthen Maggi’s image as a healthy snack include Maggi’s new dal atta, veg atta and rice noodles using the tag-line ‘taste bhi health bhi’. Ads for rice Maggi noodles show a teenager. It’s noodles-in-a-cup, introduced this summer, are also aimed at teenagers. Nestle has recently joined the league of the to15 food and beverages companies among others including Unilever, Kraft, Kellogg’s, PepsiCo, Coca-Cola, McDonald’s and Mars, that are committed to ensuring responsible advertising to children. Nestle's products are spread across baby food, coffee, dairy products, chocolates, sauces and pastes and its brands include KitKat, Munch chocolates, Polo mint, Nescafe, Cerelac and Lactogen.
Wednesday, December 10, 2008
Luxury mall showcases wealth gap in India
14 Oct, 2008, 0935 hrs IST, REUTERS
NEW DELHI: With gold-plated ceilings, exotic fountains and the clink of champagne glasses, the Emporio Mall in New Delhi is the perfect place to wile away a hot afternoon browsing through designer boutiques. The mall, adorned with palms and scented with lavender, is the exclusive playground of India's rich, which despite the effects of the credit crisis still have plenty of cash to buy designer accessories with thousand dollar price tags. Getting access to this little piece of air conditioned paradise amid the hustle and bustle of the sweltering capital will cost $5. That's about one week's salary for 80 percent of India's billion plus population. With a phalanx of security guards keeping out the destitute and a pricey admission fee, some social observers see India's first luxury mall as a symbol of an economic apartheid that they say increasingly divides the 'haves' and 'have nots' in India. "The conditions, the ground conditions are not like those of Western cities," said Satish Deshpande, professor of sociology at the Delhi School of Economics. "So, we are tending more and more towards a kind of apartheid, a kind of separation that is very sharp and sharply visible in our cities, in gated communities". The widening wealth gap has major implications for India, which faces a general election next year, and has been plagued by waves of violence in its provinces that analysts say is at least partly due to the socioeconomic divide alienating segments of society. The issue is likely to play a central role in next year's general election in which Prime Minister Manmohan Singh's Congress party will seek re-election. The party took power in a coalition government four years ago on a platform of more 'inclusive growth' for India's 'have nots', a promise upon which it has mostly failed to deliver. Asia's third-largest economy has grown nearly 9 percent a year over the past four years, driven largely by consumer demand from the middle-class and soaring foreign investment. Despite the boom, official data shows an estimated 800 million of India's billion-plus people live on 50 U.S. cents a day. The top 10 percent of India's population owns between 33 to 50 percent of the country's wealth, according to a range of estimates by the government, think-tanks and academics. Uneven economic growth is posing a serious security threat to India, Singh said last December, pointing out that a large proportion of recruits for militant groups came from regions untouched by India's scorching growth.
NEW DELHI: With gold-plated ceilings, exotic fountains and the clink of champagne glasses, the Emporio Mall in New Delhi is the perfect place to wile away a hot afternoon browsing through designer boutiques. The mall, adorned with palms and scented with lavender, is the exclusive playground of India's rich, which despite the effects of the credit crisis still have plenty of cash to buy designer accessories with thousand dollar price tags. Getting access to this little piece of air conditioned paradise amid the hustle and bustle of the sweltering capital will cost $5. That's about one week's salary for 80 percent of India's billion plus population. With a phalanx of security guards keeping out the destitute and a pricey admission fee, some social observers see India's first luxury mall as a symbol of an economic apartheid that they say increasingly divides the 'haves' and 'have nots' in India. "The conditions, the ground conditions are not like those of Western cities," said Satish Deshpande, professor of sociology at the Delhi School of Economics. "So, we are tending more and more towards a kind of apartheid, a kind of separation that is very sharp and sharply visible in our cities, in gated communities". The widening wealth gap has major implications for India, which faces a general election next year, and has been plagued by waves of violence in its provinces that analysts say is at least partly due to the socioeconomic divide alienating segments of society. The issue is likely to play a central role in next year's general election in which Prime Minister Manmohan Singh's Congress party will seek re-election. The party took power in a coalition government four years ago on a platform of more 'inclusive growth' for India's 'have nots', a promise upon which it has mostly failed to deliver. Asia's third-largest economy has grown nearly 9 percent a year over the past four years, driven largely by consumer demand from the middle-class and soaring foreign investment. Despite the boom, official data shows an estimated 800 million of India's billion-plus people live on 50 U.S. cents a day. The top 10 percent of India's population owns between 33 to 50 percent of the country's wealth, according to a range of estimates by the government, think-tanks and academics. Uneven economic growth is posing a serious security threat to India, Singh said last December, pointing out that a large proportion of recruits for militant groups came from regions untouched by India's scorching growth.
Luxury mall showcases wealth gap in India
14 Oct, 2008, 0935 hrs IST, REUTERS
NEW DELHI: With gold-plated ceilings, exotic fountains and the clink of champagne glasses, the Emporio Mall in New Delhi is the perfect place to wile away a hot afternoon browsing through designer boutiques. The mall, adorned with palms and scented with lavender, is the exclusive playground of India's rich, which despite the effects of the credit crisis still have plenty of cash to buy designer accessories with thousand dollar price tags. Getting access to this little piece of air conditioned paradise amid the hustle and bustle of the sweltering capital will cost $5. That's about one week's salary for 80 percent of India's billion plus population. With a phalanx of security guards keeping out the destitute and a pricey admission fee, some social observers see India's first luxury mall as a symbol of an economic apartheid that they say increasingly divides the 'haves' and 'have nots' in India. "The conditions, the ground conditions are not like those of Western cities," said Satish Deshpande, professor of sociology at the Delhi School of Economics. "So, we are tending more and more towards a kind of apartheid, a kind of separation that is very sharp and sharply visible in our cities, in gated communities". The widening wealth gap has major implications for India, which faces a general election next year, and has been plagued by waves of violence in its provinces that analysts say is at least partly due to the socioeconomic divide alienating segments of society. The issue is likely to play a central role in next year's general election in which Prime Minister Manmohan Singh's Congress party will seek re-election. The party took power in a coalition government four years ago on a platform of more 'inclusive growth' for India's 'have nots', a promise upon which it has mostly failed to deliver. Asia's third-largest economy has grown nearly 9 percent a year over the past four years, driven largely by consumer demand from the middle-class and soaring foreign investment. Despite the boom, official data shows an estimated 800 million of India's billion-plus people live on 50 U.S. cents a day. The top 10 percent of India's population owns between 33 to 50 percent of the country's wealth, according to a range of estimates by the government, think-tanks and academics. Uneven economic growth is posing a serious security threat to India, Singh said last December, pointing out that a large proportion of recruits for militant groups came from regions untouched by India's scorching growth.
NEW DELHI: With gold-plated ceilings, exotic fountains and the clink of champagne glasses, the Emporio Mall in New Delhi is the perfect place to wile away a hot afternoon browsing through designer boutiques. The mall, adorned with palms and scented with lavender, is the exclusive playground of India's rich, which despite the effects of the credit crisis still have plenty of cash to buy designer accessories with thousand dollar price tags. Getting access to this little piece of air conditioned paradise amid the hustle and bustle of the sweltering capital will cost $5. That's about one week's salary for 80 percent of India's billion plus population. With a phalanx of security guards keeping out the destitute and a pricey admission fee, some social observers see India's first luxury mall as a symbol of an economic apartheid that they say increasingly divides the 'haves' and 'have nots' in India. "The conditions, the ground conditions are not like those of Western cities," said Satish Deshpande, professor of sociology at the Delhi School of Economics. "So, we are tending more and more towards a kind of apartheid, a kind of separation that is very sharp and sharply visible in our cities, in gated communities". The widening wealth gap has major implications for India, which faces a general election next year, and has been plagued by waves of violence in its provinces that analysts say is at least partly due to the socioeconomic divide alienating segments of society. The issue is likely to play a central role in next year's general election in which Prime Minister Manmohan Singh's Congress party will seek re-election. The party took power in a coalition government four years ago on a platform of more 'inclusive growth' for India's 'have nots', a promise upon which it has mostly failed to deliver. Asia's third-largest economy has grown nearly 9 percent a year over the past four years, driven largely by consumer demand from the middle-class and soaring foreign investment. Despite the boom, official data shows an estimated 800 million of India's billion-plus people live on 50 U.S. cents a day. The top 10 percent of India's population owns between 33 to 50 percent of the country's wealth, according to a range of estimates by the government, think-tanks and academics. Uneven economic growth is posing a serious security threat to India, Singh said last December, pointing out that a large proportion of recruits for militant groups came from regions untouched by India's scorching growth.
Colorplus launches 56th store; plans aggressive expansion
11 Dec 2008
One of the first to cash in on falling real estate prices, homegrown apparel brand Colorplus has decided to aggressively go ahead with previously delayed expansion plans, Mr. Ashesh Ahmed, Head Colorplus, the casualwear brand of Raymond Ltd revealed during the launch of their 56th exclusive store. The brand is available in 50 Raymond’s stores, 250 multi brand outlets and 32 shop-in shops, besides the EBO’s.Four more EBO’s and four shop-in shop formats are planned this fiscal with an investment close to Rs. 2 crore. The company sees the brand contributing around 350 crore over the next two years. The expansion plans are in view with enhancing the brand image to stave off competition from foreign brands, fast gaining popularity in India.
One of the first to cash in on falling real estate prices, homegrown apparel brand Colorplus has decided to aggressively go ahead with previously delayed expansion plans, Mr. Ashesh Ahmed, Head Colorplus, the casualwear brand of Raymond Ltd revealed during the launch of their 56th exclusive store. The brand is available in 50 Raymond’s stores, 250 multi brand outlets and 32 shop-in shops, besides the EBO’s.Four more EBO’s and four shop-in shop formats are planned this fiscal with an investment close to Rs. 2 crore. The company sees the brand contributing around 350 crore over the next two years. The expansion plans are in view with enhancing the brand image to stave off competition from foreign brands, fast gaining popularity in India.
Marks & Spencer launches first store in Ahmedabad
11 Dec 2008
With an aim to grow their presence in the Indian market, UK leading clothing retailer, Marks & Spencer launched it first store in Ahmedabad, said a top company official. Spread over 14,000 square feet, this is the 15th store of the exclusive brand in the country.Commenting on the development, Mark Ashman, CEO, Marks & Spencer India said, "We are happy to bring the Marks & Spencer brand to Ahmedabad. With a significant business community in Gujarat that has been exposed to Marks & Spencer through travel overseas for business or pleasure, there have been numerous queries about when a store will come up in Gujarat."Known for its international quality and value pricing, Marks & Spencer will continue to offer products like men's wear, women's wear, kids' wear, home decor, lingerie and beauty products
With an aim to grow their presence in the Indian market, UK leading clothing retailer, Marks & Spencer launched it first store in Ahmedabad, said a top company official. Spread over 14,000 square feet, this is the 15th store of the exclusive brand in the country.Commenting on the development, Mark Ashman, CEO, Marks & Spencer India said, "We are happy to bring the Marks & Spencer brand to Ahmedabad. With a significant business community in Gujarat that has been exposed to Marks & Spencer through travel overseas for business or pleasure, there have been numerous queries about when a store will come up in Gujarat."Known for its international quality and value pricing, Marks & Spencer will continue to offer products like men's wear, women's wear, kids' wear, home decor, lingerie and beauty products
Easy Day store opens in Ludhiana
11 Dec 2008
Bharti Retail Ltd, a wholly owned subsidiary of Bharti Enterprises, launched its neighbourhood format store named Easy Day in Ludhiana, Punjab. The store stocks a wide range of products including personal care, stationery, household articles, hosiery items, groceries, processed foods, bakery and dairy products, meat and poultry and fresh produce, said a company press release.The company is employing local people in their store and has been providing intensive and structured training through Bharti Academy of Retail. Further, the retailer is setting up a chain of multiple consumer friendly format stores in India which will be 100 per cent owned and operated by Bharti, added the release.
Bharti Retail Ltd, a wholly owned subsidiary of Bharti Enterprises, launched its neighbourhood format store named Easy Day in Ludhiana, Punjab. The store stocks a wide range of products including personal care, stationery, household articles, hosiery items, groceries, processed foods, bakery and dairy products, meat and poultry and fresh produce, said a company press release.The company is employing local people in their store and has been providing intensive and structured training through Bharti Academy of Retail. Further, the retailer is setting up a chain of multiple consumer friendly format stores in India which will be 100 per cent owned and operated by Bharti, added the release.
Easy Day store opens in Ludhiana
11 Dec 2008
Bharti Retail Ltd, a wholly owned subsidiary of Bharti Enterprises, launched its neighbourhood format store named Easy Day in Ludhiana, Punjab. The store stocks a wide range of products including personal care, stationery, household articles, hosiery items, groceries, processed foods, bakery and dairy products, meat and poultry and fresh produce, said a company press release.The company is employing local people in their store and has been providing intensive and structured training through Bharti Academy of Retail. Further, the retailer is setting up a chain of multiple consumer friendly format stores in India which will be 100 per cent owned and operated by Bharti, added the release.
Bharti Retail Ltd, a wholly owned subsidiary of Bharti Enterprises, launched its neighbourhood format store named Easy Day in Ludhiana, Punjab. The store stocks a wide range of products including personal care, stationery, household articles, hosiery items, groceries, processed foods, bakery and dairy products, meat and poultry and fresh produce, said a company press release.The company is employing local people in their store and has been providing intensive and structured training through Bharti Academy of Retail. Further, the retailer is setting up a chain of multiple consumer friendly format stores in India which will be 100 per cent owned and operated by Bharti, added the release.
Easy Day store opens in Ludhiana
11 Dec 2008
Bharti Retail Ltd, a wholly owned subsidiary of Bharti Enterprises, launched its neighbourhood format store named Easy Day in Ludhiana, Punjab. The store stocks a wide range of products including personal care, stationery, household articles, hosiery items, groceries, processed foods, bakery and dairy products, meat and poultry and fresh produce, said a company press release.The company is employing local people in their store and has been providing intensive and structured training through Bharti Academy of Retail. Further, the retailer is setting up a chain of multiple consumer friendly format stores in India which will be 100 per cent owned and operated by Bharti, added the release.
Bharti Retail Ltd, a wholly owned subsidiary of Bharti Enterprises, launched its neighbourhood format store named Easy Day in Ludhiana, Punjab. The store stocks a wide range of products including personal care, stationery, household articles, hosiery items, groceries, processed foods, bakery and dairy products, meat and poultry and fresh produce, said a company press release.The company is employing local people in their store and has been providing intensive and structured training through Bharti Academy of Retail. Further, the retailer is setting up a chain of multiple consumer friendly format stores in India which will be 100 per cent owned and operated by Bharti, added the release.
Tuesday, December 9, 2008
Shoppers Stop's to go ahead with investment plans
Mumbai: Fashion and lifestyle retail chain Shoppers Stop will pursue its expansion plans despite slackening sales and credit crunch following global economic meltdown, a top company official said.
"The next three-four quarters are not going to be the best of quarters and India cannot isolate itself from what is happening in the world. But there is no change in our investment and expansion plans," Shoppers Stop Managing Director B S Nagesh said in Mumbai.
The retail chain in April announced plans to infuse Rs 1,000 crore for expanding its existing store space of 1.3 million square feet to 2.7 million square feet over the next 3-4 years.
"All our prior investment plans are in process, based on delivery," Nagesh said, adding "yesterday, we inaugurated an outlet at Vashi (near Mumbai). In two weeks, we plan to open another in Jaipur".
On the company's joint venture with the Nuance Group, Nagesh said the Rs 25-crore airport retail joint venture was now operational at both Hyderabad and Bangalore.
Measures taken by the government so far and the Reserve Bank of India, and more that would ensue, would reinstate investor confidence, he said.
"The next three-four quarters are not going to be the best of quarters and India cannot isolate itself from what is happening in the world. But there is no change in our investment and expansion plans," Shoppers Stop Managing Director B S Nagesh said in Mumbai.
The retail chain in April announced plans to infuse Rs 1,000 crore for expanding its existing store space of 1.3 million square feet to 2.7 million square feet over the next 3-4 years.
"All our prior investment plans are in process, based on delivery," Nagesh said, adding "yesterday, we inaugurated an outlet at Vashi (near Mumbai). In two weeks, we plan to open another in Jaipur".
On the company's joint venture with the Nuance Group, Nagesh said the Rs 25-crore airport retail joint venture was now operational at both Hyderabad and Bangalore.
Measures taken by the government so far and the Reserve Bank of India, and more that would ensue, would reinstate investor confidence, he said.
Spencer's Retail eyes Rs 1,250 cr revenue by FY'09
Mumbai: RPG group company Spencer's Retail plans to scale up its hypermarts chain to 400 and is targeting a turnover of Rs 1,250 crore by March-end.
The company also said it would continue to pursue its existing expansion plans and that the global economic meltdown would not impact it significantly.
"We are on track to have 400 hypermarts and achieve a turnover of Rs 1,250 crore by end-march," a company spokesperson said in Mumbai.
In FY'08, Spencer's clocked a turnover of Rs 820 crore.
"We are focusing on setting up more hypermarts across the country," he said.
Spencer's Retail at present has 32 large-format stores in 66 cities pan-India, spread over 1.5 million square feet.
The retail chain has earmarked a Rs 1,500 crore investment for the expansion over a two-year period up to March 2009.
The spokesperson said upmarket stores such as Spencer's would not be affected due to the present global scenario.
"Upmarket stores such as Spencer's, which are not price-driven as much as others, will not be impacted by inflation and the global meltdown," he said.
The ones most likely to be affected are retail chains such as discount stores, catering to the low-income group, he said.
Consumer spending is likely to shift from luxury goods to essentials with a slowdown in the economic cycle impacting demand negatively.
The company also said it would continue to pursue its existing expansion plans and that the global economic meltdown would not impact it significantly.
"We are on track to have 400 hypermarts and achieve a turnover of Rs 1,250 crore by end-march," a company spokesperson said in Mumbai.
In FY'08, Spencer's clocked a turnover of Rs 820 crore.
"We are focusing on setting up more hypermarts across the country," he said.
Spencer's Retail at present has 32 large-format stores in 66 cities pan-India, spread over 1.5 million square feet.
The retail chain has earmarked a Rs 1,500 crore investment for the expansion over a two-year period up to March 2009.
The spokesperson said upmarket stores such as Spencer's would not be affected due to the present global scenario.
"Upmarket stores such as Spencer's, which are not price-driven as much as others, will not be impacted by inflation and the global meltdown," he said.
The ones most likely to be affected are retail chains such as discount stores, catering to the low-income group, he said.
Consumer spending is likely to shift from luxury goods to essentials with a slowdown in the economic cycle impacting demand negatively.
Retail problems hit apparel suppliers
Tue,09 Dec 2008
Apparel manufacturers, who supply to organised retailers, are having a tough time. The global financial crisis has hit exports hard and now, the domestic scenario has also worsened.
Retail apparel sales shrunk in November and large format retail chains, faced with rising inventory, have stopped placing new orders. Most of the retail chains are also seeking extension of credit period. Arvind, Shoppers Stop, Lifestyle and Pantaloons are among the large retailers affected by the slow sales.
An industry sources said the credit period is getting extended to 60 days from 45 days. The financial crisis has made it difficult for large players to fulfil their payment obligations and new orders are blocked or postponed as consumer demand is also falling. Additionally, with shopping malls or stores not coming up as fast as expected, retail players are not taking delivery of many consignments that were due and executed.
“Between April and October, apparel business in the organised retail grew at 15 per cent per annum when compared with the corresponding period last year in value terms,” said Rahul Mehta, president, Clothing Manufacturers Association of India. “However, November has seen a fall of 10 per cent when compared to November 2007.”
In India, apparel constitutes about 10 per cent of the $37 billion retail consumer market.
A supplier to Arvind Ltd, doing an annual business of Rs 3 crore domestically and about Rs 20 crore in exports, said: “New orders with Arvind have been deferred till February 2009. There have been no payments since the past two to three weeks and things don’t seem to be encouraging for the next few months as well.”
A spokesperson at Arvind admitted that growth plans have gone awry. “We are not growing as planned but still growing specially in the value retail segment of Megamart.”
However, he denied that payment cycles were extended.
When contacted, a Pantaloons spokesperson also denied that the payment cycles have been extended with its suppliers.
Shoppers Stop spokesperson was travelling and could not be reached for a response.
Apparel manufacturers, who supply to organised retailers, are having a tough time. The global financial crisis has hit exports hard and now, the domestic scenario has also worsened.
Retail apparel sales shrunk in November and large format retail chains, faced with rising inventory, have stopped placing new orders. Most of the retail chains are also seeking extension of credit period. Arvind, Shoppers Stop, Lifestyle and Pantaloons are among the large retailers affected by the slow sales.
An industry sources said the credit period is getting extended to 60 days from 45 days. The financial crisis has made it difficult for large players to fulfil their payment obligations and new orders are blocked or postponed as consumer demand is also falling. Additionally, with shopping malls or stores not coming up as fast as expected, retail players are not taking delivery of many consignments that were due and executed.
“Between April and October, apparel business in the organised retail grew at 15 per cent per annum when compared with the corresponding period last year in value terms,” said Rahul Mehta, president, Clothing Manufacturers Association of India. “However, November has seen a fall of 10 per cent when compared to November 2007.”
In India, apparel constitutes about 10 per cent of the $37 billion retail consumer market.
A supplier to Arvind Ltd, doing an annual business of Rs 3 crore domestically and about Rs 20 crore in exports, said: “New orders with Arvind have been deferred till February 2009. There have been no payments since the past two to three weeks and things don’t seem to be encouraging for the next few months as well.”
A spokesperson at Arvind admitted that growth plans have gone awry. “We are not growing as planned but still growing specially in the value retail segment of Megamart.”
However, he denied that payment cycles were extended.
When contacted, a Pantaloons spokesperson also denied that the payment cycles have been extended with its suppliers.
Shoppers Stop spokesperson was travelling and could not be reached for a response.
Wednesday, December 3, 2008
Subhiksha to open consumer durable retail stores
2 Dec 2008, 2025 hrs IST, PTI
CHENNAI: As part of its expansion plans, supermarket chain Subhiksha Trading Services today said it will set up consumer durable retail stores
across the country. The stores will sell products like laptops, printers, computers apart from mobile phones, Subhiksha Managing Director R Subramanian said. However, Subramanian declined to give details on how much the company is investing and the time frame for setting up the retail stores. On the decrease in mobile phone stocks (across the company showrooms in Chennai), he said, "In the last few months, the sales of mobile phones have been witnessing slow growth." He said the retail industrial growth has been affected due to the global meltdown. "Everyone in retail industry are postponing their expansion plans and are adopting a wait and watch strategy," he added. He also said that the global meltdown would help in making the industry lead a "healthy life" despite its negative impact. To a query, he said the Chinese retail industry is different and ahead of India "in many ways". The industry there is more organised, he added.
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CHENNAI: As part of its expansion plans, supermarket chain Subhiksha Trading Services today said it will set up consumer durable retail stores
across the country. The stores will sell products like laptops, printers, computers apart from mobile phones, Subhiksha Managing Director R Subramanian said. However, Subramanian declined to give details on how much the company is investing and the time frame for setting up the retail stores. On the decrease in mobile phone stocks (across the company showrooms in Chennai), he said, "In the last few months, the sales of mobile phones have been witnessing slow growth." He said the retail industrial growth has been affected due to the global meltdown. "Everyone in retail industry are postponing their expansion plans and are adopting a wait and watch strategy," he added. He also said that the global meltdown would help in making the industry lead a "healthy life" despite its negative impact. To a query, he said the Chinese retail industry is different and ahead of India "in many ways". The industry there is more organised, he added.
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