Buy our Omnibus edition featuring 4 reports covering the fast growing retail scene in India. Updated March 2008. The reports begin with an overview of Retail in India. Your purchase includes 3 additional reports on:
1. Grocery and Food Retail
2. Growth of Malls in India
3. Growth of Single Brand Stores in India
General Plans and Information
1. Mom-&-Pop retailers becoming brand managers
Local retailers are being appointed by larger chains as brand managers, for their knowledge of the local market and hands-on approach. Some of the brands that have used this approach are Hidesign, Canary Blue, United Colors of Benetton and Adidas. Benetton offers two options; setting up and running the store or only managing the store. Monday, May 07, 2007
Source: The Economic Times
2. Liquid ban at airports hits sales at duty-free shops
The high levels of security that have banned sale of liquids at duty free shops are hitting the stores hard. Sales at the departure terminals account for 60% of total sales totaling to Rs. 3 billion, which have declined by 30% in the past few months. Prices of goods at duty free shops are usually 15-20% cheaper than regular shops. Monday, May 07, 2007
Source: The Economic Times
3. Metro plans training centers for kirana store owners
Metro Cash & Carry will be starting a training school for kirana stores, in an effort to strengthen them and their business practices to take on the competition from organized retailers. The company already runs such a training school in Turkey. Kirana stores are the company’s main partners, according to Geraro Monzillo, the deputy managing director for Metro Cash & Carry India, which is why they see the potential in their becoming more efficient and organized. Tuesday, May 08, 2007
Source: The Economic Times
Big players - plans and investments
1. Reliance to launch Rs. 30 billion home solutions chain
Reliance Industries is reportedly lining up a Rs. 30 billion venture for the home segment, but is trying to keep it under wraps. It’s retail division will be opening 100 standalone stores for the home segment, with each store being in the range of 40,000-60,000 sq ft of retail space.
A name for this new segment has not yet been decided, the first five of which will be opened in December. Some of these new home solutions stores will also be located in the company’s hypermarket chain as a shop-in-shop format. Reliance will be opening its first hypermarket in Ahmedabad in August and a second in Jamnagar in October.
Although a senior Reliance Retail person source has admitted that the segment will be given a brand name within the next 10 days and will have a design studio as part of the store. Some information suggests that these new stores are being modeled on the lines of a mixture of Ikea and ACE Hardware. Manu Kapur, who was earlier the merchandising head of Ikea India, has been recruited to head this venture. Nalin Khanna, who currently heads the home furniture section of Reliance, will be second in command. Friday, May 11, 2007
Source: The Economic Times
2. Birla’s keen on buying out Piramyd
The Aditya Birla Group is reportedly keen on buying out Piramyd Retail, which is part of the Piramal Group and estimated at Rs. 1.04 billion and recorded a loss of Rs. 70 million in the 2006 financial year. Piramyd Retail has 7 Piramyd department store outlets and 14 Trumart grocery stores at present.
Piramyd has been in decline for the past few years, although it was considered a strong competitor to Shopper’s Stop and Pantaloon at one time. The lack of strong leadership and a fuzzy focus are some of the reasons the retailer has not been able to keep up with its competitors. Friday, May 11, 2007
Source: The Economic Times
International
1. UK based B&Q plans to open in to India
B&Q, a UK based home improvement retail chain announced that it is keen on opening stores in India and is holding talks with several Indian companies to form a joint venture. B&Q is part of the Kingfisher Group, which is one of the largest retail companies in the UK.
Steve Gilman, chief of Asian operations for B&Q, had earlier visited India to see firsthand the opportunities available in the country as well as to meet Kamal Nath, the commerce and industry minister to clarify details on regulations on entry as pertaining to FDI.
B&Q has 700 stores across the world and is the largest DIY retailer in all of Europe and the third largest in the world. At present, Dubai based Landmark Group’s Home Centre, THS (which was earlier called The Home Store) and Future Group’s HomeTown are the three big players in the Indian home improvement segment. Monday, May 07, 2007
Source: The Economic Times
2. Starbucks reassures govt that it is following the rules
Starbucks reassured the government that it is following the rules in entirety and will not be selling more than 2.5% of its gross revenues in the first five years. Starbucks has applied to enter under the single brand format, to sell not only its world famous coffee, but also its assortment of merchandise such as CDs, coffee accessories, grinders, gift items etc. Tuesday, May 08, 2007
Source: The Economic Times
3. Tesco and Hero in talks for tie up
UK’s Tesco is reportedly in talks with the Hero Group to set up stores in India. The Hero Group had earlier announced that it was interested in getting into retail. The UK retail company has already been in talks with several Indian companies including the Tata Group and Bharti Enterprises. Sources suggest that Tesco is looking for a partner that is not aggressive, as it is known for its conservative approach. Tuesday, May 08, 2007
Source: The Economic Times
4. Specialty retailers not so keen on India as yet
While supermarket and hypermarket companies are flocking to India, specialty store retailers are still not showing too much interest in opening stores in the country until FDI rules are changed. Some of the prominent names that will be staying away are Gap, H&M, Zara, Office Depot and Target.
One of the main reasons that specialty retailers are not rushing to open in India is given by Akil Hirani, managing partner of law firm, Majumdar & Company, who says that “In the retail business, companies tend to develop certain internal intellectual properties, which they are not comfortable sharing. If a company has to franchise its business, it will have to share some critical information and data with the franchisee.” Wednesday, May 09, 2007
Source: The Economic Times
5. Starbucks plans to open by end 2007
Starbucks Coffee announced that it would be opening stores in India by the end of the year, in cities like Delhi and Mumbai. The company has revised its application with the FIPB, this time to open single brand stores with a 51% ownership. Wednesday, May 09, 2007
Source: DNA India
HR News
1. Bharti and Global Retail School tie up
Bharti Retail and Chandigarh based Global Retail School have tied up to train manpower for the retail industry, through a wholly owned subsidiary Bharti Resources. According to Sanjeev Duggal, CEO and Executive Director of Bharti Resources, "We have entered into a strategic partnership with the Global Retail School to bring modern skills, knowledge and progressive training to create employability for young people in the growing retail sector of India."
The company will also be training manpower in other fields such as insurance and telecom, where Bharti has significant interests as well. Bharti and GRS plan to train 15,000 students in a variety of courses covering, retail management, sales and marketing, visual merchandising, space planning, logistics, store operations and much more. Monday, May 07, 2007
Source: The Economic Times
2. Retailers opt for temp workers
Retailers are looking to weekend temps to help with the rush of customers over the weekend. It’s mostly students who are opting for temping on the weekends, to earn some extra money, have a fun experience and even gain some recognition. Pantaloon and Big Bazaar are both using students from their retail courses to work on the weekends. Other companies such as Wills Lifestyle, Shoppers’ Stop have already signed up to get temporary workers for the weekends. Thursday, May 10, 2007
Source: The Economic Times
Unique formats
1. Retail majors target Mumbai’s new airport for retail opportunities
Some of the leading retail firms, including the Tata Group, RIL, Reliance ADAG, GVK Group and Larsen and Toubro are bidding for the Navi Mumbai airport project. International companies in the fray include Dnata, which is promoted by the Emirates Group, and Singapore’s Changi Airport International (CAI). Monday, May 07, 2007
Source: Business Standard
2. Future Group to hive off logistics division
The Future Group is to hive off is logistics division into a separate company that will be called Future Logistics & Solutions. The company will now be adding new verticals and offer services such as warehousing, infrastructure, transport, networking and IT support. The Future Group has a lot of experience in logistics, warehousing and supply chain management with its formats, Big Bazaar, Depot and Central. Thursday, May 10, 2007
Source: The Economic Times
Sector specific
Apparel & Footwear
1. Provogue to launch 20 Promart stores
Provogue India Ltd. announced that it will be opening 20 additional Promart stores over the coming three years. Promart is the value or low priced chain of department stores from the Provogue brand, and merchandise here will sell for 30-35% discount from regular prices. The first of these stores was launched last week in Ahmedabad. The product mix will be 85% apparel and the balance non-apparel merchandise.
Promart stores will be in the 50,000 sq ft range and will carry around 100 brands. The company is initially aiming for a sales turnover of Rs. 300 million, which will grow as the brand and the number of stores is increased. The bulk of the merchandise in these stores will be older merchandise from their Provogue stores. Monday, May 07, 2007
Source: Business Standard
2. Levi Strauss Signature keen to be a hypermarket brand
Signature, the youth jeans label from Levi Strauss is keen on focusing on the hypermarket segment and is holding talks with Bharti-Wal-Mart, Reliance and Birla Retail to retail it’s products at their hypermarkets. The Signature brand features affordable clothes ranging from Rs. 600-900 and currently retails at 14 Big Bazaar stores.
According to ATP Ramani, Business Head for Levi Strauss Signature, the company is very optimistic on business in hypermarkets, where they plan to operate at the upper end. Monday, May 07, 2007
Source: The Hindu Business Line
3. Raymond focuses on setting up retail supply chain
Raymond is working to put together its retail supply chain quickly as they are working to put an efficient system in place. Raymond recently opened its 350th retail store in the country. The company has planned to have 1,000 stores open in the coming three years. Monday, May 07, 2007
Source: The Hindu Business Line
4. Cotton County plans to double stores
Ludhiana based Nahar International’s garment brand Cotton County will be expanding on an aggressive scale. The retailer is worth Rs. 1 billion and has three ready-to-wear brands, Tazo ad children’s wear brand, Femme, a women’s wear brand, and French Republic, men’s brand. The company has 250 stores at present and will increase them to 500 by the end of this fiscal year. Thursday, May 10, 2007
Source: Business Standard
Books & stationary
1. Archies goes beyond cards
India’s largest card retailer is thinking beyond just cards and has set aside Rs. 300 million to promote its brand and increase its offerings to include jewelry and home décor among other segments. The first nine of their new outlets are to open in Delhi under the Stupid Cupid brand. Thursday, May 10, 2007
Source: DNA India
Food & Grocery
1. Wadhwan Foods offers non-store format with Sangam Direct
Wadhawan Foods will be testing the market out with Sangam Direct before it opens is regular retail stores called Spinach in the market. The company will be adding wet groceries like frozen foods, fruits and vegetables to its products at Sangam Direct. Call centers will now be directing calls to the closest Spinach stores instead of warehouses to fulfill home delivery orders. Monday, May 07, 2007
Source: The Hindu Business Line
2. Food retailers prefer to link directly to farmers
Retailers in India prefer to form direct links with farmers and completely cut out all the middlemen. According to a recent study by PG Chengappa, Vice Chancellor of the University of Agriculture Sciences in Bangalore, food retail chains (FRCs) prefer to work with medium to large farmers who have 2-5 hectares of land. Monday, May 07, 2007
Source: The Hindu Business Line
3. Reliance Fresh to open 100 stores in Punjab
Reliance Retail announced that it would be opening 100 Reliance Fresh stores in Punjab this financial year. The stores have already received a positive response in other states that it has opened in, such as Andhra Pradesh, Rajasthan, Tamil Nadu, Delhi, Jharkand, Karnataka, Gujurat and Maharashtra. Tuesday, May 08, 2007
Source: The Economic Times
4. Street vegetable vendors up in arms against Reliance
Local vegetable vendors in Ranchi who operate on the street gathered together to protest against Reliance Retail as their business has been severely affected due to the company offering lower prices. Even though these vendors might be unhappy with the situations, consumers are happy with the low prices of fruits and vegetables at Reliance Fresh stores. Wednesday, May 09, 2007
Source: DNA India
5. Subhiksha aggressive for Gujarat
Subhiksha has ambitions plans for the state of Gujarat, where it plans to double its consumer base. The company plans to increase its consumers from one million to two million in the next three months. The retailer has 60 outlets in the state and will add another 45 in the next three months. Gujarat accounts for 10% of the company’s revenues. Thursday, May 10, 2007
Source: Business Standard
6. Subhiksha sorts out stock shortage
Since it opened in Mumbai five months back, Subhiksha had faced a problem of stock shortages, which is finally sorted out now. The retailer has also increased the number of sales staff per customer. According to R Subramaniam, managing director of Subhiksha Trading Service, “Though our stock inventory is still not optimal, we have improved it substantially from 65% in January to a stock inventory of 82% currently.” Average billing now comes to Rs. 400 per customer now, a significant improvement of the Rs. 200 that it had when stocks were running short. Thursday, May 10, 2007
Source: The Economic Times
7. Brands extensions back in a new avatar
A lot of single product brands are extending their business to offer a variety of products in different categories under a single brand name. One of the most prominent users of this is Kingfisher who its beer brand name for its airline as well. Saffola started out with oil but uses the same name for its sale and atta mix, which differentiated itself by using a health platform. Thursday, May 10, 2007
Source: The Economic Times
8. Super Bazar employees send govt. legal notice
The Super Bazar karamchari Dalit Sangh (SBDKS) has served a legal notice to the government and are threatening to file an application of contempt as it did not implement the Supreme Court’s orders to revive the shopping cooperative. The court had ruled that Indian Potash Ltd (IPL) and the Indian Labour Cooperative Society (ILCS) were to revive the Super Bazar stores and that the government were to “facilitate the process”. Friday, May 11, 2007
Source: The Economic Times
Jewelry & Watches
1. Tanishq’s overseas plans
Titan Industries, jewelry division Tanishq is looking to replicate its success in the domestic market to overseas expansions, and is looking at a 50% growth from its international markets alone. The company recently entered the US and the Saudi Arabian markets and is now keen on opening up in Malaysia. For each country that it expands to, Tanishq is creating an entirely new game plan. Monday, May 07, 2007
Source: Business Standard
Luxury and Lifestyle
1. Luxottica Group to open Indian subsidiary
The world’s largest sunglass maker, the Luxottica Group is planning to set up a subsidiary in India to sell its products here. Luxottica is based in Milan and has operations in India via wholly owned division Ray Ban Indian Holdings, which sells Ray-Ban sunglasses. The company will now set up another subsidiary to market and sell other brands. Sunday, May 06, 2007
Source: The Economic Times
www.india-reports.com: A Chillibreeze Website - Focusing on niche, value added epublications covering Indian business, economy, industries and government policy.
Stay abreast of the fast moving economic super-power — India!
| 
| 
