Indian Talent, Global Content
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Indian Talent, Global Content |
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March 2010: What's in the breeze |
News Update from the Retail Scene in India
The retail industry could see a sea change with the Government of India considering Foreign Direct Investment. With this in view, Chillibreeze plans to bring you periodical updates on the retail scene in India.The Chillibreeze Business Research Team has writers with interest and experience in the Retail industry, will be populating this page with the updates. For other weekly updates click: Weekly Retail Update
Feb 19th – 25th India Retail News: French luxury, eBay, LVMH, Indian textile and MoreWeekly Retail NewsSunday, February 19, 2006 Even though the organized retail sector is picking up speed, sales in the unorganized sector in India added up to Rs 583,000 crore, while the organized sector was only Rs 5,000 crore. Worldwide figures of $7 billion in the organized sector in the $225 billion total retail market, too suggest that consumers still shop more at local stores. Source: Economic Times Sunday, February 19, 2006 The 12 billion euro French luxury industry is likely to enter the domestic luxury market now, since 51% FDI in single brand retail is permitted. A group of 69 companies from France represented by Comite Colbert is part of the business delegation that President Chirac has brought with him. The products of this group include perfume, jewelry, porcelain, silver, bronze, crystal and gastronomy. Source: Hindu Business Line Monday, February 20, 2006 eBay, a $4.6 billion company, is looking towards India and China to increase revenues as US sales slow down. The company is investing $100 million in China, while in India it has bought bazee.com and currently has 1.7 million registered users. Source: Economic Times Tuesday, February 21, 2006 India’s leading watch company is launching a new high-end brand this week in the price range of Rs 10,000 to Rs 35,000. Source: Business Standard Tuesday, February 21, 2006 The ACNielsen Consumer Confidence Survey shows that India is in the lead of the 12-country Asia-Pacific study as well as in the 42 nation study. The Consumer Confidence Index was added to the survey last year has grown from 92 points to 98 points, while India has 132 points, up from 127 points in the last survey. The survey shows that Indians are more confident of the job market and personal finance. Sixty six percent of Indians feel that it is a good time to buy things they want and need as compared to regional average of 38% and global average of 39%. The only exception is Denmark, where 69% feel it’s the right time to shop. Source: Business Standard Tuesday, February 21, 2006 Canadian province Ontario opened a marketing center in New Delhi to promote trade and investment. The New Delhi center is Ontario’s fourth marketing office, after New York, Munich and Shanghai. Source: Webindia123-India Tuesday, February 21, 2006 UK’s top brand and among the top five in the world, Glenmorangie will be launched in India by LVMH, who will market and distribute the single malt scotch in India. Single malts have had a growth of approximately 80% and the target audience has shifted to a younger person as single malts and cigars have become chic. Source: Economic Times Tuesday, February 21, 2006 Consumer electronics company Shinco will be entering India with its own brands, focusing on the high-end consumer with items like LCD televisions and personal DVD players. Shinco has formed a JV with Singapore based FTD (Future Techno Designs) to market its products in India. Shinco is a $1 billion company that supplies electronic products to Toshiba and Sony. FTD is a $20 million company and has had a development unit in Bangalore for the last eight years. The new company will be called FTD Shinco Consumer Products and initially will only be involved in sales and marketing activities. Other activities such as assembling and manufacturing will be added. Source: Business Standard Tuesday, February 21, 2006 Indian textile companies are building their brands to increase their visibility and turnover. Several brands have re-launched brands with new focus and new segments. S Kumar’s entered the high-end ready to wear segment last year with its Reid & Taylor brand and is launching Carmichael House, a luxury home textile brand in March. Their mid-price brand Tamarind will also be re-launched in a new avatar. Raymond entered the kids wear segment with Zapp. The kids wear segment is a Rs 13,000 crore market dominated by unorganized retailers. The company also has a womens wear line Be. Other textile companies building brands are Bombay Dyeing, Welspun with its brand Spaces, Creative Group with its brand Portico and Kurlon. Source: Rediff.com Tuesday, February 21, 2006 AFL opened its first AFL Touchworld outlet in Mumbai and plans to open 20 more. The company offers conveniences such as Forex, money transfer, international telephony, courier service, travel insurance and e-ticketing. Companies such as Western Union, Air Deccan, Phonewala.com and American Express are available at the outlets. Source: Economic Times Wednesday, February 22, 2006 Luxury French brand Christian Dior opened its first store in India in New Delhi. A second outlet in Mumbai is being planned to open in a year. Source: Hindu Business Line Wednesday, February 22, 2006 Pantaloon Retail is targeting the bottom of the socio-economic pyramid by offering a micro-finance project. According to Kishore Biyani, MD of Pantaloon Retail, the company would like to give money to low-end consumers to spend at their stores. The company will ensure that customers will be able to return money and conduct credit worthiness tests before lending to them. Source: Hindu Business Line Wednesday, February 22, 2006 The government warned kirana stores that they will not survive unless they can face the competition and promote consumer interest. According to Ajay Dua, DIPP (Department of Industrial Policy and Promotion) Secretary, whether or not the sector is fully open to foreign retailers, domestic retailers will face stiff competition from home-grown organized retail chains. The DIPP Secretary also favored conditions such as allowing foreign retailers to open stores in the suburbs, stocking 50% of their stores of agri products, restricting companies to open only one store in a city each year and requiring a minimum of $10 million investment. Source: Economic Times Thursday, February 23, 2006 Allen Solly has decided to offer more than just work wear for women, and will be bringing out an occasion-based clothing line. The womens wear segment of Madura Garments is growing at 55-60 percent, the fastest growing segment in their portfolio. The company will also be expanding their stores to the north-eastern states of Assam and Meghalaya. Source: Hindu Business Line Friday, February 24, 2006 Mumbai’s proposed power cuts will affect sales and traffic in shopping malls. Several malls have special sales during March, April and May to increase footfalls and power cuts will severely affect these events. Kishore Biyani, MD or Pantaloon Retail says that his stores have only 50% power backup and is now planning to have 100% power backup in his stores. According to B S Nagesh, MD and CEO, Shoppers Stop, summer sales will improve as their stores already have 100% backup facility. Source: Economic Times Friday, February 24, 2006 Subhiksha, a discount retail chain, will be offered an IPO to raise money for their expansion. According to ICICI Ventures, who has a 24% stake in the company, an IPO is likely in the next six months. The company plans to open 80 stores in Hyderabad, 56 in Bangalore, 80 in the state of Gujarat in Ahmedabad, Vadodara, Surat and Rajkot and 180 in Mumbai and Pune. Also being planned are 145 stores for the NCR region, 74 in Kerala and 95 in Kolkata. The average size of these stores will be 1,800 sq ft. Source: Hindu Business Line Friday, February 24, 2006 After its tie-up with Gucci, the Murjani Group has tied up with five more luxury brands as their sole distributor/licensor for India. The new entrants will be Jimmy Choo, a luxury shoe brand; French Connection; Tumi, a US based luggage brand; Build-a-Bear, US based toy workshop; and Calvin Klein. Gucci and these five brands are likely to be launched in late 2006 or early 2007 in both Mumbai and Delhi. Source: Economic Times Friday, February 24, 2006 Mumbai based HDFC Bank has been rated as the country’s number 1 pick in the large-bank category. HSBC is rated number 2, up from number 7 last year and Citigroup dropped to number 6, down from number 2 last year. Half the names on the list are foreign multinational subsidiaries with parent companies highly ranked by S&P. With roughly half of India’s population under the age of 25, the country will have a growing population of people in their prime working age unlike China which has a rapidly aging population. Source: BusinessWeek Friday, February 24, 2006 President George W Bush arrives in India on March 1st 2006, and will spend time in New Delhi meeting the Prime Minister and other government and opposition leaders. He will also be going to Hyderabad, where he will visit an agriculture university and the Indian School of Business. President Bush will also be meeting with CEO Roundtable, a group of 10 Indian and 10 US business leaders. The promotion of agribusiness, agriculture technology transfers from the US to India, increasing caps on foreign investment in insurance and news media are some of the items on the agenda. Source: BusinessWeek Friday, February 24, 2006 The Knowledge Company, an initiative of KSA Technopak, has brought out a report on the luxury goods market in India. According to the India Luxury Trends 2006, India has over 1 million consumers in this segment and the number is expected to treble by 2010. The highest priorities for luxury goods are housing, travel, education, high-end automobiles, entertainment electronics and other lifestyle and home improvement products. The report also predicts that the market for men’s clothing, women’s jewelry and accessories and gourmet food and wines will boom in the next 2 to 3 years. Source: Hindu Business Line Saturday, February 25, 2006 H2O Plus, retailer or sea inspired skin care products, opened its first outlet in Chandigarh. The company currently has 4 stand alone stores and 20 counters in India and is focusing its expansion on North India. According to Garima Makkar, Product Manager for H2O, the company chose Chandigarh for its high number of NRIs and well traveled residents. The store is located in the Taj Chandigarh, the city’s premium location. Source: Business Standard Saturday, February 25, 2006 The retail readymade arm of the BK Birla group, Cottons by Century has started a major retail expansion. The company will be adding about 1,50,000 sq ft of space in 70 stores next year. According to the National Retail and Marketing Head, Mahendra Padhy, the shift was due to Indian consumers preferring cotton garments even for office wear. Source: Hindu Business Line Monday, February 20, 2006 RIL is bringing in some of the best from other large companies to shape its retail venture. Reliance wants to start operations before FDI is opened completely for international firms. The company is planning to have both hypermarkets and specialty stores. There will be four divisions in the company: food, non-food, services and agri business. A CEO will head each division and report to the central leadership, which at present comprises of Mukesh Ambani and Manoj Modi. The company has recruited former Electrolux Kelvinator MD, Rajeev Karwal to head the consumer durables division; the former Business Head (Grain and Oilseed) of Cargill India, Sanjeev Asthana to head the agri business division; and former Wipro Technologies Senior VP Bijay Sahoo to head HR. There are unconfirmed reports of Gunender Kapur of Unilever and Krish Iyer, former CEO of Piramyd Retail also joining Reliance Retail. Source: Business World
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