Why Subhikhsa collapsed- Skeletons Out of the Closet
Economic Times

In January 2009, around the time that Satyam Computer Services was collapsing in a heap, Subhiksha too was falling to pieces. In all the noise generated by Satyam's crash, India's biggest discount retailer's downfall was muffled , heard merely as a whisper. But for Mukand, one of Subhiksha's 15,000 employees and a purchase manager for Karnataka, the noise was deafening. "We had no money, no work, nothing ," he says, recalling the fear and despondency among the staff of Subhiksha, which was regarded as a company that had found the magic formula to make organised retailing a success in India.

Offline Retailers Tata Croma & Future Group Primed Up For E-Commerce
VC Circle

Retailing heavyweights, Tata and Biyani, addressing the efficacy of the online medium discussed how they might combine online business models with offline play. Tata Croma has 65 retail outlets across India, and has Techcircle.in as its online portal. The company is also trying out various other online-offline combinations to woo more customers. Kishore Biyani's Future Group has had a resounding success with FutureBazaar.com, which underwent a re-design earlier this year, and now claims to be selling more laptops online than offline. Other sites by the group include Pantaloons.futurebazaar.com and BigBazaar.futurebazaar.com. Seeing the convergence of online and offline as the emerging trend crucial to customers who want to get the best deals, Kashyap Mehta (Tata Infiniti Retail) says the future lies in the two models Web2Store and Store2Web co-existing. Excerpts from a discussion:

Landmark to launch 8 stores across India
Business Standard

Landmark Book and music store, a lifestyle retail chain and a subsidiary of the Tata group-owned Trent, has planned to launch eight new medium and large format stores in the country in the next two years. With an investment of about Rs 4.5 to 5 crore per store, Landmark is looking at opening new stores in Bangalore, Mumbai, Chennai, and Chandigarh. Ashutosh Pandey, COO, Landmark said that since the leisure and lifestyle market in India is growing rapidly, they intend adding two catagories to their stores, namely sports and gaming zones, focusing on all the latest games and consoles.

Luxury retail not part of India's success story
Economic Times

Trying to sell expensive chic in India faces several challenges: steep import duties of up to 30 percent, inadequate luxury retail infrastructure, real estate regulations, and a clientele that prefers to shop overseas. According to Gayatri Ruia, Development Director of Palladium in Mumbai, India is a tough market, and the Indian spending pattern very different. Part of the problem is also providing the Indian consumer with a luxury shopping experience. Luxury retailers are attempting to get around this by selling their wares out of five-star hotels, international airports, and malls built exclusively to sell designer labels. However, with only two luxury malls, one in New Delhi and the other in Bangalore, luxury retail is not yet a part of the Indian story.

'FDI in retail: Prospects of Indian retailers taking over foreign'
Commodity Online

Shedding light on the discreet aspects of the widely-expected FDI in organised multi-brand retail in India and its effects on Indian retailers, Professor Piyush Kumar Sinha of the IIMA (Indian Institute of Management, Ahmedabad) says that India has a unique distinction of its largest marketcap companies operating in the retail sector. In fact, a point of concern for foreign companies is that these large Indian retailers are already global in their business operations. The kirana store business model being different from the large format store, is not likely to be obliterated. In fact, the FDI policy change will only enhance their stake, since, while retailers like Wal-Mart will not be able to replicate this format, the kirana stores have their operating systems well in place. Further, retailers like Hariyali Kisan Stores, Chaupal Sagar, and Aadhar have demonstrated that even in the rural areas customers are ready to adopt new levels of service deliveries. Excerpts from an interview:

Range of back-end infra FDI to widen in multi-brand retail
Business Standard

The committee of secretaries (CoS) has decided to expand the definition of "back-end infrastructure" for the proposed policy to permit foreign companies in multi-brand retail. With the clause that 50 percent investment has to mandatorily be in back-end infrastructure, the department of industrial policy and promotion (DIPP) was tasked by the CoS to define back-end infrastructure investment. Where earlier, the definition mainly included investment in logistics and processing of agricultural goods, the new definition includes three new areas: design improvement, quality control, and packaging of products. This move will provide foreign retailers greater flexibility in structuring their India investments in the retail sector.

'Nod for FDI in multi-brand retail may take many more months'
Economic Times

With continued opposition from the minority Bhartiya Janta Party (BJP), small traders, and NGOs, the Indian government could take several months before it gives the green signal to foreign direct investment (FDI) in multi-brand retail allowing global chains to open stores in the country, according to the latest report of the US Agriculture Department. The CoS approval, which is yet to go to the Cabinet for its consideration, has several caveats that include a minimum FDI of USD 100 million for large format retail operations, a 50 percent component to be deployed in back-end infrastructure, and that they will be allowed only in cities with a minimum population of one million.

SPAR launches first Hypermarket in Coimbatore
IndiaPRwire

Max Hypermarkets India Pvt. Ltd. (part of the Dubai based Landmark Group) has a licence agreement with SPAR International to open SPAR stores in India. Adding to the eight stores located in Bangalore, Hyderabad, Mangalore, Pune, and Delhi, SPAR unveiled its first hypermarket in Coimbatore, spread over 36,500 sq. ft on a single floor. With their "Every Day Low Price" policy, "Best Deal" promos, and catering to all categories of products, including groceries, and a well-stocked patisserie, Mr. Viney Singh, Managing Director, Max Hypermarket India Pvt. Ltd, said "We hope to take the shopping experience in Coimbatore to a new level."

Nilkamal to spread out its @home brand stores
mydigitalfc.com

BSE-listed Nilkamal, a leading retail store chain which prides itself on being a one-stop shop providing solutions for all kinds of offices and homes, and offering a wide range of lifestyle furniture and interior decor items, is expanding its footprint, under @home, the mega home store brand. Executive Director, Nilkamal, Hiten Parekh said they plan to open a total of eight more new stores in tier-I and tier-II cities this financial year. With an investment of over Rs 25 crore, all eight stores will be company-owned.

Future group plans to synergise its products for greater reach: Kishore Biyani
Economic Times

History and retail come together as the Future Group, owners of the Amar Chitra Katha brand, grow the property through its retail outlets. Feeling the need to restore awareness about traditional values, Group CEO Kishore Biyani said, "We will open the first of the Amar Chitra Katha theme parks in Chennai. We also have plans for Imagninariums, which will come up at Big Bazar outlets and we are creating a new series in Amar Chitra Katha with more recent events." The first imagninarium could open in the next three to four months.

Jumboking completes 10 years on 23rd august: goes airconditioned
India PRwire

Indian retail superbrand Jumboking, Mumbai's 'snack on the move', has achieved another milestone. The quick service restaurant chain that has captured the imagination of the city's youth, now serves vada pav in an air-conditioned 'hip' environment. Completing ten years of existence, Dheeraj Gupta, the owner wants to upscale gradually by first launching the brand in Indian megacities, even though there are fanchise enquiries from Europe and the USA.

Yum! Restaurants plans huge expansion
FranchiseIndia

Yum! Restaurants India Pvt. Ltd is set to open 1000 new restaurants across its various categories. The company has franchise rights to expand internationals brands like KFC, Pizza Hut, and Taco Bell in India. Elaborating on this, Niren Chaudhary, MD, Yum! Restaurants India Pvt. Ltd said that by 2015, the company aims to become a 100 billion dollar company, with 50,000 employees in India alone. The majority of the expansion will be done via the franchise route.

Thali Goes Quick-eat in World of Corporate Bites
Daijiworld.com

The traditional Indian thali, a platter consisting of a variety of home-cooked delicacies, has donned a corporate avatar thanks to the biggest regional cuisine chain in the country, Khandani Rajdhani. With 30 outlets in 19 Indian cities and in Oman, the chain has has introduced new breakfast and weekend platters apart from improvising on its lunch and dinner thali. The image makeover is aimed at the ever-growing population of young professionals who are on the move, and looking for a quick bite of hearty, guilt-free food, said Aji Nair, Assistant Vice-President (food and beverages) of Mirah Hospitality, which manages the steadily growing eatery chain.

Amit Burman, Chairman, Lite Bite Foods, awarded
HospitalityBizIndia

Amit Burman, Chairman, Lite Bite Foods Pvt Ltd and Vice Chairman, Dabur India Ltd has been named the Restaurant Entrepreneur of the Year at the India Restaurant Awards 2011. Burman has been recognized for his contribution towards the food retail industry in India. With 52 F&B outlets, in various formats, Lite Bite is among the first Indian food retailing ventures to have made an overseas debut with the launch of its Punjab Grill outlet in Singapore.

Investors jostling with each other to fund fast-growing Indian food and beverages
Economic Times

The Indian food and beverage (F&B) industry is attracting a surge of interest from investors interested in backing companies with scaleable businesses and a robust back end supply chain. With a growing propensity for eating out, several international and local chains have either raised funds or are planning to do so, to cope with the demand. Jubilant Foodworks, the Indian franchisee of Dominos Pizza, was oversubscribed when it listed on the bourses, Devyani International, the franchisee for Pizza Hut, KFC and Costa Coffee, and OmPizza, the franchisee for Papa John's Pizza, raised funds from ICICI Venture and TVS Capital, respectively. With the industry set to grow at a cumulative average rate of 20% annually, these enterprises are set to expand.

Tata group cos launch branded dals in Karnataka
Business Line

Tata Group companies, Tata Chemicals and Rallis India, today launched four varieties of branded dals in Karnataka under the brand name 'iShakti'. Competitively priced and in consumer-friendly packs, Tata Chemicals will use its Tata Kisan Sansar outlets across the country and existing salt distribution network to distribute the dals, apart from retailing them in the traditional kirana stores and modern food retail chains.

US food processing giant Archers Daniels Midland to acquire India's Geepee Agri Private
InvestinIndia

US food processing giant Archers Daniels Midland Company (ADM) is set to acquire the Rs 650-crore edible oil maker Geepee Agri Private, said sources who are in the know. The Noida-based Geepee Agri which operates the Parampara brand in the local edible oil market, is majority-owned by Thailand's GP Group, a business conglomerate of India origin, and Rabo Private Equity. It has two plants at Kota in Rajasthan and Akola in Maharshtra. GP Group and Rabo will offload their entire shareholding to the $61-billion Illinois-based company.

Gurcharan Das is now advisor to Walmart & Mars
Business Standard

It's hardly a secret that international retail majors are eyeing the emerging markets, including India, to grow their businesses. But, it is only now that they are getting serious about having Indians on their global advisory boards. Author and former CEO of Procter & Gamble (India), Gurcharan Das has recently joined the global advisory boards of two such international chains - Walmart and Mars.

South Korea's Yogurberry to enter India
Business Standard

Global frozen yogurt major Yogurberry said it would foray into India within the next three months, and plans to open over 100 outlets across the country over the next five years. The South Korean firm will set up its operations in India through Dubai-based master franchisee, Synergy Holdings. Looking to open their first store in Delhi, they will then target the other metros and major tier I cities. 50 of the 105 outlets they plan to open, will be in North and East India, said Synergy Holdings Partner Pawan Batavia.

Hindustan Unilever, Future Group to co-brand bakery products
Economic Times

In a first of its kind, the country's largest consumer products company Hindustan Unilever (HUL) and biggest retailer Future Group will co-develop and co-brand a line of bakery products that will be sold exclusively at Big Bazaar stores. The bakery products will sport both Hindustan Unilever's 'Modern' and Future Group's 'Freshly Baked' brands on their packs. With HUL's strength of making good bakery products as well as distributing it nationally, and Future Group's largest network of Big Bazaar stores across India, both companies are leveraging their core-strength for the new product.

A luxe life: The Indian Luxury Retail market
Financial Express

The profile of the Indian luxury consumer has changed tremendously over the last few years, as is evident from the footfalls in the international-standard luxury malls, like the Palladium Mall in Mumbai and the DLF Emporio Mall in New Delhi. The Indian consumer expects quality, value, aesthetics, style, exclusivity, and customer service. The luxury market in India is just around 1% of the global luxury market, yet Louis Vuitton, DKNY, Gucci, Dior, and Genesis, among other brands, are customising to the needs of their Indian customers and are set for a long haul in the Indian market.

Hit by excise duty, garment makers resort to selling unbranded apparels
Business Standard

The impact of excise duty on branded garments has been such that smaller garmenters are increasingly moving from the organised segment to the unorganised by resorting to manufacturing and marketing unbranded apparel, as well as opting for bulk orders. In a survey conducted by the Clothing Manufacturers Association of India (CMAI) the reduction in sales was to the tune of 17 percent during the last three months, translating to a sales decrease amounting to Rs 1,725 crore. In Gujarat too, garmenters are removing their labels and selling unbranded apparel.

5 Tips for Shopping Online Successfully
Siliconindia.com

Becoming a savvy consumer is what online shopping is all about. Shopping online can save 15 percent, at least, on big purchases. Some tips for getting the best possible deals are: researching a product before buying, in order to compare prices, searching for discount online coupons, waiting for sales periods, ensuring that the site is an authentic one, and that payment options by credit card are secure.

In India, industries boom, but logistics lags behind
Washington Post

In India's burgeoning consumer economy, transporting items from the factory to the store is a painfully slow process. The bottlenecks are many: pothole-filled roads that do not allow more than an average speed of 19 miles an hour, different tax systems in different states, and long bureaucratic delays at warehouses. Further, the average turnaround time at ports is 84 hours, according to a report by KPMG and the Confederation of Indian Industry, compared with seven hours in Hong Kong and Singapore. India also urgently needs skilled blue-collar workers in the logistics business. By 2015, the country will be short by about 25 million workers in this field. In recent years, a handful of Indian companies have set up automated warehouses in the hinterlands. But this is not enough. To meet the estimated economic growth of the next five years, and decrease the cost of waste which is likely to hit $140 billion by 2020, the logistics and supply-chain infrastructure has to grow 21 / 2 times.

Indian toy industry worth Rs 1700 cr is here to stay as toys inspired by flicks create ripples among kids
Economic Times

If you don't know who Lightning McQueen, Marlena and Sebastien are, ask any preteen in your neighbourhood and they will probably show you one or more of them. These are car characters from Hollywood computer animated film Cars 2 which kids know all about. Cars 2 is the latest success story in India's booming toy economy that has become a huge money spinner for toy makers, retailers, some Hollywood studios and children's television channels. The stats speak the story: the Indian toy industry is estimated to be worth Rs 1,700 crore and growing 15-20% a year. According to a Euromonitor study, spending on toys and games in India is set to grow at 157% between 2009 and 2014, much faster than other Asian countries such as China (84%), Taiwan (35%), South Korea (33.1%) and Singapore (17.2%).

Khadi: The fabric of our nation
Moneycontrol.com

In one of the many colonial era buildings at Fort, Mumbai, a legacy from the time of the British Raj, the well-stocked Khadi Bhandaar is a neglected store. Khadi first caught the imagination of the nation during the freedom movement. Mahatma Gandhi propagated it as not just a fabric, but a way of life. The production of khadi was intended to create self-reliance among the poor and build a strong rural community. The fabric is once again showing signs of a revival.

Pune's retail realty shows signs of revival: Report
Times of India

Post-recession, major players are planning to expand the market in response to consumer aspirations. Real estate consultancy firm CB Richard Ellis (CBRE) said in its 'India Retail Market View - First Half 2011' that Pune has witnessed most expansion activity in retail in the year along with the NCR, Delhi, Bangalore, Mumbai, and Chennai. Future Group Chief Executive Officer Kishore Biyani said that modern retail segment thrives on young hopefuls who migrate to urban centres. Future Group is thus expanding its department store format Central as well as its Big Bazaar chain. It has also opened the first phase of its 1.1 million sq ft Amanora Town Centre, with the promise of making it a complete day destination. The 3 million sq ft Phoenix Market City, with at least two more one-stop destinations including the Plaza Centre, are in the finishing stages as well.

Plus-size retail in India needs to be more coordinated: Designer Namrata G
Daily News & Analysis

Plus-size retail in India is a niche market, that needs to be more coordinated, according to fashion Designer Namrata G. Though Gia, Mustard and a few others do cater to the plus-size market, their garments leave a lot to be desired. While there needs to be more awareness about plus-size clothing, quality products from good designers are what is required in this burgeoning market.

Punjab farmers first to prepare for retail chain supplies
Times of India

A process to integrate 13 lakh Punjab farmers with quality conscious global and national retail chains was set in motion for the first time in India from Punjab with Quality Council of India (QCI) beginning their training in good agriculture practices (GAP) in Chandigarh on Wednesday. Joint Advisor of the Council, Dr Hari Prakash said that similar workshops would follow in Jaipur and Nasik. The reasons for the standardisation have been the enforcement of the Food Safety Act (FSA), and the belief that it is a pre-requirement for retail chains directly sourcing farm produce from the farmer. The training programme has been initiated in the light of the proposal for 51% foreign direct investment (FDI) in multi-brand retail.

Policy tweak to help MNC cash & carry JVs enter multi-brand retail
Images Food

A key provision in the rules governing foreign investment in India's multi-brand retail sector is set to be deleted, clearing the decks for wholesalers like Bharti-Walmart and Trent-Tesco to sell en masse to their own retail outlets. The provision - which prevented cash & carry operators from becoming de facto multi-brand retailers by selling exclusively to their own retail businesses - is expected to be removed at next month's biannual review of foreign direct investment (FDI) policy.