There is a clear impact of economic issues on consumer purchase behaviour: Govind Shrikhande, MD, Shoppers Stop
Business Standard

Govind Shrikhande, Managing Director of Shoppers Stop, shared his views on the economic slowdown, the impact on the sector and the outlook for the company. Is there an impact of the slowdown and is this likely to continue? In the first half of the current financial year, there was no indication of a slowdown, with overall like-to-like sales growth at 12 percent, with some volume gains as well. The growth was quite good, despite a price hike. December has been a slow quarter when compared to a year before. There is a clear impact of economic issues on consumer purchase behaviour... Edited Excerpts:

Winterwear retailers like ITC Wills Lifestyle, Shoppers Stop, Spencer's Retail enjoy the cold wave
Economic Times

Severe cold wave in most of the country has triggered a boom in winterwear sales, and apparel retailers such as Woodland, Monte Carlo, ITC Wills Lifestyle, Shoppers Stop and Spencer's Retail expect 20-50% jump in sales. Jackets, be they simple, hooded or with fur collars, and boots are among the hottest sellers as north India shivers in bitter cold, despite the late onset of winter. Windcheaters, pullovers, cardigans and sweater dresses are also doing well, retailers say. The retail arm of the RP Sanjiv Goenka Group expects 50%-60% jump in apparel sales this season. At ITC Wills Lifestyle, long coats for men and women from designers like JJ Valaya, Rohit Bal and Rohit Gandhi in the Rs. 13,000-15,000 price bracket are in demand, as are cashmere jackets and mufflers, says Atul Chand, divisional chief executive of lifestyle retailing at ITC.

Govt to go ahead with 100 pc FDI in single-brand retail: Anand Sharma
Economic Times

The government on Tuesday said that it would go ahead with its decision to allow 100 percent foreign direct investment (FDI) in single-brand retail. "In single brand retail, there will not be a pause, its a good beginning .... The Cabinet has approved both (single and multi-brand retail). There is a pause when it comes to notification of the decision taken that is for multi-brand retail for now," Commerce and Industry Minister Anand Sharma said during his meeting with fashion industry people in New Delhi.

FDI in multi-brand retail: So near yet so far in 2011
Business Standard

It was a case of politics prevailing over policy reforms as far as India's booming retail sector was concerned. The retail sector, estimated to be around $450 billion and growing at around 15%, was clearly the reason for the Cabinet's decision to allow 51% FDI in multi-brand retail and 100% in single brand retail in November. The decision was welcomed by both domestic retail players, including Future Group, Reliance Retail, Shoppers Stop and Aditya Birla Retail, and foreign giants such as Walmart, Tesco, and Carrefour. Though it is now on the back burner, Ernst and Young Partner and National Leader (Retail and Consumer Product Practice) Pinakiranjan Mishra said. "The macro view is positive for the coming year. It is just a matter of time that more discussions will happen on FDI before it is cleared," he added.

Retail sector in 2011: Amid FDI row, most companies expand operations
Economic Times

Despite the FDI row, and issues related to tax, for most companies it was business as usual. At first glance, Tata Group firm Trent sought shareholders permission to raise up to Rs 300 crore through the issue of securities for future expansion; Aditya Birla Retail said it would invest about Rs 1,500 crore in the next five years to open new stores under the 'More' brand; Bharti Retail continued expansion of its 'easyday' stores across the country; Future Group's Pantaloon Retail India Ltd., (PRIL) completed realignment of its business, hiving off its consumer electronics products arm 'ezone' into a separate subsidiary, and announced an equal joint venture with the UK-based footwear maker Clarks, as well as entering the premium foods category with a retail chain under 'Food Hall' brand. Even troubled players tried to infuse a fresh lease of life in their businesses.

American shoe brand Vans opens outlet in Bangalore

The Hindu

Vans International, a well-known American shoe brand, has launched its second and third store in India, in Bangalore. The first was established in Delhi. Adding to the outlet at Forum Mall, Bangalore, is the 650 sq ft Vans store in Phoenix Mall which caters to the young and hip, particularly for those whose style statement is sporty and trendy.

Fine Fair to launch Kair brand for kidswear
Hindu Business Line

Having opened over 20 outlets under the Fine Fair brand in West Asia, its Managing Director, Mr Ismayael Rawther is planning to open 50 new children's garments outlets in India under the brand name Kair. The children's outfits are exclusively produced by the company at its Tirupur facility and sold extensively across the Gulf countries. Now Fine Fair is extending its reach to the Indian sub-continent, initially with 20 stores in South India, under the brand name Kair. "We are going for the mall concept and will be opening our first two outlets in Kannur and Kozhikode in Kerala.

New York-based consumer products maker Wiesner eyes India
Economic Times

New York-based Wiesner Products Inc (WPI) has set up its subsidiary in India to sell a range of consumer items such as footwear, hosiery, accessories, apparel and home goods at retail stores in New Delhi. Wiesner Worldwide Kreations (WWK) Pvt Ltd, the Indian arm of WPI, has already tied up with leading retail stores in the country like Hypercity, Home Centre and Westside, as it looks to strengthen operations in the country.

Home interiors retailer Evok debuts in Jaipur
indiaretailing.com

Evok Mega Home Store, a home interiors retail chain, has opened a 'specialty home interiors' Mega Store in Jaipur. Spread over 1,0000 sq.ft., the outlet offers over 16,000 lifestyle products including home furniture, soft furnishings, home d cor and accessories, modular kitchens, laminated floorings, bath fittings, and lightings. This is the the company's 15th store in the country under its Rs 250 crore investment plan. The new outlet will also provide 'Design to Build' interior design services to its customers in Rajasthan. In-house designers at the showrooms will assist customers to visualise their ideal home spaces using 2D and 3D visualisation.

Archies stores to sell postal stamps too
Rediff

Gift and greeting cards major Archies Ltd said on Tuesday that the Department of Posts has allowed the company to sell postal stamps at its retail outlets across the country. The company further said that the permission was given to the company to make the postal stamps available to its customers as a value addition.

Yum is well positioned to establish strong presence in India
Hindustan Times

A report prepared by Euromonitor, an independent market research group, focuses primarily on Yum! Brands and the potential of their growth in a country that has experienced meteoric growth over the last decade. Yum! Brands is the world's largest restaurant company with 38,000 locations in 110 countries and includes chains like KFC, Pizza Hut and Taco Bell. In 2010, the company had 279 outlets in India, but expects to expand to 1,000 locations by 2015. With a trio of brands that can easily adapt to Indian palates, Yum! is well positioned to establish a strong presence in the country, the report points out. When it comes to overall value, however, McDonald's still outranks Yum! Brands.

Pizza Hut to open more stores that offer wine and beer
Times of India

Encouraged by the popularity of its stores that serve not only pizzas but also wine and beer, restaurant chain Pizza Hut plans to open 25 more such joints across the country next year. Sunay Bhasin, Marketing Head, Pizza Hut India, said that they had tremendous response to this new format of their business. The company, which is celebrating 15 years of operation in India, currently operates 10 such stores in Delhi, and Bangalore, and plans to take its casual dinning restaurant presence from 131 to 250 stores by 2015.

Pizza Hut weaves the brand into the Indian consumer psyche
Best Media Info

In order to celebrate its 15 years in India, Pizza Hut has launched a campaign that went on-air over the last weekend. Sunay Bhasin, Head, Marketing, Pizza Hut India, talks about the new campaign devised by JWT to mark 15 years of the brand in the country and the brand's journey.

Edible Arrangements launches in India
IndUS Business Journal

Edible Arrangements has opened its first store in Mumbai. Last year, Hiten Bajaj, Avinash Khemani and Ishna Batra signed a deal for the development of 20 units throughout India. With this opening, Edible Arrangements is now available to consumers in 14 countries outside the United States and Puerto Rico. "Currently, there is nothing like Edible Arrangements in India and we anticipate our healthy, hand-crafted products will be well received by consumers in the country," said Bajaj, Edible Arrangements India franchisee. "It is our goal to 'wow' customers with our chocolate dipped fruit and beautiful, fresh-fruit arrangements perfect for any holiday and all entertaining needs."

Under One Roof to set up Indian restaurants in the US and Middle East
Afaqs

Indian Cuisine truly goes international with professional consulting house, Under One Roof, all set to open three new Indian restaurants in the Middle East and two in the USA. Although the cuisine has a worldwide presence with the Indian diaspora spread across the globe, this is among the first professional initiatives by a corporatised set-up in creating a complete Indian experience outside India.

Pizza Hut to double outlets in India
Business Today

Pizza Hut is on a big expansion spree in India. It plans to almost double the number outlets in the country by 2015. The expansion will mostly happen in tier II and tier III cities. Pizza Hut currently operates 131 outlets in the country. The dining chain is also bulking up its menu. Soon, it will add 15 different pizzas to its menu, inspired from regional cuisines and flavours from around the country.

Pernod Ricard India rolls out costliest whisky in India
Economic Times

Pernod Ricard India has rolled out superior versions of Blender's Pride and Royal Stag whiskies, after posting 30% value growth from its locally made whiskies last year. The French distiller says that Blenders Pride Reserve Collection is now the most expensive locally made whisky in India, retailing at an average price of Rs 800 for a bottle of 750 ml.

A look at Mumbai's dwindling Irani chai shops
The Asian Age

A lot can happen over chai. Once over 300 Irani tea-shops in Mumbai were as intrinsic to the city as streetside cafes are to Paris. During the 1950s-60s, the unfussy restaurants-cum-stores flourished, attracting a regular clientele of senior citizens, office-goers, campus students, writers and artists. The shops were adorned with glass paintings of Zoroaster, vistas of sunrises over waterfalls and notice boards chalk-written with stern warnings on the lines of "do not talk politics." Today, the megapolis is home to barely 30 Zoroastrian Irani shops, and even this number is dwindling.

Pizza Hut wants a larger pie
Business Standard

The most recent offering by Pizza Hut is an extended menu of 15 localised pizzas derived from regional tastes like Sev puri, Chettinadu paneer, Chicken achari, Nimbu mirchi, to name a few. The new offerings reflect the brand's aggression in a market where several new brands have entered the fray. Many global pizza chains have been eyeing this space with interest. While Dominos, with its 400-plus stores continues to be the largest in terms of spread, many others like Smokin' Joes, California Pizza Kitchen, Papa John's Pizza are slowly increasing their reach. UK-based Pizza Express is believed to be re-entering the country with a joint venture with the Bharti family.

McDonald's India to double outlet network in three years
Economic Times

Fast food chain McDonald's India said it plans to double the number of outlets it has in the country to 500 over the next three years at an investment of Rs 1,000 crore. The American fast food chain is being operated in the country by two franchisees: Amit-Jatia-promoted Hardcastle Restaurant which runs the chains in the West and South; and Vikram Bakshi led-Connaught Plaza Restaurants that runs the outlets in the North and East. Together, these two franchisees run 250 McDonald's outlets in the country. McDonald's is also keen to double the number of outlets in the drive-through format.

Snapdeal, the e-commerce site has broken growth records in 2011; What next?
Economic Times

Snapdeal working out of Okhla, Delhi, is just 18 months old. Yet the net worth of the company is over Rs 1,000 crores. Employing over 800 people across 50 cities, this business is no longer restricted to selling innovative deals, and adds new brands to its shelves everyday. It is now an online retail company and as Rohit Bansal, Co-founder, Snapdeal says, "Our biggest advantage is the product and service mix we offer. From spas and fine dining deals to mobiles and bags, such a range is not found on any other coupon site."

Flipkart aims for 10-fold growth in revenue in FY12
Business Standard

Flipkart, India's largest online book chain, which has now diversified into other categories, is looking at closing this financial year with a more than 10-fold growth in revenue. Flipkart Co-founder and Chief Executive Officer (CEO) Sachin Bansal said, "In terms of revenue, we are looking at Rs 500 crore to Rs 600 crore in the current financial year." Aiming at becoming the largest retailer of India, Flipkart wants to be present across all categories, except in groceries and automobiles, the CEO said.

Madura Fashion now no longer exclusively for men
Business Standard

Planet Fashion, with its latest range of international brands, is targeting the entire family. Madura Fashion and Lifestyle, which has primarily been a menswear company, is targeting the entire family with its premium brands. Its new family stores - Planet Fashion Grande - also has a new tagline "move up in style". While Planet Fashion stores are between 2,000 to 6,000 sq ft, Grande stores will be between 15,000 to 18,000 sq ft and divided into four sections - international, ceremonial, ladies wear and menswear sections. The first Grande store was launched in Bangalore last week.

No flinching from selling seconds on the high street
Hindu Business Line

A pair of beige trousers from Marks & Spencer, sold at a 25 percent discount, sports a damage description card that boldly states 'Sold as seen: Pen mark on left leg'. As a consumer, would you dump this piece or buy it anyway? The choice is yours, says Marks & Spencer, which was selling the above garment at its exclusive retail store in an upscale mall in Chennai. Marks & Spencer says this global practice is part of its efforts to reduce the impact on the environment. "We ensure the products in our stores are of the highest quality. We are also committed to limiting the amount of waste going to landfill. On the few occasions when our products are damaged, we will clearly display them with d cor so that customers can differentiate them from our other products. The final decision is left to the consumer's discretion," says Mr James Munson, Head of Retail and Marketing, Marks & Spencer Reliance India.

Supply low, so govt drugstores sell Maggi, toothpaste
Expressindia.com

At Jan Aushadhi store, the people's drugstore launched under a flagship programme of the Department of Pharmaceuticals in 2008 to provide essential medicines at cheap rates to the poor, medicines barely occupy one-third of the store. Most of the shelves display a colourful ensemble of Maggi packets, toothpaste tubes, toothbrushes, shampoos, soaps, facewash, sanitary napkins, mosquito repellents, and pouches of washing powder. For the record, 319 generic drugs are available at the Jan Aushadhi stores at rates that are 10-25 per cent below the market price of branded medicines.

Small regional brands get modern retail push
Economic Times

Small and regional brands are tying up with retail giants to push their merchandise, as middle-class Indians shift from mom-and-pop stores to the comfort and variety of modern retail. The latest to join the bandwagon is ayurvedic products maker Baidyanath Ayurved Bhawan. The 95-year-old company has tied-up with Future Supply Chain Solutions, the logistics arm of retail giant Future Group to widen its consumer base and boost its position in the health products segment. This strategy is not only giving smaller brands a pan-India presence, but also helping them reap dividends.

After festive cheer, grim reality
Daily News & Analysis

2012 will be the year of moderation in consumer spending across durable, consumer goods and apparel, as industry experts foresee an unfavourable sentiment gripping consumers, which could make companies cautious in their growth talk. For the apparel industry, demand has slowed since August and the festive season was way below expectations as high cotton prices and levy of excise on branded apparel forced brands to hike prices, says Anurag Rajpal, Vice President, Apparel, Spencer's Retail. Consumers are, however, buying now during the clearance period that will last till early-February.

Will Indian products vanish from the shelves?
Calcutta Telegraph

The total production of fruits and vegetables in the world is around 370 million tonnes. Of this annual output, India produces 32 million tonnes, making it the largest producer. Azadpur mandi in New Delhi is the largest of its kind in Asia, catering to the needs of consumers all over India. In this vital task, it is the middlemen - wholesalers and commissioning agents, numbering around 3,600 - who play a crucial role in getting the farm produce to retail outlets... More than the kirana shop-owners, it is this tribe that is feeling threatened over the proposed FDI in retail and is actively fanning the flames of the anti-FDI campaign. Given the penchant of Indians for buying anything foreign, it is feared that some Indian brands and products may vanish altogether from the shelves in the future. But will they?

India's jewelry retailers poised for growth
Rapaport

India's organized jewelry retail trade is expected to account for 10 percent of the country's total jewelry retail market by 2016, up from the current 4 percent, according to CARE Research, a division of Credit Analysis & Research Ltd. The company noted that growth is being spurred by rising income levels across non-metro, large and small cities and increased consumer spending on branded and luxury goods in these areas. ''Factors such as increased competition, stagnation and high rental costs in metros compared to its easy availability in tier-I and tier-II cities at cheaper rates, augur well for the growth of organized retailing,'' wrote CARE Research's analysts. They noted that large jewelers are offering customized offerings according to local tastes in each city to drive demand.

Silver drops to 10-month low on sluggish demand
Business Standard

Silver fell to a 10-month low, at Zaveri Bazar, on poor industrial offtake. Scared retail consumers also abstained from taking fresh deliveries, amid expectation of a further decline in prices, in case the rupee strengthened. The white precious metal, hit Rs 49,000 a kg on Thursday, in early afternoon trade, in the local physical market. This was the lowest since February 18, while the metal recovered later, to close at Rs 49,140 a kg. On the Multi Commodity Exchange (MCX), it closed at Rs 48,903 in March, a decline of 3.42 per cent from its earlier price. During the session, it plunged to the level of Rs 48,562 a kg.