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October 19, 2012News for the Retail Industry
 
  Active Discussion 
The Business of Design- Making SALE a big deal

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  At a Glance 

News - Headline, Apparel, SpecialtyNews - Food, QSRTrends & Insight
  News - Headline, Apparel, Specialty .. 
The government has not ordered a probe into Wal-Mart Stores over accusations that the US retailer had violated foreign ownership rules, officials said on Thursday in response to a media report. Wal-Mart, which is expected to open its first Indian store after a change to ownership rules, said it had not been contacted on the subject by Indian authorities. A news report said the Commerce Ministry last week asked the Reserve Bank of India (RBI) to investigate allegations that the world's largest retailer had "clandestinely and illegally" invested in supermarkets in the country. The accusations were made by a Communist Party member of parliament in a letter to the prime minister. Facebook Twitter Linkedin Email

Actis in talks with Tesco, 7-Eleven for Nilgiris stake sale
Business Standard
Taking advantage of the government's move to open the retail sector to foreign players, private equity major Actis has opened talks with global retail biggies such as 7-Eleven, Lawson and Tesco to sell its 40 percent stake in South India-based retail company, Nilgiris. The government of Singapore owns another 23 percent stake in the company while the rest is owned by the founders, the Mudaliar family. Actis was earlier negotiating with private equity players such as Temasek and Advent to sell the stake, but changed its strategy to go slow on the sale so that it could get a better valuation from the foreign retail companies planning to set up shop in India. Actis is looking at a valuation of $150 million for Nilgiris, but the final call will be taken only after it receives firm offers from foreign companies, according to a source close to the development. Facebook Twitter Linkedin Email

The 7th Metropolitan Magistrate has issued a proclamation order against nine absconding manging directors and directors of Koutons Retail India Limited, a leading retailer of readymade and fashion wear brand, in connection with a cheque-bouncing case. The court has directed that all the accused persons in the case should appear before the court on November 22. Vipul Raichura, Director, Silverline Fashions Fabrics Ltd, had filed a complaint in the court alleging that the company owes it over Rs 2.54 crores as dues for supplying fabrics. Koutons had allegedly issued 60 cheques which were dishonored in 2010. Facebook Twitter Linkedin Email

US-based accessories manufacturer Fossil Inc proposes to invest Rs 20 crore (about $4.5 million) in India in a fully-owned single brand retail venture. The proposal, made by Fossil India Private Ltd, a 100% subsidiary of Fossil which sells high-end watches and other accessories, is being examined by the Department of Industrial Policy and Promotion (DIPP). This, the third single brand retail proposal, marks a significant progress in the government's attempts to attract foreign direct investment (FDI). The official said that the department would examine the proposal to ensure that it adheres to all the criteria spelled out in the FDI policy for single brand retail, before forwarding it to the Foreign Investment Promotion Board, which takes the final call. Facebook Twitter Linkedin Email

Puma is official merchandise partner to Buddh International Circuit
Hindu Business Line
Global sportlifestyle brand Puma is the official merchandise partner to the Buddh International Circuit. Earlier this year, Puma was also the first brand to open an exclusive retail store at the country's premier motor racing track. The brand has launched an exclusive range of BIC merchandise ahead of the big race being organised from October 26 to 28. The premium collection is being retailed at key Puma stores across Delhi and Noida as well as on their e-commerce site. Facebook Twitter Linkedin Email

Reliance Digital has broken through the 100-store barrier - Channel EMEA

Indian IT and consumer electronics retailer Reliance Digital has broken through the 100-store barrier as its rapid expansion continues. Reliance Digital, part of the Reliance Retail group, stocks 150 international and national brands and offers consumers more than 4,000 separate products. Reliance Digital aims to help customers throughout a product's lifecycle offering advice and post-sales support service under the ResQ brand. Facebook Twitter Linkedin Email

Infiniti Retail sees business in durables repair
Hindu Business Line
Infiniti Retail, with its Croma brand of stores, is eyeing after-sales service as the next big business opportunity in consumer durables retail. With plans of differentiating itself from other durables retailers, after-sales service could emerge as a 'profit' centre for the Tata Sons subsidiary. It could look at repairing durables across products and brands, not necessarily bought from the Croma stores, at their Croma Care Centres. Ajit Joshi, CEO and MD, Infiniti Retail said, "There are plans on the drawing board to make after-sales service a profit centre, as loyalties get built and the customer comes back to our stores." Facebook Twitter Linkedin Email

RIM BlackBerry store in Kolkata; to increase India presence - Firstpost

Research In Motion (RIM), which makes Blackberry mobile handsets, plans to step up its retail presence across the country to stay afloat in the fiercely competitive smartphones market. RIM currently has six premium stores and is looking to increase the number. Inaugurating the first premium Blackberry store in Kolkata, RIM India MD Sunil Dutt said that all the stores were operated through the franchisee route. "We will cater only to the high-end market. Our price points range between just below Rs 10,000 and Rs 1.40 lakh," Dutta added. Facebook Twitter Linkedin Email

Online retail service provider Myntra.com said it is working on applications that would provide mobile shopping facility to its customers; the mobile segment is set to expand rapidly starting next year. "We have already started working towards developing necessary applications to provide a seamless mobile shopping experience to our customers," Myntra.com Founder CEO Mukesh Bansal said. Stating that Internet usage through PCs is higher than through mobile phones, Bansal said, "While mobile usage is on the rise, we expect this medium to take off for e-commerce only next year." Facebook Twitter Linkedin Email

  News - Food, QSR 
Yum to have "One Technology, One Standard" in India and China
Wall Street Journal (blog)
Yum Restaurants International, which owns Taco Bell, Pizza Hut and KFC, is rapidly expanding in China and India, opening as many as five stores a day over the next few years. CIO Baron Concors says that building out IT at that breakneck pace will be challenging, but creating new infrastructure from scratch will be an easier task than his past work of upgrading legacy systems in established markets. New stores in China and India are being built with just one point-of-sales system, and stores could have mobile ordering capability from opening day, Concors said. "We're going to have one technology, one standard," he said. Facebook Twitter Linkedin Email

Cafe Coffee Day gears up to battle Starbucks
Business Standard
It is a situation which will test V G Siddhartha, Chairman of Coffee Day Group, to the hilt. And he is ready for the biggest showdown in his career. He will be shortly squaring up against Starbucks which is expected to open its first store in Mumbai during the ensuing festival season. At a little over 1300 cafes across 180 towns in India, Cafe Coffee Day is a force to reckon with and is present across the value chain of the cafe business in India. However, with the might of Starbucks and Tata Group coming together to have a go at the market, it will not be an easy path ahead to stem the churn from CCD outlets. Senior officials at Coffee Day Group indicate that there is enough space in the market for a lot more players and the entry of a mature player such as Starbucks will help the market grow. Facebook Twitter Linkedin Email

  Trends 
Reliance Trends launches new Fall 2012 collection - Fibre2fashion.com

Reliance Trends, the popular and affordable fashion brand of India, has unveiled its fresh Autumn/Winter 2012 collection. The newly launched clothing range offers an array of ensembles for men, women and children in the season's latest plum and teal shades. A subsidiary of Reliance Retail Group, Reliance Trends operates over 83 outlets in around 52 cities. Reliance Trends outlets offer 100 brands, in addition to its own 16 brands. Facebook Twitter Linkedin Email

A high-level panel, headed by Consumer Affairs Minister K V Thomas, will be constituted by the end of this month to look into internal trade issues that may arise following FDI in multi-brand retail. Last month, the Cabinet gave the green signal to 51 percent Foreign Direct Investment in multi-brand retail. It had also asked to set up a high-level committee under the chairmanship of the Consumer Affairs Minister to make recommendations on internal trade reforms to the government. The Committee will interact with state governments and traders to find out their difficulties following FDI in multi-brand retail and come out with solutions, Thomas said. Facebook Twitter Linkedin Email

Inspan launches new retail company
CRN.in
Chennai-based distributor Inspan Infotech has ventured into IT retail by floating a new company called Ziptech. Ziptech's first store is a Lenovo Exclusive Store in Chennai, which was launched in early September. Said S Sudhir, MD, Inspan, "We have decided to diversify into retail considering the potential that the segment offers." He said plans were on to set up more stores, both multi-brand and single brand. They intended to wait for one or two quarters before expanding, but were certainly looking at next year. Facebook Twitter Linkedin Email

eBay reported its third-quarter net income which rose 22 percent thanks to higher revenue at its PayPal payments service and marketplaces business that include eBay.com. The results were roughly within expectations, with revenue a little light and earnings a tad higher, than what Wall Street analysts had predicted. CEO John Donahoe sounded an upbeat note about the holiday shopping season and eBay Inc. raised, slightly, its full-year guidance for net income and revenue. Facebook Twitter Linkedin Email

  Insight 
Foreign Direct Investment (FDI) In Retail
Technopak

There are no losers in the game of reforming retail. FDI in retail is not a zero-sum game. The opportunity and the need are big enough for both independent retail and corporatized retail to coexist and thrive. Recognition of this fact will produce only winners. India needs solutions through the entry of corporatized retail that are cost-effective, can create jobs and provide better returns to producers. Equally compelling is the need to transform independent retailers to make them sustainable and efficient. This approach will not just tone down the rhetoric but also produce inclusive and progressive policies to reform the retail sector and gear it for nation building.

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The Business of Design- Making SALE a big deal (Premium) - View Free Sample
In a competitive market retailers and brands are constantly trying to increase their topline with offerings, promotions and store experience strategies. SALE is a time tested strategy to attract footfalls and increase conversions with well communicated compelling offers. Stores and brands use different communicate strategies in their SALE windows - some a no fuss message to create awareness and a very few others opportunistically transforming them into Brand Billboards. SALE ! SALE ! SALE ! Scream the news papers and store windows in the market place which are working on grabbing the attention and enticing shoppers with irresistible deals . It's often human to be unable to resist a great deal and Retailers and Brands have taken full advantage of this right from when discount retailing came into existence in the 1950s. Deals often change 'wants' into 'needs' and retailers use this as a panacea to most topline challenges. Nielsen's recent Shopper Trend Study reveals that 30% shoppers change store and brand based on promotions offered. Also, 54% of brand or store loyal shoppers are active deal seekers. Markdown Sales are either a planned seasonal event or a tactical call to address specific stock issues. For each, the tone and effort of the sale is different. I prefer calling them- Complete and Overlay Sale Windows. In the former, SALE is the primary single message in the window and in the latter it's a secondary communication message added onto to the window communication promoting a featured offering.

Indian Design- Pumas first sustainable store in the world (Premium) - View Free Sample
The Window backdrop is printed on UV printed canvas cloth stretched on frame made with waste and particle wood. The fa ade is made of super clear glass that allows 20% more natural light into the store . The Main signage is restored from a store that was shut.. In keeping with their mission of becoming the most desirable and sustainable Sport lifestyle company, PUMA opened a sustainable PUMA Store in India, the first of its kind worldwide revolutionizing the concept of retail spaces globally. Establishing this sustainable PUMA flagship Store demonstrates the brand's commitment to reducing CO2 emissions, energy, water and waste in PUMA offices, stores, warehouses and direct supplier factories by 2015. The store is located on the popular high street of Indiranagar in Bangalore and is spread over a total of 5000 sq. feet across four levels. While the lower three levels will serve as a retail area, soon to come is a 'PUMA Social Club' cafe and bar which will be located on the upper floor and terrace and will be ready to open by the end of 2012. "The building is a true design marvel and incorporates a host of innovative sustainability features to make our sustainable PUMA Store a one-of-a-kind retail experience", said Rajiv Mehta, Managing Director PUMA South Asia. "We are pleased to be a pioneer in sustainability again with setting new standards for an environmentally-friendly and resource-saving store concept in one of India's best shopping locations." .

Indian Design- Next Generation Viveks (Premium) - View Free Sample
The fa ade design strategy was to give the brand very high visibility with a distinct architectural sign. Creating a new look for a new customer, leading consumer electronic brand Vivek's has redesigned its showroom in Bangalore to give a fresh, spacious and contemporary look that is meant to attract a younger audience. Designed by DFC, FRDC the new store concept appeals to the youth with its minimalistic and no-fuss environment. Established in 1965, Vivek Limited is one of the leading and trusted consumer electronics and home appliances retail chain in India serving millions of consumers. Recently it piloted a reimagined brand concept to appeal to a younger audience by revamping its Jayanagar store in Bangalore. The new 'GeneratioNext showroom' offered the best CDIT brands in an environment which is updated, uncluttered and interactive. Undergoing a complete makeover after 17 years, the Jayanagar showroom is now in its "new avatar". "What we did bear in mind while we were redesigning the showroom was the fact that we needed to attract the much younger consumer besides our target audience of families. Obviously therefore the brief furnished to FRDC was not to merely create a showroom of International standards but to also ensure that younger consumers would be elated in shopping at VIVEKS," says Vinay Bysani, VP- Projects and Marketing.

Mall Outlook 2012- What the veterans say (Premium) - View Free Sample
According to research conducted by Jones Lang Lasalle, the retail space in India witnessed an increase of 13.8 million sq.ft. last year as 34 malls became operational. By the end of this year, another 12 million sq.ft. of space is expected to be added to the modern retail sector. So what do the veterans say about how the retail real estate industry grew in 2011 and what the scenario will be next year? Most developers in India that Shopping Centre News spoke to felt that 2011 was a winning year for the retail real-estate sector in terms of growth in demand and supply of new retail spaces across various cities. The retail space saw an increase of about 14 million sq.ft. across India, led by NCR-Delhi (which added 4.0 million sq.ft.) and followed by Mumbai (which saw completion of about 3.5 million sq.ft.). This positive development happened after widespread distress in the sector during the years 2008, 2009 and 2010. High absorption of close to 10 million sq.ft. of retail space was forecast for 2011. Out of this, 7.1 million sq.ft. was already absorbed by the third quarter of 2011 and 1.1 million sq.ft. was pre-committed in malls which were scheduled to become operational during the fourth quarter 2011. Led initially by the tier-I cities, the retail real estate industry is now rapidly penetrating into tier II and III locations, and is poised to take the next giant leap in this decade.

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