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October 25, 2012News for the Retail Industry
 
  Active Discussion 
Challenges and Growth Drivers in Food and Grocery- Ravi Kannan of Snowman Logistics

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  At a Glance 

News - Headline, Apparel, SpecialtyNews - Food, QSRTrends & Insight
  News - Headline, Apparel, Specialty .. 
FIPB to decide on IKEA's Rs 10500-crore proposal next month
Economic Times
The Finance Ministry is expected to take a decision next month on Swedish home furnishing major IKEA's proposal to invest Rs 10,500 crore to set up single- brand retail stores in the country. "We are examining IKEA's proposal. We will forward it to Foreign Investment Promotion Board (FIPB), which will take it up next month and take a decision," a senior official in the Department of Industrial Policy and Promotion (DIPP) said. The official said after FIPB's clearance, the proposal will have to be finally approved by the Cabinet Committee on Economic Affairs (CCEA) as the board can clear investment applications worth up to Rs 1,200 crore only. Facebook Twitter Linkedin Email

GHCL mulls supplying home textiles to Bharti Walmart
Business Standard
With the FDI in retail being opened up, home textiles and soda ash player Gujarat Heavy Chemicals Limited (GHCL) is mulling supplying made-ups to retailers like Bharti Walmart and IKEA. For this the company is also expanding its manufacturing facility at Vapi in Gujarat. "We are already supplying our home textile products to Future Group, apart from exporting to western countries. Yet, instead of going in for our own retail chain, we are mulling supply of our home textiles to big retailers that are set to come like Bharti Walmart and IKEA, among others. For this to happen, we have already begun expanding our manufacturing capacity at our Vapi plant. However, we are yet to initiate any talks with them," said RS Jalan, Managing Director, GHCL. Facebook Twitter Linkedin Email

Delhi govt forms body to look into concerns about FDI
Hindustan Times
The Delhi government has formed a committee to look into the issues related to the implementation of FDI in retail and Value Added Tax (VAT). A delegation of traders led by national general secretary of Confederation of All India Traders, Praveen Khandelwal called on Delhi chief minister Sheila Dikshit on Wednesday to discuss the issue. The committee will have traders and VAT officials. Union minister Kapil Sibal also attended the meeting with trade leaders representing over 100 trade associations from different parts of Delhi. Dikshit, while accepting the demand for a committee, also allowed extending the last date of filing online information about goods imported from other states before its entry into Delhi to December 31. Facebook Twitter Linkedin Email

Goldplus plans to expand in South India through retail outlets
Economic Times
Goldplus, part of the Tata Group, plans to actively expand business in the four southern states and Maharashtra by setting up retail outlets, a top company official has said. "We are actively involved in expanding business in the four Southern States and Maharashtra. Initially we are trying to start Goldplus retail outlets in Andhra Pradesh and Karnataka" said C K Venkataraman, CEO,TITAN Jewellery division said after inaugurating a showroom at nearby Karungalapalayam. Facebook Twitter Linkedin Email

Vishal Bysani to head Viveks Digital 1
Economic Times
Vivek Ltd (or Viveks), the nearly half-a-century-old consumer durables retailer from Chennai, has tasked its third-generation scion Vishal Bysani, 27, with driving a new retail initiative targeted at the young gadget users. Bysani, the son of Viveks' Chief Executive Officer BA Srinivasa, will head Viveks Digital 1, a format that will sell everything from tablets to cellphones and laptops. Viveks, with annual sales of about Rs 450 crore, has been selling electronic gadgets for years now along with its bread-and-butter white goods. It now believes the time is ripe to give special attention to the former. Facebook Twitter Linkedin Email

Mahindra First Choice eyes 35 percent growth
Business Standard
Mahindra First Choice Wheels Ltd (MFCWL) that opened its 200th outlet on Wednesday at Ahmedabad, is eying around 35 percent growth this year. It aims to end the financial year by selling around 46,000 cars and claimed that the slowdown in the new car market has not impacted sales of organised used car sellers. Rajeev Dubey, President, Group HR, corporate services and after-market, Mahindra and Mahindra (M&M) said that the size of the used car market is larger than the new car market, and is roughly around 1.1 times that of the new car market. "In the US, this ratio is 3:1 in favour of used cars, hence there is huge potential for growth in the used car space in India", he said. Facebook Twitter Linkedin Email

Online jewellery portal Voylla.com raises angel funding
Livemint
Voylla.com, a jewellery and accessories shopping website run by Bangalore-based Voylla Retail Pvt. Ltd, has raised an undisclosed sum from an angel investor. Voylla declined to reveal the deal terms, only saying it had raised a seven-digit figure in rupee terms and that the investor was a Bangalore-based serial entrepreneur who recently sold his company. An angel investor is typically a wealthy individual who funds start-ups with money from his personal wealth. Facebook Twitter Linkedin Email

  News - Food, QSR 
Amul may be handed over Delhi Milk Scheme assets
Hindu Business Line
The government is likely to consider handing over assets of loss-making Delhi Milk Scheme (DMS) to the Gujarat Co-operative Milk Marketing Federation (GCMMF) on lease basis. Agriculture Minister Sharad Pawar is meeting GCMMF officials on Thursday to discuss the modalities of such an arrangement, sources said. GCMMF, which owns the Amul brand, had recently reiterated its willingness to acquire DMS, which comes under the Agriculture Ministry. DMS has around five percent market share in Delhi's pouched milk market. Facebook Twitter Linkedin Email
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Hattrick brings special bakery items in market
GreaterKashmir.com
Hattrick, a chain of fast food outlets has brought special bakery and confectionary items in the market ahead of Eid. "The items are of international standards which will be available at all our outlets," Babar Chowdhary, Managing Director, Chowdhary Group said. He said: "The day I was elevated as Managing Director of Chowdhary Group, the first thing I wanted to do was to gift something new to our valued customers." Facebook Twitter Linkedin Email

  Trends 
Interview with Mr.Sharad Jaiprakash, Arkarise
India Retail News
With the growth of outsourcing industry, organizations around the world became increasingly reliant on technology to connect countries and enable seamless communication. Telecommunication grew manifold during this boom and the telecom sector provided the much needed push to the growth of the outsourcing industry. Arkarise, an organization specializing in providing telecom infrastructure solutions by helping global companies on their brand management, marketing and distribution operations, has recently introduced Accutone by revamping its market strategies, competitive products & strong service setup for Indian customers. Accutone (http://www.accutone.com/) is one of the world's best in designing and manufacturing headsets for contact centers and has presence across continents. Excerpts from an interview with Mr. Sharad Jaiprakash, Founder & Director, Arkarise, the official brand partner for Accutone in the APAC market: Facebook Twitter Linkedin Email

Walmart's entry spurs Transport Corps spending on logistics
Business Standard
Transport Corp of India, the nation's third-largest logistics company, plans its biggest investment in five years to prepare for a jump in freight demand as retailers such as Walmart Stores Inc open outlets. The company will spend Rs 150 crore ($28 million) in the year to March 31 to add more trucks and build warehouses, Joint Managing Director Vineet Agarwal said in an interview. The spending may help Transport Corp's supply chain division, which offers warehousing and packaging, to expand more than 20 percent annually through 2017, he said. Facebook Twitter Linkedin Email

Apparel exporters eye non-traditional markets like Russia and Mexico
Economic Times
Facing tough competition from countries like Vietnam and Bangladesh in the US and European markets, Indian apparel exporters have started venturing into non-traditional markets like Russia, Mexico, South Africa, Australia and West Asia. The plan is to increase exports to non-traditional markets from 24 to 35 percent within the next few years. Apparel exports from India to the US slumped 10.6% this year up to July to $1.94 billion, according to data given by the Office of Textiles and Apparel, US. While apparel exports from China and Bangladesh, the major competitors to Indian textile firms, were almost flat, exports from Vietnam clocked a 9% growth. Facebook Twitter Linkedin Email

Shoppers Stop using analytics and new technology to boost footfalls
Economic Times
A month ago Shoppers Stop, India's oldest big box retailer, was an indirect beneficiary of a surge in the stockmarket indices. As the markets rose some 8 percent in early-to-mid September, the retailer took a punt that Gujaratis, whose purchases are closely linked to upswings on the bourses, would go on a spree. And, true to form, they did, adding 25 percent in incremental growth on sales to Gujarati customers in mid-to-late September when the stock markets rose around 8 percent. It isn't Gujaratis alone that the retailer has targeted. In the past, Shoppers Stop has used analytics to target promotions at Muslim shoppers during Id, the holy month, and tailor promotions specifically at them. Like with its Gujarati promotion, it used the 2.6 million members of its First Citizen customer loyalty program and name searches to yield additional revenues of 1 crore in August this year. Facebook Twitter Linkedin Email

Foreign retailers gain limited access to Indian markets
eGov monitor
The Indian Government has recently liberalized the conditions relating to FDI into the MBR sector in India. Accordingly, FDI of up to 51 percent in the MBR segment with the prior permission of the Foreign Investment Promotion Board (FIPB) now stands approved. While the Cabinet had earlier taken up and approved this proposal in November 2011, its implementation was kept in abeyance until a broader consensus on the subject could be evolved. Facebook Twitter Linkedin Email

Bride and groom say 'I do' to online shopping
Hindu Business Line
For those looking to avoid the crowds and frenzy associated with the wedding season, the online store is fast becoming a convenient medium to meticulously plan one's entire wedding ensemble, says Manu K. Jain, Co-founder, Jabong.com. While consumers still prefer to walk into their favourite store to pick their main wedding saree or sherwani, for all else there is the Internet. There is a huge demand online for associated functions: lehengas for Sangeet, fancy sarees, shirts and footwear for cocktail parties and even honeymoon outfits. Jewellery too is witnessing a lot of traction, say e-retailers. Myntra, for instance, has tied up with jewellery brand Gitanjali to launch an exclusive bridal jewellery collection. "Currently, we see 12-15 transactions per day in fine jewellery; this is expected to grow in the coming days," says Ganesh Subramanian, Chief Merchandising Officer, Myntra. Friends and folks are also using the online medium to buy gifts for the bride and groom, says Aasheesh Mediratta, Director, Sales, Fashionandyou. . Facebook Twitter Linkedin Email

  Insight 
Behavioral Changes Of Consumers On Indian Organised Retailing
AJRBEM

Organized retail represents a large untapped market in India that is likely to see tremendous growth in the coming years. New entrants are bound to see large returns. However, they must adapt themselves to the unique state of retail in India where infrastructure and regulations provide little support. They must also understand the tastes of the Indian consumer who has only recently started treating retail as a form of leisure.This paper discusses the state of the Indian retail sector with influence of changes in the consumer behaviors at a time when it is in great flux.

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Challenges and Growth Drivers in Food and Grocery- Ravi Kannan of Snowman Logistics (Premium) - View Free Sample
Ravi Kannan, Director & CEO at Snowman Logistics Limited (SLL) discusses the issues, challenges and growth drivers in the food and vegetable industry, and reveals SLL's future plans. SLL has temperature controlled warehouses at 17 locations which are integrated with ERP for seamless flow of information between all the branches. SLL plans to ramp up its warehousing capacity from 21,780 MT to 60,000 MT by 2014-15.

Category Watch- Sneakers (Premium) - View Free Sample
The white canvas Saturday school shoe of yore has donned newer hues in a sportswear market which has the potential to grow at 33 per cent between 2010-14. With a handful of brands at play in this niche category, the opportunity in a billion plus population is huge. S&A looks back and forth. Since the rubber-soled plimsolls of the late18th century to the canvas topped multihued sneakers (because the rubber soles made walking so quiet that a person could sneak up on someone) of today, sneakers or keds or canvas shoes, have come a long way. The world over, especially in the US, sneakers emerged as "artifacts of societal shifts, reflecting social revolution in the 60s, punk rock rebellion of the 70s, and hip-hop identity of the 80s. Sneakers are a consumable aesthetic representation of culture, and their value as a medium for communication transcends the leather, mesh, and rubber of which they are comprised." Back home, the white canvas Saturday school shoe was the only avatar that the common man was familiar with until almost the late 80s. It was a minuscule number that was aware of the Nikes, Reeboks, Adidas or Puma. A study by Ernst & Young estimates the sportswear retail market at Rs.365.8 billion, expected to grow at a robust CAGR of 33 per cent during 2010-14. Out of this the footwear segment makes up for 60 per cent of the total market. Anupam Bansal, Director, Liberty Shoes, pegs the total footwear market "at about Rs.20,000 crore, with the unorganised segment hogging almost 85 per cent. Out of this, the sports shoe market would be roughly a Rs.3,000-Rs.4,000 crore market. The market would be more in the organised segment because the sports shoe is a technology product and most of the people are making sports shoes in an organised set up" .

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." .

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