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|October 31, 2012||News for the Retail Industry|
How Independent Grocers can expand
| Active Discussion || |
Read more / Join the discussion on LinkedIn
| At a Glance || |
News - Headline, Apparel, SpecialtyNews - Food, QSRTrends & Insight
| News - Headline, Apparel, Specialty .. || |
| || |Multi-brand retailer V-Mart plans IPO to fund expansion
V-Mart, the multi-brand Indian retail chain, intends to float an initial public offer (IPO) to raise Rs 1.2 billion to be utilized for opening more outlets. The company, which presently operates 62 outlets at 52 locations, intends to take this number to 120 by March 2015, by opening 58 new outlets in 55 new locations, the majority being in tier II and III cities. While Rs 1.2 billion of the proposed Rs 1.8 billion investment would be raised through IPO, the rest would come from internal accruals, V-Mart Retail Chairman and MD Lalit Agarwal said, adding that the company's current debts stand at around Rs 450 million. According to Mr Agarwal, V-Mart has aggressive expansion plans in Northeast India, and intends to ensure its presence in all the states of the region. The Northeast region has great potential which has not yet been exploited by any leading organized retailer, he added.
| |China, India hold key to retail; Western Europe has worst growth prospect: Survey
Chinese and Indian markets are offering the greatest growth prospects for retail and there is cautious optimism about local consumer confidence, according to a new global survey of retail CEOs. The survey, conducted by Monash University's Australian Centre for Retail Studies (ACRS) on behalf of the World Retail Congress, asked 219 senior retail executives from around the world about their view of the year ahead. Research Director of ACRS, Dr Sean Sands, said the results showed that retail CEOs were still cautiously optimistic about growth in their sectors, even with the state of the global economy. "The survey rated China and India as the best growth markets globally, while Western Europe was rated as the worst growth prospect, despite the majority of current sales being from this region," Sands said.
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Delhi figures among the 10 most attractive cities for international travel shoppers in the Asia-Pacific region, a report says. Delhi came 10th in the Globe Shopper Index, published by Global Blue on Monday, a few points behind Seoul and ahead of Manila, while Bengaluru ranked 14th, and Mumbai, 16th. The national capital's good performance was driven by its score in the affordability category, where the cost of transport and hotels were better than many other cities in the Index. The length of the city's sales seasons also helped Delhi to a good score. The sales seasons last more than 13 weeks of the year in Delhi, the fourth longest of the cities on the Index, a statement said. In Delhi, globe shoppers have good opportunities for bargaining and the city ranked second on the Index with a few other cities as a place to bargain for a good price. The national capital also scored well on climate and tourist sites, however, its performance was held back by the quality of public transport and the cost of some luxury items such as watches and electrical goods.
| News - Food, QSR || |
| Trends || |
| Insight || |
| |How Independent Grocers can expand (Premium) - View Free Sample
Having successfully established their brand name and value, many independent grocers are confident of creating new demand pockets in different locales. However, expansion into new territories or within tried and known regions, involves an appraisal of the strengths and weaknesses of the existing business in order to gauge the ability to expand. Local retailers with a single or chain of stores are increasingly considering to expand their presence in the marketplace by creating multiple locations. Expansion gives them an opportunity to leverage on their retailing skills including their products, customer service, a strong customer base, etc, which they can build on or replicate in another store in a new location. By extending their reach into newer territories, they can further reinforce and enhance their brand image. However, unlike big chains who have the money and resources to conduct feasibility studies, test new territories, and can even withstand possible closure in case the project fails to be financially viable, independent retailers, specifically regional grocers, have to move more cautiously by adopting the most appropriate strategy Expansion is necessary if the retailer wants to compete in the marketplace. By offering consistent customer service, he can replicate the success achieved in another location and garner a larger share of footfalls and customer loyalty, while at the same time maximise his profits.
| |Frozen Ready-to-Cook- Category of the Future (Premium) - View Free Sample
Manufacturers and retailers are defining frozen ready-to-cook products as 'the category of the future' and, together, finding ways to increase consumer awareness and visibility across both modern and traditional retail outlets The increasing number of time strapped consumers and double income families on a lookout for fast and healthy cooking options are bringing a change in the Indian household as they veer towards processed food. The frozen ready-to-cook (RTC) category is riding this wave of increasing demand. Factors like expansion of modern retail, increase in disposable incomes, and cold chain network are also contributing to the growth of the category. According to Euromonitor, the frozen processed food value sales grew by 13 percent to pass Rs 2.8 billion in 2011. Products like sausages, French fries, nuggets, and tikkis are rising in popularity and attracting a number of companies like Al Kabeer Exports, McCain India, Himalaya Simplot, Venky's India, Mother Dairy Fruit & Vegetable, Innovative Foods (brand Sumeru) who are all betting big on RTC. A Euromonitor report reveals that the period between mid 2010 and 2011 saw many new product launches from established players. "With the pressure on time and as people understand this category better, I think it is the category of the future," says Vikas Mittal, Managing Director, McCain Foods India.
| |Fashion Retailing in the next decade (Premium) - View Free Sample
Future of the fashion retailing in India seems to be promising and full of potential for fashion retailers, provided they diversify their portfolio. Ankur Bisen, Head of Consumer Products and Retail AT Technopak Advisors, discusses the three trends that will significantly impact the country's fashion retailing industry. A retail shop is an important economic unit that puts on display not just goods but also the interplays of suppliers and consumers. While suppliers want to put for sale what they can effectively make and source, consumers want to purchase what they want and afford. In the coming decade, this template for fashion retailing in India is poised for a fundamental change. Three trends will drive this change. Interestingly, the opportunity is up for grabs for retailers and brands of all shapes and sizes. First trend will be driven by the persisting economic uncertainty. This reality has already become a part of our daily lives and will continue to be so in the next decade. Households across income levels will re-jig the pecking order of their consumption basket. Unfortunately, fashion products (being discretionary purchases) will not feature high on the list. This will compel consumers to trade off psychological premium in fashion products over value offers. People will trade down on price and will increasingly hunt for affordability without compromising on fashion quotient. This is easier said than done. Affordable fashion will not imply cheap imports or insipid products. Torchbearers of affordable fashion that will not compromise on fashion quotient will dominate fashion retailing in the next decade. The success of brands such as Biba, Fast Track, and Wildcraft holds lessons for Indian brands to dovetail fashion quotient with affordability. This rule will cut across price points. Zara and Mango's success in India is a harbinger of things to come.
| |Cover Story- Malls or Stand-alone (Premium) - View Free Sample
The popularity of malls can be gauged quite simply from the fact that we visit malls more often than we go shopping. This is what retailers are cashing in on. Visiting a mall is not just restricted to shopping because malls accommodate entertainment and dining as well. For some it's also another way to unwind after a hectic week. But do the extra visits enhance chances of unplanned purchases? Statistics show that it does. Managers at apparel stores reveal that 30-40 per cent people who walk into the store actually make a purchase. This explains why malls are so important in the increasingly harsh retail environment. Retail experts who keep an eye on the changing line-up in shopping centres reveal that small regional brands are increasingly moving off the high streets and into malls. Malls are the new interesting place offering experiences that amuse, delight and entertain. Until a few years ago, the general perception was that malls only attracted those looking to kill time and window shop. So it was the high streets where real sales happened. This view is slowly changing. Air-conditioned comfort and easy parking are leading the shoppers to malls. Not to forget the snob value. With multiple malls coming up across the country, mall developers are offering low rentals to retailers as an incentive to enter their properties. Limited supply of real estate on high street is another reason for the move. Malls also offer a retailer the comfort and advantage of being in the midst of other like-minded brands that may drive in the walk-ins. A good mall can provide an independent store owner a continuous flow of potential customers. Basic amenities such as rest rooms, dedicated parking space and food courts are available at the malls, whereas the stand-alone stores lack these facilities or they come at an extra cost. While shoppers prefer visiting malls as against stand-alone shops, even retailers find the former more affordable at times.
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