Industry not in favor of allowing foreign equity in retailIndian industry on the whole is not in favor of the government permitting foreign equity in the retail sector, and would prefer to have foreign equity only in a calibrated manner that would allow domestic companies to prepare and face the competition. According to an Assocham statement, "The chamber's blue-print on organised retail is influenced by its members from a cross-section of industry in domestic retailing that it surveyed on opening up of domestic retail to 100 percent equity."
Sunday, June 03, 2007
Source: The Economic Times
Birla CEO: ‘Foreign partners don’t really add value in retail’In an interview with Rediff Money, Sumant Sinha, CEO of the Aditya Birla Retail venture said that a foreign equity partner does not add significant value to a venture. He also stated that since retail is a local business, stores should hire people from the local community. The company that just unveiled its brand More recently plans to offer convenience to its shoppers by being in locations where customers can easily walk to the stores. He emphasized that knowing the customer was very important as people are not really looking for a lot of choice, but rather come prepared with a list and already know what they want to buy.
Friday, June 08, 2007
Source: Rediff Money
Gen-X are fueling the retail driveThe drivers of the retail boom in India are said to be generation X shoppers. According to a study titled ‘YouSoumerism-Youth in India: Opportunity Knocks’ conducted by Ernst & Young, more than 50% of consumers in India are less than 25 years of age and these consumers have both purchasing power and a thirst for buying products.
Ashok Rajgopal director (retail industry) for Ernst & Young said, “By targeting the youth population in India, retailers will be investing for the future as they will be able to influence and create loyalty from the start.” The study also differentiates between the youth living in larger cities from those living in rural areas and smaller cities.
Saturday, June 09, 2007
Source: Gulf Times
Wal-Mart Vice-Chairman: ‘Indians eager for Wal-Mart entry’On the sidelines of the annual shareholders meeting of Wal-Mart in Fayetteville, Arkansas, Michael Duke, Vice Chairman of International Operations of Wal-Mart said that Indians were eager for the company to open up shop in India. He added “We see a gigantic groundswell of desire from the government and from businesses for working with us in India. There is opposition but predominantly the groundswell is in support for Wal-Mart coming in.”
Monday, June 04, 2007
Source: The Economic Times
Gulf firms keen on Indian retailPrivate companies from the Gulf region are busy heading to India to enter its bustling retail sector. A lot of companies are wary to making too sudden as move, as while there is lots of opportunity, there are many problems as yet, due to lack of infrastructure, language problems, the vast size of the country, and the lack of retail talent. Tuesday, June 05, 2007
Source: Indiatimes.com
Commissariat Road, Bangalore is the next retail hotspotThe country’s hottest new retail spot is Bangalore’s Commissariat Road, which has a daily gross of Rs. 45 million. Spaces are very limited here, but nearby Vittal Mallya Road is also a good bet for retail. This one street in Bangalore has seen higher sales than any other place in the country, significantly higher than NCRs Mehrauli-Gurgaon Road with Rs. 36 million and Bombay’s Malad Link Road at Rs. 29 million.
Retail is big business in Bangalore, growing at an annual rate of 45% and is on the preferred city and launch list for most retailers. One reason for its success is its central location. There are pitfalls though, as the street lacks a high street atmosphere and has no cafés as Brigade Road does.
Tuesday, June 05, 2007
Source: The Economic Times
Godrej to focus on rural marketGodrej Agrovet is expanding its rural retail format Aadhaar, where farmers and rural customers can get everything they need, from food to electronics and more. The company will be setting up additional Aadhaar stores, with each store taking in a Rs. 200,000-500,000 investment. At present the company has 46 stores and plans to increase this number to 120 by the end of this financial year.
Thursday, June 07, 2007
Source: NDTV Profit
Wal-Mart division Gazeley plans to open in IndiaWal-Mart’s logistic provider Gazeley is reportedly planning to enter the country to provide logistical services. The company is based in the UK and is a wholly owned subsidiary of Wal-Mart. Gazeley’s spokesperson confirmed the company’s interest in the Indian market and said that the company plans to set up an office in Delhi.
Saturday, June 09, 2007
Source: The Hindu Business Line
Retail sector to pull talent from other sectorsThe retail sector’s shortage of talent is likely to lead to professionals from other fields such as telecom, finance and IT to migrate to it. It has been estimated that the retail sector is facing a shortage of about 2-3 million people, which will be required in the next few years. But since the industry is still in its early stages, there still needs to be some structure set to it as yet. Friday, June 08, 2007Source: IBNlive.com
Government Policy
Delhi High Court tells Indian co to not use the ‘Wal-Mart’ trademarkThe Delhi High Court has ruled that the Indian company using the ‘Wal-Mart’ name must not use it for either a trademark or a trade name. The company, which has stores in Delhi, had already agreed not to open any stores under the Wal-Mart brand. Wal-Mart has asked fro Rs. 250,00 as compensation for damage caused to its name, brand equity and reputation.
Friday, June 08, 2007
Source: The Economic Times
Apparel & Footwear:
Future Group focusing on Brand FactoryThe Future Group is betting big with its factory priced outlet called Brand Factory, and hopes to convert about a fourth of its customers there to its higher format brand such as Central Mall. Brand Factory was launch late last year and now has four outlets, which get about 100,000 customers, of which 60% are repeat customers.
These outlets work as ‘recruiting grounds’ for higher brands of the company as customers happy with the company are likely to switch to higher priced brands. Brand Factory sells items at 20-50% less than regular retail prices and has 135 brands available in its stores. Tuesday, June 05, 2007
Source: The Hindu Business Line
Superhouse Group to enter retail sectorAllen Cooper’s parent company Superhouse Group is all set to make its entry to the retail sector. The company already has a strong presence in the US, UK, UAE and Australia. According to Mukhtarul Amin, Chairman of Superhouse Ltd, said, “We mainly export to European countries, France and the UK being our top clients. At present, we are keen on exploring the domestic markets with our retail wing.” The company is keen to expand its operations and open 100 stores in the country.
Thursday, June 07, 2007
Source: Business Standard
Food & Grocery:
Vishal Retail plans IPOVishal Retail will be offering an IPO of equity shares for Rs. 1.10 billion that will open between June 11th and June 13th. The proceeds of the issue will be used to set up 22 stores from this IPO and the remaining 10 stores from internal sources. Thursday, June 07, 2007
Source: The Hindu Business Line
Heritage Foods to set up two retail outlets in ChennaiHyderabad based Heritage Foods announced that it will be opening two pilot stores in Chennai. The company has 20 stores at present, of which 15 are in Hyderabad, three in Bangalore and two in Chennai. According to S Jagdish, Vice President (Retail) for Heritage Foods, the stores in Chennai have been merchandised according to consumer preferences for the area.
Thursday, June 07, 2007
Source: The Hindu Business Line
Pharma:
Private equity firms keen on pharma and healthcare retailSeveral private equity firms are keen on investing in retail healthcare and pharmacy companies. According to Arvind Singhal, chairman of Technopak Advisors, “Private equity players, who have been looking at investment in malls, are now looking at new gen retail ventures in pharma & healthcare services since they are much more lucrative, the turf is yet to get crowded and promises higher returns.” Firms as large as Goldman Sachs and Warburg Pincus are supposedly keeping an eye on the sector.
Friday, June 08, 2007
Source: The Economic Times
Jewelry & Watches:
Small jewelry stores group together to create brandsAs large branded jewelry stores take up a greater market share, smaller jewelry retailers are coming together to create an umbrella brand and share a marketing strategy, in a similar manner as mom & pop kirana stores have planned to do. Even though Indian consumers have preferred to purchase jewelry from local family jewelers, the entry of branded jewelry with guarantees on quality of gold and marketing has led to many consumers to switch to branded stores. The younger consumers are more likely to visit these stores.
Wednesday, June 6, 2007
Source: Business Standard
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