Growing economy to transform organized retail in India

September 22nd, 2008

In India the modern retail is still in the brewing stage and the progressive transformation of the economy stands as a clear evidence of an evolution organized retail service. Although there are disruptions, but the overall impact would be positive which has been observed by experts on the first day of the two day retail summit - Emerging Retail Paradigm, which has been organized by the Southern Indian Chamber of Commerce and Industry.

In the inaugural address Mr Bhaskar Bhat, MD of Titan Industries Ltd, said, that the organized retail in India still will take time to touch all the households in the country. He stated that currently only 14 millions of the households have been successful in embracing the modern retail outlets as they are geographically concentrated.

He asserted that even from seven to eight years from now down the line the retail sector won’t boom even in few hundred towns in India. However, he added that this scenario would change and that the proximity to consumers will not be a long term competitive advantage for many retailers. Mr Bhat added, ‘Over a period, price, location and merchandising will diminish in importance. Only professionalism, process and people will make the winning difference.’ According to him the four key abilities which would require making retail brand successful are - scalability, profitability, respectability and sustainability.

The question of local retailers was discussed and he asserted that although the modern retailers clearly have the benefit of power and size, the local companies can adapt to their policies and survive. He said that the newcomers introduce branding strategies, management techniques, improved merchandising and others which the local retailers can emulate.

Mr. K Radhakrishan, CEO, hypermarkets, Reliance Retail, told that when 80% of the total investments in on the real estate, the supply chain efficiency is the only area which can be efficiently influenced for improved productivity in the retail business, even if the utility charges and manpower are not in the hands of retailers.

Mr. A Satish Kumar, Convenor of the summit and Managing Director, Henkel Ltd announced the theme of Summit as the country will witness a lot of mergers and acquisitions which would be happening in the industry, there will be small number of big players in the organised sector. But there will be traditional stores which would co-exist and survive with potential with them in the market place.

The session witnessed a visual merchandising presentation. While delivering his presentation on this Mr Ranju Mohan who is been the vice president (Marketing), Henkel Ltd, pointed out that how even minor changes in the store’s exterior and interior can impact the consumer perception. She added that a retail store is an effective communication medium between market and consumers and the manufacturers must work closely with retailers to bring in the difference of visual merchandising.

Fortis HealthWorld is now Religare Wellness

September 22nd, 2008

Fortis HealthWorld Ltd (FHWL) which is an acclaimed leading player of wellness retail space has rechristened itself as the Religare Wellness Ltd of late.

The Fortis HealthWorld Ltd has just decided to acquire a principle the CRS Health which has been another wellness retail giant and had significant present in the parts of South, North and West India.

As a part of their proposed plan and acquisition the Fortis HealthWorld Ltd is planning to acquire all the CSR 4 warehouses and 27 retail stores in India. This acquisition and integration would take place under the Religare Wellness brand and is expected to be complete within the next 30 days. Once the integration is over the stores will be exceeding the number of 100.

DLF to bring clothing line Top shop

September 22nd, 2008
kate moss- topshop

Good news for all those who love shopping around Clothing Retails. The Arcadia Group which is run by UK retail tycoon Mr. Philip Green is willing to have a striking partnership with realty major giant DLF to bring high street fashion clothing chain Topshop to India. Sources reveal that Arcadia which is the second largest apparel retailer after Marks & Spencer in the UK is looking forward to explore tie up options with several potential partners. But they have shown more positive signs and seem to have veered towards DLF. DLF is likely to emerge as master franchise for Topshop in India. The exact legal status of the proposed agreement is still on the process and is worked out.

The source added that DLF has already started blocking for space for Topshop at some of its major project areas which is expected to hit the market by the end of the next year which includes the Promenade Mall coming up in South Delhi near Vasant Vihar. The DLF spokesperson when contacted said that they are not ready to comment on speculations so early.

Topshop with global operations across 30 markets is focused on high end street wear fashion collection for its Indian market along with skew towards youth’s choices, women wear, and their accessories. The clothing brand which figures in the London Fashion Week is known for its celebrity collections and the latest is the Kate Moss Line which was unveiled in 2007.

kate moss- topshop

Chinese Restaurants invade India!

August 19th, 2008

The Indian retail segment is considered to be the 9th largest in the world. In the recent years there has been a steady awareness and clamor for good Chinese food throughout the country. This is also being utilized by enterprising retailers.

It is estimated that in this more than Rs.65,000 crore segment, barely 7 percent has been under organized section. As the government has only recently been evincing keen interest in foreign direct investment in many sectors, this sector is bound to be noticed and in fact would be gobbled up by alert firms.

It is true that Chinese food is available now in almost all parts of the country. In fact there is the urgent need to fill up the huge demand in this sector.

The Chinese restaurants by suitable location, ambience and of course choice cuisine could attract customers who not only want a change from conventional Indian food but seem to have a positive liking to Chinese foods.

In fact in the recent years in major cities and in the second-rung cities also there has been a shift in the life-style making people often go out and eat. This is bound to have a great deal of repercussions in catering industry even though already it has a full house all the time.

People are becoming increasingly conscious about the hygienic conditions in the eating houses. From the very beginning the Chinese restaurants should stress on the hygiene factor.

The one name that springs to mind when Chinese chain restaurants are thought of is Yo! China. This has plans to expand its outlets in many parts of the country.

This is an opportunity for enterprising elements to easily get into this sector and make name and fame, not to mention the rewarding monetary gains.

Vornado US – Reliance Joint Venture!

August 19th, 2008

A big thrust to shopping mall sector – joint venture by Vornado US and Reliance India agree for $500 million investment in retail shopping mall sectonador.

The shopping mall sector in India gets a big boost when the present Reliance Industries’ Joint Venture with Vernado Real Estate, USA takes off. Both propose to share on equal basis $500 million in shopping centers. The Reliance already has its presence substantially in the real sector by having over 700 retail multiple formats in India. This joint venture would make it a treat for the retail consumers who would be assured of quality product and service.

“The shopping centers will contain 500,000 to 1,000,000 or more sq feet and typically be anchored by a hypermarket to be owned and operated by Reliance,” Vornado said. It may be mentioned that Vornado has invested in other ventures in India to the tune of $92 million.

Reliance has its own authoritative stride in the Indian retail market with its revenues exceeding $34 billion.

This joint venture will act as a spur for the growth of retail market segment and augurs well for the consuming public.

Future Group’s extra ordinary distinction

August 19th, 2008

Record-breaking turn-over at Future Growth’s retail outlets of Big Bazaar, Pantaloons, Food Bazaar, Central, EZone, Home Town , Brand Factory, Furniture Bazaar, KB’s Fairprice, Mobile Bazaar and Aadhar touched the astonishing and astronomical figure of One billion crore rupees on a single day, 17th August, 2008.

There were, of course, special promotional efforts at all the retail outlets of the Future Growth. Even then in the conditions of inflation and careful spending the fact this was achieved shows the extraordinary efforts of the unit.

An exuberant and jubilant Kishore Biyani, Group CEO, Future Group said, “We have been pleasantly surprised by the phenomenal response we have received from customers during the past week.” Biyani also added, “In the midst of an inflationary scenario, crossing the Rs1bn turnover mark on a single day has reassured our belief that our retail operations are able to provide the best value to Indian consumers. More importantly, this could be a vital indicator that consumer confidence continues to remain buoyant in India.”
The retail outlets are dotted all over the country, from almost the foothills of the Himalayas to the southern shores of Indian Ocean and from Guahati to the borders of the Punjab. This landmark is just a reflection of healthy economy and much more than that in the quality of the products available for the Indian consumer. It has been estimated that in the last week’s special promotional efforts more than six millions customers were attracted and there was mutual benefit shared by the buyers and sellers!

Having permanent outlets in 64 cities and also in 65 remote rural areas, Future Group has solidly established itself as catering to the needs of the public. Not only the necessities of life but comforts and luxuries too form the important link in the supply chain of the firm. All categories including apparel, luggage, furniture, electronic and consumer durables and mobile phones too can be had. It is the belief of the customers that almost anything reasonably desired could be obtained from the group’s outlets. Not an ordinary achievement!

Tesco-Tata Trent joint venture in cash and carry segment

August 14th, 2008

TESCO -a breakthrough in Indian retail scenario

Tesco Plc the Number One company in retailer services in UK, has announced its entry into Indian market by having a joint venture with Trent, Tata Group’s retail outfit. The world’s third largest retailers have planned to invest in the first two years itself a sum of 60 million pounds. Tatas have their Star Bazaar format and would greatly benefit from the expertise and experience of Tesco Plc. As it is there are four units of Trent, two in Mumbai, one each in Ahmedabad and Bangalore. Trent wants to expand its activities to fifty centers within five years.

“This is another exciting development for Tesco. It complements our entries into China and the United States, giving us access to another of the most important economies in the world. Our wholesale cash-and-carry format will bring improved value, range and service to thousands of Indian businesses,” Tesco CEO Terry Leahy said in a statement.

The Cash-and-Carry scheme of Tesco would be its offer of grocery, food and non-food items to small businessmen, stores, restaurants and will have a great impact in that segment.

“Their (Tesco’s) wholesale cash-and-carry business will provide us with the opportunity to tap into a world class supply chain thereby delivering the best of products and services to our customers,” Trent Managing Director Noel N Tata said.

Star Bazaars have already made mark in supply chain dealing with fruits, food items and a score of retail products earning as usual the respect normally accorded to Tatas for splendid service and integrity.

A Fortune 500 Company, Tesco has the distinction of being the No.1 retailer in UK. It has its spread across thirteen countries in the globe, specializing in Stores, Non-food, retailing services, besides international business. In India, its principal sourcing is apparel. Its outlets in different countries in the world sell millions of vests an T-shirts each year. These come from Tirupur while Bangalore provides a million shorts each year. Tesco Plc also has a big IT and business services centre. Tesco Hindustan Services provides valuable service to its customers based on its expertise accruing in Indian wing. Its Bangalore section also has considerable clout in financial processing.

Tesco Trading and Contract functioning from 1986 has the most sophisticated technology to provide office interior designs and commands great respect among the consumers. Almost all major Southern cities have been beneficiaries of this valuable service which has enhanced the elegance and aesthetic sense of the offices.

Development of infrastructure and supply chain, a major constraint in retail business would be overcome efficiently by Tesco joining hands with Tatas. This much awaited co-operation between two giants augurs well for Indian retail business. The cash and carry business has been making its impact in the Indian markets with Wal-mart and German giant Metro having earlier gained a foothold.
The initial investment of Tesco would e around 60 million pounds ($115 m) in the cash and carry business. Tesco also would be providing the Tata group its vast
Expertise in the retail field..