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Press Quotes, Articles and Whitepapers
 
 
 

Several companies are trying to organise the home-focused services sector in India and bring in professionalism. (Mint)

Home maintenance goes corporate

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Amazon makes quiet entry into India

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The world's largest online retailer is tiptoeing into India, using cover from a comparison shopping site Junglee.com it acquired 13 years ago. (The Economic Times)

 
 
 

As the ice cream market in India evolves and there is much more on offer, single scoops and the common flavours are no longer enough for many consumers. (Daily News & Analysis - DNA)

Folks are dining on ice cream!

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Retailers try to sell more for less

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Spending on the High Street has never been cheaper for such a long period of time. Some of the biggest brands are literally shouting from the rooftops that they are offering up to 70% discounts. (Business Standard)

 
 
 

The world's second-largest apparel retailer Hennes & Mauritz (H&M), which usually enters large markets on its own, is not so sure about opening shop in India despite finding the market "interesting". (The Economic Times)

Hennes & Mauritz wary of entering in India

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Bombay Store aims to grow younger

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More than a century old, The Bombay Store is looking to attract youth with The Elephant Company, a young, quirky brand. (The Hindu BusinessLine)

 
 
 

Dutch-based supermarket chain Spar International plans to partner with multiple firms to expand its retail presence in India, a senior company executive said on Wednesday. (Mint)

Spar plans tie-ups with multiple firms

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Will luxury brands lap up 100 pc FDI?

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Contrary to popular belief that allowing 100 per cent in single brand retail will give impetus to luxury brands in India and bring down costs, experts have a more conservative view. (Pitch)

 
 
 

India Inc has welcomed the lifting of the foreign direct investment (FDI) limit to 100 per cent on single brand retail. But retail sector specialists do not expect a stampede of investments any time soon. (The Hindu BusinessLine)

Never mind 100% FDI, foreign chains may not rush in

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100% FDI approved in single brand retail

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The Manmohan Singh government has finally given its nod for the relaxation on the existing 51 per cent FDI in single brand retail, increasing it to a much awaited 100 per cent. Indians could soon experience the unique frustration of assembling Scandinavian flat-pack furniture as stores such as Ikea are to be allowed to open in the country. (from The National-UAE and Retailer)

 
 
 

Apparel retailers in India are extending their end-of-the-season discount sales period to clear inventory that has been piled up due to slowdown witnessed in earlier months. (Fibre2Fashion)

Indian apparel retailers extending sales

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Minding other people's business

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The entry of Future Supply Chain Solutions into multi-brand retail via a subsidiary has given some regional brands the kind of exposure they could only aspire to before. (Business Standard)

 
 
 

Hit by a sharp slowdown in sales, apparel brands and retailers are either extending their end-of-the-season sales or advancing it by weeks to clear their inventory and free up cash. (Business Standard and Economic Times)

Year-end discounts start early

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Andhra Pradesh government seeks tie-up with Tesco, Bharti-Walmart

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The Andhra Pradesh state government is drawing up plans to open swanky supermarkets, venturing into the multi-brand retail territory with multinational retailers such as Walmart and Tesco, but the proposed partnership will need alignment of objectives.(The Economic Times)

 
 
 

2012 will be the year of moderation in consumer spending across durable, consumer goods and apparel, as industry experts foresee an unfavourable sentiment gripping consumers, which could make companies cautious in their growth talk. (Daily News & Analysis - DNA)

After festive cheer, grim reality

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Four brands nearing Rs. 500 cr annual revenue

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With critical mass now available in the Indian market, four companies have a positive outlook despite the gloomy overall economic scenario, targeting 100 million dollars each in sales. (Mint)

 
 
 

Football clubs are jumping on the Indian sportswear bandwagon, pursuing the huge scope for growth in a US$900 million market. (The National)

Football and India -- a friendly match

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Retail executives turn entrepreneurs

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India's retail industry is buzzing with entrepreneurial activity as a growing number of retail professionals trade in salaries for their own wall art chains, lingerie brand, and beer cafes. (The Economic Times)

 
 
 

FDI in retail will usher in changes in the shopping experience, believe experts. But, even without it, Kerala's textile retailers have been dressing up in style. A look at the action. (The Hindu - BusinessLine)

God's Own Retail Lab

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Retailers anxious, government seems confident

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The industry is turning nervous about the prospects of single-brand retail, since the government has yet to notify a Cabinet decision raising the foreign investment level to 100 per cent, from the current 51 per cent. (Business Standard)

 
 
 

Reliance Industries, a $50-billion-plus oil and gas giant, will enter the fast-food business with its own brand next year, opening yet another front to do business directly with India's growing young population. (The Economic Times)

Reliance Industries to enter fast-food business

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Try, Try, Try Again

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Foreign investment could change the way India retail firms function. But for now, most proponents of the policy will have to swallow their disappointment and hope that the government gets its act together enough to put it back on the agenda. (Businessworld)

 
 
 

With plans for raising FDI in single-brand retail from 51% to 100% getting the green signal, albeit possibly with riders, all is not lost for India Inc. (Outlook)

Get Ur Swoosh On

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New FDI rule hits roadblock in India

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Some predict foreign investment will herald a consumer revolution in the huge retail sector, some forecast doom for countless small traders and farmers. (China Daily Asia Pacific)

 
 
 

Traders in Karnataka are livid at the Centres move to allow 51% FDI in multi-brand retail, fearing that their business will be hit by predatory pricing. (The Times of India)

Traders fear FDI will bring predatory pricing

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Single-brand retail reform could see changes on high street

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The move to increase the 51% limit on foreign direct investment (FDI) in single-brand retail hasn’t attracted much attention, but could see a change in existing relationships and lead to a transformation of the Indian high street. (MINT)

 
 
 

The Indian government has proposed allowing single-brand retailers (such as the furniture giant IKEA) to wholly own stores in India, while multi-brand retailers (like Wal-Mart and Carrefour) can own a 51 percent stake. The moves, which have yet to be formalized, could greatly impact the supply chain landscape in this country of nearly 1.2 billion people. (American Shipper)

India opens door to foreign retailers

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Will FDI in retail help Biyani finally tie up with Carrefour?

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After foreign direct investment in multi-brand retail was approved by the Indian Government, could the Future Group enter into negotiations again with French retailer Carrefour? (The Hindu Businessline)

 
 
 

The supply chain efficiencies of cash-and-carry operations such as Metro are mainly beneficial to small retailers, as large format retailers choose to go direct to suppliers. (The Hindu Businessline)

Cash-and-Carry focussed on small retailers

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Targeting the savvy shoppers in India

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Kenneth Cole's entry into India comes at an opportune time - the American company wants to attract the young, brand-aware segment of consumers. (The National)

 
 
 

Starting with bookings for two of India's biggest obsessions - Bollywood films and cricket matches - e-ticketing companies have now diversified into other events too. (Business Today)

E-ticketing websites go all out

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India Tops Retail Shrinkage List

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Indian retailers suffered the highest loss of stocks to theft in the world, but the silver lining was that India is the world’s only country where the shrink rate came down in 2011, according to the Global Retail Theft Barometer 2011.(Asian Correspondent)

 
 
 

Retailers are countering the economic slowdown by offering interest-free equated monthly instalment (EMI) schemes, which they say are not only helping them pull customers into stores but also encouraging shoppers to buy higher value products. (The Economic Times)

Interest Free EMIs offered by retailers

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Gulliver's Travails

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The Lilliput Kidswear controversy could lead to irreconcilable differences, and weaker valuations. (Businessworld)

 
 
 

Tommy Hilfiger is taking direct control of its operations to integrate India into its global sourcing and design programmes. (Business Standard)

Tommy Hilfiger goes in for solo play

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Falling Footfalls

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Vishal Krishna presents an in-depth analysis on why only a handful of India’s hundreds of malls make money, the 7 deadly sins that failed malls committed and what some of them are doing to correct course. (Businessworld)

 
 
 

High prices and economic uncertainty appear to be turning consumers stingy, if not altogether unwilling to spend. (Daily News & Analysis)

As goods turn dearer, bargain hunters grow

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Buoyant Expectations

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Even as participants at the Indian Retail Forum in Mumbai, the industry’s annual jamboree, are being cautiously optimistic, preliminary data from the first quarter of 2011-12 (FY12) reinforce the perception of a slowdown. But growth of space expansion continues. (Businessworld)

 
 
 

Cafe chains in India are offering more than coffee to stay ahead of impending competition. (Businessworld)

A New Brew

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Tommy Hilfiger buys out Murjani in JV

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Tommy Hilfiger Group has bought out the Murjani Group’s 50% stake in the latter’s joint venture (JV) with clothes maker Arvind Ltd for an undisclosed sum, as part of a global strategy of consolidating its operations and having a more direct role in its various markets. (MINT)

 
 
 

Shoppers Stop will be the launchpad for Paris Hilton's eponymous brand of handbags and accessories in India. (The Economic Times)

Paris Hilton to launch at Shoppers Stop

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All for personal taste

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To capture the hearts of millions of ever demanding consumers, a tweak in the products has become the ace card for a marketing game plan. (Retailer)

 
 
 

Reliance Retail has begun door-to-door direct selling through housewives and housing societies to boost sales of its private brands such as Sudz detergent, Amara soaps and Healthy Life food items. (The Economic Times)

Housewives to peddle Reliance retail wares

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Looking for good bargains? Go online

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Indian websites like snapdeal, taggle, sosasta, mydala offer up to 90% discount, pushing growth of online sales. (The Economic Times)

 
 
 

Indian personal-care (FMCG) companies have registered significant increases in revenue despite commodity inflation, as consumption patterns have gained momentum. (Businessworld)

The Time for Personal Growth

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Consultants, developers set up mall management firms

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Mall developers entering an increasingly crowded market are calling in experts to help them design and run their new projects. (Mint)

 
 
 

Who doesn't love to strike a deal, with discounts from 10 per cent to 90 per cent on lifestyle products and services? This is why group buying (discount deals) websites show strong potential in India. But there are many variables that these businesses need to pay attention to in order to succeed. (The Smart CEO)

The Art of Selling Discounts

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Denizen: A new avatar

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Levi's, with the launch of Signature, was being perceived as a mass brand. Can it make a U-turn after phasing out Signature and bringing in Denizen? (Pitch)

 
 
 

Apparel sales in the country have slumped about 20% since March, forcing many brands to start end-of-season discount sales two weeks earlier than usual. (The Economic Times)

Apparel sale slump after imposition of excise duty on branded garments

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Trent in talks with Inditex for one more brand

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Trent, the flagship retail arm of Tatas, is in talks with Spanish retailer Inditex group to bring another fashion brand, Massimo Dutti, to India. (Business Standard)

 
 
 

Reliance's re-entry into the cash-and-carry business assumes significance even as global retailers such as Walmart, Tesco, Metro and Carrefour are expanding their presence in India, and amid anticipation that the government is likely to ease foreign direct investment (FDI) norms in retail. (Businessworld)

Reliance Retail Refreshed

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RIL looks to re-enter cash-&-carry

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Three years after its experimentation with cash-and-carry retail fizzled out, Reliance Industries Ltd (RIL) plans a strong comeback. (Business Standard)

 
 
 

Considered as a mass brand in Spain, Zara came to India as a premium brand and has managed unprecendented success. How did Zara get its 4Ps right? (Pitch)

Zara: Premium Fashion

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Major Brands-Promod Plan JV, 40 Stores

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Major Brands (India) Pvt. Ltd, the local franchisee for fashion apparel and accessories brands such as Mango, Aldo, Charles & Keith and Nine West, will form a joint venture with French womenswear retailer Promod. (Mint)

 
 
 

Back in the race now, Shoppers Stop is gathering speed in expansion even as it improves operational glitches. (Businessworld)

Few Halts For Shoppers Stop

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Squeezing More Juice Per Fruit

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Drink makers are busy courting the thirsty and the health-conscious. Fruit beverage is seen as the next big squeeze, growing at a healthy clip of 25 per cent year-on-year. (Businessworld)

 
 
 

Beaten on its home turf Delhi, the $1-bn Mother Dairy is crafting a new strategy to win back its base and go national. Mother Dairy is placing emphasis on value-added, high-margin products. (The Economic Times)

Billion-dollar Mother Dairy's new strategies

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A New Lifestyle

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Micky Jagtiani's Lifestyle International went slow when others were rushing. Now, it is ready with massive expansion plans in the Indian market. (Businessworld)

 
 
 

Consumers are back to shopping with a vengeance. Retail rents are rising, too. (Businessworld)

Rush for Space Begins

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Western chains flock to India as fast food grows

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A number of fast-food and cafe chains that are flocking to India would do well to take away lessons learned by established rivals such as McDonald's in navigating a market beset with obstacles. (Reuters)

 
 
 

Inditex entered India with its flagship brand Zara on a Friday in May 2010 and that day the South Delhi outlet recorded the largest single-day sale by an international retailer in the country. The journey continues in 2011. (The Economic Times)

Zara favourite among Indian shoppers

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Makeover on the Shop Floor

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Almost all established department store chains are reinventing themselves in a bid to win customers who are spoilt for choice. (Business Standard)

 
 
 

A host of mall management companies are eyeing a INR 240 billion market. (Businessworld)

Maximising Footfalls

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Food Tech Holland Launched in India

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The Indian presence of the Dutch supply chain cluster, Food Tech Holland, was formally launched by Ashok Sinha, Secretary, Ministry of Food Processing Industries, at the recently held Food Forum India 2011 in Mumbai. (Images Food)

 
 
 

Group buying websites, mostly launched in the last one year, plan aggressive expansion as they see record traffic for their offerings. (Business Standard)

Group buying sites eye expansion

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Retailer-manufacturer slugfest resurfaces

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The margin “issue” between retailers and manufacturers has resurfaced big time — whether between Reckitt and Future or consumer durables giants and Tata group’s Croma. (Business Standard)

 
 
 

The fledging retail sector in India will enter an expansion period and witness large-scale consolidation with increasing competition. (China Daily)

Indian retail sector to see fast expansion and consolidation

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Home Truths

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Large Indian retailers are using private labels to differentiate themselves from competition, but also to flex their muscles in their relationships with brand manufacturers.(Business Standard)

 
 
 

The textile industry has sought measures to boost exports of apparels and textile products in a cost-competitive market and easier access to funds for cotton buyers as it peaks in a year of global shortage. (Reuters)

Textile firms seek exports boost in budget

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Shoppers Stop’s new strategy

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Shoppers Stop (SSL) has topped the list of the Most Respected Companies in the retail category for the third year in a row. The company has been rated No. 1 by its peers in all categories except one. (Businessworld)

 
 
 

Star Bazaar, the chain run by Tata-owned Trent Hypermarket, says it used the economic slowdown to book properties when prices were down, allowing it now to open more stores. (Business Standard)

Star Bazaar pats itself on slowdown strategy

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Britannia forays into breakfast mixes market

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FMCG major Britannia Industries has entered the Rs 5 billion branded breakfast space dominated by players like MTR Foods, Kellogg India, PepsiCo and Marico. (The Times of India)

 
 
 

Starbucks is finally coming to India. The world's largest premium coffee retail chain announced that it has entered into an agreement with Tata Coffee for a strategic alliance. (Business Standard)

Tata Coffee brings Starbucks to India

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Retail Outlook 2011 – the Year Ahead

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Retailers and mall operators in Singapore, Malaysia, the Philippines, Thailand and India share their views and expectations for 2011. (Retail Asia)

 
 
 

Luxury retailers from across the globe are thronging India, where they see a huge potential for growth. However, they do have to tackle significant hurdles along the way. (Retailer)

Bumpy Road for Luxury Retail

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Biba split: new firm in the offing

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Bindra brothers split: Sanjay Bindra will sell his stake in an all-cash deal in Biba Apparels Pvt. Ltd; new firm in the offing. (MINT)

 
 
 

The regional markets in the country are dominated by the regional retailers. But national and international retailers are trying to get better of them and are now modifying their offerings to suit the regional tastes and preferences. (Retailer)

Streak of regional colour

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S Kumars goes in for branding rejig

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S Kumars now wants distinct segmentation for all its brands. (Business Standard)

 
 
 

There are strong arguments both in favour of and against the MRP (maximum retail price). Can we try giving retailers a chance to flex prices? (Indiaretailing.com)

Time's up for MRP?

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Walmart: Back To The Front

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In two years, the global retailer has built-up an impressive supply chain that no Indian retailer can match. (Businessworld)

 
 
 

Airtel's brand is going to be visible on two different continents. The company believes a change in the logo signals its readiness to change. But do consumers agree? (The Economic Times)

Airtel's new logo comes in for criticism

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Britannia, Marico, PepsiCo spot a big opportunity

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Call it the breakfast war. The scramble to serve the first meal of the day is getting busier with companies such as Britannia, Marico, PepsiCo, Kellogg India and MTR Foods offering more and more options to meet Indian consumers' rising demand for quick-fix food. (The Economic Times)

 
 
 

The Madras High Court’s order rejecting Subhiksha's merger proposition with Blue Green Constructions and Investment (BGCIL) has put a big question mark on the revival of the retail chain. (Businessworld)

Reverses On Revival Path

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A Brand New Story Everyday

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Shweta Iyer talks about the pros and cons of launching a new brand and tries to find a success mantra to survive in the industry. (StoRAI - magazine of the Retailers' Association of India)

 
 
 

After wooing customers with happy meals and extra-value meals, Big Mac has added breakfast to its menu, which it believes will keep the chain "ahead of competition". (Business Standard)

Big Mac's New Menu

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Woodland's eco drive

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Woodland, the outdoor shoe and apparel maker, wants eco-friendliness to become its brand recall. Here’s how it plans to grow. (Business Standard)

 
 
 

Indian beauty salon chains are looking to expand operations, offer cheaper services and increase the share of product sales in their earnings. (MINT - A Wall Street Journal Partner)

Indian beauty salon chains go on expansion spree

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The Hidden Cost

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Do Indian retailers underplay the expense on a promotion while assessing the success of a sale campaign? Is top line growth the only purpose of a promotional campaign? Do the numbers at retail justify the costs involved? These are burning questions that need to be addressed while assessing the efficacy of this oft-used tool. (Images Business of Fashion)

 
 
 

Everything was on the track until the very famous after-effect of worldwide recession hit the Indian retail industry. The blow was too hard for some, and some ducked the impact. (Retailer)

Sustaining the not so sustainable

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The Complete Coffee Experience

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Initially, stocking additional merchandise was treated to be a tool for branding but nowadays the same has managed to become a source of additional revenue. (Retailer)

 
 
 

As the competition heats up among shopping centres, what would differentiate one from the other? The answer lies in localisation of the shopping centre in line with local tastes and preferences. (indiaretailing.com)

Go local, not global

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Call of the Mall for Reluctant Shoppers

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Reluctant shoppers who used to drag themselves to the market even for that rare need-based shopping, don’t mind walking the clean corridors of some of the plush malls in town. (MINT - A Wall Street Journal Partner)

 
 
 

Back then, the sales were a much-awaited annual affair. Today, discount sales run all year round. Modern retail appears to be learning its lesson on right-pricing the hard way - the Indian consumer will go where the value is. (Daily News & Analysis)

Retailers step up discounts

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Club Couture

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'Couture equals bridalwear'- this perception is just the start of many a symptomatic issue that ails the Indian fashion sector. (Business India)

 
 
 

The latest catwalk designs, at affordable prices. That's Zara's promise. But to deliver that in India, it will have to tweak its centralized business model. (Forbes India)

Fast Fashion - Zara in India

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Wadhawan Shuts Spinach

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Wadhawan Retail has decided to shut its Spinach food and grocery stores. (The Economic Times)

 
 
 

India is warming up to fair trade. But the concept remains a niche market as companies are hesitant about taking it to the masses. (Forbes India)

Fairtrade in India

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Taking The High Road

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Foreign brands are lining up to enter the Indian market. Although many have positioned themselves as premium brands, most have become prudent enough to ensure that the prices are not beyond the reach of the Indian consumer. Indians are willing to pay more for foreign apparel brands. The brands themselves have lowered prices. And the resultant boom is attracting more players into India. (Outlook Business)

 
 
 

Customers visiting a store are looking for either the width of merchandise – the variety of product lines offered – or the depth – the number of each item or particular style of a product on offer. Which is more important? (IndiaRetailing)

Width or Depth - A Critical Choice

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Foreign Players in Indian Retail

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While multinational companies have preferred franchise models, more are now seeking joint ventures and greater control over their presence in India. (Span)

 
 
 

Jewellery retailers looking at malls need to focus on those that are consistent with their own product mix and standing. (interview to Retail Jeweller)

Growing Jewellery Retail Through Malls

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Textile Mills Ride Realty Boom

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India's top textile firms are generating additional revenue streams by developing or selling precious real estate as land rates rise in a buoyant economy.(Reuters)

 
 
 

Even the cautious are now convinced about the Indian recovery. The GDP projections are creeping up, production figures look good and, more importantly, demand is back. Organised retailers are heaving a sigh of relief with an uptick in sales after a bad year. But one group in the organised retail business is still not smiling: the mall owners. (Businessworld)

Malls - Surviving the Slump

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Policy Blow on Cash and Carry

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A change in rules may have put a pause on organised retail's expansion. (Businessworld)

 
 
 

The marketing mantra may sound incongruous outsibad year. But one group in the organised retail business is still not smiling: the mall owde a bar, but retailers from a range of sectors have started borrowing it to push sales in traditionally lean hours--betting that everyone loves discounts. (MINT)

Retailers turn to ‘happy hour’ discounts

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He wants more

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Thomas Varghese wants to take the Aditya Birla Group's retail chain "More" to the top by 2015. But he has to give it an identity first. (Businessworld)

 
 
 

Cigarettes to hotel major ITC entered the consumer products business in 2007. In three years, it has managed to corner a two per cent market share. The personal care sector holds immense appeal for ITC due to the category's size and growth potential. (Business Standard)

ITC tries to find its feet in personal care

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Won't need? Don't pay.

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Is it worth paying extra for feature-laden appliances or extended warranties? Not always. Find out why the price may not live up to the promise. (Money Today)

 
 
 

Retailers need to ascertain that the format, product assortment and the location of their store assures profits. How do exclusive branded outlets (EBO), shop-in-shop (SIS) and multi-brand outlets (MBO) compare as different channels? (Indiaretailing.com)

It's All About the Format

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Spinach withers in economic slowdown

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Grocery supermarket chain Spinach appears to be caught up in a slide that has seen a number of Indian retailers, particularly from low-margin food and grocery industry, down shutters in the wake of the economic slowdown. (MINT)

 
 
 

Aigner, the German luxury brand, and Genesis Luxury, the up-market retailing arm of Genesis Colors, have ended their tie-up in the country, as their plans did not go as expected. (Business Standard)

Another luxury partnership from abroad goes kaput

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Textile makers seek more funds for technology in Budget

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The textile industry had been battered by the economic slowdown for much of 2008/09 but has begun to recover in the past 2-3 quarters. But analysts said that the government needs to quicken disbursement of funds as there was no clarity on how soon a unit can receive the funds under TUFS, which is essentially a low interest-rate loan. (Reuters)

 
 
 

The second rung of retail players is shaking things up. But in a highly competitive market, smaller retail chains have cracks in their business models. Can they take the next leap? (Feature article from Businessworld, 23 January 2010)

Wild Cards

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Retailers mull new strategies for small stores

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Large retailers are trying to make their small food and grocery stores viable by trying out new ideas. While some like Reliance Retail are converting most of these stores into a deep- discount value format, RPG Group’s Spencer’s is looking at the franchising route.

 
 
 

As the New Year celebrations wear out sooner or later, bringing to the fore the harsh realities, the first thing that is likely to hit hard are the sharply rising food prices.

Hotter chillies, tangier tomatoes

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Global tie-ups, private labels to be buzzwords in retail this year

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Tie-ups with international retailers and brands, emphasis on profitable growth and increased focus on private labels are set to be key trends in the Indian retail sector in 2010, say retailers and consultants that Business Standard spoke to.

 
 
 

Parents continuously strive to do better for their children. They play an indelible role in shaping up the eating habits of their kids beginning at infancy. So when it comes the matter of feeding their toddlers, urban Indians (parents) typically are willing to go the extra mile in enhancing the nutrition quotient.

Nutrition Trust - No Child's Play

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High Cotton Prices Sour Rebound

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An unforeseen drop in global cotton output has seen prices flare, putting at risk the fragile recovery of India's textile industry that was battered by the global recession earlier in the year

 
 
 

"Rather than trying to fit the world to our business model, we need to fit the business model to the real world that exists," comments Devangshu Dutta, chief executive of Third Eyesight.

Customer-centric retailers roll the dice

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Zoozoo merchandise launched by Vodafone and Shopper's Stop

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They're egg-headed, have squeaky voices and formless pale bodies, but the viewers seemingly can't get enough of them. Vodafone's Zoozoos have now ventured into merchandise. The reason: public demand.

 
 
 

With retailers downsizing operations, many senior executives from fast-moving consumer goods (FMCG) and telecom who had jumped on the retail bandwagon a couple of years ago are making a quiet comeback

Retail dream fades for many FMCG, telecom executives

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Sustainable Fashion Forum

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Sustainability is a great concept like liberty - In three sessions, the panel of speakers tackled three key issues: What is Sustainable Fashion? Is Sustainable Fashion Profitable? Who Wants Sustainable Fashion?

 
 
 

The Indian call centre has become an international cliché. Its employees are young, educated, English-speaking and compared with their compatriots, well-off – and their disposable income, along with that of the rest of India’s fast-growing middle class, is driving extraordinary growth in the country’s consumer goods market.

Happy with home-grown

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Quickening Service

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Indian shopping hotspots are sporting more and more golden arches these days. If McDonald’s is expanding like never before, KFC is not far behind.

 
 
 

Normally, the performance of the market leader is a fair indicator of which way the wind is blowing in a sector, data from various retailers suggest that sales picked up slightly, but urban consumption could still be worrying.

Not Out Of The Woods

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Promises to keep

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Real estate is the largest component of cost for a modern retailer in India. At an average of 15 per cent of sales being paid out as rentals – compared to 2-3 per cent of sales in developedmarkets – just the retail space cost is enough to seriously dent a low-margin retailer’s bottomline. However, is reductionin rent the proverbial Final Solution?

 
 
 

The fast growth of digital media has amplified the potential of modern retailers to gain momentum in pushing brand building and consumption of their respective products among younger consumers. Opportunities in online brand building are particularly important to understand, given the tremendous pressure Indian retailers face in generating revenues robust enough to counter high operating costs.

Social Circuitry

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Seeking the right value

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A decade ago getting a branded footwear or apparel at 50 per cent discount gave rise to doubts in the minds of consumers. The stock was often comprised of store rejects and seconds. But this phenomenon has taken a complete turn with the terminology also being changed to value retailing.

 
 
 

Managing business poses many challenges to a retailer. Gross margin is only the starting point. A higher gross margin allows the retailer much more scope in deciding the operating costs. However, there are businesses with a high gross margin on products but slow inventory turn and high markdowns as well.

Gross Margin: How reflective is it?

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Getting the retail value chain right

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The consumer driven industry is feeling a dire need to streamline processes and optimise operational efficiencies. Industry experts are of the view that to fight back in this challenging environment, retail value chain can prove a handy tool for retailers to understand and identify performance improvements within the network while at the same time improving the customer experience in every store.

 
 
 

Gone are the days of basic satchels, canvas shoes and hand-me-down clothes from elder siblings. Retailers are finding new ways to create buying opportunities.

Retailers discover potential in the
‘back-to-school’ market

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Apparel retailers move into small towns for growth

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Skyrocketing rentals in big cities also makes moving to tier 2 and tier 3 cities attractive for apparel retailers.

 
 
 

After making their debut on television ads during the Indian Premier League earlier this year, the lovable egg-headed Zoozoos quickly made their way onto comic strips, newspaper mastheads, birthday cakes, wedding cards, shoes, T-shirts, key chains and even rakhis.

Zoozoo rakhis, anyone?

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Modern Food Retail: A tough balancing act

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The primary challenge in food retail, is its supply chain, which is making things difficult for retailers and food processors to procure quality produce at competitive costs directly from farmers in India.

 
 
 

Convenience and low prices are spurring an increasing number of Indians to purchase goods and services through the Internet. The innovations in securing online transactions are also fuelling the trend .

Just click to buy and save more

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Wholesale Hopes

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Cash-and-carry players are still betting big on India despite their poor show so far

 
 
 

Indications are that foreign investment in front-end retail will remain a distant dream

No Foreign Hand, For Now

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Neighbourhood stores go off the beaten track

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Modern retail is here in India to stay and growing but the friendly neighborhood stores are fighting back - and how.

 
 
 

It has been suggested that investing in innovation during a downturn helps retailers counter depressed consumer sentiments but a downturn also creates opportunities in the market and it may be the best time to invest in value marketing.

Survival of the fittest

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Homeware retailers change tack - Adopt new strategies to prop sales and cut losses

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Speciality home ware retail chains have changed tack as home sales drop and shoppers defer buying big-ticket items like furniture and furnishing to save cash in the downturn. To counter the slowing sales, retailers have adopted strategies to prop sales and cut losses.

 
 
 

The sustainability of any business depends - to a large degree - on loyal customers who come back again and again. A loyalty scheme can enable a retailer to not only to be in touch with its customers more regularly, but also to distinguish between customers and service the individual customers much better.

The Mystery of The Shopper

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RETAIL The Burden Of Debt

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Being an entrepreneur, Kishore Biyani is not shy of burning his fingers. Biyani took on a huge debt to expand Pantaloon Retail very quickly. Now the slowdown is making him rethink the Future Group's business plans and structure.

 
 
 

When the recession started in the second half of 2008, luxury retailers predicted that high-end brands would be immune as their target group would neither tighten their Chanel belts nor compromise on their lifestyles. Six months on, terms like recessionista and chicko-nomics are in and the Richie Rich club is shying away from luxury.

Cut-price couture

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Slowdown Spiking E-Tailing?

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Statistics gathered from eBay India reveal that one of the top-selling categories are jewellery and watches. Other hot categories are clothing and accessories, sporting goods, collectibles, home furnishings and musical instruments. These online shopping trends throw two big myths out of the window. One that the lack of the "touch and feel" factor is the biggest constraint in the path of e-commerce growth in India. And second, that only low value items peddle on the net.

 
 
 

Raheja-owned department al store chain Shoppers Stop Limited (SSL) is pulling out of unviable new ventures and shutting loss-making stores to conserve cash for the company in the ongoing economic downturn.

Shoppers Stop pulls out from unviable projects

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Against the grain

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Rice, which has long held the reputation of being the food of the masses, is witnessing a silent transformation in India. Things have come a long way from the “touch and feel” approach to purchasing rice by the weight to the modern era in which the busy urban Indian consumer is beginning to place his or her trust in branded and packaged rice.

 
 
 

The jewellery trade and industry has taken a hit. The global economic meltdown, the winds of recession, the slump in diamond and jewellery exports, massive lay-offs, closure of factories (SEEPZ, Surat), the volatile prices of gold and, most importantly, the dampened sentiment of the consuming class (especially for non-essentials like jewellery) have adversely impacted this sector.

What should Jewellers be doing next?

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Pantaloon sees second slowest sales growth in 5 years

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Pantaloon Retail's same-store sales in January grew at the second slowest pace in five years as consumers curbed spending and the retailer struggled to survive the downturn by offering discounts.The slow growth comes after the retailer's value and lifestyle same-store sales registered a negative growth in December.

 
 
 

Indian textile manufacturers have sought a two-year moratorium on repayment of term loans, withdrawal of excise duties on man-made fibres and waiver of service taxes on exports as well as taxes on textile machinery. The embattled textile industry, reeling under a slowdown in demand and high input costs, also seek to bring domestic cotton prices at par with international prices.

BUDGET VIEW
India textile makers seek loan repayment moratorium


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Bangladesh Pips India in Garment Exports

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For the first time, Bangladesh has garnered more market share than India in garment exports to the US, the largest importer of garments. Bangladesh has now taken the fifth position, which was previously occupied by India, in the list of largest garment-exporting countries to the US, pushing India to the sixth position.

 
 
  The exciting developments in India's dynamic, consumer-led retail sector and the export opportunities being created for British companies are the subjects of a conference to be staged by UK Trade & Investment's London International Trade Team on 27 January.
India's Retail Boom in the Export Spotlight

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Balm for the soul

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Growth in the smaller towns and rural markets can still be driven by penetration and improved availability levels of stock-keeping units. There are still vast swathes of consumers in India whose consumption of packaged skin and personal care products is negligible

 
 
  The history of catalogue retailing is interesting. What began out of necessity, soon developed into a channel offering convenience of shopping from home. With the trend of catalogue retailing yet to gain momentum in India, most retailers - still focussed on the brick and mortar format- are yet to fully exploit the true potential of the medium
Catalogue Retail in India – Work in Progress

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Retail Kiosk – Plug and Profit

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The Indian retail scenario has been witnessing significant advancement with traditional retail formats making way for more innovative and technologically evolved formats. One of the innovations to watch out for is the 'retail kiosk', which truly makes business sense for retailers because of its cost benefit structure at the ‘point of sale’ establishment process and ease and convenience for the customers too.

 
 
  Lack of an apex body, along with the absence of time-bound deadlines, are being cited as reasons behind the poor implementation of the scheme for integrated textile parks (SITPs), which is the textile ministry's flagship scheme, according to industry experts.
Textile parks scheme hit by slow execution

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Textile firms battle global slump despite rupee fall
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Textile companies may not benefit much from the rupee's weakness as a slump in global demand and prior currency hedges trim bottomlines in an industry dominated by exports. However, the global credit crisis, which triggered the rupee's fall in the first place, is also leading to slump in global textile demand.

 
 
  The global financial crisis has undermined the viability of India’s textile and clothing players’ business, The textile industry is one of the few industries in India that are export weighted and the global turmoil can cause a deep dent into it.
Global Crisis Could Badly Hit Indian Textile Industry

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The Indian Retail Market

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A perspective on the Indian retail market, the growth path followed in the past, views on the evolution path it could take, the opportunities as well as the challenges that need to be address. (Chapter 1 from the India Retail Report 2009)

 
 
  A report by Third Eyesight, has called upon the Indian textile and apparel industry to urgently develop capabilities to capture the value being lost due to inadequate focus on product development and downstream products.

Eternal Hope to Reality

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Building the Safety Net

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In a departure from popular retail philosophy, the author calls for a new model of food supply based on multiplicity and diversity. Modern retail must take into account the changing environment and be sensitive to evolving consumer preferences. (By Devangshu Dutta)

 
 
  Private Equity (PE) investment in India is on the rise, commensurate with global interest in the booming Indian economy. However, big ticket PE investments have not really come the retail way. In the times to come, is there a possibility of big time PE investment in the retail sector?
Private Interests

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Don’t standardise…visualise!

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Food and grocery retailers are leaving no stone unturned to gain the loyalty of the spoilt-for-choice consumers. One bad experience and poof! The loyal shopper is gone for good. Not only does this imply assuring good shopping experience every time a consumer enters a store, but also retain them by ensuring an impressive visual treat for them. You get only one chance to create the first impression. This impression would either create a happy loyal shopper or would eliminate their chance of ever stepping into the store again. A store that projects a differentiated image and branding definitely gains in the long term.

 
 
 

Indian fashion has true potential to grow exponentially in the next decade. But before that, there are many issues that the creators and producers of fashion need to address.

Quo Vadis fashion industry?

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Strapless

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In 2004, Oswal group forayed into innerwear business under the brand of 'Sensa' with a view to cater to the growing ready-to-wear fashion apparel market. Thereafter, the company renamed its retail innerwear business as 'Straps', offering lingerie, nightwear and maternity wear in 2006. And finally in 2008; Oswal Retail decided to wind up its innerwear business and close down its 22 exclusive outlets of 'Straps'.

 
 
 

Since India bars overseas investments in a retail venture selling multi-branded products to consumers, the two foreign funds have invested in MedPlus’ wholesale arm.

Foreign venture cos fund medical retail chain’s back-end business

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Retailers tighten purse strings amid economic slowdown

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As costs rise and economic growth slows, Indian retailers are looking at ways to trim expenses and protect their profits. “Unlike mom-and-pop stores, large retail formats have much higher cost obligations,” said Devangshu Dutta, chief executive of retail consultancy firm Third Eyesight. “Organizations with larger cost heads will be first to get hit in case of a slowdown.”

 
 
 

Many retailers, saddled with excessive inventory and caught flat-footed by optimistic sales forecasts, have had to launch early "end-of-season" sales this year and the more innovative ones are trying to stand out in that deep discount clutter. The midnight-sale by Spykar has become one of the many retail innovations that stores are using to get more shoppers into their stores. And, much like a "happy hour" in a bar, retailers are offering steep discounts during such "off" hours or on certain days when foot traffic is normally slow.

Retailers cross other side of midnight

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Third Eyesight Knowledge Series©

Textiles Workshop

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The apparel and textile industry has grown and matured a lot over the last few years - from an unorganized to an organized sector. However, this in turn has increased the need for constant improvement and upgradation of knowledge and skills. An update on a workshop conducted by Third Eyesight.

 
 
  Senior executive's outlook towards supply chain tends to differ considerably from that of supply chain manager's. While SCM professionals concerns are usually operational and immediate in nature, senior executives prefer looking at the slightly distant supply chain objectives. The increasing realization of supply chain's strategic relevance is prompting senior executives to increase their involvement in the supply chain affairs of the organization albeit at a macro level.

Logistics Management - Executive Involvement

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URBAN LEGENDS OR LEGACIES?

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Many people l know treat shopping centres or malls as a new phenomenon, a progressive development of recent times, or a modern blot on the traditional cityscape (depending on your point of view). Lest one forgets, Grand Bazaar (lstanbul, Turkey) is the earliest known mall, with the original structures built in 1464,with additions and embellishments later.

 
 
 

India has 267 million mobile phones. And the market is growing at the rate of five million phones per month. As a result, companies are quite busy leveraging the medium.

Mobile Marketing

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Logistics Management - Supply Chain Strategies

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Quite a few companies have realized the importance of developing distinct supply chain strategies that are aligned with business strategies. This helps them capture cross-enterprise opportunities that not only generate cost and capital efficiencies, but also help drive top-line opportunities. However, in India the idea of letting the supply chain enter the corporate boardroom still seems somewhat alien to many.

 
 
 

India has literally millions of individuals who would prefer to be their own boss and run a business, rather than being an employee. There are joint families, where resources may be available in the form of some real estate and family members who can be part of the business. Personal loans are available from family and friends, in the close social fabric of our communities. This is ideal ground for franchising,” says Devangshu Dutta, chief executive, Third Eyesight, a consulting firm focused on the retail and consumer products sector.

Profit From Franchising

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Shopper's Stop targets younger buyers with Rs 20 crore brand revamp

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Shopper's Stop Ltd, the 24-store retail chain, got a new look at a glitzy function featuring actor Shah Rukh Khan, nightclub lighting and hundreds of saplings that will be planted as part of the stores' Rs. 20 crore (Rs. 200 million) rebranding exercise. The chain, which started in a defunct suburban Mumbai movie theatre in 1991, got itself a new black-and-white logo, uniforms, print and television campaigns, carry bags and even an anthem and an in-store radio channel. It will also launch an Internet shopping platform along with a Think Green campaign.

 
 
 

Indian retailers are a worried lot these days. There has been a decline in margins and it's one of the lowest ever, according to some retailers. As inflation touched a 41-month high, chains across the country, especially the smaller players, have been trying every trick in the book to attract consumers, and keep them coming in, even as they struggle to grow profitably. (From The Economic Times)

Inflation Hurting Retailers Margins

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Family-run restaurants look to malls

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The growth of organized retail has brought both expansion opportunities and growth pangs for India's traditional, stand-alone, family-owned restaurants. They have emerged as magnets in malls where as many as 80% visitors to a mall may go to food courts compared with about 65% who visit hypermarkets and 50-55% who go to department stores, according to estimates by the Retailers Association of India.

 
 
 

To tap the growth in the retail market in India, major players such as Future Group, Reliance Industries Ltd, Tata Group, Aditya Birla Group, K Raheja Corp., and Mahindra and Mahindra Ltd have announced mega investments in the sector. The success of these plans, however, depends on the response of the Indian consumer to the organized retail format. (From MINT )

Brand Behaviour

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Small Towns, Big Gains

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Small is the new big. Small towns, that is. With demand nearly peaking in larger cities, companies are realising that there are plenty of untapped opportunities in the next level. And if you are small yourself, it could be the perfect alternative to taking your bigger competitors head-on or waiting until you are big enough. (From The Economic Times )

 
 
 

Surviving the textile meltdown won’t be easy. Unlike the Indian IT industry, other countries in East Asia can offer a real alternative to India. Only if Indian firms can differentiate, invest in machinery that can help them raise productivity and improve speed to market can they compete. (From The Economic Times )

The Collared, the Cuffed and the Chuffed

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Sport - Enough to wear?

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What do you understand by sportswear? Is it casualwear? How different is it from activewear? Who are the main players in sportswear? Any desi brands here? What are the opportunities in this segment? Chhaya Chauhan answers these questions and more

 
 
 

The shelves of Food Bazaar are stacked with well-known brands such as Britannia, Tropicana and Heinz. Sharing the shelves with them are obscure brands like Lancer biscuits, Fruitfil juices and Chintamani snacks.

Smaller Brands Jostle with Elite Goods

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Executive Q&A - American Shipper Namaste

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Namaste spoke with Third Eyesight about a range of retail supply chain topics including why retail can sometimes be a dirty word in India, and why India's roads might not be as bad as you might have heard.

 
 
 

lt is quite clear that retro is in. The movie business worldwide is full of sequels, prequels, re-releases and remakes. The music business is ringing up the cash registers with remixes and jukebox compilations. Star Wars and Sholay still have a fan following. Abba has leaped across three decades; Hindi by American hip-hop artists; while Pink Floyd is hot with lndian teens, along with Akon and Rihanna.

A Brands Life - Of Immortality and Reincarnation

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A Discount By Another Name

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Discounting off full-price is prevalent in the Indian market, and now there is the emergence of retail stores that are focussed on discounting as their unique selling proposition. The Financial Express asked Devangshu Dutta for his views on this phenomenon.

 
 
 

India's Finance Minister P Chidambaram recently put the government's estimate of the retail trade in the country at US$300 billion. The apparel retail market is about 6 % of the overall market - valued at $ 16-17 bn and growing at around 10-12% per annum. Also, apparel has among the highest percentage of organised retail at nearly 14%, which is second only to footwear, which has around 35% of organised retail. The question whether retail is a good option for garment exporters at this juncture is not as simple as it seems and many would nod in the affirmative, but the road is long and tedious, and requires among other things, the right product, a good location and more importantly, deep pockets, to make even a dent into the retail market.

Critical Indicators For India's Retail Sector

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Retail: A Barometer of Urban Health

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During India's misplaced years post-Independence, business and commercial activity was treated as a "necessary evil". In the last 20 or so years, fortunately, that tide has turned significantly - the role of business in economic and social growth is publicly acknowledged. It is time now for retail developments to be seen as part of urban infrastructure and also, more importantly, as part of the social fabric of a town or city. Government at all levels, especially state, district and municipal level, need to understand that the presence of successful retail developments in their population centres are an indication of the social and economic health of their localities.

 
 
With the sector expected to create at least 2mn direct jobs in 5 years, there is a rash of grooming courses. As several companies roll out hundreds of branded stores, retailers say they have turned the corner in their ability to make the sector respectable from the employment point of view. Many parents are beginning to encourage their sons and daughters to look for a career in retail to cash in on the expected boom.

Retail Jobs Attain Respectability Amid Rush for Branded Stores

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Weapons of Mass Dialogue

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We are surely not the first to wonder why, after millennia of physiological evolution, societies around the world are still stuck in the same, predictable response: where disagreement (on an issue) translates into disapproval (of a person), more often than not leading to conflict that is frequently violent. The need to accept differences and the use of democratic dialogue as a process to close the gap is the basis of Arun Maira’s Discordant Democrats. (Book Review)

 
 
 
The imminent entry of the world's largest retailer into India may herald a new era of retailing. Then again, there are enough of those who think that the mega-retailer's presence will not be beneficial. Of course, Wal-Mart's entry into India cannot be taken out of the context of the retail boom in India, that was underway whether the Walton empire spread to India or not.

Wal-Mart changes the game in India

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Farm Retail - The New Middleman

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The retail boom is setting the stage for a horticulture revolution in the country as major companies scour the farms for quality supplies of fresh food. A small but significant shift in buying patterns offers a clue as to why the biggest names in corporate India, from Reliance Industries (RIL), the oil and petrochemicals behemoth, and the AV Birla group to the Mittals of telecom fame, Pantaloon Retail and RPG group to a host of smaller players have jumped into retailing of fresh vegetables and fruits along with other groceries.

 
 
 

Indian apparel and accessories designers have made their mark on the fashion high streets of the world, turning in thousands of trendy designs in a season. (From Outlook Business, 20 June 2007 - cover story)

 
 
 

India's Retail Revolution Begins

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Recent news tells a fascinating story: Reliance Retail is to invest US$5.5 billion by 2010-2011, to create 100 million sq ft of retail space. Bharti-Wal-Mart is to invest US$2.5 billion by 2015, to create 10 million sq ft of retail space. Future Group (Pantaloon Retail) will invest US$260 million by 2008, to increase its retail space to 10 million sq ft. Subhiksha, the US$73 million discount store will set up 1,000 stores in India by the year end, while Metro AG is investing US$400 million over the next three years to set up some 18 stores in the country. With long-term experience in modern supply chains and provisioning, Hong Kong firms in the food and related products sectors are sure to be viewing the changing Indian retail scene with more than passing curiosity. Others, like ACM China, the greenhouse specialist, are already getting involved.

 
 
 

Just a decade ago, it might have been hard to imagine that the take-out food of choice for millions of Indians would be a baked good of Italian origin. But since then, calling for a pizza has become quite the urban ritual. Like most consumer brand successes, pizza has been customised for the Indian market, from its toppings to its delivery models.

 
    
 

Prime Source Forum (Hong Kong) - March 2007

Report 1  and Report 2

Prime Source Forum in March 2007 played host to some 320 delegates from 23 countries. They heard, shared experiences and networked with 37 speakers - all leaders of the global textile and apparel industry.

 
 
 

Weekend temping is the new passport for retailers to tide over footfall pressure during the weekends. As families make a beeline for high streets and malls during the weekends, the normal workforce looks helpless. Heavyweight retailers who see a sudden spike in footfalls over the weekends, are roping in agencies for outsourcing manpower for that short one-to-two-day duration.

Retailers rush to TEMPerate zone

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Fad In, Fad Out

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One outcome of the global information exchange is that Indian customers now see hardly any lag before a fad that takes shape in another country reaches India. Also, the lifecycle of fads is shortening in India, as in other markets. How are marketers reacting to this new reality? (From Brand Equity, a supplement of The Economic Times)

 
 
 

Bharti Enterprises, the parent of India's best selling wireless service provider Airtel, confirmed that it will invest up to $2.5 billion (Rs. 11,026 crores) in the next eight years to roll out convenience stores and hypermarkets nationwide, joining a raft of companies looking to profit from an expected boom in organised retailing.

Bharti to Invest $2.5 Billion

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More Opportunities to Shop 24/7

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Targeting an emerging segment of night shoppers, New Delhi-based round-the-clock convenience chain Twenty Four Seven Retail Stores Pvt. Ltd plans to invest Rs 880 crore (US$200 million) in opening 1,000 outlets in the next five years., in a country where even late markets shut by midnight.

 
 
 

Since the most recent "mall boom" that began in 1999, with the launch of Ansal's Plaza in Delhi and Crossroads in Mumbai, much has been written and said about organised retail, the growth of the middle class, and virtually every alternate person you meet professes to be an expert in retail. What is not acknowledged is the fact that fashion retail began to get modernised many decades ago.

Fashion at the Forefront of Modern Retail

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Slicing the Market

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Gut instincts and home-grown wisdom can often seem more successful than planning through facts and figures. This is partly a function of India's complexity as a country and as a market. As markets worldwide become more blurred, the artifical construct of segmentation becomes difficult to work with. The Indian market just takes this complexity to a new plane.

 
 
 

Indian philosophy, thousands of years ago, presented a balanced view of human life. While this was distorted post-independence until the 1990s, in recent years it seems to be swinging to the other extreme. An opinion piece based on a presentation made at the CII National Retail Summit, November 2006.

The Consumption Game

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Demographic Changes to Drive Retail

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Research by retailers, research organisations and consulting firms highlights the demographic changes taking place in India, and the need for retailers and brands to draw up appropriate strategies.

 
 
 

About 450 million individuals in India are estimated to be below 20 years of age. 105 million individuals are in the age group of 15-19 years, already in their early years of discretionary consumption. About 112 million individuals are in the 10-14 years segment – within 5 years many of these will be making career choices, and in another 5 years most would have already begun earning and spending. Imagine the power of the tweens and the teens. Devangshu Dutta's column from The Economic Times.

Chasing Youth

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Sisley Breaks Into the Indian Market

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Benetton brand Sisley has entered the Indian market with a store in capital New Delhi. The store, which is almost 400-sq-m big, contains Sisley women's and men's clothing collections plus accessories ranges.

 
 
 The retail boom has sent the aspirations of small regional retailers soaring. Small retailers are finally showing appetite for external investors and willingness to share ownership, and scores of terms sheets and investment seeking proposals are floating in the market..
Everyone Wants a Slice of Retail

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The CHINDIA Equation
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China and India. India versus China. China or India. The relationship between the two ancient civilisations and behemoth countries has been
viewed under different lights. Particularly in recent years, as these two
neighbours – home to nearly two-fifths of the world’s population – seemingly chase each other around the global economic circuit. Yet, as government and business leaders on both sides of the Himalayas insist, it is not a race, nor is there a definitive finish line. They prefer to raise and realise mutual benefits in an era of simultaneous and parallel development.

 
 
 

Though the mall mania of the last few years indicates a change in shopping patterns, the wild exuberance in retail expectations may be misplaced and the real revolution is still waiting to happen. Devangshu Dutta narrows the lens.

Myth and Reality of the Retail Revolution
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VF's Passage To India

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With many battle-scars earned over many brands and several years, and around $40m in annual sales, American apparel giant VF Corporation seems like a veteran in the Indian market. Its story so far - including a newly announced joint venture with Arvind_brands - gives credence to the Indian philosophy of reincarnation.

 
 
 

Goa, once a haven for holidaymakers looking for a break, is now set to zoom up top retailers' charts. The union territory will soon see an influx of major brands, with real estate giants. (From Times News Network)

Land Prices in Goa to Zoom

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McKinsey To Shape Birla' Retail Plans

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Consulting companies are supporting the growth of Indian corporate houses in growing organised retail businesses in the country. (From The Economic Times)

 
 
 

For a man from Dehradun who ran a family-owned bookstore called English Book Depot, it's been quite a journey to the point where his Book Café chain now has tie-ups with retailers like Café Coffee Day, Nirula's, Barista and Subway. Sandeep Dutt, who's effectively used co-branding and co-location strategic tie-ups to set up a 20-store book retail chain, says, "We are in the business of brewing knowledge." (From The Economic Times)

Brewing Knowledge

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Time to Take Off the Blinkers

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Many business plans for the Indian market mention the "200-300 million middle class". However, most brands end up being targeted only at 15-20 million individuals. Devangshu Dutta delves deeper from his previous column about "the missing millions" in the Financial Express

 
 
 

Surely, with FDI opening up gradually, foreign retailers would want to set up joint ventures in which they have control, rather than go through the franchise route, where their brand is "at the mercy of another company". So does FDI sounds the death knell for franchising in India? In a Guest Column in the Financial Express, Devangshu Dutta says that jumping to that conclusion would be to ignore the fundamentals of franchising as a business.

Franchising : A Consistent Growth Platform

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The Case of the Missing Millions

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Foreign companies' first attraction to India is the billion-plus population. Brands from countries which have domestic populations of 50-300 million salivate at the prospect of 1.2 billion Indians starving for their particular make of biscuit or coffee or the latest backless cropped blouse. The thinking goes, "If we can capture even 2% of the market to start with…" So what is the real story? Devangshu Dutta explores in his column in the Financial Express.

 
 
 

Most consumer, product-supply chains have evolved into fairly complex chains for two main reasons. Firstly, despite all the talk about removing intermediaries, there are still many people involved in the entire supply chain at different levels — for no reason but that they do add some value in the steps they are handling. Whether this is breaking of bulk, or handling of disparate products, shipping or storing goods, or providing bridge finance, each intermediary is in the chain because he has a role to play.

Using IT in the Retail Supply Chain
(Case Study Analysis)


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The Fast Fashion Risk for Slow Retailers

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Fast fashion represents only one percent of all U.S. clothing sales compared to 18 percent in Spain and 12 percent in the British market. Today, Zara has only 19 of its 1,200 stores in the U.S., leaving it plenty of room for growth. Should other retailers be worried?

 
 
 

Discounts are the bane of brands. Achieving as much as 40-70% of the total annual sales turnover in one or two discount sales is not a recipe for long-term business success. We seem to be caught in a vicious cycle of low sales in season and mad traffic during end-of-season discount events. So what is the way out? Devangshu Dutta discusses in his column in the Financial Express.

Deal Ya No Deal: The Story So Far

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Tier II Cities Are The New Money Spinners

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The presence of Tier-II cities on the growth map of leading retailers has been on the rise in recent months. While sales are growing by 50-60%, albeit on a lower base, leading retailers say that volumes have been significant enough to encourage them to pan out quickly to other similar markets.

 
 
 Now that direct investment into India is on the verge of opening up, the country could hold increased opportunities for clothing companies who want to source and sell fashion there. Rebecca Danton reports from a recent conference on ‘Sourcing And Selling Fashion In India,’ where speakers discussed the advantages and disadvantages of setting up and trading within India. (From just-style.com)
Foreign Investors Have India in Their Sights

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When the World Trade Organisation (WTO) brought about the abolishment of quota restrictions on textile and clothing exporting countries, Indian garment companies were swept aside by Chinese competitors who had already built huge factories with a view to capture the global market. For the relatively smaller Indian companies, playing catch-up seemed a distant possibility. However, with global buyers now looking to de-risk their sourcing, Indian textile majors are aiming to caputure lost ground and are investing in large garment units. This will give them a fair chance against larger Chinese rivals, says T. Surendar.

From The Times of India (Mumbai Edition) (November 8, 2005)

 

 
 
 

The suburbs go shopping on weekends and the trend is set to grow. However, this skew is highlighting serious planning and infrastructure constraints. Malls must learn how to handle the crowds, find Namrata Singh and Aradhana Takhtani.

From The Times of India (Mumbai Edition) (November 5, 2005)

 

Weekend Rush Blues
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The perishable food chain In India - opportunities and issues

Click here to be taken to the website of just-food.com

India is one of the fastest growing economies in the world and one of the largest in terms of Purchasing Power Parity. Global brands are re-starting the hype of a decade ago, as they envisage how to take advantage of the massive population and rapidly growing income and consumption to create new business streams, sales and profits. But several challenges remain before companies can grab the big prize in India – fragmented chains, poor infrastructure plus policy and regulation issues make it difficult for retailers to make their move. However, things are improving as the Indian government start to make effective and coherent efforts to bring about change in the perishables supply chain. So can such strong potential progress to significant business opportunities? This briefing, by Devangshu Dutta, looks at consumer opportunity, the retail structure, emerging developments, and addressing the risks and challenges involved in the Indian market.

PDF File can be downloaded from

 

 
 
 

India is one of the world’s oldest major textile exporters and was once by far the largest. However, when quota-restrictions slammed shut the gates to free trade, the country’s exports were accordingly channelled and fragmented. Preferential trade arrangements placed further constraints, as both the US and the EU provided duty-free and quota-free access to selected countries. As a result, India now has just over 3% of the global trade in apparel – but despite its low share, it still remains among the Top 10 exporters of textiles and clothing in the world. This briefing aims to present a general guide to the industry in India, including its scope, skills and recent developments. The study also looks at investments by the industry and government support whilst discussing any potential pitfalls that buyers should watch out for. After the removal of quotas, India is now expected to grow its share of the global marketplace but does it have the stamina to catch up with China?

A perspective on the opportunities, presented by Devangshu Dutta.

PDF File can be downloaded from

 

India apparel industry review - Looking ahead

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Playing with the Big Boys
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It was not too long ago that the retail market was full of a diverse group of small players selling goods to you and me, in an environment that was comfortable and familiar. Then one fine day retailing got organised...

 
 
 Business managers usually look for one winning strategy, one benchmark company that shows superlative performance, and then proceed to copy that strategy in hordes, whether it is Wal-Mart’s everyday low pricing, Gap’s basics or Zara’s fast fashion business. They jerk from one strategy to another, and end up with indifferent results. How can one pick an appropriate and winning strategy for one's individual business? Here are some guidelines
Lifecycle-Led Strategies
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The Indian Consumer - A Do-It-Yourself Segmentation Kit

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India has the youngest population profile among the numerically significant countries, with a lot of young people in different income segments and locations who are influencing their parents' money, or spending their own. On the other hand, many farmers have unquestionably grown beyond being "rural" in the traditional sense. Are we even comprehending, let alone capitalising, on these changes?

 
 
 

Durables retailers are dreaming bigger than ever before. With size comes power. And higher costs. Durables manufacturers are finding this out as they negotiate with the new durables retail chains. Will these chains go the American way or the European? Aarti Kothari explores.

Durables Retailing - Chain Gains
Cover Story from BusinessWorld

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Floor Ready Merchandise (A Report)

Click here to be taken to the website of just-style.com

In basic terms, “floor-ready merchandise” refers to merchandise that is pre-ticketed and pre-tagged with all the details that are required in the retail store – before it reaches the store. The merchandise can also be packaged, or hung on hangers if required, in the same form as it would be displayed in-store. It can also include security tags that protect it from theft. This report, authored by Devangshu Dutta, discusses the development of floor-ready merchandise practices and processes, and how they might impact retail and supplier organisations.

PDF File can be downloaded from

 

 
 
 

In 2005 pay packets of Indians increased more than workers in the rest of Asia. What does it mean for consumer spending, what is the implication for the retail sector, and how should we view the developing boom in shopping malls in India?

Rising Incomes and Spending: The Impact on Retail
Television Interview from NDTV Profit (transcript)

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The Man They Wrote Off
Cover Story from BusinessWorld

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Two years ago, according to BusinessWorld principal correspondent M. Rajshekhar, Biyani wouldn't get invited to industry get-togethers because he wasn't regarded as a serious player. There should be no doubts about his seriousness now. In two years, Kishore Biyani has bounced back to become India's largest retailer. With Rs. 650 crore in sales and with 1.1 million sq. feet of shopping space, Biyani is all set to ride the retail growth wave. The only question is this: can Biyani create a professional organisation that can manage the growth? The early signals are good, says Rajshekhar who wrote the story.

 
 
 

With just months to go before MFA quotas are phased out, the industry in India is buzzing with activity. However, amidst this development, challenges and fears also remain. Devangshu Dutta provides a ring-side view of the opportunities - and problems - facing the industry. (Article written in April 2004)

India; Facing Up to 2005

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Images Fashion Forum - Special Feature

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A world of opportunities for brands, realtors and retailers – that's what finally emerged out of the seminars, discussions and displays at the event-packed Images Fashion Forum 2004 in New Delhi.. Some 2,000 head honchos from across the globe converged there to ponder upon, and prepare the roadmap for the future of retail in India.

 
 
 

The two most aspirational brands, both examples of efficiency and growth, Zara of Spain and Giordano of Hong Kong made a special appearance at the Images Fashion Forum in discussions on their brand values and supply chains.

IFF brand watch on Zara & Giordano

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Comments from IMAGES on the "State of Indian Retailing"

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Retailing in India is set for the next big leap. The availability of quality real estate in the form of shopping malls is probably the biggest enabler of the organisation of retail business. Yet, several major challenges remain.

 
 
 Consider this: through the 1990s, organised retail in India added just 1 million sq. ft. of space a year. The pace picked up from 2001 onwards. But estimates have it that in 2003 alone, a breathtaking 10 million sq. ft. was picked up by this fledgling industry. If you thought that was heady, think again. The most exciting phase for the retail industry lies ahead. The warm-up over, India's retail industry is revving up for its most exciting phase ever. (From BusinessWorld, Issue of 16 February 2004 )

Gentlemen, Fasten Your Seatbelts
(Indian Retail 2004)

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Brand Watch - Zara

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Zara offers clear lessons for companies looking to improve their fashionability index with the consumer as well as their supply chain efficiency. (A presentation made at the IMAGES Fashion Forum, February 2004.) To also see the feature length articles below click here

 
 
 The foreign brands' boom in India never really happened. One can blame it, among many other reasons, on the investment magnet of the world, China, which has simply sucked up a large portion of the investments made in Asia. However, there are a number of internal drivers as well, and the Indian industry can be a formidable competitor, if it only decides to wake up.

India, Outside In

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Retail - An Engine for Economic Growth

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Retailing is the latest buzzword among the Indian businesses. The new "fad" is getting a lot of high visibility media coverage. Even without this coverage the retail business influences each of our lives. A look at how the retail business is moving forward in India. (A 2003 reprint of an article originally published in 1999.)

 
 
 Despite over US$ 6 billion of exports and around US$ 8 billion of domestic market volumes, the ready-to-wear apparel industry in India is dominated by small-scale companies. E-enablement provides the fragmented industry a fighting chance.
Responsive and Profitable Apparel Business

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Retail @ The Speed of Fashion: Case Study

Click here to read Part I in PDF format
Click here to read Part II in PDF format

Zara is riding two of the winning retail trends - being in fashion and low prices - and making a very effective combination out of it. Here's the quick-n-dirty on Zara's recipe for growth.

 
 
 The Indian textile and apparel industry is very large and diverse, employing 35 million people and accounting for 27 per cent of the country's exports. In the first instalment of this two-part feature, Devangshu Dutta presents an overview of the industry, and argues that its diversity is also one of its main weaknesses. In the second part, Devangshu Dutta outlines the opportunities for sourcing companies, consumer brands, suppliers and investors to form profitable partnerships with the industry.
Insight into India
Based on a presentation
at Interstoff-Asia Spring 2003


Click here to read Part I
Click here to read Part II
 
 
 
Zodiac - A Winner by Design

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Walk into high-fashion clothing chain Bijenkorf's outlet in Krasnapolski Square in Amsterdam's main shopping district and tick off the shirt brands on display. Armani, Hugo Boss, Calvin Klein, Zodiac,... Zodiac? Doesn't quite gel here, does it? Bijenkorf does not think so. Read about how Indian garment maker Zodiac broke into the world of high fashion in Europe

 
 
 

The story of rise and fall could well be playing out across India's major high streets, which have dominated the retail sector for several decades.With each of their annual turnovers anywhere between Rs 500 crore and Rs 2,500 crore, these bustling high streets determine the fortunes of several Indian enterprises

Twilight Zone - Requiem for the High Streets?
Article from Businessworld

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The Show must go on - SARS - Interstoff Asia

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In the throes of two wars - Conflict in Iraq and the fight against SARS - Interstoff Asia went without a hitch although, understandably, attendance was affected , with a 25 per cent drop against last spring's show.

 
 
 By joining forces, the textile and apparel industries on the subcontinent can withstand strong competition and sustain growth.
Riding on the regional strength

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Reverse Auction -
Will it Change the Way Sourcing is Done?


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In their frantic efforts to reduce cost to attract and retain customers, retailers / buyers have now adopted a new way to source - through reverse auction. Reverse auctions involve bidding for orders - such as for a new type of product that a retailer needs produced to its specifications. Apparel Online discussed this new phenomenon on the future of this alternative.

 
 
 Companies are giving importance to the reverse supply chain. What benefits can companies get from the reverse supply chain? To earn maximum profits from the reverse supply chain, what activities should companies pay attention to when implementing reverse supply chain?

Roundtable Discussion: Reverse Supply Chain
ICFAI Press - Effective Executive,
January 2003


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How Efficient is Your Reverse Supply Chain?
Effective Executive, January 2003

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Companies spend more time and money in fine-tuning their forward supply chains while ignoring their backward supply chains. However, in today's competitive business environment, companies can no longer ignore reverse supply chains.

 
 
 Effective supply chain management must work backwards from the customer needs in mind. Adopting this approach can enable companies to add financial and business value not only in the long term but sometimes immediately.
Measure Your Supply Chain Performance

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Strengthening Textile Ties
( Press Quote from The Irish News. )

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Supply chain management in the ultra-competitive textiles and apparel markets is the theme for the 'Strongest Link' conference at Belfast's W5.

 
 
 Know how B2B are changing the e-commerce landscape, understand the intricacies in B2B strategies and be aware of what organizations should do to succeed in the marketplace
W(h)ither B2Bs?
(Press Quote from CIO)


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The Brave New (Old) World

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Over the past few years, the Internet has been revolutionising the way we interact with each other, as individuals, as companies or corporate entities, providing a mass of information keeps growing with no end in sight. Surely, as many pundits forecast, the Internet should bring an end to intermediation of any sort. Well, yes. And no.  
 
 

Linda Cahan researches and reports on how renovations impact retail businesses.

The Power Of Renovations
(Press Quotes )


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Developing Customer Loyalty

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Do loyalty programs work or don't they? The answer is that some programs work and some don't. The difference is in how core operations are fine-tuned from the information collected from the loyalty program.

 
 
 This is a brief note to share an impromptu impression (and some anguish) about our apparel exports that came up after reading a magazine article recently.
Indian exports in 2005: One of the seven missing wonders?

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Speed, Connectivity and Value-Creating Intangibles
(Quotes from Editorial of Textile Outlook International, Nov. 2001.)

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Three forces, also called the 'trinity' of the blur -speed, connectivity and intangibles- are setting the new rules of doing business! What could they mean for the garment sector and especially for the sourcing activity?

 
 
 The sourcing principles followed by many apparel organisations seem to be governed by apathy. Once supply relationships have been defined, it often becomes a struggle to change them. Yet keeping the supply base refreshed is probably one of the single most important functions that a buyer can perform.
Supply Base Consolidation: A Step Too Far?

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Unzipping Garments
(Press Quotes from Business World)

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Opening up the garments sector in India will revive the textile industry but only if some laws change.

 
 
 Sourcing is seldom a straightforward and simple process. With all the unpredictables, is the sourcing process a gamble? How do you build a framework for an intelligent and structured sourcing strategy?
Relating Sourcing to Global Trends

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Integrating Sourcing Within Your Business Strategy

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In recent years, sourcing and supply management has emerged as one of the greatest opportunity areas for retail business as well as for suppliers to leading retailers. At the same time, it is possibly also the one most prone to risk. One must ensure that sourcing is well and truly integrated within their overall business strategy.

 
 
 
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