| From the Editor's Desk |  | |
The Retailer-Supplier relationship
Wal-mart CEO Mike Duke is already inviting Indian heads of suppliers like P&G, Colgate and Samsung to closed-door meetings. While the objective right now is just PR and building a case for opening up of FDI, the global retail giant is laying the groundwork with its future partners in India. One advantage it will have over Indian retailers are its existing relationships with multi-national FMCG and consumer durable companies, which go back several decades. While Indian retailers complain about the "unfair" terms set by consumer goods companies because of their traditional strength in the mom-and-pop channel, global retailers might be able to turn the tide in favour of the organized trade. Retailers and suppliers typically share a love-hate relationship. They both need each other for sales, while they negotiate on margins and other aspects. Strong consumption growth in the economy should help foster an environment of collaboration where they focus on creating win-win situations.
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| At a Glance | |  |
| News: Apparel, Specialty, CDIT ... | | |
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The Loot will add 50 stores in the next six months, plans an IPO soon
Daily News & Analysis
In an interview with DNA, Jay Gupta of The Loot Stores underlines what the company's plans are for the festive season and beyond. Mr. Gupta says, "The festive season does help us do more sales and it also helps introduce new consumers to our brand. We expect a growth of 60% in this festive season. The Loot has been growing at an average of 40% to 50 % on a year on year basis. We will add more 50 stores in the next 6 months." |
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Multi-brand retail FDI could start off with 51%
Financial Express
Opening India's multi-brand retail sector to foreign direct investment (FDI) just got closer. The Prime Minister's Office (PMO) has thrown its weight behind other supporters of the move including the Planning Commission, department of consumer affairs, commerce & industry ministry and the agriculture ministry. Sources said the government is likely to come out with a proposal shortly, which may allow FDI up to 51% in multi-brand retail. The move aligns with the calibrated approach to opening the sector with a string of caveats to ensure that more jobs are created and that kirana stores are not harmed. |
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Raymond Q2 net profit skyrockets
India Infoline
Raymond Limited has announced its unaudited financial results for the quarter ended September 30, 2010. PAT for the quarter registered 427% increase to Rs. 390mn from Rs. 70mn in the corresponding period of the previous year. Raymond continues to operate one of the largest specialty retail networks in India in the textile and apparel space with 665 retail stores covering over 1.4 million square feet of retail space. In addition, the Company also has 39 stores in Middle East and SAARC. Like-to-like store sales growth for Company-operated stores for the quarter has been strong at 10%. |
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Arvind Mills lines up Rs 850 cr expansion plan over 5 years
Hindu Business Line
Textile and retail major Arvind Mills has lined up a Rs 850 crore capex over the next five years to fuel expansion in both its core and new businesses, a top company executive said on Tuesday. The Ahmedabad-based company's core businesses comprise textiles and brands, while realty play and food constitute the newly-entered segments."We have lined up Rs 850 crore expansion plan over the next five years. The investments will majorly be in scaling-up our denim fabric production, expanding our retail chain Megamart and bringing in more international brands," Arvind Mills Chairman a nd Managing Director Mr Sanjay Lalbhai said. |
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s.Oliver increasing nation-wide footprint
FashionUnited India
After having set strong footprints in New Delhi, s.Oliver, one of Europe's largest everyday fashion and lifestyle brands is currently looking at an aggressive pan-India expansion plan. It plans opening flagship stores in the top five Indian cities with immediate focus on Mumbai, Bangalore and Chennai. With an USP of 12 collections a year with fresh inserts every fortnight as well as two seasonal campaigns of spring/summer and fall/winter, s.Oliver is targeting self-confident urban men and women in the age-group of 18- 34 years to increase their nationwide footprint and achieve their charted out expansion targets. |
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Easy Bill to increase its outlets to 20k by the end of 2012
Economic Times
Hero Group-promoted Easy Bill today said it will increase its retail outlets by over three times to over 20,000 by the end of 2012. The company, through which provides a one-stop shop for paying pay telephone, general insurance or credit card bills, has at present over 6,000 retail outlets across 70 locations in the country. It is now planning to get into move ticketing business by rolling out the service in South India next month. |
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| News: Food & Grocery, QSR ... | | |
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Wal-Mart to target 35000 Indian farmers for agri-business supply chain by 2015
Oneindia
American retail giant Wal-Mart has announced plans for roping in 35,000 farmers into its retail-related activities in the Indian agri-business sector by 2015. "We are already making a contribution to India's agricultural sector by working with a large number of farmers in Punjab. I am pleased to announce that Bharti Wal-Mart would be directly sourcing from 35,000 small and medium farmers by 2015," Wal-Mart Stores Inc President and CEO Mike T Duke said at a function organized by the Federation of Indian Chambers of Commerce and Industry (FICCI). |
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Indian poultry group closes in on Blackburn
Financial Times
Blackburn Rovers is on the brink of being acquired by Venky's, an Indian poultry group, in the latest takeover deal involving an English Premier League football club. The deal, if completed, would make the Mumbai-listed company, which supplies chicken to south Asian outlets of fast food giants such as KFC, McDonald's and Pizza Hut, the first Indian group to own a Premier League club. |
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Minaean receives order for construction of retail outlets at gas stations in Karnataka
Benzinga
Minaean International Corp.'s wholly owned subsidiary, Minaean Habitat (India) Pvt. Ltd. ("MHI"), has received a Purchase Order from Bharat Petroleum Corporation Limited ("BPCL") for the supply and installation of 45 modular retail shop buildings for gas stations.The order is to be executed as per BPCL's requirements over a period of 12 months. |
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| Retail Trends | | |
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Reliance Retail on the search for a creative partner
exchange4media
Reliance Retail, the retail business wing of Reliance Industries Limited (RIL) has invited agencies to pitch for its creative duties. It is understood that few leading agencies have already made presentations and the decision would be taken soon. t is believed that the entire Reliance Retail portfolio is included in the pitch. Reliance Retail at present, has 12 verticals that include Reliance Fresh (Super Market), Reliance Mart, Reliance Digital, Reliance Trends, Reliance Wellness, Reliance Super (Mini-Hypermarket), Reliance Footprint, Reliance Timeout, Reliance istore, Reliance Jewels, Reliance AutoZone and Reliance Living Home ware. |
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Wal-Mart chief warms up to 'suppliers' in India
Economic Times
Wal-Mart, the world's largest retailer, known as a bully that armtwists suppliers to drive down prices, on Tuesday extended a hand of friendship to consumer goods companies when its global chief, Mike Duke, met select CEOs in Delhi. At a closed-door breakfast meeting held in a five-star hotel in the Capital, Mr Duke explained the $400-billion company's business plans if allowed to enter the retail market in India to CEOs of select Indian and global consumer product makers, even as the possibility of allowing foreign investment in daily provision stores gets stronger |
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The art of the mart
Financial Express
It was hard to get him to say anything at all during his four and a half year stint with Reliance Retail but that was not surprising, given both the group's media policy and the fact that the business wasn't exactly raking it in. Since it's been less than a week since Raghu Pillai came back to the Future Group, as Chief Executive, Future Value Retail, in what will be his second stint, he's still very politically correct. The man who has been part of the organised retail industry from the very beginning, having started Spencer Retail in Chennai for the RPG group way back in September 1995, believes that the big pieces, including catering to the urban poor or the quasi-retail population, haven't yet been cracked. Pillai, who's always abreast of the cricket score and kept track of the CWG medals tally, tells FE that in a few years time there could be at least four Indian retailers with multi-billion dollar top lines. |
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Needed, more than FDI in retail
Economic Times
The Planning Commission , the consumer affairs ministry and the agriculture ministry all agree that multi-brand retail must be opened to foreign investment. Let us hope the finance ministry too will make up its mind soon and the government will be in a position to put a closure to the debate and allow foreign investment in organised retail. But the government would be deluding itself were it to believe that a policy on foreign investment in the sector would suffice to galvanise the supply chain, excising layers of avoidable intermediation, waste, rent-seeking and inefficiency. Even as food prices go through the roof, farmers complain that they get a fraction of the price the consumer pays, robbing them of a price incentive to increase production. In the current situation of a catholic increase in the demand for all agricultural products, food as well as industrial, the biggest obstacle to fighting inflation is this feedback system that kills the positive price signal before it reaches the direct producer. This calls for constructive, proactive intervention, not just passive permission for foreign investment to rush in where domestic capital has feared to tread so far. |
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Retailers Poised to Become the New 'Googles' of the Consumer Goods Industry
Businesswire
At the World Retail Congress in Berlin today, Havas Media and MPG's unique analysis, Brand Sustainable Futures, revealed a positive yet diverse set of results and opportunities for retailers. In the largest analysis of its kind - incorporating the views of 30,000 consumers across 9 markets and 150 brands - Brand Sustainable Futures shows that retail is perceived to be a leading sector in sustainability, with over 85% of all retail brands within the analysis recording above average results. Furthermore, half of the top 20 brands were from the retail sector, reflecting the developed ability of brands in this sector to use sustainable programmes to build brand equity and consumer trust |
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| Retail Insight | | |
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| Strategic Issues in Retail: Category Captaincy |
| ARCS |
Many retailers look to strategic partnerships to increase operational efficiency and drive sales. One such strategy is category captaincy arrangements, or strategies that involve outsourcing category management to one dominant supplier. However, these arrangements can be less than satisfactory in terms of expected strategic benefits, with research suggesting that careful management of one's network position may be crucial to ensuring positive outcomes of such arrangements. In order to shed some light on these captaincy arrangements, the ACRS conducted a series of qualitative interviews with category managers to gain an understanding of some of the associated benefits and disadvantages. We find that with careful management and a focus on strategic management, these arrangements can result in mutually created benefits. |
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