| From the Editor's Desk |  | |
Why FDI will not kill the kirana
Modern retail of significance has been around in India for more than 5 years now. If there was a litmus test around how the kirana or the small store would fare against modern retail, it has already passed it. Nimble small stores have only increased in number and have matched modern retail in prices and surpassed it in convenience. So, let's get that concern out of the way. Now, the presumption that if FDI is allowed, foreign giants like Walmart will kill the small stores is based on the presumption that through sheer financial strength and business muscle, a company like Walmart will rapidly open thousands of stores, tie-up with and possibly squeeze margins out of thousands of vendors and manage to convert millions of Indians into customers, away from the traditional small stores. This presumption is wrong for several reasons. Retailing in India is complex not only because of typical business stumbling blocks such as infrastructure and red-tape, but also because of the sheer diversity of its population which makes the job of any national retailer difficult. Add to this an extremely competitive and low margin business environment and several foreign retailers would have wished they did not enter India. By the time Walmart or any large foreign retailer figures out how to serve the Indian customer, the entire competitive landscape would have changed. Indian modern retailers would have made tremendous progress in their businesses and small stores would have evolved in their own way to compete effectively. Ultimately, the Indian consumer would have benefited through more choice, lower prices and a better shopping experience.
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| At a Glance | |  |
Top Headline, Apparel, Accessories, Specialty, ..Food, QSR, ..Trends and Insight
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Around 150 malls have been built in India in recent years, as part of a gold rush. A few are now falling by the wayside, unable to face competition from newer and better-designed malls that have mushroomed. Some strugglers have tried to claw back by slashing rentals while others are taking a more hard-nosed look at what they are offering shoppers. A few have already thrown in the towel. Eight malls have closed down and been converted into commercial buildings in the last two years, according to Susil Dungarwal, Founder and Chief Mall Mechanic of Beyond Squarefeet Advisory Pvt. Ltd. |
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 | Cosmetics brand, The Body Shop (TBS) recently launched an outlet at Korum Mall, Thane. With this launch, the brand aims to expand its customer base in Mumbai. The new store at Korum Mall offers a wide range of products. The store also provides several specialist services such as free make-up tips and make-up application from internationally trained make-up artists. TBS now has 53 stores in India. |
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Titan Watches is going to add 100 stores in the next three years, taking the total number of Titan World retailing outlets to 400. The company is looking to set up the first fifty within the next two years, an official of the company said. "What we are looking to do is to ensure that across the country, there is a Titan outlet available within a two to three km radius within which our customers are staying. We will be doing this largely through franchisees," said Harish Bhat, Chief Operating Officer of the company |
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 | Joyalukkas opens its first showroom in Mangalore
Franchiseindia.com
Joyalukkas opened its first showroom in Mangalore.The showroom will offer the latest international and traditional designs, chosen from its outlets across the world. At this outlet, it will also showcase its limited editions branded gold jewellery collection, particularly crafted by the company's in-house designers, . |
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Exclusively.In, a members-only flash-sale site that sells Indian fashion, jewelry and home d cor, has raised $2.8 million from Accel Partners India and Helion Venture Partners. The retailer, which operates in the United States, says it will use the money to improve its technology platform and expand to Canada, the United Kingdom and India early next year. Says Exclusively.In co-founder and CEO Sunjay Guleria, "We've created our own 'passage to India', connecting the global fashion consumer with Indian fashion in a simple, fun and intuitive online shopping experience." |
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The Nature Co., the retail arm of personal care enterprise Amar Remedies, is looking at aggressive expansion plans, by opening at least seven new stores across the country in the next one year, said a top official. "For our new stores, we are looking at tier II cities and also second stores in a few of the metros," The Nature Co. (TNC) founder Natasha Shah said. Amar Remedies, which is a big player in affordable personal care and also derives a healthy chunk of its revenue from exports, has so far invested an approximate Rs 25 crores on the upmarket stores. |
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| News: Food & Grocery, QSR ... | | |
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 | Nilgiris, the food and grocery retail format with a strong presence in South India, opened its 100th store in Chennai. The Nilgiris brand is known for its ''fresh'' products like dairy and bakery, which it sources from its manufacturing facilities in Bangalore. But the key footfall driver to the stores is the range of staples sourced by the outlet, the company said in a release. |
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| Retail Trends | | |
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India has a positive mindset about opening up its multi-brand retail sector to foreign firms, but New Delhi must take into account concerns over jobs in small, independent outlets, Trade Minister Anand Sharma said. Multi-brand retail is restricted to cash-and-carry or wholesale outlets. Some Indian officials have made positive noises about opening up the sector in the run-up to Obama's visit but the issue is a political minefield and has provoked an outcry from opposition parties. |
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US President Barack Obama's statement advocating opening up of the retail sector in India saw the CPM reiterating its opposition to the move, maintaining that it will hit the 12 million small traders hard. The Congress as well as the principal Opposition party, the BJP, refused to spell out their stand. "The BJP will come out with a structured response to whatever the US President has said on various issues after the conclusion of his visit", BJP chief spokesman, Ravi Shankar Prasad said. For the ruling party, opening up the retail sector may not be easy. |
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| Retail Insight | | |
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| Cutting Credit and Debit Card Processing Costs in Retail |
| innoviti |
The past decade has seen an increasing use of credit and debit cards by consumers for purchase of goods and services at retail outlets. Payment through these cards provides consumers convenience, security and a credit period for paying for their purchases. Retailers also benefit through lesser cash management hassles, higher security and improved walk-ins through promotions carried out by card issuing banks. However acceptance of credit/debit cards as a mode of payment in retail has a cost to it. This article explains the various costs involved in card processing in retail and suggests retail technology solutions that can help control costs effectively. |
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