Hutch/ StarTV promoter plans to foray in health and beauty retail biz

Hongkong based, Li Ka Shing owned, Hutchison Whampoa group has struck gold in India.

Almost, every Indian consumer is either aware or has experienced the power of Star TV and Hutch brands, both of which have originally belonged to the Hutchison Whampoa Group. While the Star TV brand was earlier sold to the media mogul Rupert Murdoch, the Hutch brand is in the process of being sold to one of the telecom majors in the world.

How can Li Ka Shing, who knows the Indian consumer like the back of his hand, then remain away from India? He is getting ready to enter India this time through the booming organised retail sector. According to an ET report, subject to regulatory reforms, Hutchison Whampoa plans to storm the country’s health and beauty retail scene with its leading retail chain AS Watson (ASW).

With a history dating back to 1828, the US$ 12 billion, AS Watson has evolved into an international retail business of repute with 7,600 retail stores in 37 markets and 98,000 employees worldwide. ASW’s worldwide operations comprise health & beauty, luxury perfumeries & cosmetics, food, electronics, fine wine and airport retail arms. ASW is also an established player in the beverage industry, providing a full range of beverages from bottled water, fruit juices, soft drinks and tea products to the world’s finest wine labels via its international wine wholesaler and distributor.

The ASW portfolio encompasses some of Asia’s favourite brands and retail chains. These include health & beauty specialist Watsons Your Personal Store, PARKnSHOP supermarket, TASTE food galleria, Great Food Hall, Gourmet boutique style fine food hall, Fortress electrical appliance stores, Watson’s Wine Cellar, Nuance-Watson airport duty free shops and Watsons Water.

ASW plans to foray in India through health and beauty specialist Watson’s “Your Personal Store,” retail format. This, of course, will be subject to policy changes in the retail sector as ASW would like to enter the country only when majority stake in multi-brand retail is allowed by the government.

Aditya Birla to follow ‘Ekla Chalo Re’ maxim for its retail venture

Aditya Birla Retail, the unlisted retail arm of the Rs. 40,000 crore Aditya Birla Group, which decisively entered organised retail with the acquisition of 20 years old, Hyderabad based, well established, over 172 supermarket and convenience stores strong “Trinethra” super retail chain, across the southern states of India has decided to go it alone without seeking any partnership or joint venture arrangements with any foreign retail major.

It may be recalled here that only a few weeks back, telecom major Bharati has entered into a joint venture agreement with the world’s biggest US$316 billion retailer Wal-Mart for setting up back-end logistic and supply chain operations as well as cash and carry retail business in India. Tata owned Infinity Retail has similarly joined hands with Australian retail major Woolworth to manage sourcing and technicals for its retail chain “Croma,” which has plans to set up 30 stores across the country this year to sell consumer electronic durables.

Among other major players, Reliance Retail, which has already opened 22 neighbourhood convenience stores under the brand name of “Reliance Fresh” in Hyderabad and Jaipur, has like Birlas decided to seek no foreign partner for its Rs. 25,000 crore multi format retail roll out.

On the contrary, two other major retail players, namely, Kishore Biyani owned Pantaloon Retail and K. Raheja owned Shoppers’ Stop, which are not only already listed on the stock exchanges but have also registered national presence, have made licensing arrangements with several foreign player for the use of specific brands, products or formats. For example, Shoppers’ Stop is a master franchisee for ‘Mothercare’ (pregnancy and parenting products) and has agreement with the swiss group ‘Nuance’ to set up duty free shops at airports, while Pantaloon has reportedly made arrangements with ‘Starbucks’ (for Coffee shops) and has floated joint venture with Alpha Airports to set up shops at newly modernised airport in India.

Emami owned Starmark to open 10 stores in Eastern India

The Kolkata-based, Goenka owned, personal, beauty and healthcare products major Emami, with interests in paper, stationery and retail, has assumed total control of the Emami Landmark store in Kolkata by having bought entire 50% holding of its erstwhile joint venture partner Landmark in the Emami Landmark Store Pvt Ltd. Emami has also changed the name of the Landmark store in Kolkata to Starmark.

It may be recalled that the entire Landmark book chain was earlier bought over by Trent, retail arm the Tata group, which beside Landmark chain operates Westside and Star Bazaar stores.

The rechristened Starmark, now wholly owned by Emami, marks the entry of Emami group in retail. Starmark like its counterpart Crossword would cater to books, stationery, toys, music and gifts segments. Starmark has plans to open 10 stores in the next 18 months, with an investment of more than Rs. 60 crore. While, a new Starmark store will go on stream this month, another bigger 20,000 sq ft version is slated to open in May, 2007. Before taking a plunge on the national level, Starmark plans to initially spread out in the eastern states of India.

Emami group owns such famous consumer brands as Boroplus Cream and Powder, Sona Chandi Chyawanprash, Navratna Oil, Mentho Plus Balm, Fast Relief, and Madhuri Range of Products. Emami as a part of its retail initiative has also developed, Hafeez Contractor designed, Emami Shoppers’ City, in the heart of Kolkata.

French Salon chain Jean Claude Biguine to enter India; plans 50 outlets in 4 years

It’s now the turn of foreign luxury hair and beauty chains to woo the chic and sophisticated high spending consumers of India.

Jean Claude Biguine, the 24 year old Euro 150 million French salon chain, internationally recognized as an authority on beauty and style, presently having 318 salons in 17 countries, has decided to set up three outlets in Mumbai, this year. The salon chain plans to open 50 salons in major cities of the country by 2010, reports the Hindu Business Line. Of these, 22 salons will come up in the next two years. Each of these Biguine outlets will require an average investment of Rs. Three crore.

Within the next four years, the company also intends to start four training academies across the country.

There is a huge potential for business of beauty in India. While some chains have entered the country in the previous years, many other foreign Salon chains like Regis of the US are considering entering India