Consumer durables’ majors like LG, Samsung, and Godrej are getting a taste of how organised retail, in return for high volumes, can squeeze their margins adversely, according to a news report in the Indian Express.
While, Reliance Retail, which is going to roll out its retail outlets in 684 cities across the country, in the next 18 to 24 months, is asking for a retail margin of 30% (markup in excess of 40%), these durable brands are not willing to part with more than 13 to 14%, in line with what they have been offering to the trade all these years.
These durable majors have confirmed that no deal has so far been stuck with Reliance on this account.
Durables’ market is approximately worth Rs. 30,000 crore in India, with the share of organised retail being around 2 to 3%. However, this market share is expected to jump to about 12% within a year.
While, Croma, the Tata Infiniti owned, pure durables’ retailer has jus begun setting shop from Mumbai, other small organised retail players operating in the market include Vijay Sales in Mumbai and Vivek’s in the South.
Categories: Retail Industry
UK-based, catalogue retailer, Argos, one of the Britain’s most successful, trusted and respected retail chains, owned by Home Retail Group, is looking at India as a possible future market, according to Finance Director, Richard Ashton, who was speaking to reporters in London on Wednesday, reports Reuters.
Founded in 1973, Argos sells – online and over telephone – a range of over 8000 top quality, branded products comprising general merchandise and home products, including furniture, electricals, toys, and leisure, from over 670 stores throughout Britain and Ireland, serving over 130 million customers annually.
“India is a possible area we’d consider in the future. We’re not active there, but we’re keeping an eye on it,” he added.
Founded in 1973, Argos sells – online and over telephone – general merchandise and home products from over 670 stores throughout Britain and Ireland, serving over 130 million customers annually.
Retail Week, a trade magazine, had reported last week that Argos could soon do a joint venture deal with Raheja owned Shoppers’ Stop/ HyperCity for its operations.
Categories: Retail News
“Shoppers’ Stop doesn’t want to be rank 1 but grade A. I think the best way to look at business is from the stakeholder’s point of view. We may be in the rank of 4 or 5, but if we are meeting targets set as part of our business plans and generated value, then I think we are doing our job.”
“There will always be somebody in rank 1, 2, 3, 4 of investments. But we are clear on the ethos of our plans and opportunities to be quickly identified. We do not want short-term targets, just a long-term vision. That is value-creation and stakeholders value the company by the PE they get.”
“We are sticking to the high-value end that keeps buying even in a recession…Even with our grocery retail, Hypercity, the grocery content is just about 30%. The positioning is such that not everyone can go in. The walk-ins may not be the highest but it has the highest ticket size and conversion rates.”
— B.S.Nagesh, Managing Director, Shoppers’ Stop (In an exclusive interview to the Economic Times)
Categories: Retail Industry · Retail Quotes
The magnum opus of fashion retail in India, India Fashion Forum (IFF) will be organised on January 23-24, 2007. The venue of the Forum will be at the Renaissance Hotel in Mumbai.
IFF is ranked among the 10 best events in the world of fashion retail (Retail World, UK, Jan 2005 report).
IFF 2007 will house simultaneous and concurrent Leadership talk sessions, exhibits of futuristic concepts in fashion forecasting, branding and retailing, the best of retail spaces across India , and an unparalleled opportunity for business networking.
The most coveted Lycra Fashion Image Awards (LIFA) 2007 will also be awarded during the Forum in the follwing categories:
- Consumer Awards
- Performance Awards
- Special Awards
- Excellence Awards
Those interested, may please log onto www.imagesfashion.com for more information on Images and IFF.
Categories: Retail Announcements
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