http://indiaretailbiz.com

Have Fun! Keep surfing! Click on the New Address!

PS: We are glad to inform our regular readers and feed/e-mail subscribers that Feedburner has seamlessly redirected their RSS feeds and e-mails to the new address. They will continue to receive the same without doing any thing.

Inconvenience, if any, caused due to this changeover is highly regretted.

‘Rangers Farm’ stores stores mainly sell fresh vegetables and farm produce in bulk to small merchants and push cart vendors. While, Rangers Farm stores service the needs of Reliance ‘Fresh’ stores on one hand, they help small time shop keepers and vendors to realise benefits of the supply chain efficiencies, on the other.

Cash & Carry business has huge potential in India, where 97% of estimated 12 million retailers are very small in size, who can not afford back-end support.

Currently, Germany’s Metro Cash & Carry chain, South Africa’s ‘Shoprite’ and home grown ITC’s Chaupal ‘Fresh’ are some of the players who have set shop in this format. However, competition is likely to hot up in a few months with the spread of these chains as well as the entry of the world’s biggest retailer Wal-Mart’s entry in the country with its Sam’s Club chain of stores.

The initial response to Rangers Farm format in Hyderabad has been very encouraging with more than 4,000 push cart vendors and small shopkeepers are said to be picking up supplies of food and vegetables in bulk, every day.

According to Reliance officials, the company is keen to garner Rs. 1 lakh crore revenue from this format in the next five years.

During the same period, apart from opening ‘Fresh’ stores, which is the existent food and grocery neighbourhood convenience format, Reliance will also open hypermarket and niche retail format stores.

These stores, apart from selling known brands, will also offer merchandise carrying private labels, including ‘Reliance Select’ an in-house label for staple products, which has already been introduced in the existing ‘Fresh’ stores.

Among new services, Reliance is considering offering free delivery of merchandise to customers’ homes. This may directly impact small retailers as customers could save time and effort on procuring goods without sacrificing on the advantages of buying from a big chain like Reliance. According to reports, such deliveries may, however, be restricted up to the distance of three kilo meters.

Having launched the first cluster of its ‘Fresh’ stores on 3rd November, 2006, today’s launch takes the pan-India tally of Reliance ‘Fresh’ stores to 49, spread across Andhra Pradesh (21), Jaipur (7), Chennai (12), and NCR (9). Three of these stores in Andhra and 12 stores in Chennai were launched during the previous week. Thus, 24 ‘Fresh’ stores have been launched within a short span of one week only.

Reliance expects to launch 1,000 stores before the year end. Occupying an aggregate retail
space of about 1,10,00 square feet, these neighbourhood convenience format stores occupy an average retail space of over 2,200 square feet and offer quality horticulture, grocery and dairy products at competitive prices. Apart from catering to house hold customers, Reliance also makes supplies of these items at wholesale prices to push-cart vendors and small kirana merchants through its wholesale format “Rangers Farm.”

Having already bought 74 nos. land plots for about Rs. 2,000 crore, Reliance has so far invested about Rs. 3,000 crore or about 10% of the first phase planned outlay of Rs. 25, 000 to 30,000 crore on its retail initiative.

According to Reliance Retail, President and CEO (Operations and Strategy), Raghu Pillai, Reliance would open bigger format stores like hypermarkets, supermarkets and speciality stores during the April-June quarter.

Reliance Retail, he said, would earn Rs 1 trillion (Rs. 1 lakh crore) in revenues in the next five years. This excludes additional revenues from the “Rangers Farm” wholesale business operations. Reliance’s experiment with this wholesale format in Hyderabad has been working fine, added Pillai.

Q3 has been significant as it has in line with expectations has contributed 30% of projected annual sales, this year.

While, the margin of 31.5%, for the first nine months, is higher by 1.2%, the company has more importantly been able to contain shrinkage below 0.5%, lower than the international standards.

While, Shoppers’ Stop opened a new store in Lucknow in the third quarter, it has also added the Mothercare, Crossword and F&B format stores during the period.

Shopper’s Stop at the quarter end had a total of 87 stores/ doors comprising: Shoppers’ Stop (20), HomeStop (2), Mothercare (11), Crossword (41) and F&B outlets (13).

While Pantaloon has added 8 lakh sq feet of retail space in Q3, it plans to add larger than this space in Q4.

What is of significance, however, is the fact that unlike most of its competitors, who have yet to make a beginning, Pantaloon has signed up a total retail space of about 27 million square feet.

While 8 million square feet of retail space is expected to go on stream by December, 2007, the entire 27 million square feet of space it has lined up is likely to become operational, within the next 3 to 4 years, by 2010-11.

Reliance, which began its journey in retail with the opening of a cluster of Reliance ’Fresh’  neighbourhood convenience stores in the state capital cities of Hyderabad and Jaipur, has opened 12 Fresh stores in Chennai on 24th January and has now begun moving to tier-II cities with the launch of seven stores in Andhra Pradesh on the 28th and the launch of nine stores today in the fast growing National Capital Region around Delhi.

The new Reliance ‘Fresh’ stores launched in Andhra Pradesh comprise four stores in Vijaywada and three in Guntur. Occupying an aggregate space of 17,000 sq. ft. each of the store on an average offers a retail space of over 2,300 sq.ft.

The nine stores in the NCR will be located in Gaziabad (4), Greater Noida (2), Noida (1), Faridabad (1) and Gurgaon (1).  These stores will occupy a retail space each of between 2,500 and 3,000 sq. ft. These stores are a part of the plan to open 22 stores in this region by the end of March of 2007. Reliance has set up two cold storage facilities at Kundli and Azadpur in Delhi of 1.75 lakh sq ft and 75,000 sq ft. respectively to service the needs of these stores.

All the new stores like other ‘Fresh’ stores will offer fresh fruits, vegetables, flowers, grocery and dairy products apart from a few staples under the Reliance’s private label of ‘Select.’ All the merchandise at these stores besides offering good quality will also be competitively priced.

All the new stores, as per the Reliance’s policy of according place of pride to its customers will be opened by the customers who first enter these stores.

Reliance is yet to begin its larger format speciality stores and hypermarkets. Three of such stores will be set up in East Delhi’s Star City Mall and Ghaziabad’s Shipra . and Jaipuria Mall, will follow in due course.

We have earlier reported about the 3 day “Maha Savings” offer in which all 43 Big Bazaar format of hypermarket stores, owned by Pantaloon Retail, across the country, in an annual exercise, have offered extra discounts to its customers, particularly on aparrel and home appliances, between 26th and 28th January, 2007.

While, Big Bazaar’s offer is widely advertised and a lot of ‘word of mouth’ publicity has also been associated with the event, Subhiksha, the Chennai-based, discount retail chain, with over 500 convenience format stores in different parts of the country, has counterd this Big Bazaar offer in a directly hitting ad-campaign with a tagline “3 days of savings on something versus 365 days of savings on everything.”

The emphasis here is clearly on 3 days versus 365 days and something versus every thing. It may be recalled that Subhiksha besides offering 10% discount on all the FMCG products, including Medicines, also offers a widely publicised ‘every day low price’ scheme. The campaign apart from being published in the print media is currently being beamed across TV channels including the matches during the ongoing one day cricket series between India and West Indies.

This appears to be just the beginning of what could be the most exciting retail media wars between the warring retailing rivals.

After signing of the partnership agreement between Wal-Mart, the US-based, biggest retailerof the world and India’s biggest private telecom player Bharti, it seems that that Anil Ambani, the younger sibling of Mukesh Ambani, may be preparing himself for a bloody fight in the unchartered territory of organised retail.

It is no secret that the retail sector is getting hotter by the day, especially after the October, 2006, announcement of the aforesaid Bharti- Wal-Mart, tie-up.

Earlier, according to knowledgeable circles, Anil Ambani was working on a plan to enter the business of retailing pharmaceutical products by leveraging on the pan-India network of chemists and druggists, who are members of the All India Chemists Association. However, not only that plan was shelved, but in the meanwhile Anil Ambani got occupied with the much bigger ambition of becoming the country’s biggest telecom player by acquiring Hutch, the second biggest GSM mobile player, owned by Hong Kong based Hutchison Whampa.

However, when a number of parties have jumped into the arena to acquire Hutch, Anil Ambani seems to be working on the possibility of garnering a much bigger share of the retail pie by seeking to join hands with Carrefour, the France based, world’s second biggest retailer. The size and ambitions of this tie-up could be as big or even bigger as that of his elder brother Mukesh Ambani owned Reliance Retail.

While, the non-compete agreement between the two brothers, it may be noted, does not preclude either of them from taking up the retail business, Carrefour is scouting for partners for its India foray after ealier having called off negotiations with the Dubai-based Landmark group for setting up over 200 hypermarket and other store formats in the country. The UK-based Tesco, the world’s third biggest retailer, after failed negotiations with Bhartis, is said to be currently in talks with Tatas.

We had earlier talked about Munjals (Hero Honda group)  turning out to be a dark horse in the race for a tie-up with Carrefour, however, it now appears that apart from Anil Ambani, Carrefour may also be exploring possibilities of a tie-up with FMCG major Godrej and Bombay Dyeing owner Nusli Wadia.

Republic Day is the day when the company makes its “Maha Savings” offer in all its “Big Bazaar” stores across the country. The offer, in view of the unmanageable rush last year, was extended for a period of three days between 26th and 28th January. The offer branded as ‘Sabse Saste Teen Din’ puts on offer merchandise across categories at at extremely economical rates. These concessions are made possible with the active support of several apparel, appliances and other manufacturers.

24 Big Bazaar outlets, last year, sold merchandise worth Rs. 43 crore during the three day periods. This year, there 43 Big Bazaars together with Food Bazaars across the country will be making this offer. While, it is not possible to estimate the business this year, company officials, expect to attract at least one million customers during the period.

In light of the previous experience, company officials are not taking any chances and are making adequate arrangements for extra cash counters as well as are providing extra space for easier movement of the customers visiting the stores.

News Source: Hindu Business Line

What are the basic ingredients that make a brand tick and help it become a Superbrand?

Well, a combination of elements are responsible for making a Brand, what it is. Following is a list of important elements.

• The Name: The name by which a Company or its products are known.
• The Logo: The symbol which represents a Brand.
• The Company: The corporate entity of a Brand
• The Image: What a Brand has come to represent.
• The Customers: Those whom a Brand serves.
• The Product and Services: What a Brand offers in a market place.
• The Promise: What a Brand stands for- its vision, mission, goals, and objectives.

– Based on the information provided in the 2006 Annual Report of PNC Limited, Mumbai.

Mr. Bhaskar Bhat, Managing Director, Titan Industries, disclosed this while talking on the sidelines of a seminar on advertising organised by the Advertising Club Madras, in Chennai.

Initial introduction of the prescription eyewear products will be done from 3rd March, 2007 on a pilot basis in a few of the company’s “World of Titan” stores, he added. Glasses, frames and lenses for a new yet to be named brand will be made by Titan on its own without seeking help of any outside partner.

The company has notified the stock exchanges of its proposal to start the new business.

Carrefour Chairman during his visit is also likely to gain a hands-on understanding of the growing retail business in India by meeting local business leaders. Carrefour (pronounced: Cahr-uh-foor, meaning ‘cross roads’ in French), like the world’s biggest Wal-Mart, which recently tied-up with telecom giant Bharti, will have to seek an Indian partner for its India foray for front end operations as it is a multi brand retailer and present Indian policy framework on retail does not allow majority FDI stake in such format. Present policy guidelines, it may be noted,  allow FDI of up to 100% in wholesale format (cash and carry) and up to 51% in single brand retail format.

Speculations are, therefore, rife that during this visit, he would explore possibilities of doing business jointly with major business leaders including Kumar Mangalam Birla, Chairman of the A V Birla group. To put records straight, it should, however, be said that Mr. Kumar Mangalam Birla, in several media interviews earlier, has clarified that his group would like to go it alone without seeking any foreign partners. It may be recalled that the AVB group, early this month, had unveiled its plans to foray into the retail business and as a first step had announced acquisition of  Hyderabad-based, food and grocery supermarket retail chain, ‘Trinethra’ and ‘Fabmall’ – which has over 172 retail stores spread across southern parts of the country.

Mukesh Ambani owned Reliance Retail, which is another major business group that is foraying into retail has also decided to go it alone and not seek any foreign partners. Reliance, which has started rolling out its food and horticulture retail stores in convenience and cash & carry wholesale formats, in Hyderabad and Jaipur, as a part of its Rs. 25,000 crore, multi format, multi verticles, pan India retail initiative, like Birlas has also recently acquired Ahmedabad-based, food and grocery retail chain ‘Adani Supermarket,’ which has 54 stores spread across Gujarat.

This leaves Tatas, among other major business houses, to tie-up with Carrefour. Tata group has two companies, Trent (Westside, Landmark and Star Bazaar) and Tata Infiniti (Croma) operating in the retail business. Tatas, however, are thought to be in advance stage of negotiations with the UK-based, world’s third biggest retailer- Tesco.

ITC, another big business house, as reported earlier, is also betting big on retail. However, ITC is mainly focussed on agri products as its long standing linkages with farmers are not limited to retailing alone.

Among other major early entrants in the field, Kishore Biyani owned Pantaloon and Raheja owned Shoppers’ Stop are already having a number of brand, product, or format specific tie-ups with foreign retailers of all shapes and sizes.

The dark horse, which could match Carrefour’s India ambitions, may well be the Munjal (Hero Honda) Group, which despite having announced its retail ambitions, has yet to unveil its retail plans. Munjals have a large network spread across the country as it has been a major player in the two wheelers market -both manual and motorised, for several decades. The group, which is the world’s biggest bicycle and the second biggest mobike manufacturer as good understanding the Indian consumer, both urban and rural.

It may be recalled that as reported earlier,Carrefour was earlier in talks with Landmark, the Dubai based retail group, to form a joint venture for its retail foray into India. However, these talks with Landmark, which already has a presence in the Indian market through it Lifestyle and Max retail chains, were recently called off with mutual consent.

All big retailers, who enjoy the advantage of having moved into organised retail in early days, are prime takeover or partnership candidates. Trinethra and Adani supermarket chains, it may be recalled, were recently bought over by Birlas and Ambanis from their respective owners.

If an Economic Times story based on market gossip (22nd January, 2007), is to be believed, R Subramanian promoted, Subhiksha, is being hotly pursued by foreign retail chains with partnership proposals. According to the story, existing chains are not content with investments alone from their suitors, but they also want a fair share of the cake by demanding an equal partnership in the business particularly when the way has been paved by none other than the world’s biggest Wal-Mart.

Government policies also favour this as the policy makers, despite strident protests from the left, have found nothing wrong with the recently concluded Bharti’s alliance with Wal-Mart.

Foreign retail chains may also not be unwilling to share a part of control and profits with home grown retailers, who beside bringing low cost infrastructure on the table, offer much needed understanding of the local geography and customer in a market which is not only multi-ethnic and multi-lingual, but also continent like in size.

No wonder, even Wal-Mart, despite its financial and technological might, had to recently wthdraw from South Korea and Germany.

ITC’s engagement with farmers began a few years ago with the opening of its first Chaupal Sagar hypermarket in Sehore, a small town near Bhopal in Madhya Pradesh. Today, while there are 12 Chaupal Sagar stores in operation, 11 more are under construction. All of these stores are located in the rural areas of Madhya Pradesh, Uttar Pradesh and Maharashtra. In the coming months, ITC has plans to set up 40 more of such stores. The concept of these stores is slightly different from hypermarkets.

Chaupal Sagar stores, besides selling home products but also sell farm inputs like fertilisers, pesticides and implements required by the farmers. In addition to selling products, these stores also procure farm produce from the farmers. They also disseminate information on commodity prices, crop patterns, and farming methods to these farmers. Even, crop demos and cold chain support are made available, where needed.

In short, Chaupal Sagar stores have become meeting points for farmers not only for transacting commerce but also for collecting and exchanging useful information.

News Source: The Hindu Business Line

Nirula’s “Express” counters, admeasuring about 200 sq ft, to be located in high traffic areas including airports, railway stations, malls and metro stations, would among others offer ‘take away’ food like sandwiches, pastries, ice creams, soft drinks, other beverages, apart from gift items and consumer products.

Additionally, Nirula’s will also be setting up ice cream kiosks inside air-conditioned premises, which among others will offer sundaes, shakes, sodas, coffee & tea, pastries, apart from ice creams.

Nirula’s regular food court units, located inside malls, multiplexes and large commercial complexes, in comparison, would occupy larger space (about 400 sq ft) and offer more food choice. In addtion to the ‘Express’ fare, they would also offer pizzas, burgers and Indian food items. Gurgaon will soon have first unit of this format.

Nirula’s, which has operates a chain of restaurants, including Pot Pouri casual dining outletd and two hotels, in 42 locations across north India, is presently owned by Kuckrejas and Navis- a Malaysia-based private equity fund.

News Source: The Economic Times

Reliance had earlier launched this format of stores prior to the opening of 22 Reliance Fresh stores in Hyderabad and Jaipur.

The format is in the same mould as Metro AG’s Cash & Carry stores in Bangalore, Kolkata and Hyderabad as well as ITC’s Chaupal Fresh stores in Hyderabad, Pune and Chadigarh.

These stores, which open at an unearthly hour of 2 AM in the morning, supply fresh fruits, vegetables and food in bulk to small shop keepers including push cart vendors. These stores, which have not been publicised much, remain open for business until 11 AM. ITC’s Chaupal stores remain open for bulk business between 4 AM and 7 AM and for consumer business, thereafter.
The initial response, according to the report, to this format has been very encouraging in Hyderabad with more than 4,000 push cart vendors and small shopkeepers picking up food and vegetables in bulk.

“The company has identified retailing as its thrust area for future growth in the branded textiles and apparel space,” said Gautam Hari Singhania, chairman and managing director of Raymond, while announcing the results. “The company has embarked on an expansion plan for increasing its retail penetration and also entered into strategic partnerships with leading international players to enter new product categories,” he added.

During the quarter, the company signed a 50:50 joint venture with an Italian company, Grotto, for retailing of premium casual wear and accessories under the GAS brand.As a part of Raymond’s strategy to expand its retail network across the country and the middle east, the company launched its flagship store in Mumbai. Raymond’s is also increasing exclusive brand outlets for various brands in its portfolio.

Shoppers are now wanting the cheapest, biggest and the quickest products/services from their retailers. They are moving towards the ‘est’ model, said Vipul Parekh, Vice-President, Merchandising, Indiaplaza.in (erstwhile Fabmall.com). He was commenting on the changing behaviour the Indian customers.

Welingkar Institute of Management (Mumbai and Bangalore), believes in paying special attention to develop the right attitude and outlook in its students by organising special programs and using unique methods – to not only develop sharp business minds but also a sound and complete personality.

Welingkar is offering a two years’ post graduate programme in retail management in association with Pantaloon Retail (India). The basic details of the programme are given below alongwith contact particulars. Those interested, should directly contact the institute or visit their website for further information and clarification.

Course Title: Post Graduate Program in Retail Management
Course Duration: 2 Years (Full Time)
Course Rationale: Experts have long been foreseeing a tidal wave approaching the retail sector – a prophecy that has come true even before the stipulated times.Retail in India is on a cusp of transformation. Organized retailing as a professional service-oriented set-up, is a recent phenomenon in India but is growing at a tremendous pace with a potential of creating over 2 million new (direct) jobs within the next six years, assuming an 8 to 10 per cent share of organized retailing in the total retail business.
Course Style: This is a business management program with a difference – it provides rigorous business and management education as well as functional specialization – in Retail Management both through theory and experiential learning and an opportunity to work with India’s premier retail organization after successful completion of the program.
Course Associate: Pantaloon Retail India Ltd (the fastest growing retail chain in India with 2005-06 gross sales of Rs. 2,018.76 crore)

Course Eligibility: Graduates from any stream, with a minimum of 50% from any Indian University recognized by AIU/ AICTE.
Selection Process: Uses CAT (19th November 2006) / MH-CET 2007 and / ATMA (11th February 2007) scores, though IIMs have no role to play in the admission process. Group Discussion and Personal Interview.
Selection criteria: Students who have unique combinations of high leadership potential, academic excellence, and individual experiences and perspectives. Focuse on a strong academic record, an innovative mindset, leadership abilities, and a quest for excellence.
Program Fee: Rs. 1, 25,000/- per year. (subject to change without any prior notice).
Number of Seats: Mumbai – 30 seats, Bangalore – 30 seats.

Application and Contact Particulars:
Application Kit: Rs. 1250 (if paid directly across the counter). Rs. 1350 (if required by post) Request for forms by post and completed forms must be sent to Institute’s Mumbai campus only.
Address: Welingkar Institute of Management,
Mumbai: L N Road, Matunga (C Rly), Mumbai – 400 019
Contact Persons: Bangalore: 11, Emmen Arcade, Hosur Main Road, Bangalore – 560 029
Contact Persons: Mumbai: Maitreyee Koranne/ Samruddhi Kambli , Tel. 91-22-24178300, Ext 745/736
Bangalore: Prof. Anuradha Mahesh, Tel. 91-80-4130 3781/2
Email: pgprm@welingkar.org
URL: http://www.welingkar.org/Welingkar/v1/Programmes/InterPrg_ret.asp?section=P

Welingkar Institute of Management, Mumba, which has been ranked 8th amongst all South Asian business schools by Singapore-based Asia Inc, is offering a one year Diploma in Retail Management. The basic details of the programme are given below alongwith contact particulars. Those interested, should directly contact the institute or visit their website for further information and clarification.

Course Title: Diploma in Retail Management (DRM)
Course Duration: One Year
Course Objective: To introduce participants to various aspects of professional retailing.

Course Rationale: Recognizing the magnitude of opportunities and the dearth of professionals at the supervisory level in the retail industry, Welingkar Institute of Management’s Center for Retail Studies started its one year Diploma in Retail Management. The program is the right course for aspirants who would like to become retail professionals at supervisory levels and those who own or manage a retail business.
Course Content: The curriculum has been designed by a team of Retail professionals and includes sessions in theory and practical applications in a balanced measure.

Course Eligibility: HSC (10+2) years of education with 50% or more and more than 5 years of work experience in Retail OR Graduates from any stream from any recognized university with 2 years of work experience
Essential: Proficiency in English
Course Faculty: Experts in the field of retailing. Professionals from various retail organizations and brands as visiting faculty. Leading retail professionals as guest lecturers.

Course Timings: From 7.30 to 9.30 on Mondays, Wednesday & Friday
Selection: Based on a comprehensive review of application form, academic performance, work experience and performance in the Group Discussion and Personal Interview.
Course Fees: Rs.50,000/- for one yearBatch Size: 30
Batches: New batches commence every January and October.
Enrollment: One month prior to commencement of batches.

Contact Particulars:

Contact Persons: Ms Samruddhi/ Ms Hetal
Ph: 91-22-24178300 Extn: 736/ 739/ 740 /741
E-mail:drm@welingkar.org
URL: http://www.welingkar.org/Welingkar/v1/Programmes/drm.asp?section=Programs

Welingkar Institute of Management, which has earned a name for itself in the area of Retail Management is offering an entry level Certificate Programme in Retail Management, the basic details of which are given below. Those aspiring to join the programme should directly contact the institute. Contact particulars are also given below.

Course Title: Certificate Program in Retailing.
Duration: Three Months.

Course Objective: To help initiate career in the field of retailing.
For whom it is meant?: Aspirants who want to enter the world of retailing through front line sales and operations.
Special Feature: To stimulate vocational nature, which incorporates contemporary industry practices and hands on experience. This is achieved by the use of ‘realistic’ retail cases, visiting industry speakers and active projects.

Corporate Associates: Help in the design of the program curriculum and provide professionals as faculty to the program (List of Associates displayed alongside) .
Faculty: Experts in the field of retailing including professionals from various retail organizations and brands.
Guest lecturers: Leading retail professionals.

Batches: Commence every Feb, May, Aug and Nov.
Enrollment: one month prior to commencement.

Eligibility: HSC (10+2) years of education with a minimum score of 50% and above
Essential: Proficiency in English
Preference: To students with prior work experience.
Selection Process: Based on a comprehensive review of application form, past academic performance, work experience, and performance in the Group Discussion and Personal Interview.

Contact Particulars:
Contact Personnel:Ms Samruddhi/ Ms Hetal/ Ms Vrinda
Phones: 91-22-24178300 Extn: 736/ 740/ 739
E-mail: retail@welingkar.org
URL:http://www.welingkar.org/Welingkar/v1/Programmes/cpr.asp?section=Programs.

This honour, which is the first for any Indian, is especially significant because the US National Retail Federation (NRF) is the world’s largest retail trade association, which represents combined annual members’ turnover of US$ 4.5 trillion.

Explaining the reasons influencing the Federation’s choice this year, Karen Knobloch, Senior VP, NRF said: Pantaloon is interesting because it is very agile; focused on giving what customers want and offers whatever format is needed, from food to electronics to high fashion apparel. And they really are a good example to all the other retailers who come here to learn.

“I think what we have to learn from the US is how consumption can drive our economic growth,” said Pantaloon Retail MD Kishore Biyani adding that the US market is all about thinking big in terms of number of stores, technology and consumerism.

This award has been conferred when the world’s biggest American retailers like “Wal-Mart” have already stitched up necessary agreements, while others like “Starbucks” and “Costco Wholesale” are waiting in wings to make their foray into the world’s second most populous as well as the world’s fastest growing market.

The Boston -based USD 16.1 billion, Staples, which invented the office superstore concept in 1986, is the world’s largest office products company, has presence in 21 countries through a network of 1,800 stores and 69,000 employees. Staples’ range of office products include supplies, technology, furniture, and business services.

While, the JV agreement will allow Staples to enter the office products’ market in India, it will allow Pantaloon Retail to benefit from the industry expertise and sourcing network of Staples. In a related development, Future Office had recently announced acquisition of the operations and management of Officedge, an online B2B office products company providing contract delivery services to corporate customers across the country.

“The office products business in India presents tremendous opportunities for growth. Through our partnership with Staples, the industry leader, we can become the office products provider of choice for businesses throughout India,” said Pantaloon Retail MD and CEO Kishore Biyani, commenting on the deal.

Staples Future Office would serve businesses of all sizes through delivery as well as cash-and-carry locations, offering a wide range of office products from core office supplies, printers as well as computers. Future Office would expand its delivery operations in all major cities of the country, including Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, Pune, Ahmedabad, Indore and Chandigarh.

The deal is a part of the group’s strategy to become the leading provider of office products in India.

Punjab farmers’ incomes are expected to get a big push with the arrival of the corporate sector in retail.

Pantaloon hunts for European partners to sign joint ventures

    The company will set up joint ventures with three European firms in menswear, premium suits wear and kidswear categories.

Trinethra launches FabCity in Mysore

Trinethra Super Retail Ltd launched FabCity, its hypermarket brand, in Mysore.

Rajesh Exports launches more `Laabh’ outlets    The Company announces the simultaneous launch of 30 `Laabh’ outlets in 23 cities across the country.

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.

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.

“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)

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.

He, however, skirted a question relating to Tesco’s imminent tie-up with Tatas. Tesco, it may be recalled, was earlier snubbed by Bharti, for a possible retail tie-up for its foray into India. Similarly, Carrefour, has also withdrawn from talks with the Dubai-based Lifestyle for a possible India related retail tie-up.

Only a day ago, ministry sources, it may be recalled, had confirmed that there was legally nothing wrong with the Bharti’s tie-up, announced earlier in November, 2006, with the world’s biggest retailer Wal-Mart.

On being queried about the status of Starbucks’ pending proposal, he said that the matter would be sorted out soon, as there were no insurmountable difficulties in clearing the proposal.

Although. Reliance officials have declined to comment on the matter, according to sources, Reliance Retail has purchased over five lakh square feet of space in the eight properties, six of which are reported to be located in Dwarka near the Indira Gandhi International Airport, while the other two are located in West Delhi at Vikaspuri and Rohini. Reliance is expected to be also bidding for another auction of two more properties at Vasant Kunj in South Delhi.The properties acquired by Reliance Retail were a part of auctions by the Delhi Development Authority.

These acqusitions are part of Mukesh Ambani owned Reliance Retail’s Rs. 25,000 crore retail initiative, which envisages setting up multi-format retail stores in 684 towns across the country within 18 to 24 months.

It may be interesting to note that it was Mukesh Ambani owned Reliance Industries, which had earlier rolled out Reliance’s CDMA mobile network across the country in the teeth of stiff opposition from Bharti backed GMA mobile operators. After the split of Ambani brothers, Reliance Mobile is now owned by Anil Ambani group.

This tool allows you to get a “snap” (glimpse or view) of the contents of a linked page by hovering your mouse on the link for a couple of seconds. You need to click the link only if you decide to open the linked page to read its content.

For example, you can hover your mouse for a couple of seconds on this link to get a snap (glimpse or view) of the previous post on this blogsite.

However, if you do not like this feature, you can block the same by choosing an appropriate option on the “Snap” tool.

We feel honoured to be among the first few wordpress sites to have this reader friendly feature and thank wordpress for the same.

The government in the previous year (10th February, 2006) had put the FDI in wholesale ‘cash and carry’ on the automatic route. As such, Bharti-Wal-Mart alliance, which envisages 100% ownership of Bharti Enterprises, a local entity, in front-end retail, has been found to be in conformity of the existing policy on FDI in retail, said high-level sources in the Ministry of Commerce and Industry.

While, Bharti will wholly own the front-end, back-end of the retail alliance, involving logistics, cold chain and supply chain management, according to the announcements made so far by Bharti, will be jointly managed by the two partners. Wal-Mart is also expected to operate cash and carry business based on the Sam’s Club model.

Currently, ‘Metro Cash & Carry’ of Germany and ‘Shoprite’ of South Africa have set up 100% owned wholesale retail operations in India.

This clearance of the government, also paves way for the world’s second and third biggest retail players, Carrefour of France and Tesco of the U. K. respectively, and indeed many more like them, to set shop in India with active participation of a local partner.

Tesco, with whom talks with Bharti failed on account of differences between the two on the pace of joint retail roll out in India is said to be in talks with Tatas now for its foray into India. Tatas themselves may perhaps prefer a slower roll out than Bhartis, in tune with the wishes of Tesco.

Carrefour has also withdrawn from talks for a possible alliance with Lifestyle of Dubai and may, perhaps, now be exploring possibilities with Birlas or even Biyanis, although, both of whom like Reliance Retail have announced their intentions to go alone.

In any case, this removes major hurdle for entry of big ticket, multi-brand, retailers in India. All major retailers are eyeing at India as it is not only the fastest growing but also the second most populous retail market in the world. This becomes more critical when there is hardly any growth in developed markets of the world.

Of course, players like Hutchison Whampa of Hong Kong who are looking for majority ownership stake in the multibrand, front-end may have to wait for some more time. In any case, this is more a matter of formality as the savvy retailers have already found an effective hole in the policy and, notwithstanding the noises being made by the left parties, the government is willing to look the other way.

The US-based, over $60 billion, Costco, which employes over 1,25,000 persons, operates 502 wholesale retail stores across the world. 370 of these store are located in the US and Puerto Rico, while the balance 132 stores are located in six other countries of the world.

Metro Cash & Carry and South African Shoprite are the only two wholesale retailers currently operating in India, although Wal-Mart, Reliance and Pantaloon are also gearing up to roll out this format across the country.

While, current policy guidelines, unlike Wal-Mart, does not bar Costco to enter the country without a local retail partner, Costco may be looking for a partner like Bharti, who may help accelarate its entry into the fastest growing and the second most populous retail market of the world.

At Costco, which sells national and regional brands at prices below traditional wholesale or retail outlets, on a membership model with monthly billings, no branded item can be marked up by more than 14 percent, and no private-label item by more than 15 percent, whereas, supermarkets in the U.S. by contrast in general mark up merchandise by 25 percent, and department stores by 50 percent or more.

Burger King, founded in 1954, in a suburb of Miami, is a large fast food chain of more than 11,100 restaurants spread across 65 countries. The restaurant chain is predominantly selling burgers, French fries, soft drinks, desserts, and sandwiches. Burger King’s trademark product is a hamburger called the Whopper. The Whopper is also a line of sandwiches, all made with the same ingredients.

Burger King Chain, which is the world’s second biggest fast food chain after McDonalds, follows a strong franchisee based model. 90% of the chain’s restaurants are, family owned, independent franchisees. It is speculated that Burger King for its foray into India would like to follow a similar model.

Nitin S Kasliwal, managing director of SKNL, has ascribed the growth to the company’s aggressive thrusts into ready made apparel, consumer textiles and retailing earlier in the year.

SKNL plans to set up 1,000 exclusive outlets for its umbrella brands in the next three years from the current 90-odd stores across the country.

As reported earlier, SKNL will focus on fashion and accessory retailing and mostly deal with luxury, high-end super brands in the country.

Khadim’s, which has been known for offering footwear in affordable price range, will be foraying into the premium price range after 13 years.

Over a period of time, Khadim’s will take the British Walker footwear range to all its 253 exclusive outlets, spread across 22 states of the country, reports Business Standard.

Founded 54 years ago, in Kolkata, Khadim’s has gradually diversified into manufacturing and exporting leather products, real estate development, media, communications and chain-store retailing with a significant presence across the country.

Being bullish on the premium price segment, Khadim’s is planning to introduce newer brands in this footwear category apart from introducing a range of formal footwear for women soon.

The company, which is keen to have its presence in as many malls as it can, expect to clock an annual turnover of Rs. 160 crore this fiscal.

Starbucks plans to open its first store in New Delhi and subsequently in Mumbai, the nation’s commercial capital, said Sharma. The first Starbucks store may go on stream by the year end.

Starbucks will have to compete with already established home grown Barista and Cafe Coffee Day coffee shop chains in India. By the year end, Barista is expanding its network of 100 shops to 225 shops.

People in most parts of India, except south, like to drink tea than coffee. Even, south Indians drink ground coffee. Preferences are, however, changing fast and increasing number of young Indians, especially students and upwardly mobile professionals, are favouring coffee shops as meeting and socialising places. About half of India’s population is less than 21 years old.

“It’s a status symbol to have a Starbucks cup in your hand in the countries like China and I think that’ll translate to India as well, as more Indians are working in professional jobs that give them more disposable income,” said Rick Drake, director of research at ABN Amro Asset Management, which among others manages Starbucks shares.

LVMH will set up the airport shops by investing Rs 40.5 crore, divided between Delhi (18 crore) and Mumbai (22.5 crore). LVMH will build infra-structure facilities including warehouses. LVMH is also expected to offer quality merchandise at reasonable prices by leveraging on its sourcing network spread across the world.

Louis Vuitton’s signature leather goods are highly regarded in the fashion world and have created a cult-like following among consumers, who proudly display the logo and designs and refer to the products as “Louis.” The Louis Vuitton “monogram canvas” design, which was created in 1896 with the intent of preventing counterfeiting, is considered the very first designer label on a product in the world. Ironically, the Louis Vuitton brand has, however, become the most counterfeited brand in fashion history as more than 98% of all items branded with the Vuitton logo are counterfeit.

Unlike other less exclusive brands, Louis Vuitton products are sold only through Louis Vuitton boutiques in upmarket locations in wealthy cities and in concessions in other luxury goods shops like Harrods in London.

VF’s world famous Lee and Wrangler jean brands are already present in the country for over a decade, the company had earlier in 2006 had introduced VF’s super premium brands, JanSport, Kipling and Nautica.

Presently, the company is in the process of launching Hero and Riders brands owned by VF Corporation. These mid-price brands are planned to be sold through the multi-brand outlets and departmental stores. These brands offer a wide range of products including caps, shirts, T-shirts, belts, knit and woven tops.

While, the Riders brands is yet to be launched by the company, Hero brand has been introduced about a month ago through Metro C&C.

VF Arvind Brands, before bringing additional brands from the VF stable, will try to establish the existing brands in the current year. The company, however, is hopeful of introducing all of the VF brands in the country, in the next three to four years.

Arvind VF expects to clock a turnover of Rs 200 crore this year registering a healthy annual growth of 30%. It also expects to maintain this growth in coming years.

Speaking on the occasion, R Subramanian, MD, Subhiksha said, “With Maharasthra we will complete our 600-store target, and we will shortly activate Phase 2 of our expansion plans foraying into 5 more states including Chandigarh, Punjab, Madhya Pradesh, Uttar Pradesh, Haryana and West Bengal. We hope to hit the 1000-store mark during 2007.”

“Our goal of becoming India’s favorite neighborhood store is now well on its way. We want to be able to provide customers from all segments of society, in all parts of the country, with a viable smart shopping option,” added Subramanian.

Unlike Big Bazaar, its discount, food and grocery, retail counterparts, Subhiksha believes in setting up non-air conditioned small neighbourhood stores (near the community) measuring around 2,000 sq.ft. in retail space. As such, while Subhiksha competes with big store chains on regular discounts, it competes with traditional ‘father and son’ kirana stores on close proximity to its customers.

Subhiksha operates in four verticals — fruits and vegetables, pharmaceuticals, FMCG and telecom. Beside loyalty discounts and regular discounts of 10% on medicines and 8 to 10% on FMCCG products. The retail chain also makes the Every Day Low Price (EDLP) offer to its customers, which is sustained through discounts obtained by the chain from direct supply arrangements with manufacturers, along with bulk purchase and cash transactions.

While the discount model of Subhiksha is based on world famous Wal-Mart strategy, the carpet bombing model is based on the ‘Starbucks’ strategy, in which the coffee retail chain opens a cluster of stores in close proximity to each other, in a geographical area which has high population density with purchasing potential. This enables the chain to cannibilise sales within its own network rather than allowing them to go to other individual stores or retail chains. Even, Reliance, so far seems to have followed a similar strategy having opened a Cluster of ‘Fresh’ stores in Hyderabad and Jaipur.

While, the decade old, Rs. 340 crore in turnover, Subhiksha retail chain, has invested about Rs. 300 crore on its first phase of expansion, the total outlay for 1,000 stores will be around Rs. 500 crore. It may be recalled that ICICI Venture Capital holds 24% of the equity in the company. The company is mulling over making Initial Public Offering (IPO) in the second half of 2007.

Futurebazaar.com, among others, claims to have on offer the widest range of apparel, books, entertainment, cameras, consumer durables, home decor, kitchenware and kitchen appliances, mobile phones, toys and games, laptops, watches and accessories. The current range of over 5,000 products is categorised under 15 major headings and 185 sub headings.

All the products on offer at futurebazaar.com carry manufacturers’ warranty and are delivered at the customer’s door step through Big Bazaar chain and logistic carriers like Blue Dart and Gati in more than 1,500 cities and towns spread across the country. Unsatisfied customers have the choice of unconditionally returning the merchandise within 15 days of purchase. The portal can deliver merchandise. Portal also claims to provide customer support through real persons as against virtual support throgh computers provided by its competitors.

“Leveraging the tried and tested ‘brick and click’ strategy, futurebazaar.com is the only e-commerce portal with a strong offline presence, quite different from the current e-commerce players who have adopted a ‘marketplace’ model. Backed by our end-to-end supply chain and the ability to source nearly a million products, our economy of scale gives the customers the lowest prices,” said Sankarson Banerjee, CEO, Future Bazaar, while formally launching the shopping the portal.

Subhiksha will have more stores than Post Offices in Kolkata, said a company official.

Subhiksha would also set up a regional hub in Kolkata for procurement so as to avoid paying central sales tax, which despite proposed reduction in the rate, will continued to be levied at 3% from April, 2007.

Kolkata, which has a Rs 300-crore-a-month market for food and groceries, offers a huge potential as the organised retailers in the city like Arambagh, C3 and Food Bazaar, account for just Rs 10 crore.

At the moment, Subhiksha does not deal in poultry or fish, however, it would consider offering these items in Kolkata as “Fish and Kolkata are inseparable,” said R. Subramanian, M D of the company. Subhiksha offers an average discount of 9-10 per cent, compared with 2 per cent at Food Bazar. Subhisksha has no takeovers in mind and the entire chain will be created from scratch, added Subramanian.

Unlike other retail stores in Kolkata, Subhiksha will have the added advantage of remaining open between 9 AM and 9 PM.

Kolkata foray for the retail chain is part of second phase expansion for the retail chain in which it wants to take the number of stores in the network to 1,000 by the end of 2007. The expansion will be spread across five states of Bengal, Punjab, Madhya Pradesh, Uttar Pradesh and Haryana, including Chandigarh.

Odyssey has partnered with Deccan Chronicle promoters Ravi Reddy and Ram in Hyderabad, and V Subramaniam, a silk trade entrepreneur, in Varanasi.

In the next two years, the retail chain plans to invest around Rs. 125 crore, add about five lakh sq ft in retail space, and have presence in 20 cities across the country, including Pune, Vizag, Mumbai, New Delhi and NCR, Chandigarh, Mangalore and Thiruvananthapuram.

Odyssey opened its first store in Bangalore yesterday with plans to add two more stores soon.

Flying Machine, the first indigenous jeans brand of India introduced in 1997, which is sold through 200 multi-brand stores, is however languishing in sales at about Rs. 25 crore a year, is now being repositioned by the group, to ramp up sales. According to the new plan, Flying Machine jeans will now be sold through exclusive brand-dedicated stores from this year at a slightly pushed up price range of Rs 895-1495, which is Rs. 100 to Rs. 200 more than the present according to a DNA reports . Through revised strategy, Arvind envisages to pull up its sale of Flying Machine from Rs. 25 crore to about Rs 40-crore in the next fiscal.

Jeans’ market in India, estimated at Rs. 5,000 crore, is a highly crowded. There are plethora of brand and only 15% of this is accounted for by the organised sector, which includes brand leaders like Levis, Lee and Pepe, who each of whom sales around Rs 100 crore per annum.

These retail hubs would also include facilities for cold storage and warehouses on unutilised railway land, surrounding the railway lines and stations. The railways own around 44,000 hactares of utilisable land. While, the railways are not looking at entering into the real estate business, they are considering to offer their land holdings as equity in retail ventures of such retail players.

It may be recalled that only about a fortnight back the railways have finalised arrangements with 14 private parties like Cargill, Kribhco and RIL for owning and operating container train services. The second round for container train allotment is expected soon.

Both the allotment of containers and land for retail to private players will rake in big money for the railways.

“We have sought more details on the nature of the business they want to do and the nature of arrangement they want to have. Once we have their response, and if we are satisfied, we will move the proposal to the Foreign Investment Promotion Board for clearance,” added Dua.

Currently, the government policy allows majority equity of up to 51% in single brand retail, although for past few weeks Commerce Minister is signaling the possibility of allowing majority stake in multi-brand retail where product basket does not affect small shop owners. The government is looking at attracting foreign retail investors by framing attractive policy guidelines for them as until now only nine single brand retail proposals have been approved by the government.

It may be interesting to recall that Bharti and the world’s biggest retailer Wal-Mart have circumvented the policy guidelines by deciding to set up a joint venture for back-end retail operations.

“Complete details, including financial details, about the retail business will be announced next month jointly by Bharti and Wal-Mart,” added Mittal.