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Retail Industry News (RIN): December 07, 2010

   Reliance

1) Peshwa Acharya, Marketing and Retail Expert

Source: http://www.audiencematters.com/interview-
individual.php?title=Peshwa%20Acharya%20,%20Marketing%20and%20Retail%20Expert
December 07, 2010




                       Peshwa Acharya, Marketing and Retail Expert

Peshwa Acharya , Marketing & Retail Expert , with 20 years of Marketing & Business
Experience across : Procter & Gamble , Reckitt & Coleman , Dabur , Reliance Retail .
Peshwa Acharya, Marketing & Retail expert, has driven business in MNC‘s like Procter &
Gamble , Reckitt & Colman , Hutchison Whampoa , and also Large Indian
Conglomerates like Reliance Retail , Dabur Group etc . He brings to the table about two
decades of through professional experience across FMCG (CPG), Retail, Telecom
sectors in Product Marketing, Brand Management, Sales, and Business Operation roles.
As Vice President & Head Marketing and Consumer Experience of Reliance Retail, he
has built the “Reliance Digital business” from scratch, which now spans approx 50 stores
across Reliance Digital, Reliance Digital Express, iStore formats from 2006-2010.

He has earned a name for himself in networking across organizations and Industries. He
has a passion for Teaching, and has been a Guest faculty across Management Institutes
like IIMC, BIMM, NIMIC etc, and been a keen career counselor to students and
corporate colleagues alike.

Peshwa is a Leader, Networker Mentor, Educationist and an avid Traveller, Social
Observer and Art Afficionado. Prachi Srivastava of AudienceMaters.com got privilege to
talk to him. Here are the excerpts.

Q. How has been your journey from FMCG to Telecom to Retail so far?
I think the distinct professional advantage that I have is that I have mix of FMCG, Retail
and Telecom experience. Early in my career, I was in FMCG for 10 years when I picked
up the tricks of FMCG marketing, Sales and distribution working on very strong brands
like Ariel , Dettol, Mortein etc that gave me great grounding on what is really Brand
Marketing is in India and how to establish Power Brands. Later, I was very fortunate to
be on the early part of the telecom revolution, I was with Hutch and at that time we were
rolling out the Mobile Telephony concept in India. It gave me an idea of how to introduce
a New Technology Concept to Indian consumers, how to drive affordability, establish
VAS and other new services, and thus make technology services approachable.



                                             1
I was extremely fortunate to work on retail sector. I had my Initial understanding of
Modern Trade, as Marketing or Category Head at Dabur selling into Grocery Modern
Retailers. Since last 5 years, I am at Reliance Retail handle multiple Retail formats, from
Grocery to Technology/ Electronics format. So, it has been a great learning experience
and journey for me.

Q. What have been the similarities and differences between the industries?
Typically, similarities have always been that if you have a customer orientation, then
marketing and sales is very similar across Industries. Do what is right for the customer,
try to provide what the customer wants and build your processes, products and services
in line with customer expectation. This is similar across industries. So, whether it is
FMCG or Telecom or Retail, it remains exactly the same.

Talking about differences, FMCG has always been the Mecca for Marketers. That
means the basics of the consumer marketing has always come from FMCG. In terms
differences, usually FMCG companies have more established marketing processes and
savvy. Retail, on the other hand where all the understanding of FMCG marketing has to
be converted at the store level. That is where the moment of truth happens! So, it’s
slightly different. Retail is not so much about overall Brand strategy. It is lot more about
execution and actually doing it Right at the store front. Telecom on the other hand is a
combination of “Strategy and Action “. Telecom also has changed over time, In fact for
me one of the learnings has been PACE in the telecom, very execution driven, fast and
also local action .

Q. How have you seen retail business growing in past few years?
If you look at a scenario 7-8 years ago, India did not have too many organized retailers.
Around 5-6 years ago, Reliance came in and off course lot of other Companies also
came in to the retail sector. So, it actually changed the Stature of the retail sector.
Reliance Retail launched large number of formats: from Reliance Fresh to Reliance
Mart, Reliance Super, Reliance Digital, Reliance Time-out, and Reliance Auto Zone ,
Reliance Jewels. Possibly nowhere in the world one company has launched so many
retail formats at the same time. Modern retail will grow. I have a strong belief that India is
not one “homogenous Nation “ , It actually is combination of various Countries, and each
of our States/Provinces is actually a size of a country. So, we need a lot of localization,
lot of Indianization of retail. Indian consumers are extremely value conscious. They
understand the value of a global brand but they still have lot of affection for Local
Brands.

Q. What impact does Retail have on mom and pop stores?
India has large number of outlets. Total Retail outlets in India is over 1 Crore (10 Million).
We are talking of a huge number and therefore personally I don’t think by having
organized retail, mom and pop stores will be marginalized. I don’t say that business will
not get affected at all but the mom and pop stores have to get their systems, Products
merchandizing, such that they can compete in that scenario so that both will coexist. At
an overall view I don’t think it will affect Overall business but at specific cases there
would be pressures. At the end of the day the customer will get a better output and
service.




                                              2
Q. Are mom and pop stores partnering in the progress?
Mom and pop stores are fragmented so some of them are gearing up specially the ones
which are in the metros. Actually, lots of Indian FMCG companies still mentally favor the
mom and pop stores because most of their business comes from them. If you look at the
negotiation table, the mom and pop store cannot necessarily negotiate with large
companies like HUL or P&G , But on the other hand Large Retail Chains can actually sit
down for negotiation. So, the power balance is always better for Brands or Companies
when there is a mom and pop store. So, that’s the situation which is dynamic, it is
changing and we are evolving. That is the fun of country like India, we are everyday
changing.

Q. What are the marketing strategies for Large Format Retailers?
Without getting into specifics about any particular Retailer, to be successful, Retail
Marketing needs to simple and direct. Try to do things which are good for the customers,
provide value, provide right merchandize at the right price with effective promotions and
simplify the life of the customers. Don’t try to do so many things, do few things but do it
well. Customize as much as you can for local requirements, be fairly at the cutting edge.
Like in case of Electronics stores, you have to provide latest Brands or Models Products
and services. It cannot happen that a model has been launched at the other parts of the
country or other retailers and we are not giving that merchandize.

Q. Can you tell us more about Reliance value format?
Essentially it combines Retail formats which largely are in the Value & Grocery domain.
So, Reliance Fresh, Reliance Mart, Reliance Super are primary constituents of the
Reliance value format. It also has formats like Reliance Auto Zone, Reliance Living etc

Q. Please highlight the key points in Electronics or CDIT business?
CDIT is consumers, durable, IT and telecom. First fundamental of CDIT business is that
this is the only business where all your cost of running the business will increase year on
year. So, electricity cost, salary cost, people cost, rental cost, typically all your costs go
up in a country like India. But if you look at your value realization, CDIT business is
always coming down. Same LCD TV which would have cost 40,000 Rs 2 years ago
must now be 30,000. This is the only business where your costs are going up but
realization is actually coming down, so it’s a very tricky business to manage P & L. So,
there the strategy is that we must either sell higher quantity, upgrade the customers or
get the customers to buy more accessory / products bundles etc .

Q. How does a retail outlet benefit to customers?
People in metros are time-starved consumers so any format or retail that gives you one
stop solution rather than you hopping from one place to the other is always a great
value. Especially in large metros, modern trade is a great boon. Modern trade makes
brands, products very transparent to customers. That means you can actually walk in
and check out 5 different shampoos. You can actually see, touch, and feel which you
otherwise cannot in Traditional trade. Modern trade makes things transparent to
customers, he has better chance to make a choice and for some of the smaller brands,
modern trade is a great way to survive and grow. Overall customer becomes the king in
the modern trade Scenario.




                                              3
Q. What are the Future challenges that you are expecting from your competitors?
India is a vibrant country. There are 1.2 billion people, 1000 $ plus per capita income,
which will be growing to 2000-3000 $, penetration level of consumer products, services
is extremely low, huge amount of infrastructural change is required. All over the world, all
over the industries people are waiting to enter India and serve the people here with their
products and services. So, frankly I don’t see this as a competition. India is too important
a market not to enter. It’s important that as industry we grow better, learn from each
other and the AAM ADMI is taken care of. Right now, modern retail in India is 5- 7 per
cent so we should not talk about competition, we should think how the industry can be
grown. Competition will happen when this will become 80 percent % and there is fighting
for market share only.

Q. For any retail to survive or to move on we need to have strong logistic
background and India is not so good when it comes to logistics, How do you
tackle this issue?
I completely disagree that Indian logistics is not in good shape. I have a strong viewpoint
that Indian logistics is anytime better than many of the western logistics. Our cost of
delivery is one of the lowest in the world. Which country in the world would actually have
FMCG delivered in dingy lanes on a bicycle where the salesman is earning only Rs 100
or something but is still doing a good job?

So, this wrong perception should be removed from stakeholders’ mind that we are poor
in terms of logistics. We are extremely cost efficient in terms of logistics that is how
FMCG companies in India have survived and grown. In logistics we are very strong,
what we don’t have is IT benchmarking, that means the manager sitting at the top
doesn’t know where his products have reached etc We are fairly good in physical
delivery, what we are not good at is we don’t the method to tap Real time Information.
This also is changing fast.

Q. Is Going to tier II, tier III cities the way to grow, especially for this type of sharp
retail?
There are two viewpoints, one is Commercial and the other is Consumer viewpoint.
Commercial viewpoint is that money still lies in the tier 1 cities, that is where consumer
consumption is extremely high, so anything which is a premium product, it is tier 1 where
people are investing but if you ask my personal viewpoint, there is a huge scope of
product and service in India. It is semi-urban India, it is rural India, and it is smaller town
where the scope is really high but that might require a different kind of business model. I
am a very strong believer of taking products or services to rural India because I think still
there is a divide between urban and rural consumers. There are lot of rural consumers
who do not even get basics what we think as basics like banking and Insurance etc

PLS NOTE : This does not reflect the views of any Retail Organisation , and viewpoints
expressed are personal viewpoints of Peshwa Acharya ..for Further details /
Conversations write into : peshwa.expert@gmail.com

Copyright Audience Matters Media Pvt. Ltd.

>>>




                                              4
2) Catching the mood of the season

Source: http://www.hindu.com/rp/2010/12/05/stories/2010120550010100.htm
December 5, 2010

With December setting in, brands are hotting up their offering quotient to make the
season exciting and interesting.

The Chennai 'winter' is upon us again, and yes, some evenings do feature that slight nip
in the air. The festive, end-of-the-year mood is around the corner and brands/retailers
are revving up the excitement with products that reflect this mood. Reliance Trends, the
Apparel, Luggage and Accessories specialty format of Reliance Retail, launched its new
chic Autumn Winter 2010 collection recently, with party wear and winter wear for men,
women and children. Check out their red hooded sweaters and red bomber jackets.
Available at Reliance Trends stores.

Converse that is known for its original canvas shoes is having an offer for the season
wherein customers get a limited edition Converse watch worth Rs 2,499 free with every
purchase of Converse merchandise worth Rs 2,499. Check them out at Planet Sports
and Pantaloons.

Now brands riding of popular films is not new. The mass market turned out
'Chandramukhi' sarees some years ago, and this Deepavali saw the 'Enthiran' saree as
well. For the smart set, it's an invitation to dress like the stars of 'Break Ke Baad' with an
exclusive apparel line available at Shoppers Stop on Harrington Road. Girly floral tunics
and dresses, sporty racer backs, printed tees with vintage art, hot shorts in cottons and
denims, and cute waistcoats, 'Aaliya' style available from Rs. 499 onwards. For the men,
it's 'Abhay' style funky cartoon prints on Tees, bold colored Tees with vintage art, cargo
shorts and full length pants with baggy pockets priced from Rs. 499 onwards. Also
available on www.shoppersstop.com

Now this last brand we are featuring in this column cannot be but desirable - they
promise you that perfect figure thanks to their 'Diamond Cut' denims for women. Lee
Jeans has brought on an innovation in denim, which they say makes women look
slimmer thanks to the 'scientific changes in cuts and stitches'. For you at Rs.1,800
onwards, that's a promise you just can't ignore!

Copyright The Hindu

>>>

3) Global brands return to retail shelves with new strategies

Source: http://www.livemint.com/2010/12/06233715/Global-brands-return-to-retail.html?atype=tp
Sapna.a, December 7, 2010

After exiting India during the slump two years ago, global brands such as GAS, Energie
and Clarks are returning to take another crack at the fastest growing major economy in
the world after China, some with new partnerships while others are preferring to go it
alone.




                                                   5
“One out of every three multinational brands that entered India prior to 2008 has had a
change in partnership or operating model,” said Raghav Gupta, president of Technopak
Advisors Pvt. Ltd, a retail consultancy firm.

Close to 100 brands have entered India in the last 10 years, of which 65 came in before
2008.

Of these, 18 have had a partnership change while seven have exited the country. Of
these, three have come back in the past year.

Grotto SpA’s GAS, which exited by dissolving its partnership with Raymond Ltd in
November 2009, has re-entered through a fully owned subsidiary Gas Jeans Pvt. Ltd,
which has appointed franchisees.

“We never wanted to leave India. We have a huge fan following here,” said a senior GAS
Jeans executive, who didn’t want to be named.

Similarly, Energie, an apparel brand from the Sixty SpA, and UK shoe retailer C&J Clark
International (Clarks) have come back to India. In its first stint in India, Clarks set up five
stand-alone stores through a distribution partner.

It has returned through a joint venture with Future Group.

The venture has established local manufacturing capacities and pricing tailored to the
local market. It plans to launch stand-alone and shop-in-shop stores in February or
March next year. The company “has now re-entered with a commitment to make an
India-specific products with a partner that understands the Indian consumer”, said
Rakesh Biyani, director and chief executive of Future Group.

On the other hand, the Future Group dissolved its partnership with French lingerie brand
Etam. “The pricing was 50-60% higher than what we initially had envisaged and this
limited its whole market potential,” said Biyani.

International brands need to tailor their products to the Indian market, he added.

“Unlike global norms, brands entering India can’t just sell their international range here,”
Biyani said. “They need to get their pricing right, build the customer base and then move
up the ladder.”

Esprit International, the clothing retailer with revenue of $5 billion (Rs.22,450 crore), is
reconsidering its India strategy after five years of a distribution partnership with Madura
Garments, now a part of Aditya Birla Retail Ltd.

Currently, Esprit India has a presence in 12 cities through about 50 stores (self-managed
and shop-in-shop).

“We are discussing very closely with Esprit (the parent company) how to expand the
brand in India for closer cooperation. More things need to flow in the country,” said
Manjula Tiwari, chief executive officer of Esprit India.




                                              6
In fiscal 2009, Esprit India cut prices by up to 20% in India. “These introductory price
points are relevant to income levels in India and contribute to 10%-15% of our overall
sales,” Tiwari said. The brand hopes to turn profitable this year, she added.

Some brands aren’t set to return soon. For instance, the exit of Levi Strauss and Co.’s
Dockers range was an international strategic decision by the company to pull out the
brand as it prioritized its resources and investments behind the flagship Levi’s brand.

The India-specific strategy has worked for companies such as Marks and Spencer Plc
(M&S), which changed its India partner in 2008 to form a joint venture with Reliance
Industries Ltd’s Reliance Retail Ltd and relaunched the M&S brand in the country with
lower prices and a strategy to source goods locally.

Copyright HT Media

>>>

    Competitor

4) Big Mac to set up restaurants along Gujarat highways

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750900500.htm
HBL Bureau, Ahmedabad, December 6, 2010

McDonald's is expected to invest Rs 350 crore on developing 20 restaurants along the
major highways in Gujarat, a senior official said here today.

For this, Big Mac would enter into an agreement with the State Government during the
Vibrant Gujarat Global Investors' Summit (VGGIS), scheduled next month, Mr Vipul
Mitra, Principal Secretary, Tourism, told reporters on the sidelines of a seminar on
tourism and aviation here as a run-up to the biennial event.

These drive-in restaurants would be set up in the next three-four years.

Bollywood actor Amitabh Bachchan, brand ambassador for Gujarat tourism, is expected
to visit the State again next month, presumably during the VGGIS, to boost tourism.

Besides, the State plans to develop 12 new airports and airstrips to boost the tourism
sector. The Government has acquired land for this purpose at the pilgrimage centre of
Ambaji in North Gujarat.

Airports, airstrips
It has also signed up with the Kolkata-based non-banking financial institution Srei
Infrastructure Finance Ltd (SIFL), which plans to invest Rs 500 crore to develop an
airstrip and create other urban infrastructure at Dwarka in Jamnagar district, he added.

Besides, the Gujarat Government will develop 14 beaches along the 1,600-km-long
coastline from Kutch to Valsad.




                                                 7
Replying to questions, Mr Mitra said the Government is expected to sign memoranda of
understanding (MoUs) worth Rs 50,000 crore and Rs 20,000 crore for development of
the tourism and aviation sectors, respectively, during VGGIS 2011.

Earlier, the State Tourism Minister, Mr Jay Narayan Vyas, said the Government is
planning hotels and drive-in restaurants every 200 km on State highways. It would adopt
the public-private partnership (PPP) model to set up new airports, airstrips and
helicopter services. To boost tourism, it would also slash electricity rates and increase
interest subsidies to promote entrepreneurship in the hotel sector.

He said Gujarat is now gearing up to further develop eco, medical, beach and adventure
tourism.

Copyright The Hindu Business Line

>>>

5) Dream Theatre eyes pre-schoolers

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750890500.htm
Bindu D. Menon, New Delhi, December 6, 2010

Months after bagging the licensing right for Warner Brothers and Discovery Channel,
Dream Theatre Pvt Ltd, a start-up by an ex-Turner honcho, has launched its own pre-
school brand called Beebop. As the retail canvas for kids range expands, the company
is hoping to entrench its brand across the country.

“The opportunity in the kids sphere is immense. Beebop believes in the celebration of
babyhood. We are looking to be a leading pre-school brand and will retail toys and
accessories,” Mr Jiggy George, Founder and CEO, Dream Theatre, told Business Line.

The company has tied up with leading retailers to sell its products. “We have deliberately
opted to stay out of distribution. The brand has been designed and conceptualised by us
but will be retailed through a distribution channel,” he said, adding Beebop will be on the
shelves by the end of this month.

The company is looking to be in 1,250 points of sales by March 2011.

Toy Triangle, which also distributes the popular toy range of Ben 10, Power Rangers,
Dragon Ball Z and many others, would be responsible for the marketing and distribution
of Beebop in India. In the first phase, a total of 47 SKUs, including infant accessories,
and toys are being launched.

Speaking on the industry, Mr George said that the overall toy market in India is
estimated to be Rs 1,500 crore and is growing at a rate of 12-15 per cent.

The organised market has a 28 per cent share and comprises players such as Mattel,
Funskool, Toy Triangle and others. Of this about 15 per cent caters to the infant and
preschool category




                                                 8
“The pre-school market is at 15 per cent of the market and is valued at about Rs 225
crore, it's one of the fastest growing segments within the toy arena with a growth rate of
almost 30 per cent,” he added.

Beebop is looking at a turnover of Rs 8 crore in 2011-12.

Copyright The Hindu Business Line

>>>

6) Kerala milk marketing body launches plum cakes

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120754021900.htm
HBL Bureau, Kozhikode, December 6, 2010

With an eye on the seasonal trade in the wake of Christmas and New Year celebrations,
the Malabar Rural Development Foundation (MRDF) functioning under patronage of the
Kerala Cooperative Milk Marketing Federation (Milma) has launched a special brand of
“Dairy Fresh” plum cakes.

Mr P.P. Gopinathan Pillai, Managing Trustee of MRDF, said here on Monday that the
profit generated from the sale of the product would be mainly utilised for undertaking of
various welfare schemes for the dairy farmers.

The foundation had already started marketing of bread and bun under the “Dairy Fresh”
label.

The cake, weighing 400 grams, has been priced at Rs 75 and booking facility will be
available for people interested in bulk purchase of the cakes.

MRDF has been making available farm mechanisation equipment to farmers under the
Farm Support project of the Malabar Region Union.

These include Milking machines, floor mats and pressure washers.

The foundation was also implementing a programme called “Malabar Grand Package”
and as a first step, it had invited more than 174 representatives of milk unions in the
country, Mr Pillai said.

Copyright The Hindu Business Line

>>>

7) Dhananjai Apparels bets on cartoon characters

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750850500.htm
HBL Bureau, Kolkata, December 6, 2010

Kolkata-based kids wear maker Dhananjai Apparels Ltd plans to launch cartoon
character-based apparels. The company expects to expand operations in a major way
by 2011.



                                                 9
The company has already acquired the licences for four American cartoon characters
that include Spiderman, Pampered Girls and Toy Story and will launch its new range of
apparels by January 2011.

The company expects a growth of 80 per cent on a year-on-year basis and had reported
a turnover of Rs 25 crore last year. It has apparels for kids aged between two to 14
years.

“We are a value player and our products are ranged accordingly. Moreover, we are
probably the first player in the country to have acquired licences for using cartoon
characters on kids wear,” said Mr Ansul Agarwal, Director, Dhananjai Apparels.
“Payments for licences are mainly royalty based.”

The company has 12 standalone stores across the country and is looking forward to
increase it to 75 by March 2011 and 1,000 shop-in-shop formats by the same time. It has
tie ups with 250 stores including Spencers (RPG Group), Mega Mart (Arvind Group) and
Fashiom Yatra (Tata Group).

The company has three manufacturing units here in West Bengal and is planning to set
up more standalone stores here in Kolkata. The company is also in talks to acquire the
licences of other popular cartoon characters.

Copyright The Hindu Business Line

>>>

8) Big Bazaar stocks up on Japanese goods

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750830500.htm
Bindu D. Menon, New Delhi, December 6, 2010

To help Japanese trade body test FMCG market.

After Japanese durables and cars, it is fast moving consumer goods that are looking to
find a foothold in India.

The Japanese External Trade Organisation (JETRO), in association with food retailer
Big Bazaar, is testing the market for its products through the Japan mela being
organised at the latter's stores.

“The rising middle class is pushing up the demand for international food products, which
has been growing steadily. Japanese FMCG products have negligible presence in India
and through this association we are testing the market,” said Mr Naoyuki Maekawa,
Director-General, JETRO, an apex body to facilitate trade and investment between
Japan and rest of the world.

Of late JETRO has been helping small and medium-size Japanese firms to maximise
their global export potential.




                                                10
Mr Maekawa said the month-long Japan mela, which began last week, would bring a
range of products, such as crackers, soups, frozen food in the food category and lip
balm, writing instruments, male grooming products, dental care and interior decor
products.

41 stock keeping units
To start with, the products would be available at select Big Bazaar outlets in Delhi,
Mumbai, Chennai and Bangalore, among others.

“There will be 41 stock keeping units in various categories. Besides Japan, products
from neighbouring ASEAN nations will also be retailed. Our aim is to increase the brand
awareness and also make our products more affordable to the price-conscious Indian
consumers,” Mr Maekawa said, adding the products would be imported by Rovin Impex.

For Japanese companies, India continues to be a leading investment destination and
there has been dramatic rise in 2009, he said. The bilateral trade between the two
countries is estimated at $13 billion at present. While Japan ranks 10th among India's
export destinations, India stands 26th among Japan's export destinations.

“Japanese companies have enjoyed a certain premium in India. But the FMCG
bandwagon has been left out and we are trying to find an affordable niche with the
segment,” Mr Maekawa said.

Future Group, meanwhile, said that its international food label offering has been growing
and to cater to the demand the company is opting for such an association.

Copyright The Hindu Business Line

>>>

9) Hoping to Max it with youth

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750840500.htm
Anjali Prayag, Bangalore, December 6, 2010

Max Retail, part of the Dubai-based Landmark Group, is looking for ‘youth patronage' in
India by adding fashion to its original USP of value offering.

The youth segment, contributing 25 per cent to sales in the chain of stores, is the second
largest selling segment after women's wear, which contributes 40 per cent to store sales,
said Mr Vasanth Kumar, Executive Director, Max Retail.

The retail chain launched its chain of stores in the country on the ‘value' platform. “We
realised that the level of acceptability for fashion in India has gone up and we have
added the fashion element to all our products.” Max Retail is still holding on to its initial
price offer of ‘everything at Rs 599' that it started with about four years back, but has
added international designs to its offering here.




                                                11
Mr Vasanth Kumar said Max in India could hold on the sub-Rs 600 price because of the
combined sourcing with Max International, tying up with Landmark Group's flagship
brand Lifestyle as an anchor store and therefore commanding better rental deals and
also because it is a pure play private label brand. About 70 per cent of the designs for
the Indian offerings come from Max International, while the rest is tweaked for the Indian
market.

Max Retail, the value retail chain of the Dubai-based Landmark Group, currently has 160
stores across the world, including 40 in India and will add another 12 in the country by
the end of the fiscal, he said. The retail chain is looking at expansion both in malls and
residential areas where the catchment for youth is high.

While investment for a store is around Rs 8 crore, the retail chain is realising revenues of
Rs 4-5 crore a store a year, recording same store sales growth of 35 per cent from last
year.

Copyright The Hindu Business Line

>>>

10) Shane Warne is taking a fashion spin

Source: http://www.dnaindia.com/sport/report_shane-warne-is-taking-a-fashion-spin_1477286
Prachi Kadam, Mumbai, December 6, 2010

Aussie spinner Shane Warne needs no introduction. When it comes to turning a game
around, no one does it better than him. The cricketer is in a mood to go radical: this time
as a fashion designer.

After launching his men’s sportswear line successfully in Australia in 2009, Warne is set
to launch his sporting label Spinners by Shane Warne in India very soon.

Speaking exclusively to DNA, the cricketer talks with relish on his new-found status as a
designer, “I really enjoy clothing and fashion. And having travelled all around the world, I
saw that there was a market for a sportsline for men and boys wear. I have kept it
casual, and have included my favourites like great looking jeans, easyfit tees and cool
shorts.While creating the boys wear I kept in mind the fact that sons like to dress like
their dads. My son Jackson was involved in it too. I was so proud of him when we were
photographing the collection; he was a natural like me!”

Did he ever discuss fashion with his very stylish team owner Shilpa Shetty? “Womens
wear is an exciting, growth opportunity. And if Shilpa would like to do some work on the
brand, that’s definitely a conversation we’d love to have!” he responds.

Talking about cricket, what’s his take on the 20-20 cricketing tournament running into
trouble in India? “I love India and have been so proud of being a captain and coach in
the 20-20 cricketing season. It was such an honour to have been able to take my team
from the bottom of the league to being champions in the first season. The saddest thing
about what was happening was the fear that the opportunity for the Indian players would
no longer be there. But I’m looking forward to playing in the fourth season.”



                                                  12
About cricket and India, Warne believes in giving back to the game that gave him
everything today. “I’m in constant talks with a few people in India. We’ve got the
academy at the Rajasthan, that I’m captain and coach of, which is doing well. I believe in
the future of India. The new India has freshness and a level of global growth that is
outstanding. It is the youth of tomorrow that will make India stronger and cricket is a way
of achieving focus and greatness here in India. I always try to be very supportive of
children, whether it’s my own kids, or the young people we help through my charity The
Shane Warne Foundation.”

As he has said India is one of his favourite countries, does he watchBollywood films?
“Yes, I do love watching Hindi films, they are just fun.” So who are his favourite stars?
“Shilpa Shetty, of course. And Shah Rukh Khan is a fantastic actor. I think the rest of
India would have to agree with me there.”

Copyright Diligent Media Corporation Ltd.

>>>

11) Adani Wilmar launches branded rice 'Pilaf Gold'

Source: http://www.business-standard.com/india/news/adani-wilmar-launches-branded-rice-pilaf-
gold/417330/
BS Reporter, Mumbai / Ahmedabad, December 07, 2010

Leading manufacturer and distributor of edible oils, Adani Wilmar Ltd has announced its
foray into domestic branded rice with the launch of 'Pilaf Gold' basmati rice. The
premium 'Pilaf Gold' basmati rice will be available pan India with an assortment of full
grain, Tibar and Dubar basmati rice.

A joint venture between Ahmedabad-based Adani Group and The Wilmar International
Limited of Singapore, Adani Wilmar Limited is already successfully established in export
business of basmati rice for past two years and is now venturing into domestic market.
With the pan India launch, Pilaf Gold Basmati rice will be available in the leading outlets
across country in the consumer packs of 10 Kg and 25 Kg. Talking about the launch,
Amit Takkar, associate vice president, head - rice division, Adani Wilmar Limited said,
"For the first time in India we are launching a complete range of premium basmati rice
and are hopeful that we will penetrate rapidly simultaneously breaking the competitive
barriers. Consumers will be able to choose from a wide assortment of rice such as Pusa
basmati, 1121 basmati and Sharbati with all variant like full grain, Tibar, and Dubar,
among others."

Copyright Business Standard Ltd.

>>>

12) Walmart raises IT sourcing from India

Source: http://www.business-standard.com/india/news/walmart-raises-it-sourcingindia/417401/
Bibhu Ranjan Mishra, Bangalore, December 07, 2010

Selects Wipro, Collabera as vendors; total IT sourcing from India about $1 billion.



                                                  13
US-based retailer Walmart, also the largest company in the world, has increased its
information technology (IT) sourcing strategy from India by setting up a dedicated group
here (in Gurgaon). Called Remote Services Management, the group is headed by Micky
Singh who was earlier the CIO of Walmart India and responsible for setting up complete
IT solution to Bharti-Walmart, covering all facets of the retail joint venture.

According to highly-placed sources, Remote Services Management will be part of
Walmart’s Information Systems Division (ISD), the in-house IT arm of the company. This
is for the first time Walmart’s ISD has set up an arm outside the US.

With this, the company wants to identify a number of Indian IT partners based on their
areas of strength, rather than giving a huge IT contract to any single company. As part of
the strategy, Walmart has also awarded contracts to two more Indian IT services firms,
Wipro and Collabera (a privately-held IT services company) to develop specific tools and
application, and provide services around that. The contracts are estimated to be over
$200 million for multi-year periods. Walmart has already awarded IT contracts to Infosys,
Cognizant and UST Global for sourcing specific services and applications for Walmart
globally.

With the selection of more vendors, Walmart’s total IT sourcing from India is estimated to
be in the range of $800 million-1 billion. To a specific query from Business Standard,
Walmart said the numbers were speculative and not based on fact.

The company, however, said it had relationships with a number of partners and it did not
want to comment on the nature of those business relationships. “As a global company,
Walmart will make investments in technology to benefit the operations here and
elsewhere in the world. We will need worldwide resources, and our work with suppliers
in India will help us continue to grow our business and create jobs around the world,” the
company spokesperson said in an email reply.

A Wipro spokesperson said the company did not want to comment on market
speculations. Collabera, too, echoed this.

It is understood that Wipro will be responsible for application development and
infrastructure outsourcing for Walmart stores globally. Besides, the company has also
established a large helpdesk as part of its BPO practice. On the other hand, Collabera
will develop collaborative tools for specific retail applications.

According to industry sources, in his new role Micky Singh will be responsible for
identifying Indian IT partners. For example, the Thiruvananthapuram-based UST Global
is responsible for specific testing of its retail applications because of its inherent
strengths in software testing.

Walmart typically prefers to develop its retail applications in-house. However, the
company gradually started buying packaged retail applications from leading software
vendors like Oracle, HP and SAP only towards the end of 2007.

Copyright Business Standard Ltd.

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                                           14
13) Arvind Ltd elevates J Suresh as MD

Source: http://www.indiaretailing.com/News.aspx?Topic=1&Id=5192
IndiaRetailing Bureau, December 07, 2010

Arvind Ltd has announced the promotion of J Suresh, CEO of Arvind Lifestyle Brands
Ltd and Arvind Retail Ltd, to managing director, with effect from December 1, 2010.

An IIM Bangalore alumnus, Suresh has been associated with Arvind Ltd since
September 2005 and has strengthened the Lifestyle Brands portfolio of Arvind and
aggressively grown Megamart as a leading value retail chain in apparel.

Sanjay Lalbhai, CMD, Arvind Ltd, said, “I am pleased to welcome J Suresh into the
board of directors and confident that the brands and retail portfolio will flourish and
achieve accelerated growth under his leadership.”

Prior to joining Arvind, J Suresh, an engineering graduate from Madras University, held
several senior positions at Hindustan Unilever Ltd.

Copyright indiaretailing.com

>>>

14) Cinemax launches first multiplex in Malegaon
Source: http://www.indiaretailing.com/News.aspx?Topic=1&Id=5189
IndiaRetailing Bureau, December 06, 2010

Multiplex chain Cinemax, a Kanakia Group company, has informed the Bombay Stock
Exchange (BSE) that it has launched a three-screen multiplex – 'Cinemax Sandesh' – at
Sangameshwar Camp in Malegaon, Maharashtra.

With a seating capacity of 1,107 and personalised cafe service, the new multiplex
promises to offer its patrons a world-class movie-watching experience.

With the opening of this multiplex, Cinemax now has 102 screens and 27,176 seats
across 32 properties.

Copyright indiaretailing.com

>>>

15) Theme eyes 65 per cent winter sales

Source: http://www.fashionunited.in/news/fashion/theme-eyes-65-per-cent-winter-sales-071220101436
December 7, 2010

With a growth of around 52 per cent over last year, Theme the brand of formal suits,
jackets and trousers owes its success to a strong presence in large formats such as
Shoppers Stop, Central Malls, Lifestyle, Pantaloon, Brand Factory and Globus. It’s also
a major brand in MBO’s and other specialty suit outlets across India.



                                                 15
As a leading brand of Silver Crest Clothing – one of the largest manufacturers of fine
tailored clothing in Asia - Theme stands for impeccably styled and value for money line
of formal men’s clothing.

With a product line-up of men’s business suits, designer suits, jackets, scarves and
formal trousers, Theme is looking to increased sales this season in keeping with its
general trend of 65 per cent sales during winter as compared to a mere 35 per cent
during summers. The company’s winter suits are their hot selling item.

“The style and trends for this season are that the lapels are again becoming wide,
though narrow lapelled jackets still exist. We give a perfect blend of both- a lapel which
is neither too narrow nor too wide, thus our suits will never go out of fashion. The
bandhgala or mandarin collar suits are coming back in a big way with variations like
stand up collars. The very narrow shawl collars will be seen both in evening jackets as
well as some formal wear jackets. Double breasted in slim fit and three-piece suits are
also back. Trousers still remain slim and some brands have even introduced ultra slim
trousers,” says Shivani De, Senior Manager, Product & Design, Silver Crest Clothing.

“The choice of fabric and styling are based on what occasion it is demanded for, whether
it is for a wedding, business, evening or casual wear. We have introduced new blends in
suit fabric such as wool viscose, Poly wool Viscose, cotton wool blends in trousers and
silk wool in jackets. Prices are on rising and the next season will see an increase in
prices as the cost of fabrics and raw material have gone up substantially, ”she adds.

She feels, what makes Theme jackets stand out is an interlude of many factors such as
the right weight of interlining for different fabrics, three-ply floating chest piece and
genuine horse hair to impart natural drape and dimensional stability and meticulous
detailing such as shaped collar, rolled lapel, piped pockets, reinforced flaps rolled
sleeves and purl- stitch buttonholes.

De is of the opinion that with international manufacturers setting up shop in India, it is the
made-to-measure suits that will soon take the lion’s share of the super premium and
premium segments while the mid-segment will rule the roost in the readymade category.
Targeting young professionals in the age group 25-40 years, with a monthly income of
Rs 30,000 to 75,000, the company is looking at innovative product expansion which will
enable it to stay up and running in the near future.

Copyright FashionUnited India

>>>

16) Wills Lifestyle’s A/W range warms up the season

Source: http://www.fashionunited.in/news/fashion/wills-lifestyles-a/w-range-warms-up-the-season-
061220101429
December 6, 2010

As a vibrant fashion brand for the premium consumer, ITC’s Wills Lifestyle has launched
its new autumn/winter 2010 collection. And it’s in keeping with its reputation of
showcasing a complete fashion wardrobe in its various collections over changing
seasons.



                                                   16
It displays an array of avant-garde styles in harmony with the global fashion mood
marked by a stylish interplay of various textured patterns and weaves on ensembles.
Their nationwide chain of specialty stores has included the autumn/winter theme in most
of its collections comprising of Wills Signature Designer wear, Wills Classic formal wear,
Wills Sport relaxed wear, Wills Clublife evening wear and fashion accessories for both
men and women.

The Wills Classic collection for men pays homage to the grandeur of the season with
rich fabrics such as Marino wool, premium Egyptian cotton and Beaver Mélange
amongst others. In deep shades to suit the sobriety of the season, this range offers
colors such as maroon, deep purple, medieval blue, cappuccino, peacock green and
teal. Incorporating the international runway trends such as the slim collars, V necks and
chiseled cuffs, this line favors a minimalistic sleek look with the Luxuria collection which
uses fine Italian fabrics, trims, mother of pearl buttons and German threads and other
detailing. The Wills Classic collection for women includes soft romantic pastel hues of
pinks and whites. With different versions of checks and stripes in shirts, Wills Classic
range also consists of newer style elements with feminine and elegant tops.

The new Wills Sport line for men showcases designs inspired by the English heritage
infused into a sporty look and contemporary blend of fabrics. A dazzling gamut of colors
ranging from black and blues along with a dedicated collection in denims in stylish mix
palette comprising of forest greens twilight blues and browns with an array of checks
round up the sports collection. The women’s collection displays design elements such as
trims, lace and crochet lend a softer touch to the garments but structures and elements
such as chunky knits, cables and ruffles give the collection a slightly rugged dimension.
Inspired partly by the countryside look, it also features jackets in slim fits woolen tops
and dresses, slim fit denims, tights and leggings.

The Clublife range for men comprises of fabrics such as cotton and linen blends,
producing a softer look with less rigid construction. Reversible fabrics have been used
for shirts to add a unique style to each garment in colors such as burgundy, olive, purple
and grey’s with a touch of shine. The women’s collection displays the romance of frills
layered into structures and satins where the construction remains soft keeping in with
the theme.

The coveted Signature line which showcases the creations of some of India’s biggest
designers will find many takers among the well-heeled clientele. This fall/winter features
ensembles from JJ Valaya, Namrata Joshipura, Satya Paul, Ranna Gill, Bian by Gia P
Fleming, Rohit Bal, Rohit Gandhi and Rahul Khanna and Rajesh Pratap Singh. And last
but not the least is the accessories line-up such as ties, belts, bags, stoles, scarves,
shoes that will accentuate the new collection.

Currently there are 55 Wills Lifestyle stores in 30 cities across the country. The brand is
making rapid strides in terms of expansion while doubling the number of stores over the
next three years.

Copyright FashionUnited India

>>>




                                            17
National

17) Fruits to cost more during Christmas

Source: http://economictimes.indiatimes.com/markets/commodities/Fruits-to-cost-more-during-
Christmas/articleshow/7056272.cms
Jayashree Bhosale, ET Bureau, Pune, December 7, 2010

The country’s fresh fruit basket for Christmas and New Year will be smaller and dearer,
thanks to the unseasonal rains and the delayed winter.

Also, a shortage of high-priced raw material will affect the fruit processing industry
adversely. The incidence of pest attacks on most fruit crops has gone up due to
unseasonal rain in October and November and the resultant humidity. Almost half of the
strawberry crop in Mahabaleshwar, which grows about 80% of the country’s output, has
been lost.

“Rains have damaged half of the production from the first flowering, which comes into
the market in December. We used to have clear weather in November. But this year, we
had rain even in November and now in early December,” said Balasaheb Bhilare,
president of All India Strawbeery Growers’ Association.

Sourcing the required quantity of raw material will be a challenge for the strawberry
processing industry. “We may have to run the unit at lower capacity this year. I hope that
the yield of the end-season crop in March and April will be good due to the late rainfall.
Otherwise, we will have to pay more for procuring strawberries,” said Mayur Vora, chief
executive officer of Mahabaleshwar-based Mapro Food Ltd.

While Mr Vora declined to comment on the price scenario, indications are that the prices
will go up. The delayed winter and heavy rainfall in the southern states of Tamil Nadu
and Andhra Pradesh will also hit Mango production in the country.

“The raw mango crop will be late by at least a month this year. The prices, especially in
Tamil Nadu and Andhra Pradesh, will be higher as the crop size may become small due
to rainfall. But the crop in Gujarat and Maharashtra is good,” said TS Ahluwalia, chief
operating officer of Mother’s Recipe, a national brand in the pickle industry.

Mango production in Maharashtra is 50% less than that of normal season for the past
two years. Mango processors from the state have already shifted their procurement base
to neighbouring states.

Though the late winter is not good for mangoes, the Alphonso variety is unlikely to be
much affected. “Late winter will mean that the mango crop will be late. But the Alphonso
mango production will be at least double than that of the previous year,” said a senior
scientist from Dr Balasaheb Savant Kokan Krishi Vidyapeeth, Dapoli, on condition of
anonymity.

Copyright BCCL

>>>




                                                  18
18) Toshiba unveils new laptops, LED TVs

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750820500.htm
HBL Bureau, Mumbai, December 6, 2010

Toshiba Corp announced the launch of a series of products in the television and laptop
segment at a press meet on Monday.

Among them are the Power TV family of products with three series, specially designed
for the Indian markets, according to the company. One of them called PC1 was
described as an LED TV which comes with an integrated battery back-up of around two
hours (for places which don't have continuous power supply).

They are priced at Rs 15,000 onwards.

Apart from the above series, the company also launched WL700 series of ultra-slim 3D
LED TVs.

These will be available as 46-inch and 55-inch models.

All products in the 40-inch and above models are available in the range of Rs 65,000-
2,50,000.

The company also announced the launch of two new laptops — Satellite C660 and
Satellite Pro C660.

The price range is Rs 25,000-35,000. These products will be up for sale from January
2011.

Sachin Tendulkar will continue as the brand ambassador for the company in India.

Copyright The Hindu Business Line

>>>

19) FDI in multi-brand retail, insurance likely soon

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750910500.htm
HBL Bureau, New Delhi, December 6, 2010

French Minister says opening up of sectors would attract more investments.

Foreign direct investment (FDI) in multi-brand retail and insurance may be opened up
soon in India, Mr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission,
indicated on the sidelines of a Federation of Indian Chambers of Commerce and
Industry (FICCI) event.




                                                19
France investment
He was responding to the French Minister of Economy and Finance, Ms Christine
Lagarde's statement at the same event that France would invest much more than its
commitment of €10 billion in India for the period 2008-12, if insurance and multi-brand
retail are opened to foreign direct investment.

“The €10 billion commitment by French business to invest in India between 2008 and
2012 could be a lot more if opportunities come up through opening of insurance and
multi-brand retail. French companies would respond in a rigorous manner. Everything is
about give and take, it's a two-way street,” she said.

Ms Lagarde is accompanying the French President, Mr Nicolas Sarkozy, on his four-day
visit to the country.

Making a case for foreign direct investment in multi-brand retail, Mr Ahluwalia said,
“Multi-brand retail was an area of great sensitivity for the small retailer. He is seeing this
for the first time. The feeling that the small retailer would be adversely affected in a
scenario when the economy is growing at a fast clip was misplaced.”

More support
Many arms of the Government, including the Planning Commission, were supportive of
opening multi-brand retail to foreign direct investment, he added.

Currently, India does not allow foreign direct investment in multi-brand retail but allows
51 per cent in single-brand retail.

Mr Ahluwalia said the debate on opening of the insurance sector had been initiated
through a Parliamentary process and India should raise its investment cap in the sector
to 49 per cent from the current 26 per cent.

Copyright The Hindu Business Line

>>>

20) Samsung plans to double mobile volumes

Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120752920700.htm
L N Revathy, Coimbatore, December 6, 2010

Samsung is planning to double mobile volumes in 2010 over that in 2009. Without
sharing numbers, the Director of IT and Mobile of Samsung Electronics, Mr Ranjit
Yadav, said: “We will continue with this growth momentum in the coming year (2011)
too, with innovative launches and a clear focus on customer needs.”

The company's mobile portfolio ranges from the entry level Guru series, dual SIM
phones, touch screen, smart phones and its latest tablet – Galaxy tab.




                                                20
Responding to an e-mail, Mr Yadav said that the dual SIM category of phones changed
the dynamics of mobile telephony. “We have emerged a strong player in the Dual SIM
category and plan to expand our product portfolio further in 2011. We expect the Dual
SIM portfolio to contribute to at least 25 per cent of our overall mobile handset sales in
2010-11 fiscal.”

Claiming that the Samsung Star Duos was the industry's first 3G + 2G Dual-Standby
Touch phone, he said of the three Dual SIM devices launched in October, the Samsung
Guru Dual 25 (GT – E1225) and Samsung Guru Dual 26 (GT –E 1252) with features
such as large display, stereo FM, Torch, 9 regional language support, games, mobile
prayer, Indian calendar, 40 poly ring tones, SOS message, Bike mode features,
phonebook and SMS memory to store up to 1000, were run-away successes in the
market.

He explained that the dual SIM devices provided the comfort of switching between the
two SIMs and saved the trouble of carrying more than one handset at a time. “No two
handsets, no two chargers and no two ringtones in addition to saving on multiple
roaming costs,” he added.

Smartphone strategy
To a query on Samsung's Smartphone strategy for the India market and future plans, Mr
Yadav said the company's foray into the Smartphone space was with a compelling
product set.

“Currently, the Smartphone segment represents less than 5 per cent of Samsung's
business, but it is the market's fastest-growing segment. We are planning to launch 3
more handsets on the Bada platform this year and are looking at a total line-up of 8-10
smart phones to strengthen its portfolio.”

‘Around 2.5 million Smartphones are expected to be sold in India this year and we at
Samsung expect to capture at 20 per cent market share in this segment by the end of
the year.

Outlining Samsung's 3G business approach and offerings, he said “this market presents
tremendous opportunities and would be a key growth area for us.”

According to him, 3G handsets would contribute to around 5 per cent of the company's
total handsets sales at present. “We are aiming to double it within a year.”

Tapping rural market
He further pointed out that the Government's recent announcement targeting a rural tele-
density of 40 per cent by 2014 would open up huge opportunities for the telecom
ecosystem and Samsung was gearing up to tap the rural market potential in a big way.




                                           21
“The Indian mobile device market is getting more aggressive by the day, with several
local Indian brands joining the fray and gaining share from the major OEMs. Their
aggressive marketing and focus on locally popular features such as dual-SIM has
changed the competitive dynamics and increased the need for more localized strategies.
Entry level consumers need dual SIMs for various reasons including economising time
and costs, improving efficiency and for increased convenience,” he added.

Copyright The Hindu Business Line

>>>

21) Cotton prices bleed textile firms

Source: http://www.business-standard.com/india/news/cotton-prices-bleed-textile-firms/417375/
Devika Banerji, New Delhi, December 7, 2010

Besides soaring prices, small and medium players are also facing a shortage of yarn this
year

As pricing pressures have increased for textile manufacturers and exporters all over the
world due to rising cotton prices, Indian players are seeing their bottomlines shrink. This
is despite a consistent flow of orders and estimates of increased domestic cotton output
this year.

Contrary to the situation overseas, where supply is expected to fall, driving prices to new
highs on estimates of lower global output, India is expected to see a 12 per cent
increase to 325 million bales of cotton production this year. However, with exporters and
traders finding it lucrative to export cotton rather than sell to domestic players, domestic
cotton prices have been shooting up with units even apprehending a scarcity.

Indian garment manufacturers have been reeling under the high price of cotton since
November 2009, when yarn prices saw a 40 per cent jump. However, the situation has
worsened in the current year where, besides high prices, small and medium players are
also facing a shortage of yarn.

Large exporters with a turnover of over Rs 1,000 crore like Gokaldas Exporters, who had
braved the 2009 price rise, were significantly impacted this year. It bottomline
plummeted into the red zone in the second quarter, primarily due to the over 50 per cent
rise in input costs.

The company reported a 26 per cent increase in the cost of wages and around a 50 per
cent increase in cotton fabric prices, which in turn resulted in the topline shrinking by
13.3 per cent to Rs 263 crore and a loss of Rs 27.10 crore, against a net profit of Rs 9.1
crore in the corresponding period last year.

“The orders executed in this quarter were badly affected by the rising cotton fibre prices
and added to the steep wage increase with affect from April 2010. We could not pass on
the rise in cotton prices to our customers since they were old contracts finalised much
earlier,” the company stated in an official note.




                                                   22
For integrated players like Alok Industries, which manufactures its own fibre, the second
quarter has been rather more comfortable as it has been able to pass on the impact of
increased costs to consumers. The company posted a 40 per cent increase in net profit
to Rs 79.8 crore in the second quarter. However, the company’s costs shot up by 51 per
cent, primarily due to an increase in raw material costs.

“Until now, we have managed fine as the order situation is good. We are an integrated
player, so we have been able to transfer the costs to consumers without affecting our
bottom line,” says Sunil Khandelwal, chief financial officer, Alok Industries. Khandelwal
further acknowledged that given rising cotton prices, demand for synthetic fibres like
polyester had shot up, which positively impacted sales in value terms.

Hari Kapoor, managing director of Noida-based Allied Export Industries, which has a
turnover of around Rs 156.2 crore, is also facing low realisations and finding it difficult to
pass on the increased input costs to customers. “There is no point asking us whether we
are impacted. Of course we are impacted. It is difficult to quote prices, as prices are
consistently rising and availability is also scarce even as orders are flowing in,” Kapoor
says.

Adding to the problems of exporters like Kapoor is the fragile rise in consumer demand
from major export markets — the US, eurozone and Japan — making it impossible to
pass on increased costs to consumers.

Industry players blame traders, particularly multinational trading houses, who book large
quantities of new cotton crops through forward cover — that is, even before the crop
comes to market — which reduces the availability of cotton for domestic mills and gives
traders the power to manipulate prices. The cotton bought by trading houses is exported,
as it is a more lucrative option.

The average current market price of cotton is around 90 per cent higher than the
minimum support price of Rs 23,500 per candy. The domestic industry says it is unable
to enter into such forward cover contracts due to the lack of adequate credit, as margin
money for working capital loans for cotton purchases are high at 25 per cent and the
loan period is limited to 6 months.

The government had, taking the situation into consideration, declared 5.5 million bales
as the exportable surplus. Registration applications for the entire 5.5 million bales were
received within 10 days and had to be discontinued on October 10.

Industry expects arrivals , including carryover stock from last year, to touch 10 million
bales, of which 5.5 million is set to be exported, while around 4.5 million bales is
estimated to be domestic consumption. This leaves negligible stock from December
onwards, possibly driving prices further.

According to the Cotton Advisory Board, at any given time the ending stock should be
adequate for around two months’ domestic consumption, or at least 5 million bales. “At
this rate, there is no reason to believe that costs will come down any time soon, as
consumption is only going to increase,” adds Kapoor.




                                             23
The garment industry, particularly small and medium exporters, are apprehensive that
the problem of increasing cotton prices and reduced availability will weed out the
positives of incoming orders. The solution, they say, lies in delaying exports further to
ensure supply for the domestic mills.

“By delaying exports by a month the government should ensure availability of cotton to
the domestic industry. It is a temporary problem and can be managed by adequate
policy measures. No Indian player can survive at this price, as pricing is the key for
them,” says D K Nair, secretary-general, Confederation of Indian Textile Industry.

Copyright Business Standard Ltd.

>>>

22) FMCG: For all seasons

Source: http://www.business-standard.com/india/news/fmcg-for-all-seasons/417320/
Sunaina Vasudev & Priya Kansara Pandya, Mumbai, December 7, 2010

Despite business headwinds, FMCG stocks are likely to sustain high valuations

Whether the markets move up on the back of strong economic prospects and robust
foreign flows, or remain volatile on account of global events like Eurozone worries and
tensions in Korea, the fast moving consumer goods (FMCG) sector is expected to stand
strong, despite its huge outperformance over the Sensex in the recent past. Since
January 4, 2010, the BSE FMCG index has surged 28 per cent as against a 15 per cent
rise in the broader markets.

Analysts reckon the stocks are likely to sustain their high valuation of an average 25
times 2011-12 estimated earnings (higher end of the five-year trading range). Given the
defensive nature of the business, FMCG stocks usually outperform other sectors in
volatile markets.

The sector has been witnessing strong volume growth of late. Moreover, pricing power
has returned to companies (though with a lag for some players). But, intense competition
and rising input costs challenge growth and profitability.

Analysts believe revenue growth for most companies may not be a problem due to
strong gross domestic product (GDP) numbers and buoyant consumer sentiment. The
same is unlikely to be materially impacted by the current level of food inflation. Also, any
further significant margin compression is unlikely, as pricing power is returning and will
continue to improve.

Given the rising consumer base and buoyant rural consumption growth, FMCG stocks
provide strong earnings visibility and will continue to be in demand. As the Indian market
gets more competitive, Dabur, Godrej Consumer Products and Marico are eyeing
merger and acquisition opportunities in other emerging markets like Africa, Bangladesh
and Sri Lanka, which is being taken positively by market experts.




                                                  24
Analysts are betting on companies with high growth potential, pricing power, less
competition and/or the possible extent of diversification, both in terms of geography and
products. In the largecap space, they prefer ITC, Asian Paints and Dabur India, while
Marico, Jyothy Laboratories, Britannia and Emami remain the top midcap bets due to
better valuation and growth potential.

Copyright Business Standard Ltd.

>>>

23) Auto parts units back in fifth gear after the slowdown

Source: http://www.business-standard.com/india/news/auto-parts-units-back-in-fifth-gear-
afterslowdown/417278/
BS Reporter, New Delhi, December 7, 2010

The Indian auto components and accessories sector, which was hit hard by the recent
economic slowdown, is again moving ahead in fifth gear, according to the findings of a
survey by the IndiaMART Research Unit (IRU). IndiaMART is an online business-to-
business marketplace.

About 70.9 per cent of auto components and accessories manufacturers – in which
micro, small and medium enterprises (MSMEs) have a significant presence – felt that the
market had progressed since last year, 8.6 per cent had a negative view, and 20.4 per
cent felt that they had not seen any change compared to last year. Respondents found
that consumer sentiment had improved when compared to the previous year. About 60.2
per cent of respondents found an average improvement in consumer sentiment, 22.6 per
cent found the improvement beyond expectations, and 17.2 per cent felt that consumer
sentiment is still negative.

However, the MSMEs in this space continue to reel from a liquidity crunch.                 This was
evident from the fact that 62.4 per cent of respondents wanted liquidity to be             improved
and lending norms eased. As for order books, about 60.2 per cent claimed                   that their
order books were balanced, 22.6 per cent found them strong, while 17.2 per                 cent said
that they remained weak.

Copyright Business Standard Ltd.

>>>

24) Surat diamond industry hard hit by staff crunch

Source: http://www.hindustantimes.com/business-news/corporatenews/Surat-diamond-industry-hard-hit-by-
staff-crunch/Article1-634747.aspx
Ahmedabad, December 05, 2010

Surat’s diamond industry is facing severe manpower crunch at a time when demand for
cut and polished diamonds from the US, China and other markets is regaining
momentum lost during the global recession of 2008-09. “At present, we are facing a
shortage of around 25% of skilled workers,” said Dinesh Navadia, president, Surat
Diamond Association (SDA). “For example, in my own factory Tiku Gems, 500 workers
are working against the required 650.”


                                                    25
This shortage will worsen if the increase in the supply of rough diamond goes up, said
Chandrakant Sanghavi, head, Sanghavi Exports, one of the largest firms in Surat.
“There is a slight shortage now but it can become acute if supply of raw stones goes up.”

Most units in Surat were operating at half their capacity at the height of the recession in
early 2009 when 300,000–400,000 people lost their jobs. “The main reason of shortage
is that during recession large number of workers shifted to textiles and other industries.
We will have to woo them back with higher salary,” said Navadia.

At present, the average wage of skilled worker is R8,000-14,000 depending on work
profile. “We will have to revise wages in order to get people work in the sector,” Navadia
said.

During April-October 2010, polished diamonds exported from Surat rose 57% to
R68,000 crore against R45,000 crore last year, according to the Gems and Jewellery
Export Promotion Council. Gems and jewelry exports are a leading foreign exchange
earner for India and accounts for over 10% of the country’s total exports.

Copyright HT Media Limited

>>>

25) Food Specialities plans new unit for snacks

Source: http://www.mydigitalfc.com/news/food-specialities-plans-new-unit-snacks-897
Jayashree Maji, New Delhi, December 06, 2010

Ludhiana-based Mrs Bector’s Food Specialities is in the process of ramping up its
distribution to go national in the next two years. The company, known for its bakery
products and liquid condiments, is also getting into snacks and bread spread categories,
said Akshay Bector, the firm’s managing director.

The company, which is looking to close 2010 fiscal at Rs 500 crore, is also planning an
IPO by 2012 when it aims to achieve Rs 1,200 crore revenue. “The IPO got delayed due
to recession. We’ll probably come out with our public issue during 2012 fiscal,” said
Bector.

“International tie-ups will continue to happen. But, we do not need any more funds from
outside. We have grown 30 per cent over last year. The company will continue to grow
at the same rate in the next fiscal as well,” he informed.

Mrs Bector’s Food Specialities, which is still only available in metros, is also in the
process of going national. “We have a major expansion plan in place which will help us
double our distribution in the next two years,” said Bector. Besides, its brand Cremica is
also getting into new product categories. “The branded ethnic snacks food market is
roughly around Rs 2,000 crore. We have done some research and going forward, we
plan to launch snacks in the line of Haldiram’s and Bikano. We are also rolling out
flavoured bread spreads and chutneys,” said Bector.




                                                   26
The company has also set up a food processing facility in Haryana with an investment of
Rs 30 crore especially for snacks. It has also placed its snack products with an
organised retailer in Canada, he added.

Copyright Financial Chronicle

>>>

26) Discount retail chains on expansion spree

Source: http://www.fashionunited.in/news/apparel/discount-retail-chains-on-expansion-spree-061220101431
December 06, 2010

Discount retail business is indeed booming across India as is evident from the massive
presence of top discount retail brands Megamart, The Loot and the Brand Factory. On
the other hand, Promart, run by Provogue has scaled down and abandoned its initial
plans to open 20 more outlets across India, while solidifying its presence in Ahmedabad
and Indore.

In October, Megamart opened its 175th outlet, in line with its parent company Arvind
Retail’s strategy of occupying 5,000 sq. ft. a week and 2.6 million sq. ft. a year.
Megamart is clearly catching up with India’s biggest retailer Pantaloon, who plans on
opening 3 million sq. ft. a year, across its different formats. Arvind Retail’s CEO Suresh J
says Megamart scores over other value retailers in customer service as there is a
service executive for every 300 sq. ft. of store space as against others where shoppers
have to wait for the sales staff. They are looking at a turnover of Rs 500 crores for FY
2011 and around Rs 1,000 crores by FY 2013. Megamart sells apparels from 200
national and international brands. Their bigger format stores known as Big Megamart
also sells homeware products, luggage, etc. at a discount of 35 to 40 per cent.

The Mumbai-based discount retail brand, The Loot has successfully bagged 151 outlets
and plans to cross 200 outlets in the next six months and is looking at Rs 100 crores
public issue to fund this growth. Brand Factory, part of Kishore Biyani’s Future group,
which gives 20-50 per cent discount, lends space to brands in its stores and earns a
percentage margins on the business brands do. The chain is looking at a business of Rs
750 crores by the end of 2011 and plans to open five to six more stores.

Copyright FashionUnited India

>>>

27) India gold scales new peak of 20,887 rupees/10 gm

Source: http://www.deccanherald.com/content/118737/india-gold-scales-peak-20887.html
Mumbai, December 07, 2010

India gold futures on the Multi Commodity Exchange (MCX) struck a record high of
20,887 rupees ($466) per 10 grams on Tuesday tracking overnight rise in international
markets.




                                                  27
The contract breached the previous record of 20,874 rupees struck on Nov.
30.International gold hit a record high in the previous session on worries over Europe's
sovereign debt problems and speculation the U.S. Fed will extend monetary easing.

Copyright The Printers (Mysore) Private Ltd.

>>>

    International

28) X5 Retail to acquire Kopeyka discounter chain

Source: http://www.indiaretailing.com/news.aspx?Id=5191&Topic=2
December 6, 2010

X5 Retail Group, Russia's largest retailer in terms of sales, has signed an agreement to
acquire discounter chain Kopeyka for RUB 51.5 billion, including assumption of debt.

Kopeyka, the third largest soft discounter in the Russian food retail market in terms of
revenue and number of stores, operates more than 660 stores with a total selling area of
over 290,000 sq.m.

It is expected that by the end of 2010, Kopeyka will have rights for approximately 700
stores.

Kopeyka operates soft discounter stores in the European part of Russia, with more than
50 per cent of its business in Moscow and the Moscow region. It reported net revenues
of RUB 59.3 billion and EBITDA of RUR 3.8 billion for the 12 months to the end of June.

Copyright Indiaretailing.com.

>>>

29) The New Normal for Holiday Meals

Source: http://www.retailwire.com/discussions/sngl_discussion.cfm/14925
Bernice Hurst, December 6, 2010

The law of unintended consequences is one that just keeps on giving. We have
discussed multigenerational households in this forum and the implications of young
people not flying the nest or, conversely, setting up home on their own, increasing the
number of 21st century single-person households.

What we have not covered are the implications of extended family households created
when parents separate and set up home with new families, possibly having more
children and certainly having more in-laws to invite for holiday meals. Geography, as
well as demography, plays a part with family members living much further than the
proverbial stone's throw from one another.




                                                  28
All these factors are contributing to families' multiple Christmas celebrations. The Daily
Telegraph has reported on a trend spotted by two of England's most popular
supermarkets -- Asda and Waitrose.

After polling 3,000 customers, Asda apparently found that 53 percent cook two
Christmas meals while 32 percent have to sit through more than three. As a result, 38
percent more frozen turkeys have been sold this year, compared to the same time last
year.

The situation "is thought to have come about because the rising divorce rate has led to
more families living apart -- meaning more homes to visit at Christmas time in order to
'keep the peace'."

Waitrose, while increasing its offering of fresh birds over the coming weeks, "sold 56
percent more frozen turkeys last week (mid-November) compared to the same week in
2009" as well as a significant "increase in sales of pre-prepared vegetables and frozen
desserts that are easier to serve."

The two stores' turkey buyers agree that it is a long-term trend with shoppers "buying
more than one turkey at Christmas ... as they celebrate with their different families,"
according to Asda. Waitrose's buyer pointed out, "We know that the weekend before
Christmas is only rivalled by Christmas Day and Boxing Day for festive entertaining.
Many families cook up a full Christmas dinner with all the trimmings for those that they
won't be spending Christmas with."

Copyright RetailWire LLC.

>>>

30) Record breaking week for ebay uk

Source: http://www.theretailbulletin.com/news/record_breaking_week_for_ebay_uk_06-12-10/
December 6, 2010

More than 5 million shoppers logged onto eBay.co.uk yesterday, in what has been a
record breaking week for the online marketplace in the lead up to 'Super Sunday'.

Sales on the UK site's busiest shopping day of the year were up 18% on the same day
last year, with shoppers snapping up nearly 1.4 million gifts in just one day. With
consumers avoiding the freezing temperatures and the stress of busy high-street
crowds, this accounted for 17 gifts being purchased every second.

Clothing, shoes and accessories made up eight out of the top 10 most popular items
bought yesterday. DVDs maintained its top spot from last year as the favourite gift to
purchase on 'Super Sunday, with women's shoes in second spot and CDs in third.

eBay sellers played their part in the UK's export-led recovery, with international sales up
11% on 2009.




                                                 29
Jody Ford, Director at eBay UK commented,"The festive spirit has well and truly arrived!
Online shopping continues to go from strength to strength as people look for choice and
value from the comfort of their own homes and it's encouraging to see sales up so
considerably, despite the tough economic climate. We tend to see a sharp rise in sales
on the first Sunday in December as people start to think about their Christmas shopping
list, although this year's cold snap has clearly led to even more people choosing to shop
without the hassle of the high-street."

The Retail Bulletin is organising their 2nd Multichannel Summit, to be held in London
February 2nd 2011. The event is sponsored by k3 retail and will look at how retailers can
maximize profits, market share and loyalty through cost effective, seamless, integrated
multichannel strategies.
If you would like to attend as either a delegate or Networking Partner, go to

Copyright The Retail Bulletin Ltd.

>>>

31) Debenhams reports snow and recession create earliest ever start for
Christmas

Source:
http://www.theretailbulletin.com/news/debenhams_reports_snow_and_recession_create_earliest_ever_start
_for_christmas_06-12-10/
December 6, 2010

Second largest UK department store chain has reported the earliest start to the festive
season ever, with Christmas decorations going up in homes all over Britain already

Early snow and cold weather combined with the gloom of recession has encouraged
thousands of people to reach for the tinsel and fairy lights to brighten up their days, sales
figures have revealed.

Sales figures for Christmas decorations started soaring at Debenhams on November 22,
over two weeks earlier than normal. However, the trend is bound to outrage
traditionalists who believe that Christmas is already spreading well beyond the traditional
twelve day celebration period.

Debenhams spokeswoman Ruth Attridge said,"It's clear that thousands of people are
putting more faith in Santa Claus than the IMF or politicians to bring joy into their lives
this year. The bad weather has made it feel like Christmas, and so everyone is saying,
'Forget tradition, and seasonal dates. It's been a tough year, we need a break, so let's
get stuck in."

The news means that Christmas celebrations in the UK are set to last for an incredible
six weeks this year.

Already Debenhams' sales of tinsel, Christmas trees, fairy lights and other decorations
have reached a record high. Demand for Christmas trees has leapt by 1,658 per cent,
crackers are up 2,374 per cent, Christmas stockings by 190 per cent, cards and gift wrap
by 412 per cent and table decorations by 980 per cent.



                                                 30
Until now, sales of Christmas decorations have followed a totally predictable path, year
in year out, with demand starting at the start of the second week in December.

Copyright The Retail Bulletin Ltd.

>>>

32) More retailers sign up to the Warrington Against Business Crime scheme

Source:
http://www.theretailbulletin.com/news/more_retailers_sign_up_to_the_warrington_against_business_crime_
scheme_06-12-10/
December 6, 2010

Police and partners have joined forces with three superstores in Warrington in a bid to
clampdown on shoplifters

Marks and Spencer at Gemini Retail Park, Asda at Westbrook and Tesco Extra in
Winwick Road are the latest retailers to sign up to the successful Warrington Against
Business Crime scheme.

It is part of an expansion of the retail crime reduction scheme, which already covers the
town centre and Birchwood Shopping Centre.
As part of the scheme businesses work closely alongside police and partners to tackle
retail crime, reduce anti-social behaviour and to reassure retailers and members of the
public.

It also shares intelligence and information with retailers and business crime partnerships
across the UK.

Dave Barlow, Business Crime Manager, said,We are delighted that these stores have
joined the scheme. We have helped to reduce retail crime significantly for all the
Warrington Against Business Crime scheme members, and we intend to have the same
impact at these stores.

The Warrington Against Business Crime scheme was given national recognition in May
when it secured the Safer Business Award for the first time. The award, which is handed
out by Action Against Business Crime, recognises that the scheme meets a nationally
recognised standard for business crime partnerships.

The partnership has been assessed to ensure that it operates to a national standard and
carries out all of its activities to the highest levels of data integrity.

It is hoped that the Warrington Against Business Crime scheme will continue to be
extended throughout Warrington over the next two years.

Copyright The Retail Bulletin Ltd.

>>>




                                                  31
33) Record online and bumper Saturday sales at John Lewis

Source:
http://www.theretailbulletin.com/news/record_online_and_bumper_saturday_sales_at_john_lewis_06-12-10/
December 6, 2010

John Lewis announced today that last week (to Saturday December 4) saw sales in
excess of £100million

Despite atrocious weather conditions throughout the country the company achieved
weekly sales of £103.7million, which is 1.2% up on the same week last year and 3.7%
up on last week. With the thaw in the weather setting in, Saturday saw shoppers flocking
to John Lewis branches to realise their pent-up d

emand for both Christmas and cold weather purchases, with the result that Saturday
(December 4) saw one of the department store group’s biggest trading days – at
£20.87million.

At the same time, johnlewis.com saw record weekly sales soar to £23.97million, a 47%
increase on the same week last year and the first time the online operation has crossed
the £20million mark for a week. There is no doubt that during the snowy weather
customers chose to increase their online shopping. During Wednesday last week, the
worst day of the weather conditions, sales on johnlewis.com were 98% up on the same
day last year. Tomorrow sees the predicted Mega Monday for the johnlewis.com
operation, during which we confidently expect to see other records broken.

Sales reports from John Lewis branches nationwide show that customers are clearly in
the mood for Christmas shopping and for keeping warm. Sales of heaters, nightwear and
cold weather fashions saw a huge uplift, with menswear being particularly strong.
Looking at Christmas gifting, toy sales saw major increases last week, with traditional
gifts such as the ever-popular lego and new animatronic toys both hitting new sales
highs. In addition, John Lewis’ gift food ideas have really taken off, particularly with
‘Hotel Chocolat’ and ‘Edinburgh Preserves’ gift sets.

Maggie Porteous, Head of Selling Operations, said: “The weather made last week a
challenging one. It is a huge credit to all our Partners that we have achieved such
excellent sales despite the adverse conditions. There is no doubt that our multi-channel
operation, where customers can choose from a variety of ways to shop, has contributed
significantly to our trading success.”

Copyright The Retail Bulletin Ltd.

>>>

34) Fashion retailers missing m Commerce opportunity

Source: http://www.theretailbulletin.com/news/fashion_retailers_missing_mcommerce_opportunity_06-12-
10/
December 6, 2010

MIG's Christmas Sock Report indicates only 23 percent of UK's top 57 fashion retailers
have a transactional mobile site or application


                                                 32
Integrated mobile and digital communications business, Mobile Interactive Group (MIG)
today unveiled its Christmas Sock Report. The research evaluated the UK’s top 57
retailers* against their mCommerce capabilities, in particular testing them against the
question: how easy is it to find and purchase the most popular Christmas present - a pair
of socks?

The report concluded that only 16 retailers had a mobile application with only nine of
these being capable of processing a transaction. In addition, only four retailers had an
optimised transactional mobile site. In total only 23 percent of all retailers in the fashion
sector allowed users to find and purchase a pair of socks via mobile. Clicks to find a pair
of socks ranged between two and five and clicks to the checkout (or registration page)
ranged between five and eight.

With Morgan Stanley predicting that mobile will overtake fixed line internet access by
2013, the report highlights the need for the fashion retail sector to embrace
mCommerce. Furthermore Tesco Direct last week issued findings of its analysis in to
consumer shopping habits indicating that one in 10 Brits will do some of their online
Christmas shopping using their mobile phone.

Ben Cusack, Group Marketing Director, Mobile Interactive Group said,“With the
continued growth of smartphones and the mobile internet, mCommerce has rapidly
grown in to a huge opportunity for the retail sector. In the UK M&S has played a pivotal
role in championing investment in mCommerce by allowing their customers to search,
browse and purchase their full product range on mobile, at a time and place that’s
convenient for them.

“The Sock Report clearly demonstrates that the fashion subset of the retail sector is
lagging behind somewhat and since we know that consumers’ online behaviour extends
right in to the mobile channel, clearly there are huge gains to be made with a
transactional mCommerce strategy in 2011.”

Growth in mCommerce is also on the increase in the US, where IDC Retail Insights
recently reported ‘smartphones will account for at least $127 billion, or 28 percent, of the
$447 billion the National Retail Federation predicts consumers will spend this holiday
season’. Additionally, industry analyst Mary Meeker has predicted that mCommerce will
gain market share faster than tradition online retailing.

There will be a panel discussion at the Retail Bulletin’s Multichannel Summit 2011
looking at ’Integrating Mobile Into Your Multichannel Strategy’. Confirmed pannellists
are: Steve Wind-Mozley, Ecommerce Director, Game Group, Giles Delafeld, E-
Commerce Director, Blacks Leisure Group plc, Fergus Boyd, Acting Head of eBusiness ,
Virgin Atlantic Airways, David Kohn, Head of eCommerce & Digital, Waterstone’s.To
register for the event and to find out more

Copyright The Retail Bulletin Ltd.

>>>




                                             33
35) Retailers neglecting to support mobile shoppers risk losing millions over
Christmas

Source:
http://www.theretailbulletin.com/news/retailers_neglecting_to_support_mobile_shoppers_risk_losing_million
s_over_christmas_06-12-10/
December 6, 2010

Retailers need to ensure mobile infrastructures can cope with the growth in mobile
commerce

Retailers risk losing millions of pounds from missed sales this Christmas if their IT
infrastructure fails to cater for the sharp increases in traffic from mobile users. The UK is
predicted to spend £6.4bn online this Christmas as consumers continue to seek better
deals than in-store. Furthermore, mobile shopping is set to significantly increase online
sales this year, as 18% of consumers plan to purchase some gifts using their
smartphones.

“Many online retailers have prepared for the extra traffic their sites receive during the
pre-Christmas rush. However, with more customers shopping on their mobile phones,
retailers now need to ensure they can cope with a surge in demand from this channel
otherwise they risk losing a significant number of sales. Having the right IT infrastructure
in place to deal with the rise in mobile commerce and to support the growing number of
mobile shopping applications is an absolute must,” said Neil Barton, director, Hostway.

Research carried out by TNS earlier this year found that 82% of consumers admitted if a
retailers’ website performed badly it would dissuade them from buying goods from that
organisation on the web or even in store. This demonstrates the importance of having a
good online reputation and the need for retailers to ensure their online customer
experience is a positive one.

“In the same way customers have determined which brands they are loyal to on the
traditional web, we are likely to see the same in the mobile space as more people shop
using their phone. Today’s mobile sites and applications are also becoming much more
multimedia heavy, therefore it is vital that retailers have sufficient supporting IT
infrastructure and invest in solutions such as traffic management and content caching,
which can help enhance the mobile experience.

The challenge for retailers this Christmas is to learn from their mistakes in the traditional
web world and ensure their mobile services and applications have the right mix of
technology to support them. Those retailers that do are likely to have a much merrier
Christmas and prosperous new year than those that don’t.”

Copyright The Retail Bulletin Ltd.

>>>




                                                   34
36) Waitrose sales on the up despite the big chill

Source: http://www.talkingretail.com/news/industry-news/waitrose-sales-on-the-up-despite-the-big-chill
Stacey Wright, December 6, 2010

Waitrose saw another strong week of trading, despite the impact of mid-week snow in
many parts of the country, with total sales for the week ending 4 December at £106m.

This is a 5% increase on last year and a 27% increase on two years ago. Trading was
exceptionally busy on Monday as shoppers stocked up before the big freeze while
business was also brisk on Saturday.

Employees in the four regional distribution centres and branches pulled out all the stops
to keep Waitrose stores stocked in the challenging weather conditions. Some branch
partners walked for miles in the snow to get to work, while others stayed overnight in
their shops to ensure that it was business as usual.

Hot drinks proved to be some of this week’s best sellers with cocoa up by 48%, instant
hot chocolate up by 78% and herbal teas up 37%. Comfort food was the order of the
day as hot pie sales climbed by 53% and canned soup saw a 56% rise.

Store cupboard staples such as UHT milk and powdered milk were up by 53% and 56%
respectively. Frozen food was another area which saw steep growth with frozen roast
and mashed potatoes among the best sellers.

Mark Price, Waitrose managing director, said: “This is an astonishing sales result, given
the impact of weather conditions during the week.

“Our Partners worked heroically to keep our branches stocked in these testing conditions
and thanks to them we are really well set up to serve our customers in the run-up weeks
to Christmas, whatever the weather.

“Warmth was the watchword as customers temporarily turned their attention from festive
preparations to keeping out the cold and stocking up for the big freeze.”

It was a week in which the Delia Smith effect struck again sending sales of cranberries
and cranberry juice soaring 15 years after the cookery queen first sparked a national
shortage of the fruit.

Smith’s latest recipes for Waitrose include sophisticated cranberry jellies served with
frosted cranberries on top. Her delicate dessert caused a surge in sales of fresh
cranberries and cranberries juice at the supermarket within hours of appearing on in-
store recipe cards.




                                                    35
The uplift brings back memories of 1995 when Delia Smith first brought the humble
cranberry to the nation’s attention and became known as the ‘Cranberry Queen’. She
caused a countrywide craze for the seasonal fruit in a phenomenon dubbed the Delia
Effect.

Copyright Metropolis International Group Ltd.

>>>

37) Sainsbury’s opens new Local store in Ashford, Middlesex

Source: http://www.talkingretail.com/news/industry-news/sainsburys-opens-new-local-store-in-ashford-
middlesex
Stacey Wright, December 6, 2010

Sainsbury’s has opened a new Local store in Ashford, Middlesex, where pupils from
Clarendon Road Primary School joined in the celebrations.

The children, who were joined by teachers, cut the ribbon at 9am. They were then
presented with £250-worth of Active Kids soft play equipment before receiving a tour of
the new store on New Parade.

At just over 2,700 sq ft, the Local store will offer a large range of goods for a
convenience store, from fresh baked goods, fruit and vegetables, to newspapers and
flowers. The opening has also created 15 new jobs – many of whom are from the area –
while a further five have been brought in from nearby Sainsbury’s branches.

Store manager Tim Lane said: “We want to support Shooting Stars Hospice as much as
we can in the coming months as it’s our local charity partner. Santa may well put in
appearance at the hospice in the next few weeks, helping the store and our builders to
donate £1,000-worth of toys and equipment to help them get into the Christmas spirit.”

Copyright Metropolis International Group Ltd.

>>>

38) Groomstars ties up with formal wear brand

Source: http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=93707
USA, December 6, 2010

GROOMSTARS has announced its collaboration with Victor Talbots, a one of a kind
men's fashion establishment out of Greenvale, New York. As an illustration of their
commitment to excellence, Victor Talbots is renowned for their unsurpassed quality and
craftsmanship in fine formal wear.

Victor Talbots has brought Groomstars their unparalleled mastery of fine evening wear
with an exclusive collection of ties, braces and other evening wear. The Launch of this
partnership epitomizes the high standards of excellence in design and the outstanding
quality Groomstars consistently supplies to their costumers.




                                                   36
Victor Talbots' exclusive line for Groomstars allows grooms to select high quality formal
wear gifts for their groomsmen, best man and father of the bride. In a market wear high
end men's gifts simply did not exist, Groomstars along with Victor Talbots has changed
the gift giving experience. Victor Talbots has contributed to Groomstars goal of raising
the bar for male gift giving.

Victor Talbots was founded over a decade ago upon the basic principle of representing
gentleman's evening attire within the distinct environment for which it was intended. To
accomplish this undertaking would be the evolving creation of what Victor Talbots has
become today. Victor Talbots is a one of a kind couture fashion establishment which
blends the finest in luxurious wears and ultimate service into an exceptional personal
expression of attire.

Copyright Sanblue Enterprises Pvt. Ltd.

>>>

39) Levi’s debuts ‘Shape What’s to Come’

Source: http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=93726
USA, December 7, 2010

Levi’s – the brand that introduced the first jeans for women 75 years ago – asked 50
inspiring young women from across the globe to inscribe hand-crafted journals with how
they’re shaping the future and who inspired them along the way. These “Traveling
Journals” will be revealed as part of a global Levi’s brand sponsorship at the first-ever
TEDWomen conference in Washington, D.C. Dec. 7-8.

The TEDWomen conference will also include the debut of a documentary film from
young director Chiara Clemente focusing on eight journal contributors’ inspirational and
powerful stories. Content from these motivational journals can also be found on
ShapeWhatsToCome.com, a global community encouraging Millennial women to
discover and pursue their passions and potential through collaboration and mentorship.

The Shape What’s To Come documentary highlights young women from the U.S., U.K.
and Japan who are transcending societal expectations, taking non-linear paths to
success and making a difference in the world around them.

Participants range from Katie Spotz (age 23, Mentor, Ohio and recently named one of
Glamour magazine’s women of the year), who was the youngest person to row solo
across the Atlantic Ocean, raising awareness and $100,000 to promote access to clean
drinking water in developing countries, to Priya Lakhani (age 27, London, U.K.), founder
of the Masala Masala Project, which provides one meal for the homeless in India for
every jar of Masala Masala Indian sauce sold in the U.K.

A director who explores identity, cultural contrast, and the creative process, Clemente
says, “I wanted to do this film so I could bring each woman’s incredible story to life. Their
inspirational experiences and triumphs are a true testament to the creativity and
possibilities of this generation.”




                                                37
PESHWA  ACHARYA
PESHWA  ACHARYA
PESHWA  ACHARYA

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PESHWA ACHARYA

  • 1. Retail Industry News (RIN): December 07, 2010 Reliance 1) Peshwa Acharya, Marketing and Retail Expert Source: http://www.audiencematters.com/interview- individual.php?title=Peshwa%20Acharya%20,%20Marketing%20and%20Retail%20Expert December 07, 2010 Peshwa Acharya, Marketing and Retail Expert Peshwa Acharya , Marketing & Retail Expert , with 20 years of Marketing & Business Experience across : Procter & Gamble , Reckitt & Coleman , Dabur , Reliance Retail . Peshwa Acharya, Marketing & Retail expert, has driven business in MNC‘s like Procter & Gamble , Reckitt & Colman , Hutchison Whampoa , and also Large Indian Conglomerates like Reliance Retail , Dabur Group etc . He brings to the table about two decades of through professional experience across FMCG (CPG), Retail, Telecom sectors in Product Marketing, Brand Management, Sales, and Business Operation roles. As Vice President & Head Marketing and Consumer Experience of Reliance Retail, he has built the “Reliance Digital business” from scratch, which now spans approx 50 stores across Reliance Digital, Reliance Digital Express, iStore formats from 2006-2010. He has earned a name for himself in networking across organizations and Industries. He has a passion for Teaching, and has been a Guest faculty across Management Institutes like IIMC, BIMM, NIMIC etc, and been a keen career counselor to students and corporate colleagues alike. Peshwa is a Leader, Networker Mentor, Educationist and an avid Traveller, Social Observer and Art Afficionado. Prachi Srivastava of AudienceMaters.com got privilege to talk to him. Here are the excerpts. Q. How has been your journey from FMCG to Telecom to Retail so far? I think the distinct professional advantage that I have is that I have mix of FMCG, Retail and Telecom experience. Early in my career, I was in FMCG for 10 years when I picked up the tricks of FMCG marketing, Sales and distribution working on very strong brands like Ariel , Dettol, Mortein etc that gave me great grounding on what is really Brand Marketing is in India and how to establish Power Brands. Later, I was very fortunate to be on the early part of the telecom revolution, I was with Hutch and at that time we were rolling out the Mobile Telephony concept in India. It gave me an idea of how to introduce a New Technology Concept to Indian consumers, how to drive affordability, establish VAS and other new services, and thus make technology services approachable. 1
  • 2. I was extremely fortunate to work on retail sector. I had my Initial understanding of Modern Trade, as Marketing or Category Head at Dabur selling into Grocery Modern Retailers. Since last 5 years, I am at Reliance Retail handle multiple Retail formats, from Grocery to Technology/ Electronics format. So, it has been a great learning experience and journey for me. Q. What have been the similarities and differences between the industries? Typically, similarities have always been that if you have a customer orientation, then marketing and sales is very similar across Industries. Do what is right for the customer, try to provide what the customer wants and build your processes, products and services in line with customer expectation. This is similar across industries. So, whether it is FMCG or Telecom or Retail, it remains exactly the same. Talking about differences, FMCG has always been the Mecca for Marketers. That means the basics of the consumer marketing has always come from FMCG. In terms differences, usually FMCG companies have more established marketing processes and savvy. Retail, on the other hand where all the understanding of FMCG marketing has to be converted at the store level. That is where the moment of truth happens! So, it’s slightly different. Retail is not so much about overall Brand strategy. It is lot more about execution and actually doing it Right at the store front. Telecom on the other hand is a combination of “Strategy and Action “. Telecom also has changed over time, In fact for me one of the learnings has been PACE in the telecom, very execution driven, fast and also local action . Q. How have you seen retail business growing in past few years? If you look at a scenario 7-8 years ago, India did not have too many organized retailers. Around 5-6 years ago, Reliance came in and off course lot of other Companies also came in to the retail sector. So, it actually changed the Stature of the retail sector. Reliance Retail launched large number of formats: from Reliance Fresh to Reliance Mart, Reliance Super, Reliance Digital, Reliance Time-out, and Reliance Auto Zone , Reliance Jewels. Possibly nowhere in the world one company has launched so many retail formats at the same time. Modern retail will grow. I have a strong belief that India is not one “homogenous Nation “ , It actually is combination of various Countries, and each of our States/Provinces is actually a size of a country. So, we need a lot of localization, lot of Indianization of retail. Indian consumers are extremely value conscious. They understand the value of a global brand but they still have lot of affection for Local Brands. Q. What impact does Retail have on mom and pop stores? India has large number of outlets. Total Retail outlets in India is over 1 Crore (10 Million). We are talking of a huge number and therefore personally I don’t think by having organized retail, mom and pop stores will be marginalized. I don’t say that business will not get affected at all but the mom and pop stores have to get their systems, Products merchandizing, such that they can compete in that scenario so that both will coexist. At an overall view I don’t think it will affect Overall business but at specific cases there would be pressures. At the end of the day the customer will get a better output and service. 2
  • 3. Q. Are mom and pop stores partnering in the progress? Mom and pop stores are fragmented so some of them are gearing up specially the ones which are in the metros. Actually, lots of Indian FMCG companies still mentally favor the mom and pop stores because most of their business comes from them. If you look at the negotiation table, the mom and pop store cannot necessarily negotiate with large companies like HUL or P&G , But on the other hand Large Retail Chains can actually sit down for negotiation. So, the power balance is always better for Brands or Companies when there is a mom and pop store. So, that’s the situation which is dynamic, it is changing and we are evolving. That is the fun of country like India, we are everyday changing. Q. What are the marketing strategies for Large Format Retailers? Without getting into specifics about any particular Retailer, to be successful, Retail Marketing needs to simple and direct. Try to do things which are good for the customers, provide value, provide right merchandize at the right price with effective promotions and simplify the life of the customers. Don’t try to do so many things, do few things but do it well. Customize as much as you can for local requirements, be fairly at the cutting edge. Like in case of Electronics stores, you have to provide latest Brands or Models Products and services. It cannot happen that a model has been launched at the other parts of the country or other retailers and we are not giving that merchandize. Q. Can you tell us more about Reliance value format? Essentially it combines Retail formats which largely are in the Value & Grocery domain. So, Reliance Fresh, Reliance Mart, Reliance Super are primary constituents of the Reliance value format. It also has formats like Reliance Auto Zone, Reliance Living etc Q. Please highlight the key points in Electronics or CDIT business? CDIT is consumers, durable, IT and telecom. First fundamental of CDIT business is that this is the only business where all your cost of running the business will increase year on year. So, electricity cost, salary cost, people cost, rental cost, typically all your costs go up in a country like India. But if you look at your value realization, CDIT business is always coming down. Same LCD TV which would have cost 40,000 Rs 2 years ago must now be 30,000. This is the only business where your costs are going up but realization is actually coming down, so it’s a very tricky business to manage P & L. So, there the strategy is that we must either sell higher quantity, upgrade the customers or get the customers to buy more accessory / products bundles etc . Q. How does a retail outlet benefit to customers? People in metros are time-starved consumers so any format or retail that gives you one stop solution rather than you hopping from one place to the other is always a great value. Especially in large metros, modern trade is a great boon. Modern trade makes brands, products very transparent to customers. That means you can actually walk in and check out 5 different shampoos. You can actually see, touch, and feel which you otherwise cannot in Traditional trade. Modern trade makes things transparent to customers, he has better chance to make a choice and for some of the smaller brands, modern trade is a great way to survive and grow. Overall customer becomes the king in the modern trade Scenario. 3
  • 4. Q. What are the Future challenges that you are expecting from your competitors? India is a vibrant country. There are 1.2 billion people, 1000 $ plus per capita income, which will be growing to 2000-3000 $, penetration level of consumer products, services is extremely low, huge amount of infrastructural change is required. All over the world, all over the industries people are waiting to enter India and serve the people here with their products and services. So, frankly I don’t see this as a competition. India is too important a market not to enter. It’s important that as industry we grow better, learn from each other and the AAM ADMI is taken care of. Right now, modern retail in India is 5- 7 per cent so we should not talk about competition, we should think how the industry can be grown. Competition will happen when this will become 80 percent % and there is fighting for market share only. Q. For any retail to survive or to move on we need to have strong logistic background and India is not so good when it comes to logistics, How do you tackle this issue? I completely disagree that Indian logistics is not in good shape. I have a strong viewpoint that Indian logistics is anytime better than many of the western logistics. Our cost of delivery is one of the lowest in the world. Which country in the world would actually have FMCG delivered in dingy lanes on a bicycle where the salesman is earning only Rs 100 or something but is still doing a good job? So, this wrong perception should be removed from stakeholders’ mind that we are poor in terms of logistics. We are extremely cost efficient in terms of logistics that is how FMCG companies in India have survived and grown. In logistics we are very strong, what we don’t have is IT benchmarking, that means the manager sitting at the top doesn’t know where his products have reached etc We are fairly good in physical delivery, what we are not good at is we don’t the method to tap Real time Information. This also is changing fast. Q. Is Going to tier II, tier III cities the way to grow, especially for this type of sharp retail? There are two viewpoints, one is Commercial and the other is Consumer viewpoint. Commercial viewpoint is that money still lies in the tier 1 cities, that is where consumer consumption is extremely high, so anything which is a premium product, it is tier 1 where people are investing but if you ask my personal viewpoint, there is a huge scope of product and service in India. It is semi-urban India, it is rural India, and it is smaller town where the scope is really high but that might require a different kind of business model. I am a very strong believer of taking products or services to rural India because I think still there is a divide between urban and rural consumers. There are lot of rural consumers who do not even get basics what we think as basics like banking and Insurance etc PLS NOTE : This does not reflect the views of any Retail Organisation , and viewpoints expressed are personal viewpoints of Peshwa Acharya ..for Further details / Conversations write into : peshwa.expert@gmail.com Copyright Audience Matters Media Pvt. Ltd. >>> 4
  • 5. 2) Catching the mood of the season Source: http://www.hindu.com/rp/2010/12/05/stories/2010120550010100.htm December 5, 2010 With December setting in, brands are hotting up their offering quotient to make the season exciting and interesting. The Chennai 'winter' is upon us again, and yes, some evenings do feature that slight nip in the air. The festive, end-of-the-year mood is around the corner and brands/retailers are revving up the excitement with products that reflect this mood. Reliance Trends, the Apparel, Luggage and Accessories specialty format of Reliance Retail, launched its new chic Autumn Winter 2010 collection recently, with party wear and winter wear for men, women and children. Check out their red hooded sweaters and red bomber jackets. Available at Reliance Trends stores. Converse that is known for its original canvas shoes is having an offer for the season wherein customers get a limited edition Converse watch worth Rs 2,499 free with every purchase of Converse merchandise worth Rs 2,499. Check them out at Planet Sports and Pantaloons. Now brands riding of popular films is not new. The mass market turned out 'Chandramukhi' sarees some years ago, and this Deepavali saw the 'Enthiran' saree as well. For the smart set, it's an invitation to dress like the stars of 'Break Ke Baad' with an exclusive apparel line available at Shoppers Stop on Harrington Road. Girly floral tunics and dresses, sporty racer backs, printed tees with vintage art, hot shorts in cottons and denims, and cute waistcoats, 'Aaliya' style available from Rs. 499 onwards. For the men, it's 'Abhay' style funky cartoon prints on Tees, bold colored Tees with vintage art, cargo shorts and full length pants with baggy pockets priced from Rs. 499 onwards. Also available on www.shoppersstop.com Now this last brand we are featuring in this column cannot be but desirable - they promise you that perfect figure thanks to their 'Diamond Cut' denims for women. Lee Jeans has brought on an innovation in denim, which they say makes women look slimmer thanks to the 'scientific changes in cuts and stitches'. For you at Rs.1,800 onwards, that's a promise you just can't ignore! Copyright The Hindu >>> 3) Global brands return to retail shelves with new strategies Source: http://www.livemint.com/2010/12/06233715/Global-brands-return-to-retail.html?atype=tp Sapna.a, December 7, 2010 After exiting India during the slump two years ago, global brands such as GAS, Energie and Clarks are returning to take another crack at the fastest growing major economy in the world after China, some with new partnerships while others are preferring to go it alone. 5
  • 6. “One out of every three multinational brands that entered India prior to 2008 has had a change in partnership or operating model,” said Raghav Gupta, president of Technopak Advisors Pvt. Ltd, a retail consultancy firm. Close to 100 brands have entered India in the last 10 years, of which 65 came in before 2008. Of these, 18 have had a partnership change while seven have exited the country. Of these, three have come back in the past year. Grotto SpA’s GAS, which exited by dissolving its partnership with Raymond Ltd in November 2009, has re-entered through a fully owned subsidiary Gas Jeans Pvt. Ltd, which has appointed franchisees. “We never wanted to leave India. We have a huge fan following here,” said a senior GAS Jeans executive, who didn’t want to be named. Similarly, Energie, an apparel brand from the Sixty SpA, and UK shoe retailer C&J Clark International (Clarks) have come back to India. In its first stint in India, Clarks set up five stand-alone stores through a distribution partner. It has returned through a joint venture with Future Group. The venture has established local manufacturing capacities and pricing tailored to the local market. It plans to launch stand-alone and shop-in-shop stores in February or March next year. The company “has now re-entered with a commitment to make an India-specific products with a partner that understands the Indian consumer”, said Rakesh Biyani, director and chief executive of Future Group. On the other hand, the Future Group dissolved its partnership with French lingerie brand Etam. “The pricing was 50-60% higher than what we initially had envisaged and this limited its whole market potential,” said Biyani. International brands need to tailor their products to the Indian market, he added. “Unlike global norms, brands entering India can’t just sell their international range here,” Biyani said. “They need to get their pricing right, build the customer base and then move up the ladder.” Esprit International, the clothing retailer with revenue of $5 billion (Rs.22,450 crore), is reconsidering its India strategy after five years of a distribution partnership with Madura Garments, now a part of Aditya Birla Retail Ltd. Currently, Esprit India has a presence in 12 cities through about 50 stores (self-managed and shop-in-shop). “We are discussing very closely with Esprit (the parent company) how to expand the brand in India for closer cooperation. More things need to flow in the country,” said Manjula Tiwari, chief executive officer of Esprit India. 6
  • 7. In fiscal 2009, Esprit India cut prices by up to 20% in India. “These introductory price points are relevant to income levels in India and contribute to 10%-15% of our overall sales,” Tiwari said. The brand hopes to turn profitable this year, she added. Some brands aren’t set to return soon. For instance, the exit of Levi Strauss and Co.’s Dockers range was an international strategic decision by the company to pull out the brand as it prioritized its resources and investments behind the flagship Levi’s brand. The India-specific strategy has worked for companies such as Marks and Spencer Plc (M&S), which changed its India partner in 2008 to form a joint venture with Reliance Industries Ltd’s Reliance Retail Ltd and relaunched the M&S brand in the country with lower prices and a strategy to source goods locally. Copyright HT Media >>> Competitor 4) Big Mac to set up restaurants along Gujarat highways Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750900500.htm HBL Bureau, Ahmedabad, December 6, 2010 McDonald's is expected to invest Rs 350 crore on developing 20 restaurants along the major highways in Gujarat, a senior official said here today. For this, Big Mac would enter into an agreement with the State Government during the Vibrant Gujarat Global Investors' Summit (VGGIS), scheduled next month, Mr Vipul Mitra, Principal Secretary, Tourism, told reporters on the sidelines of a seminar on tourism and aviation here as a run-up to the biennial event. These drive-in restaurants would be set up in the next three-four years. Bollywood actor Amitabh Bachchan, brand ambassador for Gujarat tourism, is expected to visit the State again next month, presumably during the VGGIS, to boost tourism. Besides, the State plans to develop 12 new airports and airstrips to boost the tourism sector. The Government has acquired land for this purpose at the pilgrimage centre of Ambaji in North Gujarat. Airports, airstrips It has also signed up with the Kolkata-based non-banking financial institution Srei Infrastructure Finance Ltd (SIFL), which plans to invest Rs 500 crore to develop an airstrip and create other urban infrastructure at Dwarka in Jamnagar district, he added. Besides, the Gujarat Government will develop 14 beaches along the 1,600-km-long coastline from Kutch to Valsad. 7
  • 8. Replying to questions, Mr Mitra said the Government is expected to sign memoranda of understanding (MoUs) worth Rs 50,000 crore and Rs 20,000 crore for development of the tourism and aviation sectors, respectively, during VGGIS 2011. Earlier, the State Tourism Minister, Mr Jay Narayan Vyas, said the Government is planning hotels and drive-in restaurants every 200 km on State highways. It would adopt the public-private partnership (PPP) model to set up new airports, airstrips and helicopter services. To boost tourism, it would also slash electricity rates and increase interest subsidies to promote entrepreneurship in the hotel sector. He said Gujarat is now gearing up to further develop eco, medical, beach and adventure tourism. Copyright The Hindu Business Line >>> 5) Dream Theatre eyes pre-schoolers Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750890500.htm Bindu D. Menon, New Delhi, December 6, 2010 Months after bagging the licensing right for Warner Brothers and Discovery Channel, Dream Theatre Pvt Ltd, a start-up by an ex-Turner honcho, has launched its own pre- school brand called Beebop. As the retail canvas for kids range expands, the company is hoping to entrench its brand across the country. “The opportunity in the kids sphere is immense. Beebop believes in the celebration of babyhood. We are looking to be a leading pre-school brand and will retail toys and accessories,” Mr Jiggy George, Founder and CEO, Dream Theatre, told Business Line. The company has tied up with leading retailers to sell its products. “We have deliberately opted to stay out of distribution. The brand has been designed and conceptualised by us but will be retailed through a distribution channel,” he said, adding Beebop will be on the shelves by the end of this month. The company is looking to be in 1,250 points of sales by March 2011. Toy Triangle, which also distributes the popular toy range of Ben 10, Power Rangers, Dragon Ball Z and many others, would be responsible for the marketing and distribution of Beebop in India. In the first phase, a total of 47 SKUs, including infant accessories, and toys are being launched. Speaking on the industry, Mr George said that the overall toy market in India is estimated to be Rs 1,500 crore and is growing at a rate of 12-15 per cent. The organised market has a 28 per cent share and comprises players such as Mattel, Funskool, Toy Triangle and others. Of this about 15 per cent caters to the infant and preschool category 8
  • 9. “The pre-school market is at 15 per cent of the market and is valued at about Rs 225 crore, it's one of the fastest growing segments within the toy arena with a growth rate of almost 30 per cent,” he added. Beebop is looking at a turnover of Rs 8 crore in 2011-12. Copyright The Hindu Business Line >>> 6) Kerala milk marketing body launches plum cakes Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120754021900.htm HBL Bureau, Kozhikode, December 6, 2010 With an eye on the seasonal trade in the wake of Christmas and New Year celebrations, the Malabar Rural Development Foundation (MRDF) functioning under patronage of the Kerala Cooperative Milk Marketing Federation (Milma) has launched a special brand of “Dairy Fresh” plum cakes. Mr P.P. Gopinathan Pillai, Managing Trustee of MRDF, said here on Monday that the profit generated from the sale of the product would be mainly utilised for undertaking of various welfare schemes for the dairy farmers. The foundation had already started marketing of bread and bun under the “Dairy Fresh” label. The cake, weighing 400 grams, has been priced at Rs 75 and booking facility will be available for people interested in bulk purchase of the cakes. MRDF has been making available farm mechanisation equipment to farmers under the Farm Support project of the Malabar Region Union. These include Milking machines, floor mats and pressure washers. The foundation was also implementing a programme called “Malabar Grand Package” and as a first step, it had invited more than 174 representatives of milk unions in the country, Mr Pillai said. Copyright The Hindu Business Line >>> 7) Dhananjai Apparels bets on cartoon characters Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750850500.htm HBL Bureau, Kolkata, December 6, 2010 Kolkata-based kids wear maker Dhananjai Apparels Ltd plans to launch cartoon character-based apparels. The company expects to expand operations in a major way by 2011. 9
  • 10. The company has already acquired the licences for four American cartoon characters that include Spiderman, Pampered Girls and Toy Story and will launch its new range of apparels by January 2011. The company expects a growth of 80 per cent on a year-on-year basis and had reported a turnover of Rs 25 crore last year. It has apparels for kids aged between two to 14 years. “We are a value player and our products are ranged accordingly. Moreover, we are probably the first player in the country to have acquired licences for using cartoon characters on kids wear,” said Mr Ansul Agarwal, Director, Dhananjai Apparels. “Payments for licences are mainly royalty based.” The company has 12 standalone stores across the country and is looking forward to increase it to 75 by March 2011 and 1,000 shop-in-shop formats by the same time. It has tie ups with 250 stores including Spencers (RPG Group), Mega Mart (Arvind Group) and Fashiom Yatra (Tata Group). The company has three manufacturing units here in West Bengal and is planning to set up more standalone stores here in Kolkata. The company is also in talks to acquire the licences of other popular cartoon characters. Copyright The Hindu Business Line >>> 8) Big Bazaar stocks up on Japanese goods Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750830500.htm Bindu D. Menon, New Delhi, December 6, 2010 To help Japanese trade body test FMCG market. After Japanese durables and cars, it is fast moving consumer goods that are looking to find a foothold in India. The Japanese External Trade Organisation (JETRO), in association with food retailer Big Bazaar, is testing the market for its products through the Japan mela being organised at the latter's stores. “The rising middle class is pushing up the demand for international food products, which has been growing steadily. Japanese FMCG products have negligible presence in India and through this association we are testing the market,” said Mr Naoyuki Maekawa, Director-General, JETRO, an apex body to facilitate trade and investment between Japan and rest of the world. Of late JETRO has been helping small and medium-size Japanese firms to maximise their global export potential. 10
  • 11. Mr Maekawa said the month-long Japan mela, which began last week, would bring a range of products, such as crackers, soups, frozen food in the food category and lip balm, writing instruments, male grooming products, dental care and interior decor products. 41 stock keeping units To start with, the products would be available at select Big Bazaar outlets in Delhi, Mumbai, Chennai and Bangalore, among others. “There will be 41 stock keeping units in various categories. Besides Japan, products from neighbouring ASEAN nations will also be retailed. Our aim is to increase the brand awareness and also make our products more affordable to the price-conscious Indian consumers,” Mr Maekawa said, adding the products would be imported by Rovin Impex. For Japanese companies, India continues to be a leading investment destination and there has been dramatic rise in 2009, he said. The bilateral trade between the two countries is estimated at $13 billion at present. While Japan ranks 10th among India's export destinations, India stands 26th among Japan's export destinations. “Japanese companies have enjoyed a certain premium in India. But the FMCG bandwagon has been left out and we are trying to find an affordable niche with the segment,” Mr Maekawa said. Future Group, meanwhile, said that its international food label offering has been growing and to cater to the demand the company is opting for such an association. Copyright The Hindu Business Line >>> 9) Hoping to Max it with youth Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750840500.htm Anjali Prayag, Bangalore, December 6, 2010 Max Retail, part of the Dubai-based Landmark Group, is looking for ‘youth patronage' in India by adding fashion to its original USP of value offering. The youth segment, contributing 25 per cent to sales in the chain of stores, is the second largest selling segment after women's wear, which contributes 40 per cent to store sales, said Mr Vasanth Kumar, Executive Director, Max Retail. The retail chain launched its chain of stores in the country on the ‘value' platform. “We realised that the level of acceptability for fashion in India has gone up and we have added the fashion element to all our products.” Max Retail is still holding on to its initial price offer of ‘everything at Rs 599' that it started with about four years back, but has added international designs to its offering here. 11
  • 12. Mr Vasanth Kumar said Max in India could hold on the sub-Rs 600 price because of the combined sourcing with Max International, tying up with Landmark Group's flagship brand Lifestyle as an anchor store and therefore commanding better rental deals and also because it is a pure play private label brand. About 70 per cent of the designs for the Indian offerings come from Max International, while the rest is tweaked for the Indian market. Max Retail, the value retail chain of the Dubai-based Landmark Group, currently has 160 stores across the world, including 40 in India and will add another 12 in the country by the end of the fiscal, he said. The retail chain is looking at expansion both in malls and residential areas where the catchment for youth is high. While investment for a store is around Rs 8 crore, the retail chain is realising revenues of Rs 4-5 crore a store a year, recording same store sales growth of 35 per cent from last year. Copyright The Hindu Business Line >>> 10) Shane Warne is taking a fashion spin Source: http://www.dnaindia.com/sport/report_shane-warne-is-taking-a-fashion-spin_1477286 Prachi Kadam, Mumbai, December 6, 2010 Aussie spinner Shane Warne needs no introduction. When it comes to turning a game around, no one does it better than him. The cricketer is in a mood to go radical: this time as a fashion designer. After launching his men’s sportswear line successfully in Australia in 2009, Warne is set to launch his sporting label Spinners by Shane Warne in India very soon. Speaking exclusively to DNA, the cricketer talks with relish on his new-found status as a designer, “I really enjoy clothing and fashion. And having travelled all around the world, I saw that there was a market for a sportsline for men and boys wear. I have kept it casual, and have included my favourites like great looking jeans, easyfit tees and cool shorts.While creating the boys wear I kept in mind the fact that sons like to dress like their dads. My son Jackson was involved in it too. I was so proud of him when we were photographing the collection; he was a natural like me!” Did he ever discuss fashion with his very stylish team owner Shilpa Shetty? “Womens wear is an exciting, growth opportunity. And if Shilpa would like to do some work on the brand, that’s definitely a conversation we’d love to have!” he responds. Talking about cricket, what’s his take on the 20-20 cricketing tournament running into trouble in India? “I love India and have been so proud of being a captain and coach in the 20-20 cricketing season. It was such an honour to have been able to take my team from the bottom of the league to being champions in the first season. The saddest thing about what was happening was the fear that the opportunity for the Indian players would no longer be there. But I’m looking forward to playing in the fourth season.” 12
  • 13. About cricket and India, Warne believes in giving back to the game that gave him everything today. “I’m in constant talks with a few people in India. We’ve got the academy at the Rajasthan, that I’m captain and coach of, which is doing well. I believe in the future of India. The new India has freshness and a level of global growth that is outstanding. It is the youth of tomorrow that will make India stronger and cricket is a way of achieving focus and greatness here in India. I always try to be very supportive of children, whether it’s my own kids, or the young people we help through my charity The Shane Warne Foundation.” As he has said India is one of his favourite countries, does he watchBollywood films? “Yes, I do love watching Hindi films, they are just fun.” So who are his favourite stars? “Shilpa Shetty, of course. And Shah Rukh Khan is a fantastic actor. I think the rest of India would have to agree with me there.” Copyright Diligent Media Corporation Ltd. >>> 11) Adani Wilmar launches branded rice 'Pilaf Gold' Source: http://www.business-standard.com/india/news/adani-wilmar-launches-branded-rice-pilaf- gold/417330/ BS Reporter, Mumbai / Ahmedabad, December 07, 2010 Leading manufacturer and distributor of edible oils, Adani Wilmar Ltd has announced its foray into domestic branded rice with the launch of 'Pilaf Gold' basmati rice. The premium 'Pilaf Gold' basmati rice will be available pan India with an assortment of full grain, Tibar and Dubar basmati rice. A joint venture between Ahmedabad-based Adani Group and The Wilmar International Limited of Singapore, Adani Wilmar Limited is already successfully established in export business of basmati rice for past two years and is now venturing into domestic market. With the pan India launch, Pilaf Gold Basmati rice will be available in the leading outlets across country in the consumer packs of 10 Kg and 25 Kg. Talking about the launch, Amit Takkar, associate vice president, head - rice division, Adani Wilmar Limited said, "For the first time in India we are launching a complete range of premium basmati rice and are hopeful that we will penetrate rapidly simultaneously breaking the competitive barriers. Consumers will be able to choose from a wide assortment of rice such as Pusa basmati, 1121 basmati and Sharbati with all variant like full grain, Tibar, and Dubar, among others." Copyright Business Standard Ltd. >>> 12) Walmart raises IT sourcing from India Source: http://www.business-standard.com/india/news/walmart-raises-it-sourcingindia/417401/ Bibhu Ranjan Mishra, Bangalore, December 07, 2010 Selects Wipro, Collabera as vendors; total IT sourcing from India about $1 billion. 13
  • 14. US-based retailer Walmart, also the largest company in the world, has increased its information technology (IT) sourcing strategy from India by setting up a dedicated group here (in Gurgaon). Called Remote Services Management, the group is headed by Micky Singh who was earlier the CIO of Walmart India and responsible for setting up complete IT solution to Bharti-Walmart, covering all facets of the retail joint venture. According to highly-placed sources, Remote Services Management will be part of Walmart’s Information Systems Division (ISD), the in-house IT arm of the company. This is for the first time Walmart’s ISD has set up an arm outside the US. With this, the company wants to identify a number of Indian IT partners based on their areas of strength, rather than giving a huge IT contract to any single company. As part of the strategy, Walmart has also awarded contracts to two more Indian IT services firms, Wipro and Collabera (a privately-held IT services company) to develop specific tools and application, and provide services around that. The contracts are estimated to be over $200 million for multi-year periods. Walmart has already awarded IT contracts to Infosys, Cognizant and UST Global for sourcing specific services and applications for Walmart globally. With the selection of more vendors, Walmart’s total IT sourcing from India is estimated to be in the range of $800 million-1 billion. To a specific query from Business Standard, Walmart said the numbers were speculative and not based on fact. The company, however, said it had relationships with a number of partners and it did not want to comment on the nature of those business relationships. “As a global company, Walmart will make investments in technology to benefit the operations here and elsewhere in the world. We will need worldwide resources, and our work with suppliers in India will help us continue to grow our business and create jobs around the world,” the company spokesperson said in an email reply. A Wipro spokesperson said the company did not want to comment on market speculations. Collabera, too, echoed this. It is understood that Wipro will be responsible for application development and infrastructure outsourcing for Walmart stores globally. Besides, the company has also established a large helpdesk as part of its BPO practice. On the other hand, Collabera will develop collaborative tools for specific retail applications. According to industry sources, in his new role Micky Singh will be responsible for identifying Indian IT partners. For example, the Thiruvananthapuram-based UST Global is responsible for specific testing of its retail applications because of its inherent strengths in software testing. Walmart typically prefers to develop its retail applications in-house. However, the company gradually started buying packaged retail applications from leading software vendors like Oracle, HP and SAP only towards the end of 2007. Copyright Business Standard Ltd. >>> 14
  • 15. 13) Arvind Ltd elevates J Suresh as MD Source: http://www.indiaretailing.com/News.aspx?Topic=1&Id=5192 IndiaRetailing Bureau, December 07, 2010 Arvind Ltd has announced the promotion of J Suresh, CEO of Arvind Lifestyle Brands Ltd and Arvind Retail Ltd, to managing director, with effect from December 1, 2010. An IIM Bangalore alumnus, Suresh has been associated with Arvind Ltd since September 2005 and has strengthened the Lifestyle Brands portfolio of Arvind and aggressively grown Megamart as a leading value retail chain in apparel. Sanjay Lalbhai, CMD, Arvind Ltd, said, “I am pleased to welcome J Suresh into the board of directors and confident that the brands and retail portfolio will flourish and achieve accelerated growth under his leadership.” Prior to joining Arvind, J Suresh, an engineering graduate from Madras University, held several senior positions at Hindustan Unilever Ltd. Copyright indiaretailing.com >>> 14) Cinemax launches first multiplex in Malegaon Source: http://www.indiaretailing.com/News.aspx?Topic=1&Id=5189 IndiaRetailing Bureau, December 06, 2010 Multiplex chain Cinemax, a Kanakia Group company, has informed the Bombay Stock Exchange (BSE) that it has launched a three-screen multiplex – 'Cinemax Sandesh' – at Sangameshwar Camp in Malegaon, Maharashtra. With a seating capacity of 1,107 and personalised cafe service, the new multiplex promises to offer its patrons a world-class movie-watching experience. With the opening of this multiplex, Cinemax now has 102 screens and 27,176 seats across 32 properties. Copyright indiaretailing.com >>> 15) Theme eyes 65 per cent winter sales Source: http://www.fashionunited.in/news/fashion/theme-eyes-65-per-cent-winter-sales-071220101436 December 7, 2010 With a growth of around 52 per cent over last year, Theme the brand of formal suits, jackets and trousers owes its success to a strong presence in large formats such as Shoppers Stop, Central Malls, Lifestyle, Pantaloon, Brand Factory and Globus. It’s also a major brand in MBO’s and other specialty suit outlets across India. 15
  • 16. As a leading brand of Silver Crest Clothing – one of the largest manufacturers of fine tailored clothing in Asia - Theme stands for impeccably styled and value for money line of formal men’s clothing. With a product line-up of men’s business suits, designer suits, jackets, scarves and formal trousers, Theme is looking to increased sales this season in keeping with its general trend of 65 per cent sales during winter as compared to a mere 35 per cent during summers. The company’s winter suits are their hot selling item. “The style and trends for this season are that the lapels are again becoming wide, though narrow lapelled jackets still exist. We give a perfect blend of both- a lapel which is neither too narrow nor too wide, thus our suits will never go out of fashion. The bandhgala or mandarin collar suits are coming back in a big way with variations like stand up collars. The very narrow shawl collars will be seen both in evening jackets as well as some formal wear jackets. Double breasted in slim fit and three-piece suits are also back. Trousers still remain slim and some brands have even introduced ultra slim trousers,” says Shivani De, Senior Manager, Product & Design, Silver Crest Clothing. “The choice of fabric and styling are based on what occasion it is demanded for, whether it is for a wedding, business, evening or casual wear. We have introduced new blends in suit fabric such as wool viscose, Poly wool Viscose, cotton wool blends in trousers and silk wool in jackets. Prices are on rising and the next season will see an increase in prices as the cost of fabrics and raw material have gone up substantially, ”she adds. She feels, what makes Theme jackets stand out is an interlude of many factors such as the right weight of interlining for different fabrics, three-ply floating chest piece and genuine horse hair to impart natural drape and dimensional stability and meticulous detailing such as shaped collar, rolled lapel, piped pockets, reinforced flaps rolled sleeves and purl- stitch buttonholes. De is of the opinion that with international manufacturers setting up shop in India, it is the made-to-measure suits that will soon take the lion’s share of the super premium and premium segments while the mid-segment will rule the roost in the readymade category. Targeting young professionals in the age group 25-40 years, with a monthly income of Rs 30,000 to 75,000, the company is looking at innovative product expansion which will enable it to stay up and running in the near future. Copyright FashionUnited India >>> 16) Wills Lifestyle’s A/W range warms up the season Source: http://www.fashionunited.in/news/fashion/wills-lifestyles-a/w-range-warms-up-the-season- 061220101429 December 6, 2010 As a vibrant fashion brand for the premium consumer, ITC’s Wills Lifestyle has launched its new autumn/winter 2010 collection. And it’s in keeping with its reputation of showcasing a complete fashion wardrobe in its various collections over changing seasons. 16
  • 17. It displays an array of avant-garde styles in harmony with the global fashion mood marked by a stylish interplay of various textured patterns and weaves on ensembles. Their nationwide chain of specialty stores has included the autumn/winter theme in most of its collections comprising of Wills Signature Designer wear, Wills Classic formal wear, Wills Sport relaxed wear, Wills Clublife evening wear and fashion accessories for both men and women. The Wills Classic collection for men pays homage to the grandeur of the season with rich fabrics such as Marino wool, premium Egyptian cotton and Beaver Mélange amongst others. In deep shades to suit the sobriety of the season, this range offers colors such as maroon, deep purple, medieval blue, cappuccino, peacock green and teal. Incorporating the international runway trends such as the slim collars, V necks and chiseled cuffs, this line favors a minimalistic sleek look with the Luxuria collection which uses fine Italian fabrics, trims, mother of pearl buttons and German threads and other detailing. The Wills Classic collection for women includes soft romantic pastel hues of pinks and whites. With different versions of checks and stripes in shirts, Wills Classic range also consists of newer style elements with feminine and elegant tops. The new Wills Sport line for men showcases designs inspired by the English heritage infused into a sporty look and contemporary blend of fabrics. A dazzling gamut of colors ranging from black and blues along with a dedicated collection in denims in stylish mix palette comprising of forest greens twilight blues and browns with an array of checks round up the sports collection. The women’s collection displays design elements such as trims, lace and crochet lend a softer touch to the garments but structures and elements such as chunky knits, cables and ruffles give the collection a slightly rugged dimension. Inspired partly by the countryside look, it also features jackets in slim fits woolen tops and dresses, slim fit denims, tights and leggings. The Clublife range for men comprises of fabrics such as cotton and linen blends, producing a softer look with less rigid construction. Reversible fabrics have been used for shirts to add a unique style to each garment in colors such as burgundy, olive, purple and grey’s with a touch of shine. The women’s collection displays the romance of frills layered into structures and satins where the construction remains soft keeping in with the theme. The coveted Signature line which showcases the creations of some of India’s biggest designers will find many takers among the well-heeled clientele. This fall/winter features ensembles from JJ Valaya, Namrata Joshipura, Satya Paul, Ranna Gill, Bian by Gia P Fleming, Rohit Bal, Rohit Gandhi and Rahul Khanna and Rajesh Pratap Singh. And last but not the least is the accessories line-up such as ties, belts, bags, stoles, scarves, shoes that will accentuate the new collection. Currently there are 55 Wills Lifestyle stores in 30 cities across the country. The brand is making rapid strides in terms of expansion while doubling the number of stores over the next three years. Copyright FashionUnited India >>> 17
  • 18. National 17) Fruits to cost more during Christmas Source: http://economictimes.indiatimes.com/markets/commodities/Fruits-to-cost-more-during- Christmas/articleshow/7056272.cms Jayashree Bhosale, ET Bureau, Pune, December 7, 2010 The country’s fresh fruit basket for Christmas and New Year will be smaller and dearer, thanks to the unseasonal rains and the delayed winter. Also, a shortage of high-priced raw material will affect the fruit processing industry adversely. The incidence of pest attacks on most fruit crops has gone up due to unseasonal rain in October and November and the resultant humidity. Almost half of the strawberry crop in Mahabaleshwar, which grows about 80% of the country’s output, has been lost. “Rains have damaged half of the production from the first flowering, which comes into the market in December. We used to have clear weather in November. But this year, we had rain even in November and now in early December,” said Balasaheb Bhilare, president of All India Strawbeery Growers’ Association. Sourcing the required quantity of raw material will be a challenge for the strawberry processing industry. “We may have to run the unit at lower capacity this year. I hope that the yield of the end-season crop in March and April will be good due to the late rainfall. Otherwise, we will have to pay more for procuring strawberries,” said Mayur Vora, chief executive officer of Mahabaleshwar-based Mapro Food Ltd. While Mr Vora declined to comment on the price scenario, indications are that the prices will go up. The delayed winter and heavy rainfall in the southern states of Tamil Nadu and Andhra Pradesh will also hit Mango production in the country. “The raw mango crop will be late by at least a month this year. The prices, especially in Tamil Nadu and Andhra Pradesh, will be higher as the crop size may become small due to rainfall. But the crop in Gujarat and Maharashtra is good,” said TS Ahluwalia, chief operating officer of Mother’s Recipe, a national brand in the pickle industry. Mango production in Maharashtra is 50% less than that of normal season for the past two years. Mango processors from the state have already shifted their procurement base to neighbouring states. Though the late winter is not good for mangoes, the Alphonso variety is unlikely to be much affected. “Late winter will mean that the mango crop will be late. But the Alphonso mango production will be at least double than that of the previous year,” said a senior scientist from Dr Balasaheb Savant Kokan Krishi Vidyapeeth, Dapoli, on condition of anonymity. Copyright BCCL >>> 18
  • 19. 18) Toshiba unveils new laptops, LED TVs Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750820500.htm HBL Bureau, Mumbai, December 6, 2010 Toshiba Corp announced the launch of a series of products in the television and laptop segment at a press meet on Monday. Among them are the Power TV family of products with three series, specially designed for the Indian markets, according to the company. One of them called PC1 was described as an LED TV which comes with an integrated battery back-up of around two hours (for places which don't have continuous power supply). They are priced at Rs 15,000 onwards. Apart from the above series, the company also launched WL700 series of ultra-slim 3D LED TVs. These will be available as 46-inch and 55-inch models. All products in the 40-inch and above models are available in the range of Rs 65,000- 2,50,000. The company also announced the launch of two new laptops — Satellite C660 and Satellite Pro C660. The price range is Rs 25,000-35,000. These products will be up for sale from January 2011. Sachin Tendulkar will continue as the brand ambassador for the company in India. Copyright The Hindu Business Line >>> 19) FDI in multi-brand retail, insurance likely soon Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750910500.htm HBL Bureau, New Delhi, December 6, 2010 French Minister says opening up of sectors would attract more investments. Foreign direct investment (FDI) in multi-brand retail and insurance may be opened up soon in India, Mr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, indicated on the sidelines of a Federation of Indian Chambers of Commerce and Industry (FICCI) event. 19
  • 20. France investment He was responding to the French Minister of Economy and Finance, Ms Christine Lagarde's statement at the same event that France would invest much more than its commitment of €10 billion in India for the period 2008-12, if insurance and multi-brand retail are opened to foreign direct investment. “The €10 billion commitment by French business to invest in India between 2008 and 2012 could be a lot more if opportunities come up through opening of insurance and multi-brand retail. French companies would respond in a rigorous manner. Everything is about give and take, it's a two-way street,” she said. Ms Lagarde is accompanying the French President, Mr Nicolas Sarkozy, on his four-day visit to the country. Making a case for foreign direct investment in multi-brand retail, Mr Ahluwalia said, “Multi-brand retail was an area of great sensitivity for the small retailer. He is seeing this for the first time. The feeling that the small retailer would be adversely affected in a scenario when the economy is growing at a fast clip was misplaced.” More support Many arms of the Government, including the Planning Commission, were supportive of opening multi-brand retail to foreign direct investment, he added. Currently, India does not allow foreign direct investment in multi-brand retail but allows 51 per cent in single-brand retail. Mr Ahluwalia said the debate on opening of the insurance sector had been initiated through a Parliamentary process and India should raise its investment cap in the sector to 49 per cent from the current 26 per cent. Copyright The Hindu Business Line >>> 20) Samsung plans to double mobile volumes Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120752920700.htm L N Revathy, Coimbatore, December 6, 2010 Samsung is planning to double mobile volumes in 2010 over that in 2009. Without sharing numbers, the Director of IT and Mobile of Samsung Electronics, Mr Ranjit Yadav, said: “We will continue with this growth momentum in the coming year (2011) too, with innovative launches and a clear focus on customer needs.” The company's mobile portfolio ranges from the entry level Guru series, dual SIM phones, touch screen, smart phones and its latest tablet – Galaxy tab. 20
  • 21. Responding to an e-mail, Mr Yadav said that the dual SIM category of phones changed the dynamics of mobile telephony. “We have emerged a strong player in the Dual SIM category and plan to expand our product portfolio further in 2011. We expect the Dual SIM portfolio to contribute to at least 25 per cent of our overall mobile handset sales in 2010-11 fiscal.” Claiming that the Samsung Star Duos was the industry's first 3G + 2G Dual-Standby Touch phone, he said of the three Dual SIM devices launched in October, the Samsung Guru Dual 25 (GT – E1225) and Samsung Guru Dual 26 (GT –E 1252) with features such as large display, stereo FM, Torch, 9 regional language support, games, mobile prayer, Indian calendar, 40 poly ring tones, SOS message, Bike mode features, phonebook and SMS memory to store up to 1000, were run-away successes in the market. He explained that the dual SIM devices provided the comfort of switching between the two SIMs and saved the trouble of carrying more than one handset at a time. “No two handsets, no two chargers and no two ringtones in addition to saving on multiple roaming costs,” he added. Smartphone strategy To a query on Samsung's Smartphone strategy for the India market and future plans, Mr Yadav said the company's foray into the Smartphone space was with a compelling product set. “Currently, the Smartphone segment represents less than 5 per cent of Samsung's business, but it is the market's fastest-growing segment. We are planning to launch 3 more handsets on the Bada platform this year and are looking at a total line-up of 8-10 smart phones to strengthen its portfolio.” ‘Around 2.5 million Smartphones are expected to be sold in India this year and we at Samsung expect to capture at 20 per cent market share in this segment by the end of the year. Outlining Samsung's 3G business approach and offerings, he said “this market presents tremendous opportunities and would be a key growth area for us.” According to him, 3G handsets would contribute to around 5 per cent of the company's total handsets sales at present. “We are aiming to double it within a year.” Tapping rural market He further pointed out that the Government's recent announcement targeting a rural tele- density of 40 per cent by 2014 would open up huge opportunities for the telecom ecosystem and Samsung was gearing up to tap the rural market potential in a big way. 21
  • 22. “The Indian mobile device market is getting more aggressive by the day, with several local Indian brands joining the fray and gaining share from the major OEMs. Their aggressive marketing and focus on locally popular features such as dual-SIM has changed the competitive dynamics and increased the need for more localized strategies. Entry level consumers need dual SIMs for various reasons including economising time and costs, improving efficiency and for increased convenience,” he added. Copyright The Hindu Business Line >>> 21) Cotton prices bleed textile firms Source: http://www.business-standard.com/india/news/cotton-prices-bleed-textile-firms/417375/ Devika Banerji, New Delhi, December 7, 2010 Besides soaring prices, small and medium players are also facing a shortage of yarn this year As pricing pressures have increased for textile manufacturers and exporters all over the world due to rising cotton prices, Indian players are seeing their bottomlines shrink. This is despite a consistent flow of orders and estimates of increased domestic cotton output this year. Contrary to the situation overseas, where supply is expected to fall, driving prices to new highs on estimates of lower global output, India is expected to see a 12 per cent increase to 325 million bales of cotton production this year. However, with exporters and traders finding it lucrative to export cotton rather than sell to domestic players, domestic cotton prices have been shooting up with units even apprehending a scarcity. Indian garment manufacturers have been reeling under the high price of cotton since November 2009, when yarn prices saw a 40 per cent jump. However, the situation has worsened in the current year where, besides high prices, small and medium players are also facing a shortage of yarn. Large exporters with a turnover of over Rs 1,000 crore like Gokaldas Exporters, who had braved the 2009 price rise, were significantly impacted this year. It bottomline plummeted into the red zone in the second quarter, primarily due to the over 50 per cent rise in input costs. The company reported a 26 per cent increase in the cost of wages and around a 50 per cent increase in cotton fabric prices, which in turn resulted in the topline shrinking by 13.3 per cent to Rs 263 crore and a loss of Rs 27.10 crore, against a net profit of Rs 9.1 crore in the corresponding period last year. “The orders executed in this quarter were badly affected by the rising cotton fibre prices and added to the steep wage increase with affect from April 2010. We could not pass on the rise in cotton prices to our customers since they were old contracts finalised much earlier,” the company stated in an official note. 22
  • 23. For integrated players like Alok Industries, which manufactures its own fibre, the second quarter has been rather more comfortable as it has been able to pass on the impact of increased costs to consumers. The company posted a 40 per cent increase in net profit to Rs 79.8 crore in the second quarter. However, the company’s costs shot up by 51 per cent, primarily due to an increase in raw material costs. “Until now, we have managed fine as the order situation is good. We are an integrated player, so we have been able to transfer the costs to consumers without affecting our bottom line,” says Sunil Khandelwal, chief financial officer, Alok Industries. Khandelwal further acknowledged that given rising cotton prices, demand for synthetic fibres like polyester had shot up, which positively impacted sales in value terms. Hari Kapoor, managing director of Noida-based Allied Export Industries, which has a turnover of around Rs 156.2 crore, is also facing low realisations and finding it difficult to pass on the increased input costs to customers. “There is no point asking us whether we are impacted. Of course we are impacted. It is difficult to quote prices, as prices are consistently rising and availability is also scarce even as orders are flowing in,” Kapoor says. Adding to the problems of exporters like Kapoor is the fragile rise in consumer demand from major export markets — the US, eurozone and Japan — making it impossible to pass on increased costs to consumers. Industry players blame traders, particularly multinational trading houses, who book large quantities of new cotton crops through forward cover — that is, even before the crop comes to market — which reduces the availability of cotton for domestic mills and gives traders the power to manipulate prices. The cotton bought by trading houses is exported, as it is a more lucrative option. The average current market price of cotton is around 90 per cent higher than the minimum support price of Rs 23,500 per candy. The domestic industry says it is unable to enter into such forward cover contracts due to the lack of adequate credit, as margin money for working capital loans for cotton purchases are high at 25 per cent and the loan period is limited to 6 months. The government had, taking the situation into consideration, declared 5.5 million bales as the exportable surplus. Registration applications for the entire 5.5 million bales were received within 10 days and had to be discontinued on October 10. Industry expects arrivals , including carryover stock from last year, to touch 10 million bales, of which 5.5 million is set to be exported, while around 4.5 million bales is estimated to be domestic consumption. This leaves negligible stock from December onwards, possibly driving prices further. According to the Cotton Advisory Board, at any given time the ending stock should be adequate for around two months’ domestic consumption, or at least 5 million bales. “At this rate, there is no reason to believe that costs will come down any time soon, as consumption is only going to increase,” adds Kapoor. 23
  • 24. The garment industry, particularly small and medium exporters, are apprehensive that the problem of increasing cotton prices and reduced availability will weed out the positives of incoming orders. The solution, they say, lies in delaying exports further to ensure supply for the domestic mills. “By delaying exports by a month the government should ensure availability of cotton to the domestic industry. It is a temporary problem and can be managed by adequate policy measures. No Indian player can survive at this price, as pricing is the key for them,” says D K Nair, secretary-general, Confederation of Indian Textile Industry. Copyright Business Standard Ltd. >>> 22) FMCG: For all seasons Source: http://www.business-standard.com/india/news/fmcg-for-all-seasons/417320/ Sunaina Vasudev & Priya Kansara Pandya, Mumbai, December 7, 2010 Despite business headwinds, FMCG stocks are likely to sustain high valuations Whether the markets move up on the back of strong economic prospects and robust foreign flows, or remain volatile on account of global events like Eurozone worries and tensions in Korea, the fast moving consumer goods (FMCG) sector is expected to stand strong, despite its huge outperformance over the Sensex in the recent past. Since January 4, 2010, the BSE FMCG index has surged 28 per cent as against a 15 per cent rise in the broader markets. Analysts reckon the stocks are likely to sustain their high valuation of an average 25 times 2011-12 estimated earnings (higher end of the five-year trading range). Given the defensive nature of the business, FMCG stocks usually outperform other sectors in volatile markets. The sector has been witnessing strong volume growth of late. Moreover, pricing power has returned to companies (though with a lag for some players). But, intense competition and rising input costs challenge growth and profitability. Analysts believe revenue growth for most companies may not be a problem due to strong gross domestic product (GDP) numbers and buoyant consumer sentiment. The same is unlikely to be materially impacted by the current level of food inflation. Also, any further significant margin compression is unlikely, as pricing power is returning and will continue to improve. Given the rising consumer base and buoyant rural consumption growth, FMCG stocks provide strong earnings visibility and will continue to be in demand. As the Indian market gets more competitive, Dabur, Godrej Consumer Products and Marico are eyeing merger and acquisition opportunities in other emerging markets like Africa, Bangladesh and Sri Lanka, which is being taken positively by market experts. 24
  • 25. Analysts are betting on companies with high growth potential, pricing power, less competition and/or the possible extent of diversification, both in terms of geography and products. In the largecap space, they prefer ITC, Asian Paints and Dabur India, while Marico, Jyothy Laboratories, Britannia and Emami remain the top midcap bets due to better valuation and growth potential. Copyright Business Standard Ltd. >>> 23) Auto parts units back in fifth gear after the slowdown Source: http://www.business-standard.com/india/news/auto-parts-units-back-in-fifth-gear- afterslowdown/417278/ BS Reporter, New Delhi, December 7, 2010 The Indian auto components and accessories sector, which was hit hard by the recent economic slowdown, is again moving ahead in fifth gear, according to the findings of a survey by the IndiaMART Research Unit (IRU). IndiaMART is an online business-to- business marketplace. About 70.9 per cent of auto components and accessories manufacturers – in which micro, small and medium enterprises (MSMEs) have a significant presence – felt that the market had progressed since last year, 8.6 per cent had a negative view, and 20.4 per cent felt that they had not seen any change compared to last year. Respondents found that consumer sentiment had improved when compared to the previous year. About 60.2 per cent of respondents found an average improvement in consumer sentiment, 22.6 per cent found the improvement beyond expectations, and 17.2 per cent felt that consumer sentiment is still negative. However, the MSMEs in this space continue to reel from a liquidity crunch. This was evident from the fact that 62.4 per cent of respondents wanted liquidity to be improved and lending norms eased. As for order books, about 60.2 per cent claimed that their order books were balanced, 22.6 per cent found them strong, while 17.2 per cent said that they remained weak. Copyright Business Standard Ltd. >>> 24) Surat diamond industry hard hit by staff crunch Source: http://www.hindustantimes.com/business-news/corporatenews/Surat-diamond-industry-hard-hit-by- staff-crunch/Article1-634747.aspx Ahmedabad, December 05, 2010 Surat’s diamond industry is facing severe manpower crunch at a time when demand for cut and polished diamonds from the US, China and other markets is regaining momentum lost during the global recession of 2008-09. “At present, we are facing a shortage of around 25% of skilled workers,” said Dinesh Navadia, president, Surat Diamond Association (SDA). “For example, in my own factory Tiku Gems, 500 workers are working against the required 650.” 25
  • 26. This shortage will worsen if the increase in the supply of rough diamond goes up, said Chandrakant Sanghavi, head, Sanghavi Exports, one of the largest firms in Surat. “There is a slight shortage now but it can become acute if supply of raw stones goes up.” Most units in Surat were operating at half their capacity at the height of the recession in early 2009 when 300,000–400,000 people lost their jobs. “The main reason of shortage is that during recession large number of workers shifted to textiles and other industries. We will have to woo them back with higher salary,” said Navadia. At present, the average wage of skilled worker is R8,000-14,000 depending on work profile. “We will have to revise wages in order to get people work in the sector,” Navadia said. During April-October 2010, polished diamonds exported from Surat rose 57% to R68,000 crore against R45,000 crore last year, according to the Gems and Jewellery Export Promotion Council. Gems and jewelry exports are a leading foreign exchange earner for India and accounts for over 10% of the country’s total exports. Copyright HT Media Limited >>> 25) Food Specialities plans new unit for snacks Source: http://www.mydigitalfc.com/news/food-specialities-plans-new-unit-snacks-897 Jayashree Maji, New Delhi, December 06, 2010 Ludhiana-based Mrs Bector’s Food Specialities is in the process of ramping up its distribution to go national in the next two years. The company, known for its bakery products and liquid condiments, is also getting into snacks and bread spread categories, said Akshay Bector, the firm’s managing director. The company, which is looking to close 2010 fiscal at Rs 500 crore, is also planning an IPO by 2012 when it aims to achieve Rs 1,200 crore revenue. “The IPO got delayed due to recession. We’ll probably come out with our public issue during 2012 fiscal,” said Bector. “International tie-ups will continue to happen. But, we do not need any more funds from outside. We have grown 30 per cent over last year. The company will continue to grow at the same rate in the next fiscal as well,” he informed. Mrs Bector’s Food Specialities, which is still only available in metros, is also in the process of going national. “We have a major expansion plan in place which will help us double our distribution in the next two years,” said Bector. Besides, its brand Cremica is also getting into new product categories. “The branded ethnic snacks food market is roughly around Rs 2,000 crore. We have done some research and going forward, we plan to launch snacks in the line of Haldiram’s and Bikano. We are also rolling out flavoured bread spreads and chutneys,” said Bector. 26
  • 27. The company has also set up a food processing facility in Haryana with an investment of Rs 30 crore especially for snacks. It has also placed its snack products with an organised retailer in Canada, he added. Copyright Financial Chronicle >>> 26) Discount retail chains on expansion spree Source: http://www.fashionunited.in/news/apparel/discount-retail-chains-on-expansion-spree-061220101431 December 06, 2010 Discount retail business is indeed booming across India as is evident from the massive presence of top discount retail brands Megamart, The Loot and the Brand Factory. On the other hand, Promart, run by Provogue has scaled down and abandoned its initial plans to open 20 more outlets across India, while solidifying its presence in Ahmedabad and Indore. In October, Megamart opened its 175th outlet, in line with its parent company Arvind Retail’s strategy of occupying 5,000 sq. ft. a week and 2.6 million sq. ft. a year. Megamart is clearly catching up with India’s biggest retailer Pantaloon, who plans on opening 3 million sq. ft. a year, across its different formats. Arvind Retail’s CEO Suresh J says Megamart scores over other value retailers in customer service as there is a service executive for every 300 sq. ft. of store space as against others where shoppers have to wait for the sales staff. They are looking at a turnover of Rs 500 crores for FY 2011 and around Rs 1,000 crores by FY 2013. Megamart sells apparels from 200 national and international brands. Their bigger format stores known as Big Megamart also sells homeware products, luggage, etc. at a discount of 35 to 40 per cent. The Mumbai-based discount retail brand, The Loot has successfully bagged 151 outlets and plans to cross 200 outlets in the next six months and is looking at Rs 100 crores public issue to fund this growth. Brand Factory, part of Kishore Biyani’s Future group, which gives 20-50 per cent discount, lends space to brands in its stores and earns a percentage margins on the business brands do. The chain is looking at a business of Rs 750 crores by the end of 2011 and plans to open five to six more stores. Copyright FashionUnited India >>> 27) India gold scales new peak of 20,887 rupees/10 gm Source: http://www.deccanherald.com/content/118737/india-gold-scales-peak-20887.html Mumbai, December 07, 2010 India gold futures on the Multi Commodity Exchange (MCX) struck a record high of 20,887 rupees ($466) per 10 grams on Tuesday tracking overnight rise in international markets. 27
  • 28. The contract breached the previous record of 20,874 rupees struck on Nov. 30.International gold hit a record high in the previous session on worries over Europe's sovereign debt problems and speculation the U.S. Fed will extend monetary easing. Copyright The Printers (Mysore) Private Ltd. >>> International 28) X5 Retail to acquire Kopeyka discounter chain Source: http://www.indiaretailing.com/news.aspx?Id=5191&Topic=2 December 6, 2010 X5 Retail Group, Russia's largest retailer in terms of sales, has signed an agreement to acquire discounter chain Kopeyka for RUB 51.5 billion, including assumption of debt. Kopeyka, the third largest soft discounter in the Russian food retail market in terms of revenue and number of stores, operates more than 660 stores with a total selling area of over 290,000 sq.m. It is expected that by the end of 2010, Kopeyka will have rights for approximately 700 stores. Kopeyka operates soft discounter stores in the European part of Russia, with more than 50 per cent of its business in Moscow and the Moscow region. It reported net revenues of RUB 59.3 billion and EBITDA of RUR 3.8 billion for the 12 months to the end of June. Copyright Indiaretailing.com. >>> 29) The New Normal for Holiday Meals Source: http://www.retailwire.com/discussions/sngl_discussion.cfm/14925 Bernice Hurst, December 6, 2010 The law of unintended consequences is one that just keeps on giving. We have discussed multigenerational households in this forum and the implications of young people not flying the nest or, conversely, setting up home on their own, increasing the number of 21st century single-person households. What we have not covered are the implications of extended family households created when parents separate and set up home with new families, possibly having more children and certainly having more in-laws to invite for holiday meals. Geography, as well as demography, plays a part with family members living much further than the proverbial stone's throw from one another. 28
  • 29. All these factors are contributing to families' multiple Christmas celebrations. The Daily Telegraph has reported on a trend spotted by two of England's most popular supermarkets -- Asda and Waitrose. After polling 3,000 customers, Asda apparently found that 53 percent cook two Christmas meals while 32 percent have to sit through more than three. As a result, 38 percent more frozen turkeys have been sold this year, compared to the same time last year. The situation "is thought to have come about because the rising divorce rate has led to more families living apart -- meaning more homes to visit at Christmas time in order to 'keep the peace'." Waitrose, while increasing its offering of fresh birds over the coming weeks, "sold 56 percent more frozen turkeys last week (mid-November) compared to the same week in 2009" as well as a significant "increase in sales of pre-prepared vegetables and frozen desserts that are easier to serve." The two stores' turkey buyers agree that it is a long-term trend with shoppers "buying more than one turkey at Christmas ... as they celebrate with their different families," according to Asda. Waitrose's buyer pointed out, "We know that the weekend before Christmas is only rivalled by Christmas Day and Boxing Day for festive entertaining. Many families cook up a full Christmas dinner with all the trimmings for those that they won't be spending Christmas with." Copyright RetailWire LLC. >>> 30) Record breaking week for ebay uk Source: http://www.theretailbulletin.com/news/record_breaking_week_for_ebay_uk_06-12-10/ December 6, 2010 More than 5 million shoppers logged onto eBay.co.uk yesterday, in what has been a record breaking week for the online marketplace in the lead up to 'Super Sunday'. Sales on the UK site's busiest shopping day of the year were up 18% on the same day last year, with shoppers snapping up nearly 1.4 million gifts in just one day. With consumers avoiding the freezing temperatures and the stress of busy high-street crowds, this accounted for 17 gifts being purchased every second. Clothing, shoes and accessories made up eight out of the top 10 most popular items bought yesterday. DVDs maintained its top spot from last year as the favourite gift to purchase on 'Super Sunday, with women's shoes in second spot and CDs in third. eBay sellers played their part in the UK's export-led recovery, with international sales up 11% on 2009. 29
  • 30. Jody Ford, Director at eBay UK commented,"The festive spirit has well and truly arrived! Online shopping continues to go from strength to strength as people look for choice and value from the comfort of their own homes and it's encouraging to see sales up so considerably, despite the tough economic climate. We tend to see a sharp rise in sales on the first Sunday in December as people start to think about their Christmas shopping list, although this year's cold snap has clearly led to even more people choosing to shop without the hassle of the high-street." The Retail Bulletin is organising their 2nd Multichannel Summit, to be held in London February 2nd 2011. The event is sponsored by k3 retail and will look at how retailers can maximize profits, market share and loyalty through cost effective, seamless, integrated multichannel strategies. If you would like to attend as either a delegate or Networking Partner, go to Copyright The Retail Bulletin Ltd. >>> 31) Debenhams reports snow and recession create earliest ever start for Christmas Source: http://www.theretailbulletin.com/news/debenhams_reports_snow_and_recession_create_earliest_ever_start _for_christmas_06-12-10/ December 6, 2010 Second largest UK department store chain has reported the earliest start to the festive season ever, with Christmas decorations going up in homes all over Britain already Early snow and cold weather combined with the gloom of recession has encouraged thousands of people to reach for the tinsel and fairy lights to brighten up their days, sales figures have revealed. Sales figures for Christmas decorations started soaring at Debenhams on November 22, over two weeks earlier than normal. However, the trend is bound to outrage traditionalists who believe that Christmas is already spreading well beyond the traditional twelve day celebration period. Debenhams spokeswoman Ruth Attridge said,"It's clear that thousands of people are putting more faith in Santa Claus than the IMF or politicians to bring joy into their lives this year. The bad weather has made it feel like Christmas, and so everyone is saying, 'Forget tradition, and seasonal dates. It's been a tough year, we need a break, so let's get stuck in." The news means that Christmas celebrations in the UK are set to last for an incredible six weeks this year. Already Debenhams' sales of tinsel, Christmas trees, fairy lights and other decorations have reached a record high. Demand for Christmas trees has leapt by 1,658 per cent, crackers are up 2,374 per cent, Christmas stockings by 190 per cent, cards and gift wrap by 412 per cent and table decorations by 980 per cent. 30
  • 31. Until now, sales of Christmas decorations have followed a totally predictable path, year in year out, with demand starting at the start of the second week in December. Copyright The Retail Bulletin Ltd. >>> 32) More retailers sign up to the Warrington Against Business Crime scheme Source: http://www.theretailbulletin.com/news/more_retailers_sign_up_to_the_warrington_against_business_crime_ scheme_06-12-10/ December 6, 2010 Police and partners have joined forces with three superstores in Warrington in a bid to clampdown on shoplifters Marks and Spencer at Gemini Retail Park, Asda at Westbrook and Tesco Extra in Winwick Road are the latest retailers to sign up to the successful Warrington Against Business Crime scheme. It is part of an expansion of the retail crime reduction scheme, which already covers the town centre and Birchwood Shopping Centre. As part of the scheme businesses work closely alongside police and partners to tackle retail crime, reduce anti-social behaviour and to reassure retailers and members of the public. It also shares intelligence and information with retailers and business crime partnerships across the UK. Dave Barlow, Business Crime Manager, said,We are delighted that these stores have joined the scheme. We have helped to reduce retail crime significantly for all the Warrington Against Business Crime scheme members, and we intend to have the same impact at these stores. The Warrington Against Business Crime scheme was given national recognition in May when it secured the Safer Business Award for the first time. The award, which is handed out by Action Against Business Crime, recognises that the scheme meets a nationally recognised standard for business crime partnerships. The partnership has been assessed to ensure that it operates to a national standard and carries out all of its activities to the highest levels of data integrity. It is hoped that the Warrington Against Business Crime scheme will continue to be extended throughout Warrington over the next two years. Copyright The Retail Bulletin Ltd. >>> 31
  • 32. 33) Record online and bumper Saturday sales at John Lewis Source: http://www.theretailbulletin.com/news/record_online_and_bumper_saturday_sales_at_john_lewis_06-12-10/ December 6, 2010 John Lewis announced today that last week (to Saturday December 4) saw sales in excess of £100million Despite atrocious weather conditions throughout the country the company achieved weekly sales of £103.7million, which is 1.2% up on the same week last year and 3.7% up on last week. With the thaw in the weather setting in, Saturday saw shoppers flocking to John Lewis branches to realise their pent-up d emand for both Christmas and cold weather purchases, with the result that Saturday (December 4) saw one of the department store group’s biggest trading days – at £20.87million. At the same time, johnlewis.com saw record weekly sales soar to £23.97million, a 47% increase on the same week last year and the first time the online operation has crossed the £20million mark for a week. There is no doubt that during the snowy weather customers chose to increase their online shopping. During Wednesday last week, the worst day of the weather conditions, sales on johnlewis.com were 98% up on the same day last year. Tomorrow sees the predicted Mega Monday for the johnlewis.com operation, during which we confidently expect to see other records broken. Sales reports from John Lewis branches nationwide show that customers are clearly in the mood for Christmas shopping and for keeping warm. Sales of heaters, nightwear and cold weather fashions saw a huge uplift, with menswear being particularly strong. Looking at Christmas gifting, toy sales saw major increases last week, with traditional gifts such as the ever-popular lego and new animatronic toys both hitting new sales highs. In addition, John Lewis’ gift food ideas have really taken off, particularly with ‘Hotel Chocolat’ and ‘Edinburgh Preserves’ gift sets. Maggie Porteous, Head of Selling Operations, said: “The weather made last week a challenging one. It is a huge credit to all our Partners that we have achieved such excellent sales despite the adverse conditions. There is no doubt that our multi-channel operation, where customers can choose from a variety of ways to shop, has contributed significantly to our trading success.” Copyright The Retail Bulletin Ltd. >>> 34) Fashion retailers missing m Commerce opportunity Source: http://www.theretailbulletin.com/news/fashion_retailers_missing_mcommerce_opportunity_06-12- 10/ December 6, 2010 MIG's Christmas Sock Report indicates only 23 percent of UK's top 57 fashion retailers have a transactional mobile site or application 32
  • 33. Integrated mobile and digital communications business, Mobile Interactive Group (MIG) today unveiled its Christmas Sock Report. The research evaluated the UK’s top 57 retailers* against their mCommerce capabilities, in particular testing them against the question: how easy is it to find and purchase the most popular Christmas present - a pair of socks? The report concluded that only 16 retailers had a mobile application with only nine of these being capable of processing a transaction. In addition, only four retailers had an optimised transactional mobile site. In total only 23 percent of all retailers in the fashion sector allowed users to find and purchase a pair of socks via mobile. Clicks to find a pair of socks ranged between two and five and clicks to the checkout (or registration page) ranged between five and eight. With Morgan Stanley predicting that mobile will overtake fixed line internet access by 2013, the report highlights the need for the fashion retail sector to embrace mCommerce. Furthermore Tesco Direct last week issued findings of its analysis in to consumer shopping habits indicating that one in 10 Brits will do some of their online Christmas shopping using their mobile phone. Ben Cusack, Group Marketing Director, Mobile Interactive Group said,“With the continued growth of smartphones and the mobile internet, mCommerce has rapidly grown in to a huge opportunity for the retail sector. In the UK M&S has played a pivotal role in championing investment in mCommerce by allowing their customers to search, browse and purchase their full product range on mobile, at a time and place that’s convenient for them. “The Sock Report clearly demonstrates that the fashion subset of the retail sector is lagging behind somewhat and since we know that consumers’ online behaviour extends right in to the mobile channel, clearly there are huge gains to be made with a transactional mCommerce strategy in 2011.” Growth in mCommerce is also on the increase in the US, where IDC Retail Insights recently reported ‘smartphones will account for at least $127 billion, or 28 percent, of the $447 billion the National Retail Federation predicts consumers will spend this holiday season’. Additionally, industry analyst Mary Meeker has predicted that mCommerce will gain market share faster than tradition online retailing. There will be a panel discussion at the Retail Bulletin’s Multichannel Summit 2011 looking at ’Integrating Mobile Into Your Multichannel Strategy’. Confirmed pannellists are: Steve Wind-Mozley, Ecommerce Director, Game Group, Giles Delafeld, E- Commerce Director, Blacks Leisure Group plc, Fergus Boyd, Acting Head of eBusiness , Virgin Atlantic Airways, David Kohn, Head of eCommerce & Digital, Waterstone’s.To register for the event and to find out more Copyright The Retail Bulletin Ltd. >>> 33
  • 34. 35) Retailers neglecting to support mobile shoppers risk losing millions over Christmas Source: http://www.theretailbulletin.com/news/retailers_neglecting_to_support_mobile_shoppers_risk_losing_million s_over_christmas_06-12-10/ December 6, 2010 Retailers need to ensure mobile infrastructures can cope with the growth in mobile commerce Retailers risk losing millions of pounds from missed sales this Christmas if their IT infrastructure fails to cater for the sharp increases in traffic from mobile users. The UK is predicted to spend £6.4bn online this Christmas as consumers continue to seek better deals than in-store. Furthermore, mobile shopping is set to significantly increase online sales this year, as 18% of consumers plan to purchase some gifts using their smartphones. “Many online retailers have prepared for the extra traffic their sites receive during the pre-Christmas rush. However, with more customers shopping on their mobile phones, retailers now need to ensure they can cope with a surge in demand from this channel otherwise they risk losing a significant number of sales. Having the right IT infrastructure in place to deal with the rise in mobile commerce and to support the growing number of mobile shopping applications is an absolute must,” said Neil Barton, director, Hostway. Research carried out by TNS earlier this year found that 82% of consumers admitted if a retailers’ website performed badly it would dissuade them from buying goods from that organisation on the web or even in store. This demonstrates the importance of having a good online reputation and the need for retailers to ensure their online customer experience is a positive one. “In the same way customers have determined which brands they are loyal to on the traditional web, we are likely to see the same in the mobile space as more people shop using their phone. Today’s mobile sites and applications are also becoming much more multimedia heavy, therefore it is vital that retailers have sufficient supporting IT infrastructure and invest in solutions such as traffic management and content caching, which can help enhance the mobile experience. The challenge for retailers this Christmas is to learn from their mistakes in the traditional web world and ensure their mobile services and applications have the right mix of technology to support them. Those retailers that do are likely to have a much merrier Christmas and prosperous new year than those that don’t.” Copyright The Retail Bulletin Ltd. >>> 34
  • 35. 36) Waitrose sales on the up despite the big chill Source: http://www.talkingretail.com/news/industry-news/waitrose-sales-on-the-up-despite-the-big-chill Stacey Wright, December 6, 2010 Waitrose saw another strong week of trading, despite the impact of mid-week snow in many parts of the country, with total sales for the week ending 4 December at £106m. This is a 5% increase on last year and a 27% increase on two years ago. Trading was exceptionally busy on Monday as shoppers stocked up before the big freeze while business was also brisk on Saturday. Employees in the four regional distribution centres and branches pulled out all the stops to keep Waitrose stores stocked in the challenging weather conditions. Some branch partners walked for miles in the snow to get to work, while others stayed overnight in their shops to ensure that it was business as usual. Hot drinks proved to be some of this week’s best sellers with cocoa up by 48%, instant hot chocolate up by 78% and herbal teas up 37%. Comfort food was the order of the day as hot pie sales climbed by 53% and canned soup saw a 56% rise. Store cupboard staples such as UHT milk and powdered milk were up by 53% and 56% respectively. Frozen food was another area which saw steep growth with frozen roast and mashed potatoes among the best sellers. Mark Price, Waitrose managing director, said: “This is an astonishing sales result, given the impact of weather conditions during the week. “Our Partners worked heroically to keep our branches stocked in these testing conditions and thanks to them we are really well set up to serve our customers in the run-up weeks to Christmas, whatever the weather. “Warmth was the watchword as customers temporarily turned their attention from festive preparations to keeping out the cold and stocking up for the big freeze.” It was a week in which the Delia Smith effect struck again sending sales of cranberries and cranberry juice soaring 15 years after the cookery queen first sparked a national shortage of the fruit. Smith’s latest recipes for Waitrose include sophisticated cranberry jellies served with frosted cranberries on top. Her delicate dessert caused a surge in sales of fresh cranberries and cranberries juice at the supermarket within hours of appearing on in- store recipe cards. 35
  • 36. The uplift brings back memories of 1995 when Delia Smith first brought the humble cranberry to the nation’s attention and became known as the ‘Cranberry Queen’. She caused a countrywide craze for the seasonal fruit in a phenomenon dubbed the Delia Effect. Copyright Metropolis International Group Ltd. >>> 37) Sainsbury’s opens new Local store in Ashford, Middlesex Source: http://www.talkingretail.com/news/industry-news/sainsburys-opens-new-local-store-in-ashford- middlesex Stacey Wright, December 6, 2010 Sainsbury’s has opened a new Local store in Ashford, Middlesex, where pupils from Clarendon Road Primary School joined in the celebrations. The children, who were joined by teachers, cut the ribbon at 9am. They were then presented with £250-worth of Active Kids soft play equipment before receiving a tour of the new store on New Parade. At just over 2,700 sq ft, the Local store will offer a large range of goods for a convenience store, from fresh baked goods, fruit and vegetables, to newspapers and flowers. The opening has also created 15 new jobs – many of whom are from the area – while a further five have been brought in from nearby Sainsbury’s branches. Store manager Tim Lane said: “We want to support Shooting Stars Hospice as much as we can in the coming months as it’s our local charity partner. Santa may well put in appearance at the hospice in the next few weeks, helping the store and our builders to donate £1,000-worth of toys and equipment to help them get into the Christmas spirit.” Copyright Metropolis International Group Ltd. >>> 38) Groomstars ties up with formal wear brand Source: http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=93707 USA, December 6, 2010 GROOMSTARS has announced its collaboration with Victor Talbots, a one of a kind men's fashion establishment out of Greenvale, New York. As an illustration of their commitment to excellence, Victor Talbots is renowned for their unsurpassed quality and craftsmanship in fine formal wear. Victor Talbots has brought Groomstars their unparalleled mastery of fine evening wear with an exclusive collection of ties, braces and other evening wear. The Launch of this partnership epitomizes the high standards of excellence in design and the outstanding quality Groomstars consistently supplies to their costumers. 36
  • 37. Victor Talbots' exclusive line for Groomstars allows grooms to select high quality formal wear gifts for their groomsmen, best man and father of the bride. In a market wear high end men's gifts simply did not exist, Groomstars along with Victor Talbots has changed the gift giving experience. Victor Talbots has contributed to Groomstars goal of raising the bar for male gift giving. Victor Talbots was founded over a decade ago upon the basic principle of representing gentleman's evening attire within the distinct environment for which it was intended. To accomplish this undertaking would be the evolving creation of what Victor Talbots has become today. Victor Talbots is a one of a kind couture fashion establishment which blends the finest in luxurious wears and ultimate service into an exceptional personal expression of attire. Copyright Sanblue Enterprises Pvt. Ltd. >>> 39) Levi’s debuts ‘Shape What’s to Come’ Source: http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=93726 USA, December 7, 2010 Levi’s – the brand that introduced the first jeans for women 75 years ago – asked 50 inspiring young women from across the globe to inscribe hand-crafted journals with how they’re shaping the future and who inspired them along the way. These “Traveling Journals” will be revealed as part of a global Levi’s brand sponsorship at the first-ever TEDWomen conference in Washington, D.C. Dec. 7-8. The TEDWomen conference will also include the debut of a documentary film from young director Chiara Clemente focusing on eight journal contributors’ inspirational and powerful stories. Content from these motivational journals can also be found on ShapeWhatsToCome.com, a global community encouraging Millennial women to discover and pursue their passions and potential through collaboration and mentorship. The Shape What’s To Come documentary highlights young women from the U.S., U.K. and Japan who are transcending societal expectations, taking non-linear paths to success and making a difference in the world around them. Participants range from Katie Spotz (age 23, Mentor, Ohio and recently named one of Glamour magazine’s women of the year), who was the youngest person to row solo across the Atlantic Ocean, raising awareness and $100,000 to promote access to clean drinking water in developing countries, to Priya Lakhani (age 27, London, U.K.), founder of the Masala Masala Project, which provides one meal for the homeless in India for every jar of Masala Masala Indian sauce sold in the U.K. A director who explores identity, cultural contrast, and the creative process, Clemente says, “I wanted to do this film so I could bring each woman’s incredible story to life. Their inspirational experiences and triumphs are a true testament to the creativity and possibilities of this generation.” 37