• Save
PESHWA  ACHARYA
Upcoming SlideShare
Loading in...5
×
 

PESHWA ACHARYA

on

  • 2,707 views

 

Statistics

Views

Total Views
2,707
Views on SlideShare
2,706
Embed Views
1

Actions

Likes
0
Downloads
0
Comments
0

1 Embed 1

http://www.slideshare.net 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

PESHWA  ACHARYA PESHWA ACHARYA Document Transcript

  • Retail Industry News (RIN): December 07, 2010 Reliance1) Peshwa Acharya, Marketing and Retail ExpertSource: http://www.audiencematters.com/interview-individual.php?title=Peshwa%20Acharya%20,%20Marketing%20and%20Retail%20ExpertDecember 07, 2010 Peshwa Acharya, Marketing and Retail ExpertPeshwa Acharya , Marketing & Retail Expert , with 20 years of Marketing & BusinessExperience 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 IndianConglomerates like Reliance Retail , Dabur Group etc . He brings to the table about twodecades of through professional experience across FMCG (CPG), Retail, Telecomsectors in Product Marketing, Brand Management, Sales, and Business Operation roles.As Vice President & Head Marketing and Consumer Experience of Reliance Retail, hehas built the “Reliance Digital business” from scratch, which now spans approx 50 storesacross Reliance Digital, Reliance Digital Express, iStore formats from 2006-2010.He has earned a name for himself in networking across organizations and Industries. Hehas a passion for Teaching, and has been a Guest faculty across Management Instituteslike IIMC, BIMM, NIMIC etc, and been a keen career counselor to students andcorporate colleagues alike.Peshwa is a Leader, Networker Mentor, Educationist and an avid Traveller, SocialObserver and Art Afficionado. Prachi Srivastava of AudienceMaters.com got privilege totalk 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, Retailand Telecom experience. Early in my career, I was in FMCG for 10 years when I pickedup the tricks of FMCG marketing, Sales and distribution working on very strong brandslike Ariel , Dettol, Mortein etc that gave me great grounding on what is really BrandMarketing is in India and how to establish Power Brands. Later, I was very fortunate tobe on the early part of the telecom revolution, I was with Hutch and at that time we wererolling out the Mobile Telephony concept in India. It gave me an idea of how to introducea New Technology Concept to Indian consumers, how to drive affordability, establishVAS 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 ofModern Trade, as Marketing or Category Head at Dabur selling into Grocery ModernRetailers. Since last 5 years, I am at Reliance Retail handle multiple Retail formats, fromGrocery to Technology/ Electronics format. So, it has been a great learning experienceand 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, thenmarketing 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 servicesin line with customer expectation. This is similar across industries. So, whether it isFMCG or Telecom or Retail, it remains exactly the same.Talking about differences, FMCG has always been the Mecca for Marketers. Thatmeans the basics of the consumer marketing has always come from FMCG. In termsdifferences, usually FMCG companies have more established marketing processes andsavvy. Retail, on the other hand where all the understanding of FMCG marketing has tobe converted at the store level. That is where the moment of truth happens! So, it’sslightly different. Retail is not so much about overall Brand strategy. It is lot more aboutexecution and actually doing it Right at the store front. Telecom on the other hand is acombination of “Strategy and Action “. Telecom also has changed over time, In fact forme one of the learnings has been PACE in the telecom, very execution driven, fast andalso 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 alsocame 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 RelianceMart, Reliance Super, Reliance Digital, Reliance Time-out, and Reliance Auto Zone ,Reliance Jewels. Possibly nowhere in the world one company has launched so manyretail formats at the same time. Modern retail will grow. I have a strong belief that India isnot one “homogenous Nation “ , It actually is combination of various Countries, and eachof 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. Theyunderstand the value of a global brand but they still have lot of affection for LocalBrands.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 havingorganized retail, mom and pop stores will be marginalized. I don’t say that business willnot get affected at all but the mom and pop stores have to get their systems, Productsmerchandizing, such that they can compete in that scenario so that both will coexist. Atan overall view I don’t think it will affect Overall business but at specific cases therewould be pressures. At the end of the day the customer will get a better output andservice. 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 oneswhich are in the metros. Actually, lots of Indian FMCG companies still mentally favor themom and pop stores because most of their business comes from them. If you look at thenegotiation table, the mom and pop store cannot necessarily negotiate with largecompanies like HUL or P&G , But on the other hand Large Retail Chains can actually sitdown for negotiation. So, the power balance is always better for Brands or Companieswhen there is a mom and pop store. So, that’s the situation which is dynamic, it ischanging and we are evolving. That is the fun of country like India, we are everydaychanging.Q. What are the marketing strategies for Large Format Retailers?Without getting into specifics about any particular Retailer, to be successful, RetailMarketing 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 andsimplify the life of the customers. Don’t try to do so many things, do few things but do itwell. 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 Productsand services. It cannot happen that a model has been launched at the other parts of thecountry 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 theReliance value format. It also has formats like Reliance Auto Zone, Reliance Living etcQ. Please highlight the key points in Electronics or CDIT business?CDIT is consumers, durable, IT and telecom. First fundamental of CDIT business is thatthis is the only business where all your cost of running the business will increase year onyear. So, electricity cost, salary cost, people cost, rental cost, typically all your costs goup in a country like India. But if you look at your value realization, CDIT business isalways coming down. Same LCD TV which would have cost 40,000 Rs 2 years agomust now be 30,000. This is the only business where your costs are going up butrealization 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 orget 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 onestop solution rather than you hopping from one place to the other is always a greatvalue. Especially in large metros, modern trade is a great boon. Modern trade makesbrands, products very transparent to customers. That means you can actually walk inand check out 5 different shampoos. You can actually see, touch, and feel which youotherwise cannot in Traditional trade. Modern trade makes things transparent tocustomers, 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 inthe 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, servicesis extremely low, huge amount of infrastructural change is required. All over the world, allover the industries people are waiting to enter India and serve the people here with theirproducts and services. So, frankly I don’t see this as a competition. India is too importanta market not to enter. It’s important that as industry we grow better, learn from eachother and the AAM ADMI is taken care of. Right now, modern retail in India is 5- 7 percent so we should not talk about competition, we should think how the industry can begrown. Competition will happen when this will become 80 percent % and there is fightingfor market share only.Q. For any retail to survive or to move on we need to have strong logisticbackground and India is not so good when it comes to logistics, How do youtackle this issue?I completely disagree that Indian logistics is not in good shape. I have a strong viewpointthat Indian logistics is anytime better than many of the western logistics. Our cost ofdelivery is one of the lowest in the world. Which country in the world would actually haveFMCG delivered in dingy lanes on a bicycle where the salesman is earning only Rs 100or something but is still doing a good job?So, this wrong perception should be removed from stakeholders’ mind that we are poorin terms of logistics. We are extremely cost efficient in terms of logistics that is howFMCG 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 topdoesn’t know where his products have reached etc We are fairly good in physicaldelivery, 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 sharpretail?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 consumerconsumption is extremely high, so anything which is a premium product, it is tier 1 wherepeople are investing but if you ask my personal viewpoint, there is a huge scope ofproduct and service in India. It is semi-urban India, it is rural India, and it is smaller townwhere the scope is really high but that might require a different kind of business model. Iam a very strong believer of taking products or services to rural India because I think stillthere is a divide between urban and rural consumers. There are lot of rural consumerswho do not even get basics what we think as basics like banking and Insurance etcPLS NOTE : This does not reflect the views of any Retail Organisation , and viewpointsexpressed are personal viewpoints of Peshwa Acharya ..for Further details /Conversations write into : peshwa.expert@gmail.comCopyright Audience Matters Media Pvt. Ltd.>>> 4
  • 2) Catching the mood of the seasonSource: http://www.hindu.com/rp/2010/12/05/stories/2010120550010100.htmDecember 5, 2010With December setting in, brands are hotting up their offering quotient to make theseason exciting and interesting.The Chennai winter is upon us again, and yes, some evenings do feature that slight nipin the air. The festive, end-of-the-year mood is around the corner and brands/retailersare revving up the excitement with products that reflect this mood. Reliance Trends, theApparel, Luggage and Accessories specialty format of Reliance Retail, launched its newchic 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 seasonwherein customers get a limited edition Converse watch worth Rs 2,499 free with everypurchase of Converse merchandise worth Rs 2,499. Check them out at Planet Sportsand Pantaloons.Now brands riding of popular films is not new. The mass market turned outChandramukhi sarees some years ago, and this Deepavali saw the Enthiran saree aswell. For the smart set, its an invitation to dress like the stars of Break Ke Baad with anexclusive apparel line available at Shoppers Stop on Harrington Road. Girly floral tunicsand dresses, sporty racer backs, printed tees with vintage art, hot shorts in cottons anddenims, and cute waistcoats, Aaliya style available from Rs. 499 onwards. For the men,its Abhay style funky cartoon prints on Tees, bold colored Tees with vintage art, cargoshorts and full length pants with baggy pockets priced from Rs. 499 onwards. Alsoavailable on www.shoppersstop.comNow this last brand we are featuring in this column cannot be but desirable - theypromise you that perfect figure thanks to their Diamond Cut denims for women. LeeJeans has brought on an innovation in denim, which they say makes women lookslimmer thanks to the scientific changes in cuts and stitches. For you at Rs.1,800onwards, thats a promise you just cant ignore!Copyright The Hindu>>>3) Global brands return to retail shelves with new strategiesSource: http://www.livemint.com/2010/12/06233715/Global-brands-return-to-retail.html?atype=tpSapna.a, December 7, 2010After exiting India during the slump two years ago, global brands such as GAS, Energieand Clarks are returning to take another crack at the fastest growing major economy inthe world after China, some with new partnerships while others are preferring to go italone. 5
  • “One out of every three multinational brands that entered India prior to 2008 has had achange in partnership or operating model,” said Raghav Gupta, president of TechnopakAdvisors Pvt. Ltd, a retail consultancy firm.Close to 100 brands have entered India in the last 10 years, of which 65 came in before2008.Of these, 18 have had a partnership change while seven have exited the country. Ofthese, three have come back in the past year.Grotto SpA’s GAS, which exited by dissolving its partnership with Raymond Ltd inNovember 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 GASJeans executive, who didn’t want to be named.Similarly, Energie, an apparel brand from the Sixty SpA, and UK shoe retailer C&J ClarkInternational (Clarks) have come back to India. In its first stint in India, Clarks set up fivestand-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 thelocal market. It plans to launch stand-alone and shop-in-shop stores in February orMarch next year. The company “has now re-entered with a commitment to make anIndia-specific products with a partner that understands the Indian consumer”, saidRakesh Biyani, director and chief executive of Future Group.On the other hand, the Future Group dissolved its partnership with French lingerie brandEtam. “The pricing was 50-60% higher than what we initially had envisaged and thislimited 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 moveup the ladder.”Esprit International, the clothing retailer with revenue of $5 billion (Rs.22,450 crore), isreconsidering its India strategy after five years of a distribution partnership with MaduraGarments, now a part of Aditya Birla Retail Ltd.Currently, Esprit India has a presence in 12 cities through about 50 stores (self-managedand shop-in-shop).“We are discussing very closely with Esprit (the parent company) how to expand thebrand in India for closer cooperation. More things need to flow in the country,” saidManjula Tiwari, chief executive officer of Esprit India. 6
  • In fiscal 2009, Esprit India cut prices by up to 20% in India. “These introductory pricepoints are relevant to income levels in India and contribute to 10%-15% of our overallsales,” 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.’sDockers range was an international strategic decision by the company to pull out thebrand 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 RelianceIndustries Ltd’s Reliance Retail Ltd and relaunched the M&S brand in the country withlower prices and a strategy to source goods locally.Copyright HT Media>>> Competitor4) Big Mac to set up restaurants along Gujarat highwaysSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750900500.htmHBL Bureau, Ahmedabad, December 6, 2010McDonalds is expected to invest Rs 350 crore on developing 20 restaurants along themajor highways in Gujarat, a senior official said here today.For this, Big Mac would enter into an agreement with the State Government during theVibrant Gujarat Global Investors Summit (VGGIS), scheduled next month, Mr VipulMitra, Principal Secretary, Tourism, told reporters on the sidelines of a seminar ontourism 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 expectedto 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 tourismsector. The Government has acquired land for this purpose at the pilgrimage centre ofAmbaji in North Gujarat.Airports, airstripsIt has also signed up with the Kolkata-based non-banking financial institution SreiInfrastructure Finance Ltd (SIFL), which plans to invest Rs 500 crore to develop anairstrip 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-longcoastline from Kutch to Valsad. 7
  • Replying to questions, Mr Mitra said the Government is expected to sign memoranda ofunderstanding (MoUs) worth Rs 50,000 crore and Rs 20,000 crore for development ofthe tourism and aviation sectors, respectively, during VGGIS 2011.Earlier, the State Tourism Minister, Mr Jay Narayan Vyas, said the Government isplanning hotels and drive-in restaurants every 200 km on State highways. It would adoptthe public-private partnership (PPP) model to set up new airports, airstrips andhelicopter services. To boost tourism, it would also slash electricity rates and increaseinterest subsidies to promote entrepreneurship in the hotel sector.He said Gujarat is now gearing up to further develop eco, medical, beach and adventuretourism.Copyright The Hindu Business Line>>>5) Dream Theatre eyes pre-schoolersSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750890500.htmBindu D. Menon, New Delhi, December 6, 2010Months 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 companyis hoping to entrench its brand across the country.“The opportunity in the kids sphere is immense. Beebop believes in the celebration ofbabyhood. We are looking to be a leading pre-school brand and will retail toys andaccessories,” 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 deliberatelyopted to stay out of distribution. The brand has been designed and conceptualised by usbut will be retailed through a distribution channel,” he said, adding Beebop will be on theshelves 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 distributionof 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 isestimated 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 andpreschool category 8
  • “The pre-school market is at 15 per cent of the market and is valued at about Rs 225crore, its one of the fastest growing segments within the toy arena with a growth rate ofalmost 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 cakesSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120754021900.htmHBL Bureau, Kozhikode, December 6, 2010With 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 theKerala 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 theprofit generated from the sale of the product would be mainly utilised for undertaking ofvarious 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 beavailable for people interested in bulk purchase of the cakes.MRDF has been making available farm mechanisation equipment to farmers under theFarm 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 thecountry, Mr Pillai said.Copyright The Hindu Business Line>>>7) Dhananjai Apparels bets on cartoon charactersSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750850500.htmHBL Bureau, Kolkata, December 6, 2010Kolkata-based kids wear maker Dhananjai Apparels Ltd plans to launch cartooncharacter-based apparels. The company expects to expand operations in a major wayby 2011. 9
  • The company has already acquired the licences for four American cartoon charactersthat include Spiderman, Pampered Girls and Toy Story and will launch its new range ofapparels by January 2011.The company expects a growth of 80 per cent on a year-on-year basis and had reporteda turnover of Rs 25 crore last year. It has apparels for kids aged between two to 14years.“We are a value player and our products are ranged accordingly. Moreover, we areprobably the first player in the country to have acquired licences for using cartooncharacters 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 toincrease it to 75 by March 2011 and 1,000 shop-in-shop formats by the same time. It hastie ups with 250 stores including Spencers (RPG Group), Mega Mart (Arvind Group) andFashiom Yatra (Tata Group).The company has three manufacturing units here in West Bengal and is planning to setup more standalone stores here in Kolkata. The company is also in talks to acquire thelicences of other popular cartoon characters.Copyright The Hindu Business Line>>>8) Big Bazaar stocks up on Japanese goodsSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750830500.htmBindu D. Menon, New Delhi, December 6, 2010To help Japanese trade body test FMCG market.After Japanese durables and cars, it is fast moving consumer goods that are looking tofind a foothold in India.The Japanese External Trade Organisation (JETRO), in association with food retailerBig Bazaar, is testing the market for its products through the Japan mela beingorganised at the latters stores.“The rising middle class is pushing up the demand for international food products, whichhas been growing steadily. Japanese FMCG products have negligible presence in Indiaand through this association we are testing the market,” said Mr Naoyuki Maekawa,Director-General, JETRO, an apex body to facilitate trade and investment betweenJapan and rest of the world.Of late JETRO has been helping small and medium-size Japanese firms to maximisetheir global export potential. 10
  • Mr Maekawa said the month-long Japan mela, which began last week, would bring arange of products, such as crackers, soups, frozen food in the food category and lipbalm, writing instruments, male grooming products, dental care and interior decorproducts.41 stock keeping unitsTo 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, productsfrom neighbouring ASEAN nations will also be retailed. Our aim is to increase the brandawareness and also make our products more affordable to the price-conscious Indianconsumers,” Mr Maekawa said, adding the products would be imported by Rovin Impex.For Japanese companies, India continues to be a leading investment destination andthere has been dramatic rise in 2009, he said. The bilateral trade between the twocountries is estimated at $13 billion at present. While Japan ranks 10th among Indiasexport destinations, India stands 26th among Japans export destinations.“Japanese companies have enjoyed a certain premium in India. But the FMCGbandwagon has been left out and we are trying to find an affordable niche with thesegment,” Mr Maekawa said.Future Group, meanwhile, said that its international food label offering has been growingand to cater to the demand the company is opting for such an association.Copyright The Hindu Business Line>>>9) Hoping to Max it with youthSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750840500.htmAnjali Prayag, Bangalore, December 6, 2010Max Retail, part of the Dubai-based Landmark Group, is looking for ‘youth patronage inIndia 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 secondlargest selling segment after womens 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. “Werealised that the level of acceptability for fashion in India has gone up and we haveadded the fashion element to all our products.” Max Retail is still holding on to its initialprice offer of ‘everything at Rs 599 that it started with about four years back, but hasadded international designs to its offering here. 11
  • Mr Vasanth Kumar said Max in India could hold on the sub-Rs 600 price because of thecombined sourcing with Max International, tying up with Landmark Groups flagshipbrand Lifestyle as an anchor store and therefore commanding better rental deals andalso because it is a pure play private label brand. About 70 per cent of the designs forthe Indian offerings come from Max International, while the rest is tweaked for the Indianmarket.Max Retail, the value retail chain of the Dubai-based Landmark Group, currently has 160stores across the world, including 40 in India and will add another 12 in the country bythe end of the fiscal, he said. The retail chain is looking at expansion both in malls andresidential areas where the catchment for youth is high.While investment for a store is around Rs 8 crore, the retail chain is realising revenues ofRs 4-5 crore a store a year, recording same store sales growth of 35 per cent from lastyear.Copyright The Hindu Business Line>>>10) Shane Warne is taking a fashion spinSource: http://www.dnaindia.com/sport/report_shane-warne-is-taking-a-fashion-spin_1477286Prachi Kadam, Mumbai, December 6, 2010Aussie spinner Shane Warne needs no introduction. When it comes to turning a gamearound, no one does it better than him. The cricketer is in a mood to go radical: this timeas a fashion designer.After launching his men’s sportswear line successfully in Australia in 2009, Warne is setto 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 adesigner, “I really enjoy clothing and fashion. And having travelled all around the world, Isaw that there was a market for a sportsline for men and boys wear. I have kept itcasual, and have included my favourites like great looking jeans, easyfit tees and coolshorts.While creating the boys wear I kept in mind the fact that sons like to dress liketheir dads. My son Jackson was involved in it too. I was so proud of him when we werephotographing the collection; he was a natural like me!”Did he ever discuss fashion with his very stylish team owner Shilpa Shetty? “Womenswear is an exciting, growth opportunity. And if Shilpa would like to do some work on thebrand, 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 intotrouble in India? “I love India and have been so proud of being a captain and coach inthe 20-20 cricketing season. It was such an honour to have been able to take my teamfrom the bottom of the league to being champions in the first season. The saddest thingabout what was happening was the fear that the opportunity for the Indian players wouldno 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 himeverything today. “I’m in constant talks with a few people in India. We’ve got theacademy at the Rajasthan, that I’m captain and coach of, which is doing well. I believe inthe future of India. The new India has freshness and a level of global growth that isoutstanding. It is the youth of tomorrow that will make India stronger and cricket is a wayof achieving focus and greatness here in India. I always try to be very supportive ofchildren, whether it’s my own kids, or the young people we help through my charity TheShane 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 ofIndia would have to agree with me there.”Copyright Diligent Media Corporation Ltd.>>>11) Adani Wilmar launches branded rice Pilaf GoldSource: http://www.business-standard.com/india/news/adani-wilmar-launches-branded-rice-pilaf-gold/417330/BS Reporter, Mumbai / Ahmedabad, December 07, 2010Leading manufacturer and distributor of edible oils, Adani Wilmar Ltd has announced itsforay into domestic branded rice with the launch of Pilaf Gold basmati rice. Thepremium Pilaf Gold basmati rice will be available pan India with an assortment of fullgrain, Tibar and Dubar basmati rice.A joint venture between Ahmedabad-based Adani Group and The Wilmar InternationalLimited of Singapore, Adani Wilmar Limited is already successfully established in exportbusiness 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 outletsacross 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 riceand are hopeful that we will penetrate rapidly simultaneously breaking the competitivebarriers. Consumers will be able to choose from a wide assortment of rice such as Pusabasmati, 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 IndiaSource: http://www.business-standard.com/india/news/walmart-raises-it-sourcingindia/417401/Bibhu Ranjan Mishra, Bangalore, December 07, 2010Selects 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 itsinformation technology (IT) sourcing strategy from India by setting up a dedicated grouphere (in Gurgaon). Called Remote Services Management, the group is headed by MickySingh who was earlier the CIO of Walmart India and responsible for setting up completeIT solution to Bharti-Walmart, covering all facets of the retail joint venture.According to highly-placed sources, Remote Services Management will be part ofWalmart’s Information Systems Division (ISD), the in-house IT arm of the company. Thisis 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 theirareas of strength, rather than giving a huge IT contract to any single company. As part ofthe 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 andapplication, 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 Walmartglobally.With the selection of more vendors, Walmart’s total IT sourcing from India is estimated tobe 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 notwant to comment on the nature of those business relationships. “As a global company,Walmart will make investments in technology to benefit the operations here andelsewhere in the world. We will need worldwide resources, and our work with suppliersin India will help us continue to grow our business and create jobs around the world,” thecompany spokesperson said in an email reply.A Wipro spokesperson said the company did not want to comment on marketspeculations. Collabera, too, echoed this.It is understood that Wipro will be responsible for application development andinfrastructure outsourcing for Walmart stores globally. Besides, the company has alsoestablished a large helpdesk as part of its BPO practice. On the other hand, Collaberawill develop collaborative tools for specific retail applications.According to industry sources, in his new role Micky Singh will be responsible foridentifying Indian IT partners. For example, the Thiruvananthapuram-based UST Globalis responsible for specific testing of its retail applications because of its inherentstrengths in software testing.Walmart typically prefers to develop its retail applications in-house. However, thecompany gradually started buying packaged retail applications from leading softwarevendors like Oracle, HP and SAP only towards the end of 2007.Copyright Business Standard Ltd.>>> 14
  • 13) Arvind Ltd elevates J Suresh as MDSource: http://www.indiaretailing.com/News.aspx?Topic=1&Id=5192IndiaRetailing Bureau, December 07, 2010Arvind Ltd has announced the promotion of J Suresh, CEO of Arvind Lifestyle BrandsLtd and Arvind Retail Ltd, to managing director, with effect from December 1, 2010.An IIM Bangalore alumnus, Suresh has been associated with Arvind Ltd sinceSeptember 2005 and has strengthened the Lifestyle Brands portfolio of Arvind andaggressively grown Megamart as a leading value retail chain in apparel.Sanjay Lalbhai, CMD, Arvind Ltd, said, “I am pleased to welcome J Suresh into theboard of directors and confident that the brands and retail portfolio will flourish andachieve accelerated growth under his leadership.”Prior to joining Arvind, J Suresh, an engineering graduate from Madras University, heldseveral senior positions at Hindustan Unilever Ltd.Copyright indiaretailing.com>>>14) Cinemax launches first multiplex in MalegaonSource: http://www.indiaretailing.com/News.aspx?Topic=1&Id=5189IndiaRetailing Bureau, December 06, 2010Multiplex chain Cinemax, a Kanakia Group company, has informed the Bombay StockExchange (BSE) that it has launched a three-screen multiplex – Cinemax Sandesh – atSangameshwar Camp in Malegaon, Maharashtra.With a seating capacity of 1,107 and personalised cafe service, the new multiplexpromises to offer its patrons a world-class movie-watching experience.With the opening of this multiplex, Cinemax now has 102 screens and 27,176 seatsacross 32 properties.Copyright indiaretailing.com>>>15) Theme eyes 65 per cent winter salesSource: http://www.fashionunited.in/news/fashion/theme-eyes-65-per-cent-winter-sales-071220101436December 7, 2010With 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 asShoppers Stop, Central Malls, Lifestyle, Pantaloon, Brand Factory and Globus. It’s alsoa 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 finetailored clothing in Asia - Theme stands for impeccably styled and value for money lineof formal men’s clothing.With a product line-up of men’s business suits, designer suits, jackets, scarves andformal trousers, Theme is looking to increased sales this season in keeping with itsgeneral trend of 65 per cent sales during winter as compared to a mere 35 per centduring 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 whichis neither too narrow nor too wide, thus our suits will never go out of fashion. Thebandhgala or mandarin collar suits are coming back in a big way with variations likestand up collars. The very narrow shawl collars will be seen both in evening jackets aswell as some formal wear jackets. Double breasted in slim fit and three-piece suits arealso back. Trousers still remain slim and some brands have even introduced ultra slimtrousers,” 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, whetherit is for a wedding, business, evening or casual wear. We have introduced new blends insuit fabric such as wool viscose, Poly wool Viscose, cotton wool blends in trousers andsilk wool in jackets. Prices are on rising and the next season will see an increase inprices 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 asthe right weight of interlining for different fabrics, three-ply floating chest piece andgenuine horse hair to impart natural drape and dimensional stability and meticulousdetailing such as shaped collar, rolled lapel, piped pockets, reinforced flaps rolledsleeves and purl- stitch buttonholes.De is of the opinion that with international manufacturers setting up shop in India, it is themade-to-measure suits that will soon take the lion’s share of the super premium andpremium 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 ofRs 30,000 to 75,000, the company is looking at innovative product expansion which willenable it to stay up and running in the near future.Copyright FashionUnited India>>>16) Wills Lifestyle’s A/W range warms up the seasonSource: http://www.fashionunited.in/news/fashion/wills-lifestyles-a/w-range-warms-up-the-season-061220101429December 6, 2010As a vibrant fashion brand for the premium consumer, ITC’s Wills Lifestyle has launchedits new autumn/winter 2010 collection. And it’s in keeping with its reputation ofshowcasing a complete fashion wardrobe in its various collections over changingseasons. 16
  • It displays an array of avant-garde styles in harmony with the global fashion moodmarked 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 mostof its collections comprising of Wills Signature Designer wear, Wills Classic formal wear,Wills Sport relaxed wear, Wills Clublife evening wear and fashion accessories for bothmen and women.The Wills Classic collection for men pays homage to the grandeur of the season withrich fabrics such as Marino wool, premium Egyptian cotton and Beaver Mélangeamongst others. In deep shades to suit the sobriety of the season, this range offerscolors such as maroon, deep purple, medieval blue, cappuccino, peacock green andteal. Incorporating the international runway trends such as the slim collars, V necks andchiseled cuffs, this line favors a minimalistic sleek look with the Luxuria collection whichuses fine Italian fabrics, trims, mother of pearl buttons and German threads and otherdetailing. The Wills Classic collection for women includes soft romantic pastel hues ofpinks and whites. With different versions of checks and stripes in shirts, Wills Classicrange also consists of newer style elements with feminine and elegant tops.The new Wills Sport line for men showcases designs inspired by the English heritageinfused into a sporty look and contemporary blend of fabrics. A dazzling gamut of colorsranging from black and blues along with a dedicated collection in denims in stylish mixpalette comprising of forest greens twilight blues and browns with an array of checksround up the sports collection. The women’s collection displays design elements such astrims, lace and crochet lend a softer touch to the garments but structures and elementssuch 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 topsand 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 usedfor shirts to add a unique style to each garment in colors such as burgundy, olive, purpleand grey’s with a touch of shine. The women’s collection displays the romance of frillslayered into structures and satins where the construction remains soft keeping in withthe theme.The coveted Signature line which showcases the creations of some of India’s biggestdesigners will find many takers among the well-heeled clientele. This fall/winter featuresensembles from JJ Valaya, Namrata Joshipura, Satya Paul, Ranna Gill, Bian by Gia PFleming, Rohit Bal, Rohit Gandhi and Rahul Khanna and Rajesh Pratap Singh. And lastbut 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 ismaking rapid strides in terms of expansion while doubling the number of stores over thenext three years.Copyright FashionUnited India>>> 17
  • National17) Fruits to cost more during ChristmasSource: http://economictimes.indiatimes.com/markets/commodities/Fruits-to-cost-more-during-Christmas/articleshow/7056272.cmsJayashree Bhosale, ET Bureau, Pune, December 7, 2010The 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 industryadversely. The incidence of pest attacks on most fruit crops has gone up due tounseasonal rain in October and November and the resultant humidity. Almost half of thestrawberry crop in Mahabaleshwar, which grows about 80% of the country’s output, hasbeen lost.“Rains have damaged half of the production from the first flowering, which comes intothe market in December. We used to have clear weather in November. But this year, wehad 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 strawberryprocessing industry. “We may have to run the unit at lower capacity this year. I hope thatthe 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, chiefexecutive officer of Mahabaleshwar-based Mapro Food Ltd.While Mr Vora declined to comment on the price scenario, indications are that the priceswill go up. The delayed winter and heavy rainfall in the southern states of Tamil Naduand 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 inTamil Nadu and Andhra Pradesh, will be higher as the crop size may become small dueto rainfall. But the crop in Gujarat and Maharashtra is good,” said TS Ahluwalia, chiefoperating 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 pasttwo years. Mango processors from the state have already shifted their procurement baseto neighbouring states.Though the late winter is not good for mangoes, the Alphonso variety is unlikely to bemuch affected. “Late winter will mean that the mango crop will be late. But the Alphonsomango production will be at least double than that of the previous year,” said a seniorscientist from Dr Balasaheb Savant Kokan Krishi Vidyapeeth, Dapoli, on condition ofanonymity.Copyright BCCL>>> 18
  • 18) Toshiba unveils new laptops, LED TVsSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750820500.htmHBL Bureau, Mumbai, December 6, 2010Toshiba Corp announced the launch of a series of products in the television and laptopsegment at a press meet on Monday.Among them are the Power TV family of products with three series, specially designedfor the Indian markets, according to the company. One of them called PC1 wasdescribed as an LED TV which comes with an integrated battery back-up of around twohours (for places which dont 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 3DLED 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 andSatellite Pro C660.The price range is Rs 25,000-35,000. These products will be up for sale from January2011.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 soonSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120750910500.htmHBL Bureau, New Delhi, December 6, 2010French Minister says opening up of sectors would attract more investments.Foreign direct investment (FDI) in multi-brand retail and insurance may be opened upsoon in India, Mr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission,indicated on the sidelines of a Federation of Indian Chambers of Commerce andIndustry (FICCI) event. 19
  • France investmentHe was responding to the French Minister of Economy and Finance, Ms ChristineLagardes statement at the same event that France would invest much more than itscommitment of €10 billion in India for the period 2008-12, if insurance and multi-brandretail are opened to foreign direct investment.“The €10 billion commitment by French business to invest in India between 2008 and2012 could be a lot more if opportunities come up through opening of insurance andmulti-brand retail. French companies would respond in a rigorous manner. Everything isabout give and take, its a two-way street,” she said.Ms Lagarde is accompanying the French President, Mr Nicolas Sarkozy, on his four-dayvisit 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 thisfor the first time. The feeling that the small retailer would be adversely affected in ascenario when the economy is growing at a fast clip was misplaced.”More supportMany arms of the Government, including the Planning Commission, were supportive ofopening multi-brand retail to foreign direct investment, he added.Currently, India does not allow foreign direct investment in multi-brand retail but allows51 per cent in single-brand retail.Mr Ahluwalia said the debate on opening of the insurance sector had been initiatedthrough a Parliamentary process and India should raise its investment cap in the sectorto 49 per cent from the current 26 per cent.Copyright The Hindu Business Line>>>20) Samsung plans to double mobile volumesSource: http://www.thehindubusinessline.com/2010/12/07/stories/2010120752920700.htmL N Revathy, Coimbatore, December 6, 2010Samsung is planning to double mobile volumes in 2010 over that in 2009. Withoutsharing numbers, the Director of IT and Mobile of Samsung Electronics, Mr RanjitYadav, 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 companys mobile portfolio ranges from the entry level Guru series, dual SIMphones, 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 changedthe dynamics of mobile telephony. “We have emerged a strong player in the Dual SIMcategory and plan to expand our product portfolio further in 2011. We expect the DualSIM portfolio to contribute to at least 25 per cent of our overall mobile handset sales in2010-11 fiscal.”Claiming that the Samsung Star Duos was the industrys first 3G + 2G Dual-StandbyTouch phone, he said of the three Dual SIM devices launched in October, the SamsungGuru Dual 25 (GT – E1225) and Samsung Guru Dual 26 (GT –E 1252) with featuressuch as large display, stereo FM, Torch, 9 regional language support, games, mobileprayer, 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 themarket.He explained that the dual SIM devices provided the comfort of switching between thetwo SIMs and saved the trouble of carrying more than one handset at a time. “No twohandsets, no two chargers and no two ringtones in addition to saving on multipleroaming costs,” he added.Smartphone strategyTo a query on Samsungs Smartphone strategy for the India market and future plans, MrYadav said the companys foray into the Smartphone space was with a compellingproduct set.“Currently, the Smartphone segment represents less than 5 per cent of Samsungsbusiness, but it is the markets fastest-growing segment. We are planning to launch 3more handsets on the Bada platform this year and are looking at a total line-up of 8-10smart phones to strengthen its portfolio.”‘Around 2.5 million Smartphones are expected to be sold in India this year and we atSamsung expect to capture at 20 per cent market share in this segment by the end ofthe year.Outlining Samsungs 3G business approach and offerings, he said “this market presentstremendous opportunities and would be a key growth area for us.”According to him, 3G handsets would contribute to around 5 per cent of the companystotal handsets sales at present. “We are aiming to double it within a year.”Tapping rural marketHe further pointed out that the Governments recent announcement targeting a rural tele-density of 40 per cent by 2014 would open up huge opportunities for the telecomecosystem 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 severallocal Indian brands joining the fray and gaining share from the major OEMs. Theiraggressive marketing and focus on locally popular features such as dual-SIM haschanged the competitive dynamics and increased the need for more localized strategies.Entry level consumers need dual SIMs for various reasons including economising timeand costs, improving efficiency and for increased convenience,” he added.Copyright The Hindu Business Line>>>21) Cotton prices bleed textile firmsSource: http://www.business-standard.com/india/news/cotton-prices-bleed-textile-firms/417375/Devika Banerji, New Delhi, December 7, 2010Besides soaring prices, small and medium players are also facing a shortage of yarn thisyearAs pricing pressures have increased for textile manufacturers and exporters all over theworld due to rising cotton prices, Indian players are seeing their bottomlines shrink. Thisis despite a consistent flow of orders and estimates of increased domestic cotton outputthis year.Contrary to the situation overseas, where supply is expected to fall, driving prices to newhighs on estimates of lower global output, India is expected to see a 12 per centincrease to 325 million bales of cotton production this year. However, with exporters andtraders finding it lucrative to export cotton rather than sell to domestic players, domesticcotton prices have been shooting up with units even apprehending a scarcity.Indian garment manufacturers have been reeling under the high price of cotton sinceNovember 2009, when yarn prices saw a 40 per cent jump. However, the situation hasworsened in the current year where, besides high prices, small and medium players arealso facing a shortage of yarn.Large exporters with a turnover of over Rs 1,000 crore like Gokaldas Exporters, who hadbraved the 2009 price rise, were significantly impacted this year. It bottomlineplummeted into the red zone in the second quarter, primarily due to the over 50 per centrise in input costs.The company reported a 26 per cent increase in the cost of wages and around a 50 percent increase in cotton fabric prices, which in turn resulted in the topline shrinking by13.3 per cent to Rs 263 crore and a loss of Rs 27.10 crore, against a net profit of Rs 9.1crore in the corresponding period last year.“The orders executed in this quarter were badly affected by the rising cotton fibre pricesand added to the steep wage increase with affect from April 2010. We could not pass onthe rise in cotton prices to our customers since they were old contracts finalised muchearlier,” the company stated in an official note. 22
  • For integrated players like Alok Industries, which manufactures its own fibre, the secondquarter has been rather more comfortable as it has been able to pass on the impact ofincreased costs to consumers. The company posted a 40 per cent increase in net profitto Rs 79.8 crore in the second quarter. However, the company’s costs shot up by 51 percent, primarily due to an increase in raw material costs.“Until now, we have managed fine as the order situation is good. We are an integratedplayer, so we have been able to transfer the costs to consumers without affecting ourbottom line,” says Sunil Khandelwal, chief financial officer, Alok Industries. Khandelwalfurther acknowledged that given rising cotton prices, demand for synthetic fibres likepolyester had shot up, which positively impacted sales in value terms.Hari Kapoor, managing director of Noida-based Allied Export Industries, which has aturnover of around Rs 156.2 crore, is also facing low realisations and finding it difficult topass on the increased input costs to customers. “There is no point asking us whether weare impacted. Of course we are impacted. It is difficult to quote prices, as prices areconsistently rising and availability is also scarce even as orders are flowing in,” Kapoorsays.Adding to the problems of exporters like Kapoor is the fragile rise in consumer demandfrom major export markets — the US, eurozone and Japan — making it impossible topass on increased costs to consumers.Industry players blame traders, particularly multinational trading houses, who book largequantities of new cotton crops through forward cover — that is, even before the cropcomes to market — which reduces the availability of cotton for domestic mills and givestraders 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 theminimum support price of Rs 23,500 per candy. The domestic industry says it is unableto enter into such forward cover contracts due to the lack of adequate credit, as marginmoney for working capital loans for cotton purchases are high at 25 per cent and theloan period is limited to 6 months.The government had, taking the situation into consideration, declared 5.5 million balesas the exportable surplus. Registration applications for the entire 5.5 million bales werereceived within 10 days and had to be discontinued on October 10.Industry expects arrivals , including carryover stock from last year, to touch 10 millionbales, of which 5.5 million is set to be exported, while around 4.5 million bales isestimated to be domestic consumption. This leaves negligible stock from Decemberonwards, possibly driving prices further.According to the Cotton Advisory Board, at any given time the ending stock should beadequate for around two months’ domestic consumption, or at least 5 million bales. “Atthis rate, there is no reason to believe that costs will come down any time soon, asconsumption is only going to increase,” adds Kapoor. 23
  • The garment industry, particularly small and medium exporters, are apprehensive thatthe problem of increasing cotton prices and reduced availability will weed out thepositives of incoming orders. The solution, they say, lies in delaying exports further toensure supply for the domestic mills.“By delaying exports by a month the government should ensure availability of cotton tothe domestic industry. It is a temporary problem and can be managed by adequatepolicy measures. No Indian player can survive at this price, as pricing is the key forthem,” says D K Nair, secretary-general, Confederation of Indian Textile Industry.Copyright Business Standard Ltd.>>>22) FMCG: For all seasonsSource: http://www.business-standard.com/india/news/fmcg-for-all-seasons/417320/Sunaina Vasudev & Priya Kansara Pandya, Mumbai, December 7, 2010Despite business headwinds, FMCG stocks are likely to sustain high valuationsWhether the markets move up on the back of strong economic prospects and robustforeign flows, or remain volatile on account of global events like Eurozone worries andtensions in Korea, the fast moving consumer goods (FMCG) sector is expected to standstrong, despite its huge outperformance over the Sensex in the recent past. SinceJanuary 4, 2010, the BSE FMCG index has surged 28 per cent as against a 15 per centrise in the broader markets.Analysts reckon the stocks are likely to sustain their high valuation of an average 25times 2011-12 estimated earnings (higher end of the five-year trading range). Given thedefensive nature of the business, FMCG stocks usually outperform other sectors involatile markets.The sector has been witnessing strong volume growth of late. Moreover, pricing powerhas returned to companies (though with a lag for some players). But, intense competitionand rising input costs challenge growth and profitability.Analysts believe revenue growth for most companies may not be a problem due tostrong gross domestic product (GDP) numbers and buoyant consumer sentiment. Thesame is unlikely to be materially impacted by the current level of food inflation. Also, anyfurther significant margin compression is unlikely, as pricing power is returning and willcontinue to improve.Given the rising consumer base and buoyant rural consumption growth, FMCG stocksprovide strong earnings visibility and will continue to be in demand. As the Indian marketgets more competitive, Dabur, Godrej Consumer Products and Marico are eyeingmerger and acquisition opportunities in other emerging markets like Africa, Bangladeshand Sri Lanka, which is being taken positively by market experts. 24
  • Analysts are betting on companies with high growth potential, pricing power, lesscompetition and/or the possible extent of diversification, both in terms of geography andproducts. In the largecap space, they prefer ITC, Asian Paints and Dabur India, whileMarico, Jyothy Laboratories, Britannia and Emami remain the top midcap bets due tobetter valuation and growth potential.Copyright Business Standard Ltd.>>>23) Auto parts units back in fifth gear after the slowdownSource: http://www.business-standard.com/india/news/auto-parts-units-back-in-fifth-gear-afterslowdown/417278/BS Reporter, New Delhi, December 7, 2010The Indian auto components and accessories sector, which was hit hard by the recenteconomic slowdown, is again moving ahead in fifth gear, according to the findings of asurvey 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 whichmicro, small and medium enterprises (MSMEs) have a significant presence – felt that themarket had progressed since last year, 8.6 per cent had a negative view, and 20.4 percent felt that they had not seen any change compared to last year. Respondents foundthat consumer sentiment had improved when compared to the previous year. About 60.2per cent of respondents found an average improvement in consumer sentiment, 22.6 percent found the improvement beyond expectations, and 17.2 per cent felt that consumersentiment is still negative.However, the MSMEs in this space continue to reel from a liquidity crunch. This wasevident from the fact that 62.4 per cent of respondents wanted liquidity to be improvedand lending norms eased. As for order books, about 60.2 per cent claimed that theirorder books were balanced, 22.6 per cent found them strong, while 17.2 per cent saidthat they remained weak.Copyright Business Standard Ltd.>>>24) Surat diamond industry hard hit by staff crunchSource: http://www.hindustantimes.com/business-news/corporatenews/Surat-diamond-industry-hard-hit-by-staff-crunch/Article1-634747.aspxAhmedabad, December 05, 2010Surat’s diamond industry is facing severe manpower crunch at a time when demand forcut and polished diamonds from the US, China and other markets is regainingmomentum lost during the global recession of 2008-09. “At present, we are facing ashortage of around 25% of skilled workers,” said Dinesh Navadia, president, SuratDiamond Association (SDA). “For example, in my own factory Tiku Gems, 500 workersare working against the required 650.” 25
  • This shortage will worsen if the increase in the supply of rough diamond goes up, saidChandrakant 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 inearly 2009 when 300,000–400,000 people lost their jobs. “The main reason of shortageis 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 workprofile. “We will have to revise wages in order to get people work in the sector,” Navadiasaid.During April-October 2010, polished diamonds exported from Surat rose 57% toR68,000 crore against R45,000 crore last year, according to the Gems and JewelleryExport Promotion Council. Gems and jewelry exports are a leading foreign exchangeearner for India and accounts for over 10% of the country’s total exports.Copyright HT Media Limited>>>25) Food Specialities plans new unit for snacksSource: http://www.mydigitalfc.com/news/food-specialities-plans-new-unit-snacks-897Jayashree Maji, New Delhi, December 06, 2010Ludhiana-based Mrs Bector’s Food Specialities is in the process of ramping up itsdistribution to go national in the next two years. The company, known for its bakeryproducts 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 anIPO by 2012 when it aims to achieve Rs 1,200 crore revenue. “The IPO got delayed dueto recession. We’ll probably come out with our public issue during 2012 fiscal,” saidBector.“International tie-ups will continue to happen. But, we do not need any more funds fromoutside. We have grown 30 per cent over last year. The company will continue to growat 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 theprocess of going national. “We have a major expansion plan in place which will help usdouble our distribution in the next two years,” said Bector. Besides, its brand Cremica isalso getting into new product categories. “The branded ethnic snacks food market isroughly around Rs 2,000 crore. We have done some research and going forward, weplan to launch snacks in the line of Haldiram’s and Bikano. We are also rolling outflavoured bread spreads and chutneys,” said Bector. 26
  • The company has also set up a food processing facility in Haryana with an investment ofRs 30 crore especially for snacks. It has also placed its snack products with anorganised retailer in Canada, he added.Copyright Financial Chronicle>>>26) Discount retail chains on expansion spreeSource: http://www.fashionunited.in/news/apparel/discount-retail-chains-on-expansion-spree-061220101431December 06, 2010Discount retail business is indeed booming across India as is evident from the massivepresence of top discount retail brands Megamart, The Loot and the Brand Factory. Onthe other hand, Promart, run by Provogue has scaled down and abandoned its initialplans to open 20 more outlets across India, while solidifying its presence in Ahmedabadand Indore.In October, Megamart opened its 175th outlet, in line with its parent company ArvindRetail’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 onopening 3 million sq. ft. a year, across its different formats. Arvind Retail’s CEO Suresh Jsays Megamart scores over other value retailers in customer service as there is aservice executive for every 300 sq. ft. of store space as against others where shoppershave to wait for the sales staff. They are looking at a turnover of Rs 500 crores for FY2011 and around Rs 1,000 crores by FY 2013. Megamart sells apparels from 200national and international brands. Their bigger format stores known as Big Megamartalso 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 outletsand plans to cross 200 outlets in the next six months and is looking at Rs 100 crorespublic 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 apercentage margins on the business brands do. The chain is looking at a business of Rs750 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 gmSource: http://www.deccanherald.com/content/118737/india-gold-scales-peak-20887.htmlMumbai, December 07, 2010India gold futures on the Multi Commodity Exchange (MCX) struck a record high of20,887 rupees ($466) per 10 grams on Tuesday tracking overnight rise in internationalmarkets. 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 Europessovereign debt problems and speculation the U.S. Fed will extend monetary easing.Copyright The Printers (Mysore) Private Ltd.>>> International28) X5 Retail to acquire Kopeyka discounter chainSource: http://www.indiaretailing.com/news.aspx?Id=5191&Topic=2December 6, 2010X5 Retail Group, Russias largest retailer in terms of sales, has signed an agreement toacquire 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 ofrevenue and number of stores, operates more than 660 stores with a total selling area ofover 290,000 sq.m.It is expected that by the end of 2010, Kopeyka will have rights for approximately 700stores.Kopeyka operates soft discounter stores in the European part of Russia, with more than50 per cent of its business in Moscow and the Moscow region. It reported net revenuesof 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 MealsSource: http://www.retailwire.com/discussions/sngl_discussion.cfm/14925Bernice Hurst, December 6, 2010The law of unintended consequences is one that just keeps on giving. We havediscussed multigenerational households in this forum and the implications of youngpeople not flying the nest or, conversely, setting up home on their own, increasing thenumber of 21st century single-person households.What we have not covered are the implications of extended family households createdwhen parents separate and set up home with new families, possibly having morechildren and certainly having more in-laws to invite for holiday meals. Geography, aswell as demography, plays a part with family members living much further than theproverbial stones throw from one another. 28
  • All these factors are contributing to families multiple Christmas celebrations. The DailyTelegraph has reported on a trend spotted by two of Englands most popularsupermarkets -- Asda and Waitrose.After polling 3,000 customers, Asda apparently found that 53 percent cook twoChristmas meals while 32 percent have to sit through more than three. As a result, 38percent more frozen turkeys have been sold this year, compared to the same time lastyear.The situation "is thought to have come about because the rising divorce rate has led tomore families living apart -- meaning more homes to visit at Christmas time in order tokeep the peace."Waitrose, while increasing its offering of fresh birds over the coming weeks, "sold 56percent more frozen turkeys last week (mid-November) compared to the same week in2009" as well as a significant "increase in sales of pre-prepared vegetables and frozendesserts that are easier to serve."The two stores turkey buyers agree that it is a long-term trend with shoppers "buyingmore than one turkey at Christmas ... as they celebrate with their different families,"according to Asda. Waitroses buyer pointed out, "We know that the weekend beforeChristmas 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 theywont be spending Christmas with."Copyright RetailWire LLC.>>>30) Record breaking week for ebay ukSource: http://www.theretailbulletin.com/news/record_breaking_week_for_ebay_uk_06-12-10/December 6, 2010More than 5 million shoppers logged onto eBay.co.uk yesterday, in what has been arecord breaking week for the online marketplace in the lead up to Super Sunday.Sales on the UK sites busiest shopping day of the year were up 18% on the same daylast year, with shoppers snapping up nearly 1.4 million gifts in just one day. Withconsumers avoiding the freezing temperatures and the stress of busy high-streetcrowds, this accounted for 17 gifts being purchased every second.Clothing, shoes and accessories made up eight out of the top 10 most popular itemsbought yesterday. DVDs maintained its top spot from last year as the favourite gift topurchase on Super Sunday, with womens shoes in second spot and CDs in third.eBay sellers played their part in the UKs export-led recovery, with international sales up11% 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 andvalue from the comfort of their own homes and its encouraging to see sales up soconsiderably, despite the tough economic climate. We tend to see a sharp rise in saleson the first Sunday in December as people start to think about their Christmas shoppinglist, although this years cold snap has clearly led to even more people choosing to shopwithout the hassle of the high-street."The Retail Bulletin is organising their 2nd Multichannel Summit, to be held in LondonFebruary 2nd 2011. The event is sponsored by k3 retail and will look at how retailers canmaximize profits, market share and loyalty through cost effective, seamless, integratedmultichannel strategies.If you would like to attend as either a delegate or Networking Partner, go toCopyright The Retail Bulletin Ltd.>>>31) Debenhams reports snow and recession create earliest ever start forChristmasSource:http://www.theretailbulletin.com/news/debenhams_reports_snow_and_recession_create_earliest_ever_start_for_christmas_06-12-10/December 6, 2010Second largest UK department store chain has reported the earliest start to the festiveseason ever, with Christmas decorations going up in homes all over Britain alreadyEarly snow and cold weather combined with the gloom of recession has encouragedthousands of people to reach for the tinsel and fairy lights to brighten up their days, salesfigures 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 outragetraditionalists who believe that Christmas is already spreading well beyond the traditionaltwelve day celebration period.Debenhams spokeswoman Ruth Attridge said,"Its clear that thousands of people areputting more faith in Santa Claus than the IMF or politicians to bring joy into their livesthis year. The bad weather has made it feel like Christmas, and so everyone is saying,Forget tradition, and seasonal dates. Its been a tough year, we need a break, so letsget stuck in."The news means that Christmas celebrations in the UK are set to last for an incrediblesix weeks this year.Already Debenhams sales of tinsel, Christmas trees, fairy lights and other decorationshave 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 wrapby 412 per cent and table decorations by 980 per cent. 30
  • Until now, sales of Christmas decorations have followed a totally predictable path, yearin 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 schemeSource:http://www.theretailbulletin.com/news/more_retailers_sign_up_to_the_warrington_against_business_crime_scheme_06-12-10/December 6, 2010Police and partners have joined forces with three superstores in Warrington in a bid toclampdown on shopliftersMarks and Spencer at Gemini Retail Park, Asda at Westbrook and Tesco Extra inWinwick Road are the latest retailers to sign up to the successful Warrington AgainstBusiness Crime scheme.It is part of an expansion of the retail crime reduction scheme, which already covers thetown centre and Birchwood Shopping Centre.As part of the scheme businesses work closely alongside police and partners to tackleretail crime, reduce anti-social behaviour and to reassure retailers and members of thepublic.It also shares intelligence and information with retailers and business crime partnershipsacross the UK.Dave Barlow, Business Crime Manager, said,We are delighted that these stores havejoined the scheme. We have helped to reduce retail crime significantly for all theWarrington Against Business Crime scheme members, and we intend to have the sameimpact at these stores.The Warrington Against Business Crime scheme was given national recognition in Maywhen it secured the Safer Business Award for the first time. The award, which is handedout by Action Against Business Crime, recognises that the scheme meets a nationallyrecognised standard for business crime partnerships.The partnership has been assessed to ensure that it operates to a national standard andcarries 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 beextended throughout Warrington over the next two years.Copyright The Retail Bulletin Ltd.>>> 31
  • 33) Record online and bumper Saturday sales at John LewisSource:http://www.theretailbulletin.com/news/record_online_and_bumper_saturday_sales_at_john_lewis_06-12-10/December 6, 2010John Lewis announced today that last week (to Saturday December 4) saw sales inexcess of £100millionDespite atrocious weather conditions throughout the country the company achievedweekly 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 flockingto John Lewis branches to realise their pent-up demand 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 crossedthe £20million mark for a week. There is no doubt that during the snowy weathercustomers chose to increase their online shopping. During Wednesday last week, theworst day of the weather conditions, sales on johnlewis.com were 98% up on the sameday last year. Tomorrow sees the predicted Mega Monday for the johnlewis.comoperation, during which we confidently expect to see other records broken.Sales reports from John Lewis branches nationwide show that customers are clearly inthe mood for Christmas shopping and for keeping warm. Sales of heaters, nightwear andcold weather fashions saw a huge uplift, with menswear being particularly strong.Looking at Christmas gifting, toy sales saw major increases last week, with traditionalgifts such as the ever-popular lego and new animatronic toys both hitting new saleshighs. 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 achallenging one. It is a huge credit to all our Partners that we have achieved suchexcellent sales despite the adverse conditions. There is no doubt that our multi-channeloperation, where customers can choose from a variety of ways to shop, has contributedsignificantly to our trading success.”Copyright The Retail Bulletin Ltd.>>>34) Fashion retailers missing m Commerce opportunitySource: http://www.theretailbulletin.com/news/fashion_retailers_missing_mcommerce_opportunity_06-12-10/December 6, 2010MIGs Christmas Sock Report indicates only 23 percent of UKs top 57 fashion retailershave 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 57retailers* against their mCommerce capabilities, in particular testing them against thequestion: how easy is it to find and purchase the most popular Christmas present - a pairof socks?The report concluded that only 16 retailers had a mobile application with only nine ofthese being capable of processing a transaction. In addition, only four retailers had anoptimised transactional mobile site. In total only 23 percent of all retailers in the fashionsector allowed users to find and purchase a pair of socks via mobile. Clicks to find a pairof 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 by2013, the report highlights the need for the fashion retail sector to embracemCommerce. Furthermore Tesco Direct last week issued findings of its analysis in toconsumer shopping habits indicating that one in 10 Brits will do some of their onlineChristmas shopping using their mobile phone.Ben Cusack, Group Marketing Director, Mobile Interactive Group said,“With thecontinued growth of smartphones and the mobile internet, mCommerce has rapidlygrown in to a huge opportunity for the retail sector. In the UK M&S has played a pivotalrole 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’sconvenient for them.“The Sock Report clearly demonstrates that the fashion subset of the retail sector islagging behind somewhat and since we know that consumers’ online behaviour extendsright in to the mobile channel, clearly there are huge gains to be made with atransactional mCommerce strategy in 2011.”Growth in mCommerce is also on the increase in the US, where IDC Retail Insightsrecently 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 holidayseason’. Additionally, industry analyst Mary Meeker has predicted that mCommerce willgain market share faster than tradition online retailing.There will be a panel discussion at the Retail Bulletin’s Multichannel Summit 2011looking at ’Integrating Mobile Into Your Multichannel Strategy’. Confirmed pannellistsare: 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.Toregister for the event and to find out moreCopyright The Retail Bulletin Ltd.>>> 33
  • 35) Retailers neglecting to support mobile shoppers risk losing millions overChristmasSource:http://www.theretailbulletin.com/news/retailers_neglecting_to_support_mobile_shoppers_risk_losing_millions_over_christmas_06-12-10/December 6, 2010Retailers need to ensure mobile infrastructures can cope with the growth in mobilecommerceRetailers risk losing millions of pounds from missed sales this Christmas if their ITinfrastructure fails to cater for the sharp increases in traffic from mobile users. The UK ispredicted to spend £6.4bn online this Christmas as consumers continue to seek betterdeals than in-store. Furthermore, mobile shopping is set to significantly increase onlinesales this year, as 18% of consumers plan to purchase some gifts using theirsmartphones.“Many online retailers have prepared for the extra traffic their sites receive during thepre-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 channelotherwise they risk losing a significant number of sales. Having the right IT infrastructurein place to deal with the rise in mobile commerce and to support the growing number ofmobile 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 aretailers’ website performed badly it would dissuade them from buying goods from thatorganisation on the web or even in store. This demonstrates the importance of having agood online reputation and the need for retailers to ensure their online customerexperience is a positive one.“In the same way customers have determined which brands they are loyal to on thetraditional web, we are likely to see the same in the mobile space as more people shopusing their phone. Today’s mobile sites and applications are also becoming much moremultimedia heavy, therefore it is vital that retailers have sufficient supporting ITinfrastructure 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 traditionalweb world and ensure their mobile services and applications have the right mix oftechnology to support them. Those retailers that do are likely to have a much merrierChristmas and prosperous new year than those that don’t.”Copyright The Retail Bulletin Ltd.>>> 34
  • 36) Waitrose sales on the up despite the big chillSource: http://www.talkingretail.com/news/industry-news/waitrose-sales-on-the-up-despite-the-big-chillStacey Wright, December 6, 2010Waitrose saw another strong week of trading, despite the impact of mid-week snow inmany 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 wasexceptionally busy on Monday as shoppers stocked up before the big freeze whilebusiness was also brisk on Saturday.Employees in the four regional distribution centres and branches pulled out all the stopsto keep Waitrose stores stocked in the challenging weather conditions. Some branchpartners walked for miles in the snow to get to work, while others stayed overnight intheir 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%, instanthot chocolate up by 78% and herbal teas up 37%. Comfort food was the order of theday 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 roastand mashed potatoes among the best sellers.Mark Price, Waitrose managing director, said: “This is an astonishing sales result, giventhe impact of weather conditions during the week.“Our Partners worked heroically to keep our branches stocked in these testing conditionsand thanks to them we are really well set up to serve our customers in the run-up weeksto Christmas, whatever the weather.“Warmth was the watchword as customers temporarily turned their attention from festivepreparations 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 cranberriesand cranberry juice soaring 15 years after the cookery queen first sparked a nationalshortage of the fruit.Smith’s latest recipes for Waitrose include sophisticated cranberry jellies served withfrosted cranberries on top. Her delicate dessert caused a surge in sales of freshcranberries 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 humblecranberry to the nation’s attention and became known as the ‘Cranberry Queen’. Shecaused a countrywide craze for the seasonal fruit in a phenomenon dubbed the DeliaEffect.Copyright Metropolis International Group Ltd.>>>37) Sainsbury’s opens new Local store in Ashford, MiddlesexSource: http://www.talkingretail.com/news/industry-news/sainsburys-opens-new-local-store-in-ashford-middlesexStacey Wright, December 6, 2010Sainsbury’s has opened a new Local store in Ashford, Middlesex, where pupils fromClarendon Road Primary School joined in the celebrations.The children, who were joined by teachers, cut the ribbon at 9am. They were thenpresented with £250-worth of Active Kids soft play equipment before receiving a tour ofthe new store on New Parade.At just over 2,700 sq ft, the Local store will offer a large range of goods for aconvenience store, from fresh baked goods, fruit and vegetables, to newspapers andflowers. 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 aswe can in the coming months as it’s our local charity partner. Santa may well put inappearance at the hospice in the next few weeks, helping the store and our builders todonate £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 brandSource: http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=93707USA, December 6, 2010GROOMSTARS has announced its collaboration with Victor Talbots, a one of a kindmens fashion establishment out of Greenvale, New York. As an illustration of theircommitment to excellence, Victor Talbots is renowned for their unsurpassed quality andcraftsmanship in fine formal wear.Victor Talbots has brought Groomstars their unparalleled mastery of fine evening wearwith an exclusive collection of ties, braces and other evening wear. The Launch of thispartnership epitomizes the high standards of excellence in design and the outstandingquality Groomstars consistently supplies to their costumers. 36
  • Victor Talbots exclusive line for Groomstars allows grooms to select high quality formalwear gifts for their groomsmen, best man and father of the bride. In a market wear highend mens gifts simply did not exist, Groomstars along with Victor Talbots has changedthe gift giving experience. Victor Talbots has contributed to Groomstars goal of raisingthe bar for male gift giving.Victor Talbots was founded over a decade ago upon the basic principle of representinggentlemans evening attire within the distinct environment for which it was intended. Toaccomplish this undertaking would be the evolving creation of what Victor Talbots hasbecome today. Victor Talbots is a one of a kind couture fashion establishment whichblends the finest in luxurious wears and ultimate service into an exceptional personalexpression 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=93726USA, December 7, 2010Levi’s – the brand that introduced the first jeans for women 75 years ago – asked 50inspiring young women from across the globe to inscribe hand-crafted journals with howthey’re shaping the future and who inspired them along the way. These “TravelingJournals” will be revealed as part of a global Levi’s brand sponsorship at the first-everTEDWomen conference in Washington, D.C. Dec. 7-8.The TEDWomen conference will also include the debut of a documentary film fromyoung director Chiara Clemente focusing on eight journal contributors’ inspirational andpowerful stories. Content from these motivational journals can also be found onShapeWhatsToCome.com, a global community encouraging Millennial women todiscover 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 tosuccess and making a difference in the world around them.Participants range from Katie Spotz (age 23, Mentor, Ohio and recently named one ofGlamour magazine’s women of the year), who was the youngest person to row soloacross the Atlantic Ocean, raising awareness and $100,000 to promote access to cleandrinking water in developing countries, to Priya Lakhani (age 27, London, U.K.), founderof the Masala Masala Project, which provides one meal for the homeless in India forevery jar of Masala Masala Indian sauce sold in the U.K.A director who explores identity, cultural contrast, and the creative process, Clementesays, “I wanted to do this film so I could bring each woman’s incredible story to life. Theirinspirational experiences and triumphs are a true testament to the creativity andpossibilities of this generation.” 37
  • Other Traveling Journal contributors include: • Sarah Elizabeth Ippel (age 26, Chicago, Ill.), founder of the revolutionary Academy for Global Citizenship, an elementary school in Chicago that uses unique features such as an on-site farm and daily yoga to foster environmental stewardship and global awareness in its young students (80 percent of whom come from families living below the poverty level) • Ashley Rhodes-Courter (age 25, Crystal River, Fla.), who overcame an abusive childhood in foster care and is now a voice and advocate for the thousands of children in Americas foster care system today • Emily Cummins (age 23, U.K.), already an award-winning inventor with a passion for sustainable designs that improve the quality of life in developing countries.All 50 traveling journals are available on ShapeWhatsToCome.com, a new global onlinecommunity and discussion platform where young women share ideas and opinions andconnect with peers on hot topics such as art, media, fashion, music and social changeas well as discover and pursue their passions to help shape their futures. The origin ofthe community is based on global researchfrom the Levi’s brand revealing a surprisinggenerational shift in life priorities and a need for a new, nontraditional form of mentorshipamong Gen Y women (ages 21 -29).“There’s a new spirit of action coming from twenty-something women “They’re changingthe world with nothing but raw talent, game-changing ideas and the will to make adifference,” said Mary Alderete, Vice President of Levi’s Global Women’s Marketing.“They are not daunted by world issues like the economy or the environment; rather theyare forging their own path with a true pioneering spirit to create a better future.”The Chiara Clemente film will debut at the first-ever TEDWomen conference inWashington, D.C. Dec 7-8, 2010. TEDWomen is an extension of the TED conferenceseries, which brings together some of the world’s leading thinkers and doers toexchange ideas in a global setting. TEDWomen invites attendees to explore how womenand girls are reshaping our futureCopyright Sanblue Enterprises Pvt. Ltd.>>>40) Retail rich list veteran Brett Blundy sells off two retail chainsSource: http://www.smartcompany.com.au/buy-or-sell-a-business/20101207-retail-rich-list-veteran-brett-blundy-sells-off-two-retail-chains.htmlJames Thomson, December 7, 2010Retail veteran Brett Blundy has sold the Dusk candle and homewares chain and theAdairs linen chain to private equity firm Catalyst for an undisclosed amount. 38
  • According to a report in the Australian Financial Review, Blundy and the management ofthe two chains – led by Adairs chief David MacLean and Dusks chief Greg Milne – willretain a 20% stake in the chains, which will be placed in a new vehicle to be calledHome & Decor Holdings.Blundy, MacLean, Milne and Catalysts managing director Trent Peterson will sit on theboard of the new vehicle.Attempts to contact Catalyst and Blundys company BB Retail Capital were unsuccessfulthis morning.Blundy was listed on this years BRW Rich 200 list with a fortune of $587 million. Whilehe is probably best known as the founder of the Sanity chain, Blundy has a formidabletrack record in retail as the owner of chains such as Bras N Things, jewellery chainLovisa and youth accessories chain Diva.Blundy also has an investment in the hugely successful BridgeClimb attraction atSydney Harbour Bridge and owns a portfolio of retail properties, including a number ofbulky goods homemaker centres.However, Blundy appears to be on something of a sales drive at present. As well asselling of major stakes in Dusk and Adairs, he is also reported to have the put the Bras NThings chain up for sale as well.Last year, Blundy sold his stake in the Macro organic grocery chain to supermarket giantWoolworths in a deal believed to worth about $30 million.The Dusk chain has 72 stores in Australia, while Adairs has more than 110 stores.But the booming Diva chain, which now has 250 stores around the world and has justopened stores in China, appears to be now where Blundy is placing most of his energyand financial clout.Copyright SmartCompany.com.au>>>41) U.S. Online Retail Sales Up 12%Source: http://www.jckonline.com/2010/12/06/us-online-retail-sales-up-12December 6, 2010U.S. online retail sales were up 12 percent to $16.8 billion from Nov. 1 to Dec. 3according to com Score.Cyber Monday became the heaviest online spending day on record at $1.028 billion. Therest of the week saw four individual days reach $800 million in consumer spending.Thanksgiving Day saw a 28 percent increase in online spending. Online sales reached$648 million on Black Friday, a 9 percent increase from last year. 39
  • Top 25 retailers experienced a 20 percent increase in online sales, while the online salesof small and mid-tail retailers remained flat.According to com Score’s survey of 500 Internet users, 33 percent of consumers agreedwith the statement “recommendations from friends on social media sites are a great wayto get gift ideas during the holiday season.“ Twenty-four percent disagreed and 43percent remained neutral.Copyright Reed Elsevier Inc.<<<END 40