Retail India Business - News, Views and Much More

Retail India: Bharti's Opens "Easy Day" Stores

Bharti Enterprises has opened its neighbourhood stores - Easy Day in its hometown Ludhiana. This is its first roll-out of the food and grocery stores with the partnership with Wal-Mart.

Retail India: Tata's Trent buys-out Founder Hemu

After 3 years of Trent aquiring 76% in Landmark founded by Hemu Ramaiah, Tata's Trent has just closed the final stages of the deal by buying out the rest of the stake. Landmark in the last 3 years has expanded rapidly with about 15 stores across the country. 

Retail India: Marks & Spencers JV with Reliance Retail

Well it finally had to happen. Marks & Spencers has been trying to expand from its home turf for quite sometime and its entry into the USA hasn't been spectacular and its entry into India with a Joint Venture Licensing with Pantaloon Retail was limited with a dozen odd Stores limited with Fashion Retail. Although in the begining M&S had been clearly marketed at the upper-end, the last 1 year has seen them repositioning itself as a value retailer of quality clothes, as affordable as any other decent brand, although it needs to realize it should't loose its charm and become cheap in the process.

Now that M&S has been trying so hard to grow its businesses outside UK, India is on the spotlight and its new JV with Reliance says it all. Probably there is't anyone more ambitious that Reliance and someone who could also make things happen. M&S has clearly outlined it will expand beyond fashion in India. Need to wait and see what happens to the 14 stores already with Planet Retail / Future Group.

Spencers Retail Expansion

Spencers Plans to invest rapidly over the next 12 months to gain a stronger retail presence. Would be scaling from 550 stores to 2000 stores by 2009 and 5000 stores by 2011.

Welcome Back....

It's just a few day's more and it would be a year since the last time I wrote anything here.

Being a part of the Retail Industry just does't give you much time. Its a 24/7 job :)

What's new in the last 12 months? Well the Retail Industry is fast catching on as the next big revolution. I think its already made enough headlines. I personally think Retail is going to outdo whatever IT and ITES did to the landscape of India.  The Industry has attracted too much interst and appears to be on steroids for the moment. Will just have to wait and watch....

Retail India: Whats the Fuss About Fresh?

    There seems to be a sudden craze and fuss about using "Fresh" as your brand. Heritage Foods, Reliance Retail, Bharti Retail, Spencers Retail are a few who are already flouting the idea of Fresh and there hardly seems to be much differnce in thier logos.

Although yes the rationale behing the brand Fresh in grocery retailing is obvious, but then is't it something else to be more creative in your branding than to just immitate what everyones aping? Anyways its always nice know that all the money spent on brand identity is well spent :)

So are we going to see each one fighting over who started the "Fresh" concept first? It will be a good start to have some lawsuits in this country over branding though.

Retail India: LVMH May Set Office in India

Moet Hennessy Louis Vuitton - LVMH maybe planning to set its India Corporate Office shortly with its plans to set Sephora brand in the country. This would be in line to bring its other brands into the country including DFS. 

Retail India: Watson Not To Enter

A.S.Watson Group has said it will not enter India with its ambitious plans till there is clarity in the Government policy and till it allows 51% FDI in Retail. For the moment, Franchisee route has been ruled out internally.

Retail India: Sephora To Open 50 Stores

French based Beauty Store Chain, Sephora, plans to set shop in India shortly. Plans include to open 50 stores over a period of 5 years across major cities. Sephora is a division of Moet Hennessey Louis Vuitton.

Retail India Website

Retail India Business Website has crossed with over 1,00,000 hits

Retail India: Bose India To Go Solo

Bose India plans to open and set shops across India at its own pace and by itself. Bose currently operates 12 stand alone stores across India. There are no plans to tie-up with any retail chains or open franchisees at the moment. 

Retail India: Reliance Enters the Stationary Business with Office Depot?

Reliance Retail, part of Reliance Industries is all set to roll out another category of retail specializing in stationary stores. Company sources have confirmed plans to set up 250 stores by 2010 and has had several rounds of talks with potential global chains like Office Depot. Recently Pantaloon of Future Group had announced its entry with a JV with Staples.

With Office Depot and Staples tying up with Reliances and Future Group, the bitter competition will be no different from the American Shores to the Indian Shores once both set shop.

Retail India: UK's Argos Ties Up with HyperCity / Shoppers Stop

UK's leading home and improvement retail group,  Home Retail Group Plc, has drawn a Joint Venture to develop its Argos retail format with Shoppers Stop and Hypercity Retail India.

Under the agreement, Argos will provide its brand, concept and multi-channel expertise and IT Support to the Joint Venture. The Stores will be named HyperCITY-Argos and will start in Mumbai later this year.

Retail India: Hindustan Lever (HLL) Response to the Big Boys

With growing retail penetration and the sudden influx of major new entrants like Reliance, soon to arrive Bharthi - WalMart, and existing chains like Niligiris, Trinethra, Subhiksha, FoodWorld, Spencers, and Future Group, the other element in the Value Chain to be squeezed is the Suppliers. More than other retailers or competition feeling the pinch of organized retail, the immidiate tremors are first felt with the distributors who are backed and developed by the manufacturers / brands or directly by the brands themselves. Suppliers like HLL in grocery retailing have been long trying to manage such key accounts.

HLL's latest response is to roll out its recent strategy of giving a makeover to existing mom & pop corner stores with a brand facelift and rebranding them as HLL Super Value Stores. This has been in place for over 2 years now and the company plans to extend this further. This will develop a stronger connect to customers to go back to thier old stores in a new retail environment which offers the advantage of the local kirana, friendly and known faces, with the advantages of organized retail and customer service. HLL has already seen some visible growth its current Super Value Stores.

Retail India: Tesco Camps at Business Schools

Whilst Tesco is still in the look out for a Indian partner to team up its much anticipated foray, it is believed that the company is busy scouting for talent in the top Business Schools in the country and also seeking for manpower with retail background. Well the official line is it is scouting for talent for its Tesco Hindustan Service Centre but the unofficial talk is the latest round of manpower scouting is for its retail foray.

Retail India: UK's Kingfisher to Enter India

UK's Home Improvement Chain - Kingfisher PLC is considering setting shop in India with a modest initial investment of US$ 250 million. Kingfisher is currently in its initial phase and is looking for a good partner to team with as a 100% direct entry is not allowed yet.

Retail India: Government Sparks The FDI Retail Debate

Well its always an interesting topic that can tick anyone. With the Government up to its usuals in trying to protect the public by raising fresh concerns of FDI in Retail with specific concerns in respect to Wal-Mart, I can not help but wonder in awe.

This must be the most debated subject by the Government for years now and it just never seems to stop. The ruling Government, Congress, has raised fresh concerns on how FDI in Retail and entry of Wal-Mart with a tie-up with Bharthi could affect the aam admi - Government's slang for Common Man

The debate already raised a month ago questioned the legality of the entry of Wal-Mart which the Commerce Ministry had given a clean chit. More so the route that Wal-Mart is entering India is not the first with many others like Germany's Metro Group, Australia's Woolworths, etc already in the country.

The same Government that allowed FDI in Retail for single brand stores and started this new wave of debate is questioning itself.

But what the irony of all this is not the Governments concerns and care for the common man, but rather the market situation of the existing trade. When there are Indian Companies investing US$ 5 Billion + and talking about rolling out over 2000 stores across the country across categories, etc like Reliance Retail, which is one of the extremes and many others industrial groups like Essar, Bharthi, Videocon, Tata, Rahejas etc which are just a few to name, how come the government has no concern what these industrial groups can do to the common man. Its no doubt that with companies with deep pockets like Reliance can do to the local trader.

The new wave of Retail Chains have already affected the common trader and its impact is yet to be felt. Whilst the Government keeps a closed eye, intent or no intent, its ironical that the Government raises debates about banning or restricting International Retail Chains. What took Wal-Mart 20 years to do, Relaince is trying to outdo in 3 to 5 years. Wal-Marts Retail Floorspace is 600m Sq.ft. and US$ 300 in 45 years while Reliance is attempting to cover 100m Sq.Ft. in 3 years with US$ 25 Billion. Now should't the government keep a watch on its own kind?

Retail India: Staples Entry into India

Staples Inc,  has entered a JV with Pantaloon Retail to set shop in India. This marks yet another entry into a new segment by the Future Group / Pantaloon. Staples is the top U.S.A. based office supplies retail chain.

A rollout is expected in major cities with an investment of US$ 20 million to start with.

Retail India: Images Fashion Forum

The Images Fashion Forum is scheduled for 23rd and 24th January 2007 at Mumbai, India. Further Details available at http://www.imagesfashionforum.com/home.html

Retail India: Images - India Retail Forum

The 3rd Annual India Retail Forum, is scheduled on the 8th and 9th September 2007 at Mumbai, India. This is organized by Images Retail. Further Registration details available at http://imagesretail.com/irf/irf.htm

Retail India: Argos to Enter India

Catalogue Retailer, Argos, part of the UK Home Retail Group, is keen on entering India and is in talks with the Rahejas. Argos is one of UK's prominent and established Catelogue retailer with a number of stores in the high street.

Retail India: Costco To Enter India

Costco Wholesale Corp, the world's fifth largest retailer, is planning to enter India.

Retail India: Starbucks to Enter India

Is Starbucks slated to enter India and with a tie-up with Pantaloon? Although there is much media attention and a recent article on the same confirming the same, the Indonesian Franchisee has declined comment on the same. Although there may not be much information of with whom Starbucks is partnering with, Starbucks has made it very clear that it plans to enter India by the end of 2007 in either Bombay or Delhi with its first outlet and India continues to be a focus of new markets to enter.

Ministers Start to Buck Under Pressure

In true Indian style, Indian Commerce and Industry Minister, Kamal Nath, said the government will examine the JV of Bharti and Wal-Mart. This is after CAIT and CPI and others have voiced out against the same and in light with the undecisiveness and extended delays with the Government framing a clear cut policy for FDI in Retailing. Using the Cash and Carry model is being disputed as a back door policy now.

Whatever the government may decide may have much huge implications as this is not the first such entry of an International Retail Chain. Germany's Metro, South Africa's Shoprite have already set shop here along with Australia's Woolworth with Tata in a similar agreement that Bharti and Wal-Mart are adopting. Any adverse change in policy can turn the tables for existing entrants. Something to watch out over the next few weeks while the government is going to buck under industry pressure.

Traders at Delhi are already fed up with the government with its sealing drive and now with Wal-Marts entry, the unorganized trade is definitely feeling the pressure and let down from the government by offering no real protection.

CPI Opposes Wal-Mart Entry in India

The Communist Party of India has opposed the entry of Wal-Mart stating that such large international retailers along with large Indian business groups are monopolising the retail trade, depriving millions of thier livelihood and exploiting cheap labour of the poorer section. Strong words on the very first day.

Wal-Mart Bharti Angers Confediration of the All India Traders

As expected the Confederation of all India Traders Association have opposed the entry of Wal-Mart into India through the Joint Venture with Bharti. CAIT feels that this will leave the local traders unprotected and unsustainable.

Wal-Mart India: Lead to Margin Pressures

With Wal-Marts entry into India, the retail landscape is definitely going to change. There is going to be an increased demand for prime properties and manpower. The retail industry is already seeing intense pressure in both property prices and an acute shortage of talented manpower. Now with Wal-Marts entry, the next thing to take a beating would be the miniscule margins retailers make. Wal-Mart has always been low priced and if the same philosphy is adopted in India it can gives its competitors like Pantaloons Big Bazaar,  Reliance Fresh, FoodWorld and others a run for thier money. Local players like Margin Free Market in Kerela and Shubiksha in Tamilnadu have used the low price stategy and have maintained good market share. In a price concious market like India, a Low Price Strategy in a modern retail format will be the ideal recipe for success.

Shares of Pantaloons has already taken a beating of about 1.8% yesterday when Wal-Mart and Bharti's announcement was made.

Wal-Mart Enters India with Bharti

Its finally official after months of speculation. Bharti has finally shortlisted its JV partnership with Wal-Mart. Although it was Tesco in the lead, finally differences had set them apart and Wal-Mart had taken over as the best fit option. Carrefour was also suppousedly to be in talks.

Wal-Marts interests and excitement in the Indian Retail Landscape is no secret. This is one company openly lobbying with the government for couple of years now and had recently been granted permission to setup its office here for doing the necessary groundwork before anything can open up.

Although Bharti has been a little tight lipped on the details of the roll out strategy, for the moment its only known that an initial infusion of about US$100 will be made to start with and will officially roll out by the middle of next year (August 2007)

The JV partnership will be the same model as with Tata and Woolworth for its consumer durable foray with the Croma stores. Will this be the strategy for all the others to come is something to be seen. How Tesco chooses to enter India is another thing to watch out for.

This is definitely a major setback for Tesco which should have been on the verge of entering India. Tesco will now have to see a suitable JV partner or decide to go solo with a Cash and Carry route like how Germany's Metro has set shop for sometime now.

Reliance Pharma

After Reliances aggresive Retail Foray, it is all set to foray into the global Pharma space with Reliance Life Sciences.

Reliance Retail - Reliance Fresh - hits the shelves

  Reliance Industries Limited has opened its first store at Hyderabad. Tagged as Reliance Fresh it specializes in Diary and Grocery, ideally your neighbourhood store. Reliance has and plans to launch many more in-house brands to retail its own produce rather than too much of branded products. Right now its private label for grocery is Reliance Select and will be shortly launching its Fresh Plus a bigger version of Reliance Fresh which is to cater to food and grocery, pharmacy and apparel.

The first store of Reliance Fresh is about 2000 sq.ft and it expects to roll out its hypermarkets in sizes of around 75000 sq.ft by end of the year.

Image Source: CNN IBN