Retail India Business - News, Views and Much More

FDI in Retail?

With the left being a major part of the UPA, the ruling Government, FDI in retail appears to be shelved yet again. At the Reyters Consumer and Retail Summit, it was very open and loud that many British Retailers like Tesco plans to enter India but find the regulatory environment very stifling. The government is yet to take a clear stance although it brings about the very same topic every few months for the last 3 years.

Andrew Higginson, Tesco, stated that they have had talks with many prospective Indian Partners but are still evaluating the entry and the route to be followed. For the moment companies like Tesco can come only through the Wholesale - Cash and Carry route or the Franchise option.

Nuance Group and Shoppers Stop JV in Airport Retailing

Worlds leading Airport Retailer Nuance Group has entered India with a Joint Venture with Shoppers Stop to setup Duty Free Shops in the upcoming airports in India. With travel industry, domestic and international, together showing growth rates over 40%, the airports will be more busier than ever. Most airports are also slated for expansion and modernisation which will create the ambiance for travellers to make thier last minute shopping. Its a global trend and something that even Indians do before boarding thier flights from overseas.

Giordano Opens In Chennai

Giordano has opened its first store in Chennai, India at the newly opened Chennai City Centre. The store has the complete look and feel as you find it anywhere else in the world. Although the store is of a modest 1000 to 1500 Sq.Ft. it does manage to have a fairly decent collection in line with the season.

Giordano Fashions India Private Limited will be the exclusive distributor for India. Plans are on to expand to Bangalore, Hydrabad and Mumbai. The total plan is to have about 20 stores by 2008.

The entry of Giordano into Chennai City Centre also should be observed as the next wave of stores, brands, retailers all moving towards the Malls and Shopping Complexes that are mushrooming around the country.

Reliance to bring in Target and Home Depot to India?

The recent media article on Reliance bringing in Target and Home Depot into India is something to think about. Irrespective of how big Reliance maybe, Target and Home Depot are world leading retail chains of mammoth size. Something that Reliance plans to achieve on its own, even if its going alone. But with the FDI restrictions in retailing in India, its possible that such an alliance may be forged. But then neither has forged any such alliance before and in all eventuality may not.

Home Depot is the worlds largest home improvement retail chain with over 2000 stores in USA, Canada and Mexico whilst Target has about 1500 stores spread across USA.

Pantaloon JV With Talwalkars

Pantaloon has forged a JV with Talwalkars to start retailing fitness and health related products.

Levis Opens South Asias Largest Levis Store in Bangalore

Levi Strauss India Pvt Ltd has just opened Levis Square at Bangalore measuring about 9000 Sq.Ft. and spread across 3 floors, which is South Asias largest store. It also happens to be the 2nd largest in the world.

Finally the global brands are taking steps in setting up the true shopping experience that they do elsewhere, otherwise, rather than just opening more stores and capturing market share.

India's First FDI in Single Brand Retailing Policy

After weeks and months of the recent policy wherein FDI in Single Brand Retail allowing upto 51% was rolled out, only now has the first proposal being approved. Mauritius based Tano India Private Ltd would invest about Rs. 2.8 Crores through this route in setting up an exclusive retail outlet for Nike covering its entire product category. The Joint Venture is with Moja Shoes Private Ltd.

Pantaloon's Debut With Generali in Insurance

Pantaloon is a step closer to following its undisclosed icon - Wal-Mart.

Pantaloon has yet again entered into a new business and this time it is the Insurance Sector with a Joint Venture with Italy's Generali although it needs the final regulatory approval for the government.

Wal-Mart Exits South Korea

Wal-Mart has just announced its exit from South Korea where it has a presence with 16 stores. The move follows Carrefour's recent exit. Although both Carrefour and Wal-Mart have not expressly mentioned the reason for thier exit, it is due to the stalled growth for the chaines for the last 2 to 3 years. Shinsegae, South Koreas leading retailer will take over Wal-Marts 16 stores.

Tesco - Brand Magnet in India

Tesco is probably to launch a smaller and different version of its Tesco brand. The brand it may set in India would be a smaller hypermart format called Magnet. This will be in partnership with Home Care Retail Mart Pvt Ltd.