Retail Industry Snapshot

Retail Industry Snapshot
Venture capital firms pour money into India's niche e-commerce companies,
total funding amounting to $46.55m in 12 deals so far
A breed of online niche products and services providers like CarDekho.com,
Lenskart, Zivame have lured total funding amounting to $46.55 million in 12 deals
so far this year - nearly double the investments made in 2012.
We Hope To Add 3M New Customers This Year: Adesh Gupta, CEO, Liberty
Shoes
"We have almost grown 46% in the last two quarters and there has been an
unprecedented growth in the history of Liberty, especially in this year."
Chinese textile giant BROS mulls INR 500 cr investment in Vishakapatnam

BROS produces mid-to-high level melange yarn and its products are used by global
brands such as GAP, Old Navy, Esprit, Polo, JC Penney, Nautica and Burberry.
Santa Comes For Retailers As Robust Christmas Sales Surpass Diwali

Numbers
This Christmas was characterized by double-digit sales growth and plenty of
middle-class consumers in stores, making it the best-ever revenue season for
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several retailers this calendar year reflecting a newfound confidence among

consumers.
E-tailer Freecultr to set up more brick-and-mortar stores

Sandeep Singh, CEO and Co-founder, Freecultr, said the company will experiment
with the hybrid format (a mix of brick-and-mortar and online retail) with stores
stocking some of the fast moving items, such as its Henleys (round neck buttoned
tees), jeans and chinos.
Mall space availability to rise to over 95 mn sq ft in 2015

Total mall space availability across seven top cities is expected to increase by
almost 26 per cent to 95.7 million square feet by 2015, a recent survey by property
consultant Jones Lang LaSalle said.
Don't eat too much fast food, McDonald's tells own staffers
McDonalds' employee resources site has warned workers to avoid eating too much
fast food, including the kind of stuff served at the golden arches.
Persistent Inflation Presents Opportunity For Food Processing Industry
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"Now what the assumption could be is that very soon a situation would arise
where food would not be sold on the basis of quantity, but purely by the value of
nutrition it offers if the inflation rate on foods goes uncontrolled," said Chetan L
Hanchate, expert committee member, agro-food processing, Bangalore Chamber of
Industry and Commerce (BCIC).
Zomato looks for a wider platter, to reach 22 countries over next 2 years
"The response that we received in the UAE market was a catalyst and gave us the
confidence that our product could work globally," says Co-Founder and COO
Pankaj Chaddah.
West Coast Group and Agristo ink pact to launch frozen potato products
West Coast Fine Foods (India) Pvt Ltd, a Mumbai-based distributor of frozen
products, signed a memorandum of understanding (MoU) with Agristo N V of
Belgium (a leading manufacturer of potato products) to launch a range of highquality, tasty and authentic Belgian frozen potato products in the Indian market.
Zara, M&S, Benetton, Tommy Hilfiger Fashion Faster Growth While H&M,
Uniqlo & GAP Eye Quicker India Entry
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Growing at 25-30% p.a., double the industry growth rate, "These four global
brands collectively achieved sales that equalled the apparel sales of established
department store chains such as Shoppers Stop and Lifestyle International," said
Anuj Puri, chairman and country head at Jones Lang LaSalle India.
Goenka Revives Retail IPO Map as Breakeven Seen: Corporate India

Spencer's Chairman Sanjiv Goenka is counting on a rebound in the $1.8 trillion
economy for a 7 percent spurt in sales after he shut down loss-making outlets to
boost the key gauge and compete with larger rivals Future Retail Ltd. (FRL) and
Reliance Retail Ltd.
After Split, Walmart and Bharti Retail issue pink slips to employees
In October, while announcing the separation from Walmart, Bharti Enterprises
Vice-Chairman Rajan Mittal had said there would be no job losses and the company
would retain employees but it seems the employees were kept in the dark.
Aditya Birla Retail Names Vishak Kumar CEO For Both Retail & Hypermarket
Formats
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The company announced the exit of Russell Berman, CEO of the hypermarket
business, at the end of his seven-year contract with Aditya Birla Retail and has
restructured its retail business for the second time in 18 months.
Tesco-Trent JV to face FIPB questions

The FIPB's reservations essentially centre around one issue: would Tesco's $110
million investment lead to the creation of new assets, which was the government's
aim when it allowed 51% foreign direct investment (FDI) in supermarket chains,
or does it involve the purchase of Trent's existing assets?
With AAP in Delhi power, Mumbai only metro to allow FDI in retail
The AAP, set to form the government in Delhi, had said it was opposed to foreign
direct investment (FDI) in multi-brand retail and if the national capital does not
allow FDI in multi-brand retail, then Mumbai might be the only metro where such
players can enter.
NaMo Store to sell Narendra Modi merchandise online

The store sells merchandise that its says is inspired by the lifestyle and values of
Modi, who is also called NaMo by supporters and offers a range of products that
include t-shirts, sleeveless jackets and stationery such as pen drives and planners.
FRPT Research

Small e-commerce companies spending big on television advertising

According to estimates of Madison media, the advertising spend of online portals
have gone up in the last two years and the ad spends of online portals in the April
to July quarter of 2013 was 1.2% as compared to 0.8% in the same quarter of
2011.
Retail sector hopes for turnaround after 2014 elections

Supermarkets in India may see a few more dull years while the sector emerges out
of the present slump, unless the economy turns around next year and more foreign
retailers decide to invest here--but both factors lean heavily on the outcome of the
national election that's due by May.
Boomerang Ice-Cream To Expand Using Franchise Model, Introduce

Takeaway Packs
P Vanjimuthu, Director, Vita Food and Beverages, said the Rs 2,500 crore ice cream
industry in India is expected to grow by 25% this fiscal despite lower profit
margins and ice cream is still considered a luxury product in South with great
market potential.
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Aroma Fresh Opens 2 More Outlets In Tiruvanthapuram, Plans 20 Outlets In

2 Years
Chairman and CEO Sajeev P.K. said that the Aroma chain stocks GAP-certified,
pesticide-free fresh farm produce grown in-house using eco-friendly precision
farming techniques.
Sahara Q to open 1,900 exclusive brand outlets across Gujarat by March 2016
Sahara Q, the FMCG and retail company of Sahara India Pariwar, on Tuesday said it
would open 1,900 exclusive brand outlets across Gujarat by March 2016 to capture
the growing consumer market in the State and plans to have 400 distributors, 55
Sahara Q retail shops and 55 Q Mobile Shops in next three months
New Governments In N. India Opposing Multi-Brand FDI In Retail Will Shrink

Scope Of Announced Investments
Large swathes of north India may be shut for global super market chains such as
Walmart, Carrefour and Tesco with the Aam Aadmi Party ruling out foreign direct
investment (FDI) in the multi-brand retail segment in the NCR.
FIPB to take up Tesco's multi-brand retail proposal on 30 December
FRPT Research

If the application is approved, Tesco will pick up a 50% stake in Trent

Hypermarket Ltd, a wholly-owned subsidiary of Trent Ltd, a Tata Sons enterprise.
Bangladesh Charges Garment Factory Owners for 2012 Blaze

Delwar Hossain and his wife, owners of Tazreen Fashion Ltd., and the company's
engineer were among 13 people charged under two sections of the law including
homicide, A.K.M. Mohsinuzzaman Khan, an inspector of police, said.
Another European major could enter Indian retail market: Anand Sharma
Enthused by Tesco's plan to enter the Indian supermarket segment, the
government expects another "European major" to apply for the multi-brand retail
sector although Anand Sharma did not give details.
Karnataka, Maharashtra to host first outlets of Tesco-Trent: Sharma

Karnataka and Maharastra, two Congress-ruled states will be first beneficiaries of
the opening up of the multi-brand retail sector to foreign direct investment (FDI),
commerce minister Anand Sharma said here on Monday.
CCD's Siddhartha Acquires 350 Acres Of Coffee Estates In Chikmagalur
FRPT Research

This move by Siddhartha to consolidate and expand his presence across

Chikmagalur coffee estates comes at a time when Bangalore-based real estate
developer - India Builders Corporation, has been aggressively expanding its
holdings and is understood to have control over 5,000 acres of coffee estates and is
looking to consolidate further.
Hard Rock Hotels and Casinos to open first five-star property in India
"We are currently looking at Goa, Delhi, Mumbai, Chennai and Kolkata and are
reviewing hotels in each of these locations," said Navneet Nagpal, principal
consultant at Spectra Hospitality Services.
Creambell targets sales turnover of Rs 500 crore with capacity addition

"We expect to close 2014-15 with a sales turnover of Rs 500 crore on the back of
capacity enhancement and retail expansion and in addition to this, we are looking
at increasing our number of static outlets to 45,000 from the current 37,000 by the
end of 2014," says Nitin Arora, CEO.
RPG-Sanjiv Goenka group to invest Rs. 70 cr for bakery chain roll-out
FRPT Research

The caf-cum-bakery chain of the RPG-Sanjiv Goenka Group, Au Bon Pain, will go
national within a year, entailing an investment of Rs. 70 crore and there would be
70-odd stores in a year, and 120 by March 2015.
Companies offer wine-lovers more reasons to cheer with freebies

The Indian wine industry is just about two decades old and wine drinking is still
evolving in the country but the rise in demand in recent years has helped leading
players to look for ways to promote their brand in the festive season rather than
just clear stocks.
Tesco's entry: Tatas to divest Trent stores in states which don't allow FDI in
multi-brand
Tatas will divest four stores owned by Trent Hypermarket that are located in
states that have not allowed foreign direct investment in multi-brand before the
UK retailer Tesco invests in the company.
More good news, surprises coming for FDI in multi-brand retail: Sharma
"Before the end of the financial year, there will be more announcements (on
foreign direct investment in the multi-brand retail sector)...More good news &
surprises coming," said Commerce and Industry Minister Anand Sharma.
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e-Commerce portals aim to hit profit way in 2 years

Leading Indian online retailers, including Snapdeal and fashion portal Myntra,
expect to turn profitable in the next two years, signalling a seismic shift in an
industry where so far growth has been pursued at the expense of the bottomline.
Samsung Taps Ex-Apple Designer For Possible Galaxy Stores

Samsung may have something new in store for its battle with Apple: A new take on
the retail store itself. Former Apple Store designer Tim Gudgel is a new Samsung
employee according to The Information as the company is reportedly considering
"a deeper investment in U.S. retail.".
Optimism on consumer durables sales

Christmas and New Year - big in terms of consumer durables and electronics goods
sales in the south and parts of the west - is likely to see growth of 25-30 per cent
this year, as retailers clamour to liquidate stocks and last year, sales growth during
Christmas and New Year was 15-20 per cent.
India investment based on business considerations: Tesco
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UK-based retailer Tesco's decision to apply for opening multi-brand retail stores in
India in partnership with the Tatas has been based on business considerations and
not driven by any "external pressure".
Post big losses, Shree Ganesh wants to move CDR cell

Shree Ganesh Jewellery House has approached the State Bank of India, the leading
bank in its lenders consortium, for referring its debt to the corporate debt
restructuring (CDR) cell.
Amit Burman's Lite Bite Foods To Invest INR 50 cr, Open ~65 Outlets In 2014
"Mumbai for us is going to be a huge growth driver. We will be opening close to 5055 restaurants there in the next one year," said Amit Burman, Vice-Chairman of
Dabur.
The table is set, but not the service tax

Restaurant operators are uncertain about the tax position to be adopted for
obtaining credits, without which their costs will increase.
FRPT Research
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Pizza Hut, Domino's are #1 & 2 In Google's Most Searched Restaurants Of

2013
The remaining 10 brands were: Starbucks, No. 3; McDonald's, No. 4; Jimmy John's,
No. 5; Subway, No. 6; Olive Garden, No. 7; Buffalo Wild Wings, No. 8; Applebees, No.
9; and Chipotle, No. 10.
McDonald's Tries Out 'McD' Coupon App in Select Markets

"The McD App sends customers offers to redeem with their phone in participating
restaurants," said a rep in an email. "It allows them to customize their offer,
location and communication preferences, and the offers are sharable with friends
and family."
Maharashtra government to provide mobile vans to farmers to enable sale

directly to consumers
The Maharashtra government will prevent the sale of grocery or vegetable
products that have been processed with chemicals so as to avoid consumption of
non-organic or poisonous food by the citizens by testing whether the produce
brought in APMCs were treated with chemicals.
Amazon vs. Google: It's A War for the Shopping Search
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While many think of Amazon and Google as being in separate businesses, the two
are locked in fierce competition to be the first search box shoppers turn to when
they are browsing products online.
How The Layout Of The Frozen-Foods Section Can Impact Supermarket Sales
Frozen departments are among the most heavily trafficked in the supermarket,
with 40% of shoppers at least passing through. A sophisticated video imaging
technology which synchronizes with point of purchase data from individual
shoppers provides insights into increasing category sales by as much as 10-15%.
Late-mover advantage: New E-Commerce Players Target The High-Margin

Low-Clutter Categories
As the online shopper becomes wiser, new entrants in the e-commerce space
realise the only way to stay in the game is to adapt fast and strive for efficiency.
More tier III cities like Jhansi, Ranchi going online to shop
"Sales from tier III cities like Jhansi, Ranchi, Moradabad, Gorakhpur have gone up
by an average 500% year-on-year, while for more developed cities like Kanpur and
Lucknow it has grown by 30%," said ShopClues Co-founder and CEO Sanjay Sethi.
FRPT Research
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Retail Expansion Plans Unaffected By Challenging Q3: Titan

The wedding season also sees huge demand for gold coins, accounting for 10-15%
of segment sales, but Titan has halted the sale of these at its Tanishq stores, in line
with the government's efforts to stop import of gold.
Mall vacancy in A'bad declines 4.5% in 2013

Lack of new supply coupled with mall space leasing facility has helped mall
vacancies in Ahmedabad decline by about 4.5% in 2013. As per the latest report by
the real estate consulting firm Cushman & Wakefield, mall vacancy in Ahmedabad
has been on a steady decline during the year.
What Synergies Can Accrue Through The Trent-Tesco Partnership

Trent is most likely to benefit from Tesco's CRM and data analytics platforms,
ability to manage multiple format stores and extensive private label portfolio.
India's Cosmetics Industry Expected To Treble To ~USD 2.7B By 2020

India's retail beauty and cosmetics industry, currently estimated at $950 million, is
likely to almost treble to $2.68 billion by 2020, with annual growth in the industry
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estimated at 15-20% in the coming years, twice as fast as that of the US and
European markets.
Nearly 16 million log on to 4-day online shopping festival

Typically, 1.5 million people access e-commerce portals daily. But during GOSF,
close to 4 million people got online to shop every day, IMRB data said though the
target audience exposed was not very different from what is generally observed.
Noise aplenty, but little to show in retail sector

Retailers may currently be in a wait-and-watch mode, but they can hardly afford to
ignore India as only 7% of the entire retail market in India is organised compared
to 35% in Brazil and 25% in China. Retailers know that sooner or later changing
demographics will alter the retail canvas.
Segmentation, tech key to success in luxury marketing

While the monied class in India always had access to luxury brands, economic
growth has created a new generation of consumers as diverse as senior corporate
executives, youngsters working in BPOs who live with their parents and splurge all
their earnings, successful entrepreneurs, and farmers who have sold their land to
developers.
FRPT Research
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The future of Indian consumer markets

The long-term answer of the next 10 years is that we must urgently accept that the
India consumption story has some big problems on the fundamentals that we must
try and change or accept and factor into our expectations and our business
strategies.
Direct Selling Industry growth to remain flat during FY14 on 30% decline in
S. India turnover
Chavi Hemanth, secretary general of the Indian Direct Selling Association (IDSA),
added that in the coming years the direct selling industry would continue to grow,
at an annual average rate of about 20%.
Shopping malls set to grow, not only in numbers but also in size
The average size of malls is likely to increase to 470,000 sq ft in 2015 from around
380,000 sq ft now, according to a study by property advisory firm Jones Lang
LaSalle (JLL).
GOSF lessons: Why e-retail is a real threat to brick and mortar stores
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It is safe to say that given the strides being made in creating innovative and safe
online shopping experiences and the availability and interest in buying big-money
items like real estate and vehicles online, e-retailing is the way to go.
Discounts, promotions spur sales in US holiday season

Holiday sales between Nov. 1 and Dec. 24 rose 2.3 per cent, compared with 0.7 per
cent a year earlier, according to data published in the MasterCard Advisors'
SpendingPulse report and this sales growth was the highest in three years.
Amazon to compensate customers for late gifts

Amazon said it would give $20 gift cards and pay shipping costs for customers
affected by problems at UPS and FedEx that delayed some Christmas package
deliveries despite vows from retailers to meet a December 25 deadline.
Prada CEO Gives The Thumbs Down To Big-Box Retail

"They are not interested in promoting products and brands while in display,
because they are constantly engaged in markdowns," Bertelli said. Translation: "If
you're the type of consumer who buys $450 sneakers, you're focused on the shoes,
not the price."
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UPS Shipping Delays Show Perils of Stores Overpromising

Merchants battling for market share during a ho-hum holiday season have been
wooing shoppers with deep discounts and promises that they can wait as long as
they want to order gifts online - While the shipping snafu is unlikely to deter online
shopping, parcel-delivery companies will have to boost capacity and retailers may
need to seek alternatives to prevent a recurrence.
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Chinese textile giant BROS mulls INR 500 cr investment in Vishakapatnam

Santa Comes For Retailers As Robust Christmas Sales Surpass Diwali

ISIEmergingMarketsPDF in-kpmg1 from 115.114.45.146 on 2014-04-03 08:32:22 EDT. DownloadPDF.