From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: IX

December, 2007

 

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Retail

Share Prices

 

 

 

 

 

 

Sales and Market Share

 

 

 

Source: Euromonitor Report- Hypermarkets - India- June 2007

 

 

 

Source: Euromonitor Report- Supermarkets - India- June 2007

 

 

 

Trends, Marketing Initiatives and Others

 

 

 

67. Product Differentiation Is The Key To Success – December 09

Organised retail in India to cross the $21.5 billion mark by 2010 from $7.5 billion in 2007

According to consultancy TechnoPak, organised retailing in India would cross the $21.5 billion mark by 2010 from $7.5 billion in 2007. It also stated that India is currently the ninth-largest retail market in the world. Since 2000-01, there has been growth in the Indian retail industry due to the rise in shopping malls. However, mall management continues to be a challenge before the retail industry.  Planning and design are intrinsic elements and key differentiators defining the footfalls. In India, however, ‘product differentiation’ is a nascent concept and not sufficiently developed. According to TechnoPak, specialty malls based on different product categories will be introduced in future.

 

Source: The Financial Express

 

 

 

68. Big Retail Chains Won’t Kill Small Shops: ICRIER – December 06

Kirana shops can be profitable in the vicinity of organised retail: Study

According to a nationwide study by ICRIER that was sponsored by the government to gauge the impact of big corporate houses entering retail segment, small shops in the vicinity of large retail chains can regain profitability even if they initially see a decline in business. The study also has found that organised retail does not negatively impact unorganised retail in the long-run on an ‘absolute basis’. 

 

Source: The Financial Express

 

 

 

69. Big Bazaar To Ask Card Holders To Migrate To Future Card – December 14

ICICI Big Bazaar Credit Card holders to migrate to Future Card

According to the draft prospectus filed by the Future Capital Holdings (FCH) for its upcoming initial public offer (IPO), over five lakh ICICI Big Bazaar Credit Card holders will be asked to migrate to the Future Card, which will be introduced by Future Capital Holdings (FCH), a financial arm of the Kishore Biyani-led Future Group.

 

Source: The Economic Times 

 

 

 

70. Parsvnath Developers Announce Retail Entry – November 26

Parsvnath Developers ventures into organised retail sector

On 26 November, 2007, real estate major Parsvnath Developers announced its foray into the organised retail sector with the launch of hypermarket format stores. The company has incorporated a subsidiary, Parsvnath Retail Limited, for its new venture. 

 

Source: The Economic Times

 

 

 

71. Indiabulls To Enter Retail – November 27

Indiabulls Group to foray in the retail business

The Indiabulls Group plans to foray in the retail business by setting up 30 hypermarkets across as many smaller cities in the country by 2008-09 with an outlay of Rs 1,500 crore. The first of these stores is expected to come up by March/April 2008.

 

Source: Business Standard 

 

 

 

72. Carrefour May Seal JV Deal In India Soon: Report – November 26

Carrefour plans to enter into a tie-up in India

French supermarket group Carrefour is set to sign a joint venture deal in India, according to Jose Luis Duran, chief executive, Carrefour.

  

Source: The Economic Times 

 

 

 

73. Reliance Brands To Form JV With Italy's Sixty Group – December 10

Reliance Brands Pvt Ltd to collaborate with Italian fashion house Sixty Group

Reliance Brands Pvt Ltd, a subsidiary of Reliance Retail, is entering into a joint venture with Italian fashion house Sixty Group to bring brands such as Miss Sixty, Energie, Killah and Murphy&Nye to the Indian market. The Renato Rossi-led design company will hold a 51% majority stake while the Reliance subsidiary will keep the remaining 49%.

 

Source: The Economic Times

 

 

 

Product Launches

 

 

 

74. It’s A Woman’s World At Westside – December 15

Trent Ltd, a part of the Tata Group that operates Westside, opened its first specialty store targeted at women, in New Delhi. These stores will offer apparel for women, including youth wear, footwear and accessories.

 

 

 

75. Springfield Sets Up Shop – December 13

The Dubai-based retailer Landmark Group launched Springfield, a European casual wear brand, in Bangalore by opening an exclusive outlet in Indiranagar. The first outlet of Springfield opened in Mumbai in 2007.

 

 

 

76. Reliance Retail Forays Into Books And Music – December 11

On 10 December, 2007, Reliance Retail Ltd (RRL) announced the launch of a specialty store — Reliance TimeOut — which stocks books, music, stationery, toys and gifts.

 

 

 

77. HyperCity Launches Argos – December 09

On 9 December, 2007, HyperCity Argos commenced its catalogue shopping operations at Thane, a suburb of Mumbai.  This format of catalogue shopping suits metros such as Mumbai, where retail space is expensive and has been an obstacle for retailers to reach out to a larger consumer base in a cost-efficient manner.

 

 

 

78. Reliance Retail To Set Up Global Footwear Format – November 17

Reliance launched the footwear format, Reliance Footprint, in the first week of November 2007, in Bangalore and Hyderabad. This store is a one-stop-shop destination for men’s, women’s and children’s footwear.