Woodland Eyes.1,000-cr Turnover in FY14

1. Outdoor adventure apparel and footwear-maker Woodland is aiming to take its turnover to.1,000 crore this fiscal as it expands its retail presence in the country and adds more products to its portfolio.
2. The company has about 400 stores of its own and its products are available across more than 4,000 multi-brand points-of sales. We open about 50-60 new stores every year and last year,we started 60 new outlets.
3. It will continue to expand our presence across cities, managing director Harkirat Singh said.
4. This year,Woodland is looking at adding 60-70 stores,he added.While 70% of Woodland's revenue is currently from Tier I cities,the company is placing big bets on growth coming from Tier II and Tier III cities.

ITC targets number 1 position in FMCG sector

KOLKATA: The diversified ITCBSE -2.88 %group is aiming at over Rs 1-lakh crore turnover from its non-cigarette FMCG business by 2025-30, chairman YC Deveshwar has said. 

"This is evidently an audacious aspiration and one that may not necessarily be realised in my own lifetime. I, however, wish to place ITC firmly on the path to such accomplishments," Deveshwar told reporters after the company's 102nd annual general meeting here on Friday. "We would even take our FMCG brands global," he added. 

Deveshwar said ITC is on the path to becoming India's largest FMCG company. The Kolkata-headquartered group's non-cigarette FMCG business, which comprises packaged food and personal-care products, had turned profitable for the first time in the last quarter of 2012-13 with a profit of Rs 11.87 crore. It, however, slipped into losses in the first quarter of the current fiscal. 

Deveshwar said the group's non-cigarette FMCG business would break even this fiscal and become financially self-reliant from the next. "If we continue to grow at this pace, and looking at past trends, cigarette business could eventually become a small part of our revenue," he said. 

ITC's rival Hindustan UnileverBSE -3.71 %, which closed 2012-13 with revenue of Rs 25,810 crore, is targeting Rs 50,000 crore by 2015. On whether ITC would enter laundry and oral-care as well, Deveshwar said the company would enter into every possible FMCG category

Govt Set to Ease Foreign Retail Norms - economic times 23 July.

The government plans to dilute local sourcing norms and investment guidelines for foreign retailers as well as give states the freedom to relax the minimum 10 lakh population threshold,as it makes yet another attempt to woo global retail chains.The UPA government had last year staked its survival over the issue of allowing foreign supermarkets to invest in India,but has so far not been able to attract a single dollar from the likes of Walmart,Tesco and Carrefour,which have been unhappy with the stringent entry norms imposed on them.The governments attempt to relax these norms,in the form of clarifications issued a couple of months ago,had failed to assure foreign investors,and this is the second time it is trying to address their concerns.According to a cabinet note prepared by the Department of Industrial Policy and Promotion (DIPP),the stipulation that foreign multi-brand retailers must purchase 30% of what they sell in India from small vendors will remain.

Current policy:30% sourcing from local. sourcing from small industry.
proposed policy: sourcing will be done from micro, small and medium industries. it will also include sourcing from Agri and farmer cooperatives.

current policy: units with maximum $ 1 million investment in plant and machinery.

proposed policy: limit is raised to $ 2 million

current policy: unit not eligible if it outgrows $ 1 M limit

proposed policy: unit can grow beyond the limit along with the retailer

http://lite.epaper.timesofindia.com/getpage.aspx?pageid=1&pagesize=&edid=&edlabel=ETM&mydateHid=23-07-2013&pubname=&edname=&publabel=ET

Humari Dukaan- Mangalam Super Market- Kalyan East

Mangalam SuperMarket is a small dukaan located in Kalyan East, near Kalyan RTO

It is 7-8 years old dukaan, which has around 800 SKU's.

Layout is very simple and all the SKU's are managed efficiently.

Weekly order taken by sales person of the company. It is delivered by company period. Payment is done on credit, with duration of 15 days.

Ghumastha is renewed yearly. [Fee is rs.500]

Products giving good margin are placed in front on the display to ensure maximum sales.

when new product is launched by the company, retailers initially take in small quantity to check the customer response. And accordingly the products are ordered more or the order is cancelled.

Open Big Stores and die

Article from Forbes Magazine: 31st May 2013
"Open Big stores and Die"

COO of MAD OVER DONUTS ---> Tarak Bhattacharya

The challenge was to create a Pan  India Brand from scratch.

Achievement: He has turned MOD in to one of the most profitable doughnut chains in the country.

How he did it?

1. Fly under the marketing radar.
2. Invest well in the product.
3. Keep customers engaged.
4. Open small stores in the country.

• Started with the niche category first.
•  Market testing done:- Cold doughnut v/s hot doughnut. It was found that Indian consumers prefer hot doughnut.
• Started with 3 to 6 outlets. Now they have 46 outlets in just 15-18 months.

Size does not matter:

Invested in People and ERP
Average 335 sq-ft. per store.

"MOST IMPORTANT THING -----> engage the customer"

1. they have not done any ATL and BTL marketing
2. there are 5 lakh and more likes on Facebook.
3. Own database of 1.5 lakh customers to engage with them.
4. they spend more on internal campaigns like Hi5 to celebrate 5 years in India.
5. A festival celebration every 5-6 weeks
6. on average any other retailer spends 4-5% of sales budget in marketing, but MOD had spent only 2.5% last year.

Indian apparel needs transformation to reach $200 billion size'

NEW DELHI: Indian textile and apparel industry would have to work hard and address issues on timely delivery so as to reach four-fold increase in size to $200 billion by 2025 as recently claimed by a survey, industry experts said.


To attain the projected figure, phenomenal impetus and radical transformation in the sector and lots of hard work is needed, experts said. More over productivity of the work force of the industry would have to be increased. 

According to a survey by management consultancy firm Wazir, Indian apparel market will grow over four-fold to attain a staggering size of $200 billion by 2025 with the country becoming the fastest growing market along with China. 

TT Ltd Managing Director Sanjay K Jain said the projected figure means a 20 per cent nominal growth, considering 8 per cent inflation and 12 per cent real growth. 

"Now to suddenly grow at such a high rate in a matured industry would need phenomenal impetus and radical transformation which is not going to be easy despite all the projections of the economy," Jain told PTI. 

Hong Kong-based VF Corporation Senior Vice President Veit Geise said "quite lot of hard work is needed" to be among the top exporters. 

"India has the potential and skills to set to grow its textiles and apparels and apparels export exponentially. The next China can be India only. However, India does not appear to be very competitive for sourcing managers," said Geise last week during a seminar organised by the industry body CII. 

Li & Fung Executive Vice-President Deepika Rana said even productivity rate of countries as Bangladesh is higher than India. 

According Vardhman Yarns and Threads Ltd Managing Director D L Sharma, Indian wage structure is near to the fair wage rates and competitors as Bangladesh and Vietnam has minimum wages. 

"Despite that productivity level of Bangladesh and Vietnam is better than India," he said, adding that it was a disturbing factor. China has the highest productivity levels. 

On problem of non-delivery on time to the sourcing firms, Jain said:" "Yes its true. However to just blame the vendor management for it would be unfair. We need to understand the dynamics and environment in which they work to appreciate the whole situation. The uncertainty of labour and the culture of the same is a very big impediment to meeting deadlines." 

Rana said low-cost advantage of India would not work any more in the global market and it would have to improve processing speed,response of vendors, flexibility, etc. 

"New frontiers in this sector is not about low cost country but process optimisation, quick response, flexibility, trust certification and self audit," she had said. 

In 2012, the size of the Indian apparel market was $45 billion. India and China will be the fastest growing markets, growing in double digits and would become the biggest consumer market with a mammoth share of 27 per cent, Wazir's report had said.

Retail industry in India - overview.

The Indian retail industry has been thrown open to foreign majors and is packed with players who strive to offer great products and value-for-money to Indian consumers. The country holds vast promise for retailers with its burgeoning spending power and rising middle class.

The US$ 500 billion market, growing at an annual rate of about 20 per cent, is largely dominated by small shops and stores as of now. The organised segment is in its nascent stage and has huge potential to harness in the sub-continent. Foreign giants like Wal-mart and IKEA have recently received the Government’s nod to enter the Indian market, after making all the necessary compliances.

Market Size

• India’s retail market is majorly dominated by the unorganised sector. Organised segment accounts for 8 per cent of the total retail landscape, according to a study by Booz & Co and RAI.
• The Indian retail industry has expanded by 10.6 per cent between 2010 and 2012 and is expected to increase to US$ 750-850 billion by 2015, according to another report by Deloitte. Food and Grocery is the largest category within the retail sector with 60 per cent share followed by Apparel and Mobile segment.
• The foreign direct investment (FDI) inflows in single-brand retail trading during April 2000 to December 2012 stood at US$ 95.36 million, as per the data released by Department of Industrial Policy and Promotion (DIPP).

Online Retail

Internet is the buzzword in India these days. People have online access 24x7 through their laptops, iPads and mobile phones. As a result they have continued access to online retail markets as well.

Online retailers are emerging as important sales channels for consumer brands in India as more and more people, especially the young generation, are shopping online. From apparel to accessories, kids and infants’ product lines and almost everything under-the-sun is available on the net these days. Apparel and accessory brands, such as Puma, Nike and Wrangler, have recorded a big increment in online sales in 2012, led largely by purchases from smaller towns and cities with consumers paying the full price for these products.

For instance, footwear brand Nike has tie-ups only with online retailers such as Myntra and Jabong. And in a very unique initiative, it recently launched its new range of cricket gear on Jabong. Such partnerships turn out to be very successful as online retailers provide greater visibility than a physical store. "Our online store can carry around 10,000 options, while an offline store can carry only 20 per cent of a given range," said an official.

Online retail in India is projected to grow to US$ 76 billion by 2021, accounting for over 5 per cent of the Indian retail industry, according to a report by advisory services firm Technopak. This forecast is encouraging more companies- big and small- to sell aggressively online. Experts believe that much of this growth will come from the rising purchasing power of consumers in smaller cities, who do not have access to brick-and-mortar stores stocking high-end brands.

Retail Industry: Key Developments and Investments

• Kottayam, in Thiruvananthapuram, is an emerging market for luxury cars. BMW has launched its ‘mobile showroom’ in the city wherein people can check-out the brands’ models and go-in for a test drive as well. A weather-proof and air-conditioned structure, the mobile showroom is a replica of BMW’s luxurious dealerships.
• Hindustan Unilever (HUL), India's largest packaged consumer goods firm, will soon launch the country's first liquid laundry detergent, hoping that wealthy consumers will not be hesitant to pay a premium for a product that promises to make their laundry chore easier. The company claims that the new product removes stains two times better than any other detergent powder in the market.
  With 90 per cent penetration in the core detergent space, HUL is trying to create newer consumption opportunities in the over Rs 15,000 crore (US$ 2.51 billion) laundry market with niche and premium products including Comfort fabric conditioner and Rin liquid blues in the post-wash segment.
• Villeroy & Boch AG, the Germany-based bath, wellness and tableware firm, has partnered with Delhi-based Genesis Luxury Fashion to commence its operations in single-brand retail trade in India.
  Villeroy & Boch’s application, seeking 50 per cent equity in the joint venture (JV) company for single-brand retail trade, has recently got a nod from the Foreign Investment Promotion Board (FIPB). The FDI infusion in the JV would be to the tune of Rs 1.12 crore (US$ 187,463.60).
  Genesis Luxury Fashion, that has brands such as Paul Smith, Bottega Veneta, shoe brand Jimmy Choo, Italian label Etro and Armani and home and personal care products from Crabtree and Evelyn under its business in India, will exclusively manage the distribution of Villeroy & Boch tableware products in the country. The alliance ensures the establishment of a distribution network through the opening of Villeroy & Boch’s exclusive retail stores in India.
• In a bid to tap the branded footwear market in India, which is estimated to be about Rs 30,000 crore (US$ 5.02 billion), Aero Group (known for its flagship Woodland brand) is planning to revive one of its old brands, Woods. The company is contemplating to open around 30 new, revamped Woods stores in 2013. The eight-year-old brand would now lay its focus on the fashion quotient, rather than the typical outdoor, rough and tough image of Woodland, and will have more of the range for women.
• RP-Sanjiv Goenka Group’s company Spencer’s Retail is on an aggressive growth strategy, with a focus on hyper-format stores. The company intends to infuse about Rs 600 crore (US$ 100.46 million) in setting up new stores and come out with branded and co-branded products in the food and beverage segment. One of the official spokesperson from the company revealed that Spencer’s would set up 80 hyper stores in the next 48 months. As of now, the company has 132 stores, including 26 hyper stores, 14 super market and 92 daily (convenient) stores.
• Godrej Interio, the furniture retailing arm of Godrej Group, is aiming for Rs 5,000 crore (US$ 837.14 million) of turnover by 2016-17, with plans to invest over Rs 300 crore (US$ 50.23 million) to expand manufacturing capacity and retail stores. The company is planning to set up more than 75 stores in 2013 itself with focus on tier II and III cities.
  The Indian branded furniture market is worth about Rs 10,000 crore (US$ 1.67 billion) out of which Godrej Interio accounts for 15 per cent of the share. The company also plans to establish 200 speciality stores which will design and built products according to the consumer's convenience and preference.

Government Initiatives

The Cabinet Committee on Economic Affairs (CCEA) has recently approved Swedish furniture retailer IKEA's application to enter the Indian industry and set up a single brand retail venture in the country. FDI would be to the tune of Rs 10, 500 crore (US$ 1.76 billion), making it the largest investment to be made by a foreign brand in the Indian retail sector.

Moreover, the Government may further simplify investment norms in multi-brand retail to please foreign retailers who intend to invest in India but are a little hesitant on certain clauses. Mr Anand Sharma, the commerce and industry minister, has re-iterated that any FDI proposal in multi-brand retail will be fast-tracked for sure.

Road Ahead

The overall Indian retail sector is expected to grow 9 per cent in 2012-16, with organised retail growing at 24 per cent or three times the pace of traditional retail (which is expected to expand at 8 per cent), according to the report by Booz & Co and RAI.

Deloitte also seconds this forecast and expects that organised retail, which constitutes eight per cent of the total retail market, will gain a higher share in the growing pie of the retail market in India. Various estimates put the share of organised retail as 20 per cent by 2020.

Retail management.

Concepts covered in RETAIL MANAGEMENT class

•         Reconceive notion should be removed
•         Selling is most important part of marketing
•         Business Development is MANTRA to connect with people
•         CONNECT is very important
•         Think about people born after 2007

 

  DUKAAN

•          How many SKU’s
•          Layout of Dukaan
•          Why customers are not going to convenience store
•          On what basis Dukaandar keeps stores man

DIPP

The Department of Industrial Policy & Promotion was established in 1995 and has been reconstituted in the year 2000 with the merger of the Department of Industrial Development. Earlier separate Ministries for Small Scale Industries & Agro and Rural Industries (SSI&A&RI) and Heavy Industries and Public Enterprises (HI&PE) were created in October, 1999.

With progressive liberalization of the Indian economy, initiated in July 1991, there has been a consistent shift in the role and functions of this Department. From regulation and administration of the industrial sector, the role of the Department has been transformed into facilitating investment and technology flows and monitoring industrial development in the liberalised environment.

The role and functions of the Department of Industrial Policy and Promotion primarily include:

·         Formulation and implementation of industrial policy and strategies for industrial development in conformity with the development needs and national objectives;

·         Monitoring the industrial growth, in general, and performance of industries specifically assigned to it, in particular, including advice on all industrial and technical matters;

·         Formulation of Foreign Direct Investment (FDI) Policy and promotion, approval and facilitation of FDI;

·         Encouragement to foreign technology collaborations at enterprise level and formulating policy parameters for the same;

·         Formulation of policies relating to Intellectual Property Rights in the fields of Patents, Trademarks, Industrial Designs and Geographical Indications of Goods and administration of regulations, rules made there under ;

·         Administration of Industries (Development & Regulation) Act, 1951

·         Promoting industrial development of industrially backward areas and the North Eastern Region including International Co-operation for industrial partnerships and

·         Promotion of productivity, quality and technical cooperation.

RETAIL

·         Giving the product to end users for personal consumption.

CASA

·        Current account saving account

Footfalls & Converted footfalls

End users lead to converted footfalls.

Net profit, Gross profit, Net sales, Gross sales

Profiling leads to loyalty

Market basket Analysis (MBA)

Value Propositions

Retailing Decisions

Every Day Low Price (EDLP)

Theories 

•          Wheel of Retailing
•          Retail Accordion theory
•          Melting POT theory
•          Polarization theory

Retail Management process

Online supermarkets eye larger retail pie

Aim to be multi-city operators

 Indian online supermarkets are going the Amazon way in expanding their presence.  Online start-ups such as LocalBanya.com, BigBasket.com and AaramShop.com are looking to move from their home turf to multiple cities to tap local markets.

The US online giant recently expanded its grocery supplies to California from Seattle in a bid to break open grocery market there. It's expected to spread the business further across America .

Mumbai-based LocalBanya is looking at expanding to Pune and Delhi as part of its growth strategy. It is likely to raise money from venture capital funds soon.  

Similarly, Bangalore-based BigBasket.com, which is also present in Mumbai and Hyderabad, may add two cities this year,  Delhi and Chennai being its main targets. BigBasket wants to be present in 10 cities by end of 2014.

Aaramshop, which allows kiranas and retail chains to have web front on its website, is going one step ahead and plans to have a presence in Karachi, Pakistan. Its aiming to grow from to 40 cities and have 30,000 retailers on its site by March 2014 from 30 retailers and 3000 retailers now. 

Mumbai-based LocalBanya eyes Pune and Delhi; to raise funds from VCs
Bangalore-based BigBasket.com, to add two cities this year; Delhi & Chennai remain main targets. To add 10 cities by end of 2014
Aaramshop looks to expand in Karachi, Pakistan, looks to 30 cities to 40 cities, have 30,000 retailers by March 2014

Reference:
 Business standard

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I am glad that our blog is up and running . Let us make this place a real repository of retail education . people should refer to our blog whenever they want to know anything about retail or DUKAN....


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THE CHANGING FACE OF THE INDIAN RETAIL INDUSTRY

Fibre2fashion discusses on certain issues concerning the Indian retail industry with Mr. Andreas Gellner, Managing Director, Adidas India:

India is fast becoming the retail destination of the world. According to the international management consultant AT Kearney, India has emerged as the leader in terms of retail opportunities. The retail market in India is anticipated to grow to 427 billion USD by the year 2010. 

However, the face of the Indian retail industry is changing. India is passing through a retail boom today. A number of changes have taken place on the Indian retail front such as increasing availability of international brands, increasing number of malls and hypermarkets and easy availability of retail space. With the Indian government having opened up the doors for FDI, the entry of foreign retailers into the country has become easier. India has come a long way from the traditional Kirana stores and is on its way to becoming a ‘mall country’. The emphasis has shifted from reasonable pricing to convenience, efficiency and ambience. 

The major factors fuelling this change are the increase in disposable income of the people, improving lifestyles, increasing international exposure and increasing awareness among the customers. India has a large middle class as well as youth population, which has contributed greatly to the retail phenomenon. The middle class is considered to be a major potential customer group. The youth are perceived as trend setters and decision makers. Tourist spending in India is increasing, which has also prompted the retail boom.

Food and grocery are the two categories in the Indian retail sector which offer the most promising opportunities. Apart from this, the other areas where there are vast possibilities for Indian retailers are jewellery, apparel and consumer durables. Indian retailers are also trying to create a niche for themselves in areas such as books, gifts and music.

The Indian retail industry is going through a period of golden sunshine. 


                Mr. Gellner, expressing his view on the present scenario in the Indian retail sector, states that by now, it is fair to assess that the outlook is very bright, but currently, the potential and dynamics are somehow overhyped. Undersupply of suitable spaces and manpower have driven both critical cost components to levels where it is very difficult for many retailers to make profits (not to talk about generating funds for further expansion). The service tax on rentals, of course, was the final blow to many profitability models.

He went on to further state that the long-term future is very promising, but the next few years will remain extremely challenging. While speaking about the current mall culture in India, he believed that the malls as places to congregate and spend time for shopping and other activities have been well accepted. This concept will certainly even grow stronger once new generations of malls are offering consumers/visitors an atmosphere of international standards (including trouble-free parking!). 

He also strongly supports the liberalisation of FDI norms in any form of retail, because they won’t hurt traditional business at all, or at least not more than the other Indian business houses who are rolling out their various category killer formats. 

What they bring to the table is additional funds, cutting edge supply chain solutions and process know how. The latter is dearly needed to professionalise the retail sector, thereby creating efficiencies (retailer profits) as well as best services and best prices for the Indian consumer.

There are changes in the buyer behaviour of late with the mall culture. The Indian consumer has always been very discerning. Mr. Gellner is of the view that he does not see that changing. Of course, the shopping behavior is changing with malls coming into play, as conversion rates in malls are dramatically lower than in high street. The Indian consumer has more options than ever before, and he/she exerts their power of knowledge very well.

Lastly, he discussed about the plans for meeting the changing trends. He is concentrating on creating a retail-focused organization that recognizes trends and has the ability to adapt swiftly.

Adidas has been the leading producer of sports apparel, footwear and other accessories for more than 8 decades. Adidas has more than 100 stores all over the world. The company started its operations in India in the year 1996. According to experts, Adidas India has been growing at the rate of 50% per annum. The success of Adidas can be attributed to its core values, such as:

• Being consumer focused
• Being innovation and design leaders
• Being socially and environmentally responsible
• Being dedicated to constantly delivering outstanding financial performance
• Being constantly focused on product improvement

Adidas aims at leading the sporting goods industry with products that have been developed with a passion for sports. 

Mr. Andreas Gellner has been the Managing Director of Adidas India since the year 2004. He joined Adidas in the year 1995 in Germany and has worked at managerial levels in the organization in different countries. 
References: 

www.adidas-group.com
www.ibef.org

Introduction

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