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Tag: Business

  • JC Penney to stop selling home appliances

    JC Penney to stop selling home appliances

    Struggling department store chain JC Penney announced it will exit its home appliances business, and some of its furniture business, while revamping the layout of its stores to focus on clothing sales to boost profits. The company, which hasn’t turned a profit since 2010 and has forecast several more years of losses, said it would stop selling major appliances in February “to better meet customer expectations, improve financial performance and drive profitable growth.”

    JC Penney’s appliances business was a pet project of former CEO Marvin Ellison. The company will also stop selling furniture in majority of its stores and will now only be available in select stores in Puerto Rico and online.

    The announcement is the first major change by new CEO Jill Soltau since she joined the embattled retailer late last year.

    According to JC Penney, they are now finalising new layout options, including reduction of store space previously dedicated to appliance and furniture showrooms to maximise efficiencies, reduce inventory and create an enhanced shopping experience that inspires repeat shopping trips.

    “Optimising the allocation of store space will enable us to prioritise and focus on the company’s legacy strengths in apparel and soft home furnishings, which represent higher margin opportunities,” the company said.

    The company further announced customers can still purchase major appliances in stores and online until February 28 and receive free basic delivery and installation on new model purchases over $299. All protection plans and manufacturer’s warranty agreements will remain in effect for the applicable warranty period.

  • Sears gets away from bankruptcy

    Sears gets away from bankruptcy

    Sears Holdings chair Edward Lampert’s US$5.2 billion bid to save 425 Sears and Kmart stores and roughly 45,000 jobs from liquidation was approved by a US bankruptcy court judge last week. Lampert’s bid, which he made through his hedge fund ESL Investments Inc., was approved by Judge Robert Drain after a hearing spanning several days in a White Plains, NY, federal bankruptcy court.

    Terms of the sale allow for some litigation to continue against Lampert and ESL.

    Drain said that Lampert, the only bidder offering to keep Sears alive, had been subjected to substantial verbal abuse during the proceedings, with critics characterising the Sears chairman’s plan a scheme to rob the company and its creditors of assets.

    “He is a wealthy individual and a big boy and I guess he can take it,” Drain said, adding that some of the abuse may have been justified.

    As CEO and chairman, Lampert’s time at Sears led to cost-cutting efforts that had resulted in a decline in sales, store closures, and inventory reductions.

    He arranged the US$11 billion merger between Sears and discounter Kmart in 2005 and tried for years to boost business.

    The company’s restructuring officer Mohsin Meghji and company directors Bill Transier and Alan Carr were among those questioned on the witness stand during the court hearing on Lampert’s offer.

    Lampert, who stepped down as CEO when the department store chain filed for bankruptcy in October last year, remained the retailer’s chairman, largest shareholder and creditor. A restructuring committee of independent directors negotiated with Lampert and his advisers.

    Lampert’s offer, which had been rejected more than once, came after the retailer had been pushed to the brink of liquidation multiple times. In the end, he increased his initial offer by $800 million, largely in the assumption of Sears’ bills for taxes and merchandise.

    As per a report, Drain grew impatient as the proceedings wore on Thursday, when a creditor’s committee lawyer argued an objection to the takeover bid.

    It added money owed to lawyers, bankers and other advisers working on the retailer’s bankruptcy case also proved contentious as Sears lacked enough money to meet all its obligations.

    The report added Lampert still remains exposed to lawsuits related to certain transactions he engaged in while leading Sears before filing for bankruptcy.

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  • Samsung dreams of a future filled with 8K TVs

    Samsung dreams of a future filled with 8K TVs

    Samsung Electronics will expand its lineup of 8K televisions this year, hoping to launch the premium products in 60 countries around the world. 8K televisions have four times more pixels than 4K, which until recently was the most cutting-edge screen a high-end television could have. When compared to a 4K TV, 8K screens are brighter with more color contrast and sharper edges. Samsung released its first 8K television last year.

    Han Jong-hee, Samsung’s president in charge of the visual display business, said in a press conference Friday that he expects 2019 to mark the start of a new era where 8K becomes the new norm in the high-end television market.

    “4K grew to take up 60 percent [of all Samsung TV sales] in five years – I expect 8K to show a similar level of performance, maybe faster considering how tech develops so fast these days in all sectors including content and displays,” he said at the event held in Samsung’s Suwon complex in Gyeonggi.

    The company’s 2019 goal for 8K TVs is to reach a double-digit year-on-year growth rate for market share in the local high-end TV sector. Han says the goal is “reachable,” adding that half of the large Samsung televisions sold in the country after November were 8K. That month, Samsung started local sales of the product.

    Regarding its global business, the QLED 8K started selling in Europe, Korea, the United States and Russia last year. Tomorrow, the company will unveil new models for 2019 at the Samsung Forum, a showcase event for clients that simultaneously takes place in various regions around the world.

    This year’s plan is to launch sales in 60 countries.

    Whereas last year the QLED 8K lineup came with four size variations with the largest at 85 inches, this year there will be six variations with the largest at 98 inches. The new sizes are in line with Samsung’s strategy to continue strengthening its lineup of massive TVs to keep a competitive edge in the high-end price sector.

    It remains to be seen whether Han’s optimistic views on 8K television will come to fruition as quickly as he projects. Even if 8K TVs exist, the higher definition and the high price it comes at won’t be of much use if video content remains at the 4K level.

    “5G networks will spread this year and the demand for 8K content will go up as well,” responded Han when asked about the problem. Han particularly expressed anticipation for the 2020 Tokyo Olympics. Japan’s national broadcaster NHK plans to live stream the games worldwide in 8K.

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  • H&M profit drops due to online investment

    H&M profit drops due to online investment

    H&M profit dropped in the year to November 30, the Swedish fast-fashion retailer blaming investment in its online business for the decline. The world’s second largest clothing retailer embarked on a transformation program last year, investing heavily in logistics and digital technology aiming to improve the shopping experience and product range. This included an upgrade in its mobile app, faster deliveries and the rollout of click-and-collect.

    The company is also working on a new H&M concept store.

    In the last three months of its financial year, the company spent around US$48.5 million on logistics and technology, including resolving problems it flagged earlier last year.

    H&M CEO Karl-Johan Persson said the upgrade in the company’s logistics systems inevitably resulted in increased costs but will lead to a range of improvements for customers.

    “Against a backdrop of rapid changes in the fashion industry, in 2018 we accelerated our transformation to future proof our business, ending a challenging year for the H&M Group and the sector with strong signals that we are on track,” he said.

    Persson said it may have been a challenging year for H&M and the industry but after a difficult first half, there were signs the company’s transformation efforts were beginning to take effect.

    H&M posted a 5 per cent increase in full-year revenue to $22.7 billion, while in local currencies, net sales rose by 3 per cent. Profit fell by 21.8 per cent to $1.36 billion from the same period last year.

    Online sales rose 22 per cent to SEK 30 billion ($3.2 billion) and now comprise 14.5 per cent of the company’s total revenue.

    “With a stronger customer offering and the ongoing improvements in buying and logistics, we expect this trend to continue,” Persson said.

    “While this performance is still some way off the targets that we set at the beginning of 2018, these positive signals confirm we’re making progress across all our strategic focus areas: to create the best customer offering; a fast, efficient and flexible product flow; a stable scalable tech foundation; and adding new growth through store and online expansion.”

    According to Persson, the company opened three new fulfilment centres in the fourth quarter with a total of around 230,000sqm so it can offer customers faster deliveries and a wider assortment while reducing the capacity constraints that slowed them down in some markets in 2018.

    “We have also completed our online transition with investments in 2018, enabling us to successfully migrate online in Germany to the new platform earlier in January 2019,” he said. “With this, all H&M online markets are now on the new platform.”

    Persson said the difficulties with the logistics upgrade in some of their markets earlier in 2018 led to additional costs in the fourth quarter.

    “Applying lessons learned, we have not increased investments to secure upcoming transitions.”

    He added that while these initiatives have a short-term impact on margin, they will lead to continued improvements for their customers, driving increased profitability in the long term.

    “With the transformation now underway, capital expenditure will reduce this year compared to last and we will continue to shift the balance of our investments towards digital.

    “Changing consumer behaviour and technological innovation will continue to transform how and when people shop, we are building a business with the flexibility to respond to this constant evolution.”

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  • HMV saved by Sunrise Records, but some stores will close

    HMV saved by Sunrise Records, but some stores will close

    Canadian firm Sunrise Records has emerged as the buyer of collapsed music chain HMV, beating competition including Sports Direct owner Mike Ashley. The firm will buy 100 stores out of administration, securing 1,487 jobs. But 27 stores will close, resulting in 455 redundancies. Sunrise Records chief executive Doug Putman said he was “delighted to acquire the most iconic music and entertainment business in the UK.”

    No price was given.

    Canadian entrepreneur Mr Putman, 34, bought the retail chain Sunrise Records in 2014. He previously bought HMV’s Canadian business in 2017, expanding his small chain into a national operation with 80 outlets.

    Mr Putman is also President of Everest Toys, the largest toys and games distribution company in North America. He said that HMV was a “fantastic, heritage brand”. He also said the chain would be looking to stock more vinyl records, in response to customer demand.

    HMV owner Hilco, which took the company out of its first administration in 2013, has blamed a “tsunami” of retail challenges for the latest collapse.

    These include business rate levels and the increasing use of streaming services to deliver music and movies.

    HMV sold 31% of all physical music in the UK in 2018 and 23% of all DVDs, with its market share growing month by month throughout the year.

    However, the music industry expects physical entertainment sales to shrink by another 17% this year.

    Will Wright, partner at KPMG and joint administrator said: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.

    “Our immediate concern is now to support those employees that have unfortunately been made redundant.”

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  • French bakery Brioche Doree to debut in India

    French bakery Brioche Doree to debut in India

    French Bakery Brioche Doree on Saturday launched its first store in India in partnership with HR Bakers, promoted by Haldiram Managing Director (MD) Ashish Agarwal. The store is in Connaught Place. “Internationally acclaimed Parisian French Bakery Brioche Doree launched its first exclusive store in India with HR Bakers at Connaught Place, New Delhi,” the statement said.

    According to a HR Baker statement, the Haldiram MD entered into a “master franchise agreement” with the French brand.

    “Brioche Doree is known to be the second largest bakery/cafe chain in the world. The store of the brand in India has been curated in 100 percent vegetarian avatar,” it said.

    Agarwal has invested about Rs 4-5 crore in the brand and said HR Bakers is open to exploring more synergistic tieups with other brands.

    Agarwal said four more outlets in the National Capital Region and other markets are expected in the first year of operations.

    The outlet has started serving delicacies French Bakery is known for.

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  • Courts Asia continues negative trend as Malaysian sales tank

    Courts Asia continues negative trend as Malaysian sales tank

    Takeover target Courts Asia had a forgettable third quarter, reporting a net loss of S$171,000 – a stark contrast to the $3.51 million profit for the same period a year earlier. The company blamed lower sales and gross-profit margins together with higher income tax expenses.

    Group sales fell 6.2 per cent to $175.3 million, largely due to a 22.2 per cent decline in Malaysian sales measured in ringgit with lower consumer demand for goods and services.  Singapore sales, which account for three-quarters of the business’ overall sales, slipped a negligible 0.7 per cent, while the company’s Indonesian woes continued. Although the market accounts for just 3.4 per cent of Courts Asia’s sales, revenue fell 7.3 per cent in local currency. Courts Asia is already taking steps to stem losses in Indonesia, recently announcing the closure of one of its megastores and the downsizing of another.

    Japanese electronics retailer Nojima Corp lodged a takeover bid for Courts Asia last month, conditional only on the formal acceptance by Courts Asia’s majority shareholder  Singapore Retail Group, which has already indicated its acceptance. The Japanese company plans a strategic review of the business and will consider delisting it.

    Meanwhile, Courts Asia says it will continue to endeavour to improve efficiencies in its Malaysian business to improve productivity and return to profit. Twelve underperforming stores have already been closed reducing the network to 54.

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  • Marks & Spencer India to open six more stores in next 60 days

    Marks & Spencer India to open six more stores in next 60 days

    British multinational retailer Marks & Spencer (M&S) is on an aggressive pace here and is opening six more stores in the next two months alone, a top company official has said.

    According to a report, Marks & Spencer has opened its first store here way back in 2001 and in April 2008 signed a joint venture agreement with Reliance Retail to form Marks & Spencer Reliance India.

    It now has 71 stores across 30 cities like New Delhi, Amritsar, Mumbai, Pune, Kolkata, Bangalore, Chennai, Kochi, Bhopal, Kanpur, Hyderabad and Chandigarh among others.

    “India has become increasingly an important market for us. We are now the largest market for M&S outside of our home market. We are 71 stores today and we continue to invest in this market. We opened nine stores in the last six months and it is our intention to open six more in the next 60 days,” James Munson, managing Director, Marks & Spencer Reliance India said in an interview.

    Internationally, Marks & Spencer hawks its products in 57 markets across 400 stores and an online presence in 33 markets.

    Munson further said they would look to maintain that expansion pace in the next year as well and said, “there are no other markets which are expanding the way we are expanding here”.

    Of the 71 stores here, 10 are standalone beauty and lingerie stores , including two it opened in the last nine months and said half of the stores it plans to open in the next 60 days would also be for the same.

    The company clocked a revenue of Rs 908 crore last year and has been growing at a CAGR of 24 percent over the last five years, Munson said.

    It had clocked a 9 percent growth in the same store sales last year.

    A fifth of the turnover comes from outside the major metros, he said.

    It sources 30 percent of its products from locally and India is a sourcing base for the wider British market as well.

    M&S has partnered with other e-commerce players like Amazon and Flipkart over the last few years and he said its a strong area of growth and this year they are expecting 75 percent growth in online sales.

    However, the contribution from online to its revenues is still quite small here, unlike in Britain where it’s targeting 30 percent online sales.

    M&S has developed a rethink campaign specifically for this market, a first globally where a campaign has been designed for the local market.

    In Britain, food is a popular segment for the company but Munson said there are no plans at present to introduce food here.

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  • Miniso teams up with cartoon network’s Adventure Time

    Miniso teams up with cartoon network’s Adventure Time

    Miniso has teamed up with Cartoon Network to present an epic 264-item collection of Adventure Time products in its stores across 62 territories around the world. From Europe to Asia, and Africa to North America and South America, the retailer is stacking its shelves with items featuring iconic characters including Finn, Jake, BMO and Lumpy Space Princess.

    Launching this month as part of a phased global rollout, Adventure Time fans will be able to enjoy an immersive in-store experience with the collection, which will be comprised of plushies, stationery, gifts and accessories such as backpacks and cosmetics. In the near future, the collection will add even more items as well as expand to additional territories.

    “The scale of this range demonstrates the popularity and enduring qualities of the Adventure Time franchise globally,” said Vikram Sharma, Vice President of Cartoon Network Enterprises, Asia Pacific.

    “Miniso has been a great partner for us. And when they wanted a brand that could provide young fans with an instantly-recognizable and fun association, Adventure Time was the obvious, mathematical choice!”

    Meanwhile, a new wave of merchandise from We Bare Bears – another Cartoon Network property – will also be in stores alongside Adventure Time.

    After impressive sales during the initial collaboration during 2018, more than 200 new and refreshed Bears’ items will be available in Miniso stores this month.

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  • Tenant reshuffles bring good revenue for CapitaLand Retail China

    Tenant reshuffles bring good revenue for CapitaLand Retail China

    CapitaLand Retail China boosted its distributable income by 9.4 per cent last year on the back of a new acquisition and improved performance of multi-tenanted malls. CapitaLand Retail China Trust Management (CRCTML), the manager of CapitaLand Retail China Trust (CRCT), reported a distributable income of S$99.7 million (US$73.5 billion) for the year.

    “CRCT delivered a resilient set of results in FY2018 on the back of strong operating performance,” said CRCTML CEO Tan Tze Wooi.

    Portfolio occupancy as at December 31 was 97.5 per cent and rental reversion was 10.9 per cent. Tenants’ sales at its multi-tenanted malls grew by 18.8 per cent year on year, while shopper traffic was up by 19.4 per cent.

    With the addition of Rock Square in the full-year figures for the first time, CRCT’s investment property value rose by 17.8 per cent to RMB13.993 billion (US$2.07 billion) as at the end of the year.

    CRCTML chairman Soh Kim Soon said China’s retail sales rose by 9 per cent last year.

    “China’s more moderate pace of growth is reflective of an economy undergoing transition and its long-term fundamentals remain positive. We are confident that CRCT’s quality family-oriented shopping malls will continue to benefit from China’s growing middle class and policies implemented to stimulate the economy,” he said.

    Highlights of the year included:

      • CapitaMall Wangjing posted a rental reversion of 15.7 per cent after converting 4700sqm of anchor tenant space on Level 4 to specialty stores. The mall’s Level 8 rental income will rise by around 50 per cent after transforming 500sqm of common area into leasable space for coworking operator Ucommune.
      • CapitaMall Xinnan netted 17.9 per cent in rental reversion by reconfiguring its Basement 1 space to accommodate more popular brands.
      • Since acquisition, Rock Square has achieved four consecutive quarters of rental reversions above 20 per cent and a double-digit year-on-year increase in average sales per square metre for specialty stores.

    Wooi said that in order to further optimise the portfolio, CRCT has entered into a bundle deal in Hohhot with unrelated third parties to divest CapitaMall Saihan and acquire a new mall that is double in size and has “a longer balance tenure”.

    “Given the new mall’s higher growth potential, CRCT will be in an even stronger position to tap Hohhot’s promising retail growth. The deal is structured to minimise income disruption as the closure and divestment of CapitaMall Saihan will take place after the new mall is operational in the second half of the 2020 [financial year]. Supported by CRCT’s strong financial position, we will continue to explore suitable acquisition opportunities to grow and rejuvenate our portfolio,” Wooi concluded .

  • Reliance India buys additional stake in Future101, Genesis Colors

    Reliance India buys additional stake in Future101, Genesis Colors

    Billionaire Mukesh Ambani-led Reliance Industries has raised its stake in luxury apparel firms Future101 Design and Genesis Colors to strengthen its foothold in retail industry. Reliance Brands Ltd (RBL), a unit of RIL, “has acquired a further stake of 2.5 percent in Future101 Design Pvt Ltd on February 7, 2019, for a consideration of Rs 1.99 crore, taking its total stake in Future101 to 15 percent,” the company said in a regulatory filing.

    According to a report, also, Reliance Retail Ventures Ltd (RRVL), a separate subsidiary of the company, acquired a further stake of 9.44 percent in Genesis Colors Ltd (GCL), for Rs 45 crore taking its total stake in GCL to 29.07 percent on the enhanced capital.

    “Consequently, the stake of RBL in GCL shall be 43.66 percent and the aggregate equity shareholding of RRVL and RBL in GCL stands at 72.73 percent,” it said.

    Reliance said the acquisitions will help it to strengthen its foothold in the retail industry and support its long-term strategy to enhance its value in the industry.

    No regulatory approvals were required for the acquisition of shares and the investment does not fall within related party transaction, it added.

    The company had in July last year bought 12.5 percent stake in Future101, which is engaged in manufacturing, distribution, and sale of luxury apparels in India, for Rs 9.50 crore.

    Future101 reported an annual turnover of Rs 22.18 crore in 2017-18.

    In September 2018, RRVL had acquired a 16.31 percent stake in GCL, which owns fashion label Satya Paul, for Rs 34.80 crore. RRVL, through unit RBL, already held a 49.46 percent stake in GCL.

    That month, RRVL invested a total of Rs 57.03 crore in five other companies that sell branded readymade garments, bags, footwear, cosmetics and accessories.

    It bought a 2.07 percent stake in Genesis Luxury Fashion Pvt Ltd for Rs 3.37 crore, taking its holding in the company to 49.37 percent. Genesis Luxury Fashion distributes premium brands such as Jimmy Choo, Armani, Paul Smith and Bottega Veneta.

    It also bought 50 percent stake each in GLF Lifestyle Brands Pvt Ltd and Genesis La Mode Pvt Ltd for Rs 38.45 crore and Rs 10.57 crore, respectively.

    Besides, it acquired 50 percent each of GML India Fashion Pvt Ltd and GLB Body Care Pvt Ltd for Rs 4.48 crore and Rs 16 lakh, respectively.

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  • Vietnamese startup launches platform for hiring blockchain talents

    Vietnamese startup launches platform for hiring blockchain talents

    Getdone is a platform that connects blockchain talents, who can work as full-time employees or freelancers, to global clients in blockchain industry. This platform is the universal version of freelancerviet.vn, a leading freelancer platform in Vietnam. It lists 300,000 freelancers in various categories, with a focus on blockchain and AI technology. Getdone provides innovative solutions based on a combination of the two emerging technologies to improve security and payment speed, transaction fees and reliability of talent profiles and overcome the language barrier.

    In Vietnam, the number of job searches related to cryptocurrency and blockchain doubled in 2018. However, blockchain engineers and developers currently account for only 2-5 percent of the IT workforce, according to TopDev’s annual report last August.

    Upwork’s newest quarterly index of the hottest skills in the U.S. freelance job market ranks blockchain first out of 20.

    For this reason, Getdone entered the market with the mission to be a part of the solution of hiring blockchain talent including engineers, developers, and others.The shortage of blockchain developers continued in the fourth quarter of last year even as blockchain products doubled. The demand for employees in blockchain is so high that employers and clients need to find ways to work around a shortage.

    The smart contract on the Getdone platform cuts off third parties’ intermediary role to reduce commissions and ensure security and quick payment.

    Besides, AI technology with self-recommendation function based on automatic data analysis will help connect clients and qualified job seekers.

    AI also proposes an average budget for a project to help clients understand reference budgets when they need to hire blockchain talents, and an average rate per hour of work based on a candidate’s profile.

    It will create a standard framework for the freelance job market, avoid devaluation and protect the benefits of both blockchain talents and clients.

    The new-user-support tool will help new applicants find jobs more easily through the test system. A new talent who joins the site and gets a high-test score will still get a job despite having no previous work history on Getdone.

    Getdone will provide a live language translation tool to break the language barrier and help talents work across the world. Getdone accepts payments in more than 20 cryptocurrencies and foreign currencies.

    A hedging mechanism helps stabilize the value of cryptocurrencies used at Getdone. When choosing a talent, the company deposits a sum of money with the crypto token by the time talents complete their work within a few days to several months.

    In 2018 freelancerviet won Ho Chi Minh City’s Best Innovation Project award and the Asian Rice Bowl Startup Award in the Best AI and Machine Learning Application category from NEF (New Enterprises Foundation) and MaGIC (Malaysian Global Innovation & Creativity Center).

    Getdone is also one of three Vietnamese representatives to beat thousands of competitors from across the world to qualify for the Elevator Pitch Competition, a global contest organized by the Hongkong Science and Technology Center.

  • Foot Locker buys out Goat Group stake

    Foot Locker buys out Goat Group stake

    Specialty athletic retailer Foot Locker is making a US$100 million strategic minority investment in Goat Group, a managed marketplace for authentic sneakers operating the Goat and Flight Club brands. The partners expect to make joint efforts across digital and physical retail platforms to create exclusive experiences for their customers in an attempt to elevate customer engagement. The investment is also expected to help accelerate Goat Group’s global operations, expanding its omnichannel experience and innovative technologies.

    “At Foot Locker we are constantly looking at new ways to elevate our customer experience and bring sneaker and youth culture to people around the world”, said Foot Locker’s chairman and CEO Richard Johnson. “We are excited to leverage Goat Group’s technology to further innovate the sneaker buying experience and utilise their best-in-class online marketplace to help meet the ever-growing global demand for the latest product.

    “Together, Foot Locker and Goat Group’s shared commitment to trust and authenticity in the sneaker industry will provide consumers with unparalleled experiences and diversified offerings,” said Johnson.

    “In 2015, we pioneered the ship-to-verify model with a mission to bring a seamless and safe customer experience to the secondary sneaker market,” said Goat Group’s co-founder and CEO Eddy Lu. “With more than 3000 retail locations, Foot Locker will support our primarily digital presence with physical access points worldwide, bringing more value to our community of buyers and sellers. Having Foot Locker as a strategic partner will also expand our business as we continue to scale our operations both domestically and internationally.”

    Scott Martin, Foot Locker’s senior VP for strategy and store development, will join Goat Group’s board of directors.

    The Goat Group deal follows Foot Locker’s recent investments in innovative, digital-first companies including leading women’s luxury activewear brand Carbon38; tactical play and children’s lifestyle brand Super Heroic; and footwear design academy Pensole.

    Foot Locker’s investment will bring the total raised by Goat Group to $197.6 million since it was founded in 2015.

  • How technology shape the future of retail in India

    How technology shape the future of retail in India

    The Indian Retail Industry is considered one of the fastest growing industries in the world and technology has emerged as a helping hand to the industry. The world has seen a transition in retail planning –with the industry going from being product-centric to being customer-centric – and retailers are leveraging technologies to reach the modern shoppers.

    Over time, retail technology has transcended from an aspiration to an expectation and has wedged itself securely between consumer and experience to create an everyday interface. While it has definitely made life easier for consumers, retailers in India have spent a better part of the last decade on their heels, reacting to profound changes throughout the sectors of the industry.

    Retailers today are not fighting with retailers anymore; instead they’re fighting with different technological interventions in order to be the most competitive in the world. With growing competition, it has become extremely vital for retailers to innovate continuously and implement cutting-edge technologies to fulfil today’s demanding customers’ need.

    In order to stay relevant in a highly competitive market, every retailer needs to stay on top of technological advances and also learn how to exploit these technical innovations to forward their business goals.

    Over the past few years, a number of technology trends have evolved and dramatically altered the retail industry. The emergence and the transformational growth of the new economy has unleashed powerful forces which are eventually and successfully reshaping the retail industry at a transformational speed. In order to succeed, today’s retailers have to offer a seamless shopping experience across all channels – and should not lose track of their customers.

    Today, the entire retail ecosystem has smartened with technology. There are so many things one can experiment with if a retailer uses technology, for example: smart displays, in-store services, smart shelves, home delivery, brand optimization options, supply chain optimization, logistics automation to name just a few.

    Then there are wallets, point of sale data, social networking – where you can home in on complaints as well as get appreciated. All this is driven by the retailer into applications where the consumer sees, feels, asks the retailer questions and eventually buys the product.

    Giant players of the retail industry have accepted technology with arms wide open to captivate and secure customers and have made optimum use of technology to optimize their business. Whereas small retailers, most of them belonging to the unorganized sector, are yet to adopt technology to be adept with the changes and technological innovations taking place in the retail market. If the entire unorganized retail trade, which is 80 percent of the entire retail trade, adopts technology, the retail industry will usher in a new era providing a much-needed thrust to the Indian economy. Technology is the knight on the white horse that will ride the retail market towards prosperity and triumph.

    What took the year 2018 by storm is phrase ‘Experiential Retail’. It became the code of the moment; delivered through convenient accessibility, in-store features, customer engagement through ATL and BTL animation or out-of-the-box blends of the physical and digital shopping universe.

    Some other trends that impacted the retail industry in a big way in 2018 are:

    IoT (Internet of Things)

    IoT has big implications for in-store marketing efforts of retailers and brands. Connected devices aren’t just changing the way consumers live, work and play – they’re dramatically reshaping the entire industry. The IoT movement offers retailers opportunities in three critical areas: customer experience, supply chain and new channels-revenue streams.

    Leading retailers across the globe are already investing heavily in IoT. They are beginning to transform their business practices and recognize that, in time, IoT will touch nearly every area of retail operations and customer engagement. In the IoT of today, everything has the potential of coming under the IOT umbrella. From the lighting system in the store, the PoS (Point of Sales) system, to the electric switches and even garbage disposal units…IOT is at the heart of retail transformation. It connects people, machines, items, and services to streamline the flow of information, enable real-time decisions, and heighten consumer experiences.

    While the IoT may still seem like science fiction, it is becoming reality faster than most of us can comprehend. Retailers that hesitate to develop and execute an IoT strategy will open the door for competitors – old and new alike – to swoop in and capture early IOT mind and market share.

    SMAC (Social, Mobile, Analytics & Cloud)

    The relationship between consumers and enterprises has never been as intrigued as in the 21st century. As digital technologies augmented by SMAC are creating new touch points for enterprises to awe their consumers, there has been an evolution in consumer experiences. Social, mobile, analytics and cloud or SMAC are the nexus of forces, which are reshaping how consumers experience a brand.

    SMAC are currently driving business innovation. It creates an ecosystem that allows a business to improve its operations and get closer to the customer with minimal overhead and maximum reach. Digital is now an essential part of the whole shopping experience and the entire business of retail, inside as well as outside the store. You don’t need to leave a physical store to get your digital fix. Instead, retailers are leveraging a wide array of in-store technologies meant to draw consumers in the door. As the impact continues to increase, the way retailers think of digital and invest in it, besides addressing the digital wants and needs of their customers is changing dramatically.

    Big Data

    Today, retailers are constantly finding innovative ways to draw insights from the ever-increasing amount of structured and unstructured information available about their customers’ behaviour.

    Data gathering, and analytics are playing a key role in evolving business models in retail. Usage of data and analytics to better understand consumers in the form of branding, product management, leveraging loyalty card information to tracking customer buying behaviour and making better pricing decisions are the key factors. Collecting and leveraging customer information to provide personalized recommendations is the norm going forward.

    Retailers – large and small – have been reaping the benefits of analysing structured data for years but are only just starting to get to grips with unstructured data. There is undoubtedly still a great deal of untapped potential in social media, customer feedback comments, video footage, recorded telephone conversations and locational GPS data. Great benefits have come to those who put it to best work, and the best solutions have more likely come from innovative thinking and approaches to analytics, rather than those who simply try to collect as much data as possible and then see what it does.

    Omnichannel Retail Adaptation

    Omnichannel is a term that extends and supersedes multi-channel. Multi-channel (or cross-channel) refers to delivering content and considering consumer experience on more than one channel. Omnichannel is about understanding and optimizing for the entire journey across all channels.

    Omnichannel today is a necessity. Brick-and-mortar retailers have been left with no option but to add online channel to their offline operations in a bid to reach as many customers as possible, and quickly. Omnichannel retailing creates benefits for consumers and opportunities for retailers. For consumers, it empowers connected consumers by making it easier for them to access information and compare product details; by increasing choice; and by increasing convenience and the range of options for shopping. For retailers Omnichannel creates opportunities, ranging from potential extension of sales and increasing brand awareness and loyalty.

    A poorly executed Omnichannel or personalization strategy, however, can do more harm than good. Handling one or two channels discretely but satisfying expectations is better than disappointing your consumers when you fail to deliver added value — or worse still, confuse or frustrate — while tackling all channels. Personalization can be even more dangerous because of very real risks that your brand can be given the dreaded creepy label.

    To be successful at delivering a personalized experience in Omnichannel marketplace, adaptive content is a requirement. It is content that is designed for both personalization and delivery across many channels.

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  • Starbucks India to add around 10 stores this fiscal

    Starbucks India to add around 10 stores this fiscal

    Starbucks, a 50:50 joint venture between Tata Global Beverages and Starbucks Coffee of the US, is planning to add up to 10 new stores in the next two months, taking the total count to around 145 outlets, said a top company official. According to a report, the premium coffee chain is increasing the number of roll outs as it is getting overall good consumer response, said Tata Global Beverages (TGBL).

    “We currently have around 136 stores and we would open another between 5 to 10 stores by the end of the year (fiscal). We have seen an increase in the store roll out. We look at activating more stores roll out in the next few years, what we have seen in the past,” L Krishnakumar, CFO, TGBL Group said.

    Tata-Starbucks has recently started food delivery through online food aggregator apps like Swiggy.

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