Retail News CRM

Tag: india

  • Lockdown Cuts India’s Fuel Demand 50% In First Half Of April

    Lockdown Cuts India’s Fuel Demand 50% In First Half Of April

    Indian state retailers sold 50% less refined fuel in the first two weeks of April than the same time a year ago as a nationwide lockdown to stem the spread of the new coronavirus hit transportation and industrial activity, industry sources said. State companies – Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum – own about 90% of India’s retail fuel outlets. India’s gasoil sales by state retailers in the first 15 days of April dropped by 61% from a year earlier while petrol and jet fuel sales declined by 64% and 94%, provisional industry data provided by two sources, who asked not to be named, show.

    India’s overall refined fuel demand includes consumption of fuel oil, bitumen and liquefied petroleum gas (LPG). State-retailers sold 21% more LPG in the first fortnight of April from a year earlier. India is providing free cooking gas cylinders to the poor for three months to June to help them weather the impact of the lockdown.

    India has extended the overall lockdown until May 3, but has announced a roadmap to restart some industrial activity after April 20 in locations that are not coronavirus hotspots to try to revive the economy.

    The International Energy Agency (IEA) in its latest report said India’s annual fuel consumption – a proxy for oil demand – will decline 5.6% in 2020 compared with the growth of 2.4% forecast in its March report. It estimates India’s petrol demand will decline by 9%, while diesel will drop by 6.1%. The slump in fuel demand has already forced some refiners to halve crude processing and increase prompt exports of refined fuels.

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  • India is now H&M’s fastest-growing market

    India is now H&M’s fastest-growing market

    Fast-fashion retail giant H&M has labelled India its fastest-growing emerging market.

    The firm is now targeting ₹2,000 crore (US$280,000) in turnover from the territory, a goal it is likely to achieve by the end of this year despite signs of reduced domestic consumption.

    H&M’s growth in the region has benefitted from both online and offline efforts, along with its collaborations with local partners and affordability of the brand. It operates 47 outlets in the country, compared to 22 run by rival firm Zara, with financial figures suggesting it may have a leading edge in terms of sales.

    According to a report in the Business Standard, H&M India country head Janne Einola has indicated H&M will target tier-II and -III markets for future store locations. It is expected to launch up to 10 new Indian stores this year, as well as diversify its product range into different sectors such as home furnishings and beauty, as well as traditional Indian clothing.

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  • Further Expansion plan for Indian furniture chain Stanley Lifestyles

    Further Expansion plan for Indian furniture chain Stanley Lifestyles

    Premium furniture and home-decor manufacturer Stanley Lifestyles in India has launched a new flagship in Bangalore as part of its extensive expansion plans for the region.

    The brand is preparing to build a network of 55 new retail outlets in the territory, at an investment of US$9.6 million. The new stores will include five high-end Stanley Level Next-branded outlets and 50 mid-range Sofas & More stores in the territory, targeting revenues of $89.7 million.

    “We compete with international brands and are known for our high-quality standards & craftsmanship and proudly position ourselves in high-end home and lifestyle business,” said Stanley Group founder, chairman, and MD Sunil Suresh. “As India’s very own luxury brand, we strive to exceed the expectations of the discerning Indian consumers, and design and develop modern offerings with an international touch that are customized to suit Indian lifestyle and living conditions.”

    Stanley Lifestyles in India moved to build two new factories last year, one for kitchen and wardrobes and the other for premium mattresses and bedding. It is the first manufacturer/retailer for home furnishing in India, and sells internationally to Ikea, La-Z-Boy, and many car and aviation manufacturers as well as hospitality groups.

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  • India’s 2019/20 Fuel Demand Growth Worst In Over Two Decades

    India’s 2019/20 Fuel Demand Growth Worst In Over Two Decades

    India’s annual fuel demand grew 0.2% in 2019/20, its worst growth rate in over two decades, dragged down by a hefty 17.8% decline in local consumption in March as steps taken to prevent the spread of COVID-19 dented transport fuel sales.

    Consumption of refined fuels, a proxy for oil demand, totaled 16.08 million tonnes in March, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed on Monday.

    Falling refined fuel sales in March points to sluggish industrial activity in Asia’s third-largest economy, which according to some analysts is forecast to grow at 1.5-2% in 2020/21, its lowest in decades.

    A Reuters poll of economists showed it is expected to have expanded at its slowest pace in eight years in the first quarter and would slow further this quarter.

    Nearly three lakh trucks with payload worth Rs 35,000 crore have been stranded because of the coronavirus lockdown announced by Prime Minister Narendra Modi last month, the trade bodies have said.

    Indian Prime Minister Narendra Modi will address the nation on Tuesday, the last day of the current 21-day lockdown, and is widely expected to extend the closure except for the start of some essential manufacturing units.

    Due to restrictions on movement and travel advisories, India’s consumption of diesel, petrol and aviation turbine declined massively during March.

    Consumption of diesel, which normally accounts for two-fifths of overall refined fuel consumption, declined 24.2% in March from a year earlier, its deepest decline since April 1998. PPAC do not provide monthly growth numbers for before April 1998.

    Sales of gasoline, or petrol, used by automobiles fell by 16.4% from a year earlier, its worst slide since March 1999, the data showed.

    Jet fuel consumption declined by 32.4% as the lockdown has hit air travel.

    Cooking gas or liquefied petroleum gas (LPG) sales rose about 1.9% to 2.31 million tonnes, and naphtha sales rose 15.7% to 1.39 million tonnes.

    Sales of bitumen, used for making roads, dropped about 41%, while fuel oil use fell 10.3% in March.

    Slump in fuel demand has already forced some refiners to halve crude processing and raise prompt exports of refined fuels.

  • Indian fashion chain W expands into footwear

    Indian fashion chain W expands into footwear

    Indian women’s fashion chain W is expanding its business into footwear.

    The firm is preparing to retail shoes in more than 80 W stores across the country, as well as online, offering a collection of various styles of heels and flats. The collection presents classic Western designs with Indian flourishes.

    “At W, we have always strived to give the modern Indian woman a complete wardrobe solution,” said TCNS Clothing MD Anant Daga. “True to our brand promise, we are launching Footapparel, which is an amalgamation of fashion and functionality.

    “Looking at the footwear options available to our customers, we believe finding that one perfect pair which coordinates best, is fashion-forward yet keeps you comfortable throughout the day is a real challenge. This is the space we are addressing with our range of fusion footwear which is both fashionable and comfortable.

    The brand’s shoe designs feature craftwork such as embroidery, braiding, hand weaving, pleating, laser cutwork, quilting, and raffia weaving, amongst others.

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  • Apple reverses bulk-order ban and updates on opening plans

    Apple reverses bulk-order ban and updates on opening plans

    US tech giant Apple has reversed restrictions on buying multiple iPhones from its online store imposed last week.

    The restrictions placed a ban on purchasing more than two devices of the same model in multiple international territories, including Mainland China, Hong Kong, Taiwan, and Singapore. That restriction has now been lifted on the purchase of iPhones, although some iPads and Macbooks are still subject to limits.

    A 9to5Mac report conjectured that the ban may have been lifted quickly due to a supply-chain problem caused by the coronavirus epidemic being resolved since, or otherwise that iPhone sales dropped more sharply than the company anticipated.

    International Apple store locations remain shuttered during the pandemic in all areas except China. Some stores may be reopened on a staggered basis next month, according to reporting by Bloomberg.

    “At this time, we anticipate some stores may be able to open in the first half of April depending on the conditions in their community,” said the firm’s senior VP of people and retail Deirdre O’Brien.

    “We will provide updates for each store as soon as specific dates are established.”

    Apple was one of the first retailers to shutter stores in the early days of the outbreak.

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  • Reliance Retail buys Indian department-store chain

    Reliance Retail buys Indian department-store chain

    Reliance Retail Ventures Limited has bought Indian retailer Shri Kannan Departmental Store for US$20 million.

    “The investment will further strengthen the group’s retail operations and presence in the state of Tamil Nadu and will further enable retail and new commerce initiatives,” said a spokesperson for Reliance.

    With this acquisition, Reliance Retail has started a “new commerce” plan which links producers, traders, small merchants and customers through digital innovation.

    Incorporated in 1999, Shri Kannan Departmental Store operates 29 stores across Coimbatore and nearby areas with a retail area of more than 600,000sqft.

    Reliance Retail is India’s largest retail conglomerate, with more than 4000 stores covering multiple categories. It is a subsidiary of Reliance Industries.

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  • BMW India Shuts Down Chennai Plant

    BMW India Shuts Down Chennai Plant

    BMW Group India has announced a number of measures to restrict employee movement during the novel coronavirus pandemic that’s swept the globe. The automaker has announced that it will be closing the Chennai-based manufacturing facility with immediate effect until March 31, 2020, while employees at The National Sales Company and BMW India Financial Services will work from home during this period. Meanwhile, essential services including security, facility management and healthcare will continue to operate. Furthermore, the German auto giant said that it will keep all its showrooms pan India closed during this period, while aftersales and breakdown services will remain functional albeit with limitations.

    A statement from the BMW Group read, “For the well-being of employees in the midst of the COVID-19 pandemic, work from home has been implemented across BMW Group offices in India with immediate effect. Business continuity is to be ensured across all functions while adhering to all government directives and necessary safety measures. Across the BMW, MINI and BMW Motorrad dealerships in India, staff will work from home to offer services to customers. Aftersales and breakdown services staff will operate as per the local government directives and will be functional with limitations. All showrooms are presently closed and will reopen as per local government advisory.”

    Almost all major automakers including Tata Motors, Mahindra, Maruti Suzuki, FCA India and more have announced plant closures amidst the outbreak. In the luxury space as well, Volvo India had already announced that it has asked its employees to work from home, while Audi India has also shut operations with the closure of the Skoda Auto-Volkswagen facilities across India, while Mercedes-Benz too has closed the Chakan facility, near Pune. The auto industry is estimated to bear a loss of ₹ 15,000 crore every day during this phase, which further adds to the sector’s woes since the past year.

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  • Malls in India seek government aid during shutdown

    Malls in India seek government aid during shutdown

    Malls in India affected by the coronavirus outbreak are seeking a bailout from the government to compensate for losses incurred during a mandatory shut down period through to March 31.

    The decision has affected both retailers and developers in the various states that have implemented the ban on trading during the affected period in a bid to slow the spread of the virus.

    “A shut down like this effectively means that there are all kinds of expenses to be borne by everybody; malls may not get rent and would not be able to service loans they have taken for creation of the mall, capital expenditure, etc,” said Retailers Association of India CEO Kumar Rajagopalan in a report. “It’s all going to be a big loss. The government needs to look into this and support these entities to save lakhs of jobs”.

    A representative body for malls in India is seeking a lending window, a moratorium on loan repayments or to allow banks to reschedule debt, as well as a potential waiver of property tax and electricity charges.

    Industry experts have expressed skepticism that footfalls will return to normal within the next few months no matter how brief the shutdown period may be, which is likely to impact rental negotiations for retailers, as well as the deferment of new mall openings.

    Observers of the situation have commented that any five-day halt to business will erase the month’s profits for retailers.

    “Mall operators stand to lose 20 to 25 percent of their annual revenue assuming that a rent-free period is given to retailers,” read an ICICI Securities report. “In our view, the most likely scenario is that mall operators and retailers may share the losses given that malls have now become a relationship-based business with the same retailer having presence across malls.”

  • India’s Flipkart applies for food-retailing licence

    India’s Flipkart applies for food-retailing licence

    Indian e-commerce platform Flipkart has filed for approval from regulatory authorities to conduct food retail in the territory.

    According to a Times of India report, The Walmart-owned business has made the application with the Department for Promotion of Industry and Internal Trade with the expectation of a decision within three months.

    The firm registered an online grocery business in October last year under the brand name Flipkart FarmerMart. According to reported figures, the firm will make an investment of ₹2,500 crore (US$338,000) in the venture.

    Initial plans will see the firm delivering customer purchases via local “kirana” stores partnering with the Flipkart business.

    The firm will “focus on deep agri-supply chain investment, especially at the farm gate level and will encourage demand-driven sowing, which will help farmers produce right fruits and vegetables and get paid as per market price”.

    Flipkart competitor Amazon has held a food retail license in India since 2017.

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  • Indian retailers boycott Samsung products

    Indian retailers boycott Samsung products

    Indian retailers are staging a three-day nationwide boycott on selling Samsung mobile devices in response to the firm’s exclusive discounting deals with e-commerce operators.

    The All India Mobile Retailers Association (AIMRA) has arranged the Samsung boycott at brick-and-mortar outlets following several rounds of unanswered communications with Samsung country heads extending back over the past five years.

    “We will be showing our protest through digital posts, covering Samsung branding with a black cloth in our stores, and not doing business with Samsung distributors for three days,” said AIMRA president Arvinder Khurana, adding that Samsung representatives had neither met with leaders of their organization nor responded to emails.

    The association has been working to end deep discounting and cashback offers for e-commerce mobile retailers and has drawn guarantees of fair pricing across channels from Vivo, Oppo and Realme.

    Samsung is “adamant and underestimating the power of offline,” said Khurrana. “They are the only brand with M Series exclusive tie-up and now to grab our customers they have also tied up for a cashback offer through Amazon Pay … Such activities have caused great damage to us but the brand does not seem to be interested in working with offline traders.”

    Industry commentators have noted that the move will heavily impact Samsung’s revenues and shake consumer confidence in the brand.

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  • H&M looking to open stores in smaller cities in India

    H&M looking to open stores in smaller cities in India

    H&M in India is planning a broad expansion beyond tier I cities into smaller population centers.

    The move is in response to a burgeoning demand for its apparel items in tier II and II cities within the territory and continues the brand’s rapid growth in the Indian market, where it has recently partnered with local e-commerce platforms to strengthen its digital footprint.

    “What is clearly evident from our online platform is we see a great demand in tier II and III cities,” said H&M India country manager Janne Einola. “Tier II cities have been working very well for us… We have been testing in tier III cities like Coimbatore and Jalandhar. And these cities have been promising. This is the reason why I feel confident that we can grow in India. We will open quite a lot in Tier II cities and some of them in Tier 1.”

    H&M in India achieved a 43-per-cent sales growth last financial year despite a significantly slower growth rate during the period. Around half of its current locations within India are in tier II cities, and the firm reportedly takes a far greater proportion of online sales within India than the global average of 24 percent.

    H&M in India is planning to launch its first Indian ethnic wear collection next month in partnership with designer Sabyasachi Mukherjee.

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  • India is now H&M’s fastest-growing market

    India is now H&M’s fastest-growing market

    Fast-fashion retail giant H&M has labeled India its fastest-growing emerging market.

    The firm is now targeting ₹2,000 crores (US$280,000) in turnover from the territory, a goal it is likely to achieve by the end of this year despite signs of reduced domestic consumption.

    H&M’s growth in the region has benefitted from both online and offline efforts, along with its collaborations with local partners and the affordability of the brand. It operates 47 outlets in the country, compared to 22 run by rival firm Zara, with financial figures suggesting it may have a leading edge in terms of sales.

    According to a report in the Business Standard, H&M India country head Janne Einola has indicated H&M will target tier-II and -III markets for future store locations. It is expected to launch up to 10 new Indian stores this year, as well as diversify its product range into different sectors such as home furnishings and beauty, as well as traditional Indian clothing.

  • Apple promised first Apple India store next year

    Apple promised first Apple India store next year

    Apple CEO Tim Cook says the first Apple India store is on track to open next year.

    Cook made the announcement in response to a question at the firm’s annual shareholder meeting. The company’s plans for the region have been anticipated for some time, following the relaxation of government regulations affecting foreign retailers, easing the requirements of local sourcing and scrapping a law making it mandatory for brands to open physical stores before launching online.

    Apple has already taken steps to manufacture products in India, partnering with Taiwanese company Wistron to make the iPhone 6S and 7 models there.

    In May last year, the company said it was shortlisting sites for the first Apple India store in the commercial hub of Mumbai.

    “India is a very important market in the long term,” said Apple CEO Tim Cook in a statement earlier last year. “It’s a challenging market in the short term, but we’re learning a lot. We plan on going in there with sort of all of our might.”

    Rushabh Doshi, an analyst at global research firm Canalys said last year that having its own flagship stores might be just what Apple needs to reinforce its premium image.

    “A store just before the next launch will be the perfect timing for Apple to restart its Indian growth story.”

  • India became H&M’s fastest-growing market

    India became H&M’s fastest-growing market

    Fast-fashion retail giant H&M has labeled India as its fastest-growing emerging market.

    The firm is now targeting ₹2,000 crore (US$280,000) in turnover from the territory, a goal it is likely to achieve by the end of this year despite signs of reduced domestic consumption.

    H&M’s growth in the region has benefitted from both online and offline efforts, along with its collaborations with local partners and the affordability of the brand. It operates 47 outlets in the country, compared to 22 run by rival firm Zara, with financial figures suggesting it may have a leading edge in terms of sales.

    According to a report in the Business Standard, H&M India country head Janne Einola has indicated H&M will target tier-II and -III markets for future store locations. It is expected to launch up to 10 new Indian stores this year, as well as diversify its product range into different sectors such as home furnishings and beauty, as well as traditional Indian clothing.