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Tag: india

  • How the retail industry has fared in 2018

    How the retail industry has fared in 2018

    The overall retail market in India 2018 stood at Rs 43,251 billion and is forecast to grow by 6.4 percent CAGR in 2018-2023. Retailing in India still predominantly takes place in physical stores and shopping behaviour between urban and rural consumers continues to be vastly different. Smaller independents (both grocery retailers and non-grocery specialists) continued to dominate the landscape they faced growing competition from modern outlets opening in out-of-town shopping centres and malls capturing the Tier II & III markets.

    This year, we witnessed modern retailers launch interesting payments schemes and effective pricing strategies to propel the sales. For example, leading retailer Future Group launched its payment wallet Future Pay which can be used in all its retail brand outlets. Retailers also capitalised on growing acceptance of modern retail by developing new marketing schemes and strategies to attract shoppers.

    Additionally, multi-channel strategies remained key for retailers as they are developed online platforms that are also smartphone and tablet compatible to drive Internet sales.

    Furthermore, retailers also increased their new private labels products. This is was done for certain grocery categories like: packaged foods, non-alcoholic drinks, beauty and personal care and home care products.

    Finally, subscription-based retailing practices started to pick up in 2018. Although still relatively niche, and limited only to urban India, the subscription-based model for beauty and personal care and consumer health became quite popular in metropolitan cities.

    What are the retail trends that are going to rule the roost in retail in 2019?

    – Retailing will continue to offer potential for grocery retailers. Convenience stores and forecourt retailers are likely to continue to see healthy growth rates as their format can meet the demands arising from changing lifestyles by offering more convenient shopping solutions, both in terms of location, business hours and product range.

    – Given the rising maturity of retailing in metros/urban areas, retailers have slowly started to focus on the semi-urban consumer base. This has resulted in the slow and steady urbanisation of shopping styles amongst semi-urban consumers.

    – As the labour crunch and high rentals continue to affect the retail landscape in India, hypermarkets are looking to ramp up investment on self-service technology and automation to reduce costs and improve customer experience. Some hypermarkets chains have implemented self-service kiosks at checkout counters, generally with positive results because of reduced waiting times. Investments have also been made into automated ordering systems, which has helped brands reduce storage space at outlets, hence control rental costs. This can be expected to grow during 2019 as well.

    – Furthermore supermarkets are likely to push the broadening of key product categories, such as organic fresh food, soft drinks and packaged food. They are also likely to further narrow the line between foodservice and grocery retailing, with the introduction and integration of new foodservice elements within their stores.

    – Non-grocery retailing will likely be impacted by the growth of internet retailing at the expense of specific store-based retailers and other non-store channels. Consumers are expected to increasingly shop and research products online, with the popularity of smartphones making mobile-optimised sites and shopping apps crucial in attracting consumers. Moreover, social media will be used more often to alert consumers to attractive price promotions and build interest in new product launches. Also, omni-channel strategies will remain key for non-grocery retailers.

    – Non-grocery retailers will increasingly integrate their online brand information with store inventory, as consumers expect to find the same products in both channels. Moreover, to minimise showrooming, players will also need compelling reasons for customers to buy their brands in store, whether in terms of product selection or price competitiveness.

    – The entry of Amazon and Flipkart could stimulate a much-needed increase in the competition, which will bring both opportunities and threats for existing food and drinks retailers in India. Amazon with ‘Amazon Pantry’ and Flipkart with ‘Flipkart Supermart’ eventually launched its online grocery business in 2018. Millennials and affluent consumers were encouraged to change from shopping in physical stores to online in 2018 with convenience and heavy discounts on offer. Also, with increasing investments from player such as Amazon who are expected to buy skate in Future Retail and PayTm who have partnered with BigBasket and Future Group to strengthen its online grocery business, the food and drinks internet retailing is expected to show tremendous growth in 2019.

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  • Yellow Tie Hospitality to bring Taiwan-based beverage brand Chachago in India

    Yellow Tie Hospitality to bring Taiwan-based beverage brand Chachago in India

    Karan Tanna led Yellow Tie Hospitality, the leading food and beverage franchise management company, has tied up with Taiwan based beverage brand, Chachago to launch its first outlet in Bengaluru in January 2019. Yellow Tie has acquired the master franchise rights for the brand in India as well as UAE, Turkey, Kuwait, Lebanon, Jordan, Israel, Oman, Syria, Turkey, Iran, Iraq, Qatar, Bahrain & Afghanistan and plans to launch100 outlets in India by 2021, with an overall investment of USD 6 million in brand expansion and development in India.

    Chachago is a Taiwanese beverage brand known for its aromatic and delicious varieties of Taiwanese milk tea, bubble teas, fruit-infused beverage, cheese-based beverages, milkshakes, and other specialty beverages and desserts. This is the first time the brand is entering India after having established its presence in countries like Taiwan, Canada, Australia, Hongkong, Vietnam, and Phillippines. A typical Chachago outlet will be in malls, high street, and educational institutions, and will spread over an area of 100 to 500 square feet and a capex of INR 20-40 lakh will be invested in building each outlet.

    Commenting on the launch Karan Tanna, Founder CEO of Yellow Tie Hospitality said: “Chachago is a specialty beverage brand originated in Taiwan, a country also known as the ‘House of Milk Tea’. We felt Indian consumers would connect with these specialty beverages, as there is a high demand for them in a tropical country like ours. It is a well-known fact that specialty beverages are a large and growing segment in the QSR category. As the market evolves, niche offerings are becoming more popular, giving us confidence that a brand like this will go down well with Indian consumers. Chachago is positioned very well with a gamut of products ranging in various teas, fruit infusions, and milkshakes. Chachago will be a one-stop-destination for premium beverages. We are very sure that the finest product development capability of Chachago in Taiwan combined with their experience of over three decades and optimized operation to give more throughput, will enable very quick growth for them in India”.

    He further added that there is a plan to turn Chachago into a 300 outlet chain by 2023 across the franchise geographies, “Going forward, the company is also looking for strong growth in countries outside India, by the second half of 2019; and by the year 2023, we are expecting the total outlets of Chachago to contribute approximate Rs 120 crore in annual revenue.”

    “We have tasted success in the very competitive Taiwanese market because of our own capability of using the most premium ingredients with optimized results. These ingredients are not only appreciated in Taiwan but also in other countries like Canada and Australia. We are very sure that with our experience and the expertise of Yellow Tie Hospitality, Chachago will be able to grow aggressively in a market which is the second highest competitive market in the world. We look forward to our presence in India”, said Hseih Yu Yin, Owner, Chachago.

    To further streamline the franchising process for Chachago, the company will go through a master franchise and multi-unit franchise route wherein franchise selection criteria will be based as per International brand standards. The potential franchise owner’s credibility will be audited by Yellow Tie Hospitality.

    Economic growth and social change on the Indian subcontinent are causing the beverage, dairy and liquid food industry to boom. Euromonitor International forecasted that all beverage sectors will grow at double-digit rates in the next four years, which Drink Technology India (DTI) will also benefit from.

  • Strong sales growth for India’s textile manufacturing sector in Q2

    Strong sales growth for India’s textile manufacturing sector in Q2

    The manufacturing sector, particularly textile and iron and steel segments, maintained its pace of sales growth in the second quarter of 2018-19 as compared to the year-ago period, the RBI said on Wednesday. Demand condition in the manufacturing sector “maintained its pace in the September quarter 2018-19 as reflected in strong sales growth (year-on-year)”, as per the RBI analysis of 2,700 listed private sector non-financial companies.

    “The manufacturing sector sales growth was mainly supported by robust demand conditions in chemical and chemical products, iron and steel, and petroleum products industries coupled with significant improvement recorded by textile industry,” the RBI said.

    The central bank said heavy moderation was seen in the sales growth of motor vehicles and other transport equipment, driven in part by a large adverse base effect, and pharmaceutical and medicine industries.

    The information technology (IT) sector also recorded further improvement in sales growth over the year-ago period.

    The manufacturing sector continued to record strong growth in net profits, which received support from other income.

    The RBI said companies in manufacturing sector posted a net profit of Rs 47,100 crore in the reported quarter, up 29.4 per cent from the same period last year. The data is based on abridged financial results of 1,734 companies in the manufacturing sector.

    “Despite continuous contraction in the telecommunication, the services (non-IT) sector posted a turnaround riding on the support from wholesale and retail trade,” the RBI said.

    The profit of IT sector, based on data of 172 firms, was Rs 17,700 crore in the second quarter, up 5.8 per cent over the July-September period of 2017-18.

    As per the RBI, the combined sales of 2,700 companies was Rs 9,81,800 crore in the September quarter, up 18.2 per cent from the year-ago period.

    Their net profit was Rs 71,900 crore, an increase of 41.7 per cent year-on-year.

    On expenditure front, manufacturing companies continued to face rising input cost (cost of raw materials, staff cost) pressures. In case of IT sector, staff costs accelerated in tandem with the improvement in sales growth, the RBI said.

  • Value fashion retailer in India launches 200th store

    Value fashion retailer in India launches 200th store

    V-Mart, the world’s best performing department store chain in 2018 as per data compiled by Bloomberg, launched its 200th store in Mughalsarai, Uttar Pradesh. With this landmark achievement, the company has opened a total of 29 new stores in the current fiscal year so far.

    Earlier this month, the company launched its 198 th and 199 th store, both also in UP, at Kannauj and Naubasta near Kanpur, respectively.

    Marking the significance of this milestone for the company, Lalit Agarwal, CMD of V-Mart said, “We remain focused on strong execution, riding on the back of our proven cluster-based expansion model. The 200th store is a key milestone for V-Mart, more so, because we have added the last 100 stores in
    three years, while we took twelve years for the first 100. This demonstrates accelerated customer demand and V-Mart’s ability to translate that into all-round value creation.”

    With the 200th store launch coming just ahead of Christmas and New Year, V-Mart has planned a grand celebration campaign at select locations, starting with Kannauj and Mughalsarai, to bolster the festive spirit among its customers. At both the locations, the company is organizing a ‘Mela’ in large open fairgrounds, inviting the general public to enjoy an eclectic mix of food, fun and entertainment.

    The event in Kannauj, organized with complete support from the local administration, received tens of thousands of attendees enjoying music, folk performances, choreographed shows, fun rides, and delectable street food.

    Snehal Shah, SVP, Projects and Marketing, said, “V-Mart has always endeavored to createlasting value and moments of happiness for its customers. These celebrations are a small way of saying thanks to our customers who have made this milestone possible.”

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  • Tracking the dynamics of India’s gym wear market

    Tracking the dynamics of India’s gym wear market

    Whether or not one shows dedication in maintaining their gym routine is debatable, but it is an undeniable fact that gyms are doing well when it comes to their membership registers being filled. India’s waking up to being healthy and this means tons of gym memberships. This also means that when one takes a gym membership, the very next thing they do is head off to stores that deal in gym wear. Or they just log on and buy gym clothes and accessories. The demand for gym and active wear is growing in India because of a desire to stay fit and healthy. IMAGES Business of Fashion takes a look at the market dynamics…

    Setting the context for the story, Pallavi Burman, Head – Marketing, HRX shares, “The Indian active wear industry is currently estimated at a whopping Rs. 8500 crore. It is expected to continue growing at CAGR 12 percent and touch expected sales of approximately 6X at Rs. 54,000 crores by 2020.”

    Burman attributes the reason for this to growing health and wellness trend in India along with an increase in the number of sporting clubs, increased interest in sporting activities like football, basketball, tennis, badminton and cricket, the Indian active wear industry is fast proliferating. She says, “More disposable income and general inclination towards fitness is rising and resulting in the growth of this industry.”

    Another major reason for an increase in demand for gym wear is having Bollywood celebrities being spotted in gym gear, especially the likes of Hrithik Roshan, Malaika Arora and Kareen Kapoor Khan. It isn’t uncommon to see Page 3 pictures of these celebrities in their gym wear. The glamour magazines often have pictures and articles of how celebrities are taking gym wear to the streets and this eventually does give a fillip to the demand for workout clothes in the country.

    Market Overview

    Perhaps the above well explains the emergence of active wear in the country. Where dedicated gym wear is opted for only by a handful few, those opting for working it out in the gym clubbing their active wear or sportswear as gym wear. No wonder then that brands in India too offer gym clothes under the category of ‘active wear’.

    Pallavi Burman decodes the difference between the often clubbed together categories of active wear, athleisure wear, sports / performance wear. “By definition, athleisure and active wear clothing are those which can be worn from studio to street. Sportswear or performance wear, however, is clothing which help athletes or sports persons enhance their performance specially items like shoes, technologies like compression, socks in some sports etc.”

    Nivida Kohli, Design Manager, Numero Uno shares her views, saying, “As of today each distinct category is reinventing itself. This is a phase where the consumer market is changing since there is a generic shift towards more flexible lifestyles. Once this change settles in, I believe there will be clearer newer distinct definitions for sportswear and athleisure.”

    However, a lot many online players have an exclusive category for gym wear and some have gone a step further to have their portals dedicated to offering nothing else but gym clothing.

    The emphasis is more on offering men’s gym wear than having something specialized for women and unfortunately in India, gym wear still consists of mostly leggings and sports brassieres, although bigger brands have started innovating for women as well now.

    Taking note of this gap, brand Mojostar in association with Bollywood actor Jacqueline Fernandes, recently launched their exclusive portal www.justf.in that is dedicated to women’s active / gym wear.

    Just F was launched after Jaqueline and CEO Mojostar, Abhishek Verma, realized the gap in the market for women’s gym / active wear.

    “Sportswear needn’t be super masculine, so we are introducing fusion elements, florals, and may even add lace to some designs,” says Jacqueline Fernandes in a media interview. She has actively participated in the designing of the brand and has ensured that little things are not given a miss like pockets in fitness wear, the positioning of the straps and hooks and the materials used for leggings.

    According to Abhishek Verma, the focus for the brand for now would be functionality and support. The brand is also going quite aggressive with their collection of sports bras.

    The research by the brand indicated that most of the international brands that are present in this category design their range keeping in mind the target audience of western countries, which don’t fit the average Indian woman. Another reason for launching Just F was to give Indian women appropriate exercise clothing at reasonable costs, especially since most international brands come with a hefty price tag.

    Growing Demand

    Pallavi Burman says that with Indians becoming more health conscious and image sensitive, their pursuit for fitness has increased. “The average age bracket for Indian fitness enthusiasts is 20-35 years, which makes for the majority population of young Indian students and professionals. This target set loves to experiment with their wardrobe. Office wardrobe has drastically changed – we don’t see dress pants and brogues and oxfords anymore. Jeans and trainers have smoothly replaced these items. Everything in today’s clothing spells comfort and chic,” she says as way of explanation of why there a fillip in the performance wear category in Indian retail has been noticed.

    She explicates that to be able to tap into this big chunk of the Indian population with available disposable income and the affinity for fitness, brands and minimalistic wardrobe brands have to focus hugely on active wear and the athleisure segment.

    Gym Wear Essentials in India

    According to Pallavi Burman, a pair of leggings and shorts for women and men respectively –usually a loose tee and a pair of decent walking shoes – constitute for basic gym wear in India.
    “But this isn’t enough if the exercise routine includes more than walking. While almost 50 percent of Indians still prefer traditional ways of staying active like walking and running, the other 50 percent are inclined to swimming, cycling and other sports and training means. For targeting this kind of segmentation one needs to delve deeper into sub categories.”

    What makes gym wear more intricate for women is the inclusion of a high-performance sports bra. Without a well-designed sports bra, the gym wear ensemble for women remains incomplete. Quite a few Indian brands that have taken note of this and the range available online as well as offline is exhaustive. It is interesting to see brands like Triumph launching exclusive brassieres for gym wear considering they are a premium lingerie wear brand. The option they have is bounce control certified by world renowned Research Group in Breast Health, the University of Portsmouth. Elaborating on the same, Jennifer Kapasi, Commercial Director, India & Sri Lanka, Triumph International shares, “Triaction by Triumph is a stylish, high-performance sportswear collection that gives modern women the freedom to train how and when they like. Boasting the best bounce control levels on the market, three versatile fits and superior comfort, Triaction supports women throughout the day—on the go from the gym or studio in complete style.”

    Innovative Fabric Play

    Anything that stretches and helps absorb sweat yet keeps the fabric dry is the most preferred fabric when it comes to performance wear. Reiterating the same, Pallavi Burman says, “The fabric we use is always stretchable “wicking” blend made up of polyester and lycra. We also use a breathable mesh fabric as design and utility elements and several other performance enhancing features like anti-microbial layering, UV protection, rapid dry etc.”

    When you go through the collection, what catches your attention is interesting mélanges for both men and women. She says, “Color blocking and coordinated sets are finding a big audience in this space now.”

    Adding in a safety feature to go along with their sportswear, Numero Uno uses reflective N1 ACTIVE prints that act as safety alerts along with digital and high-density prints for a futuristic fashion flare. Kohli further adds, “For our sportswear/active wear, we are using fabrics that have technically advanced finishes with features like Anti-Static, quick dry, moisture wicking, Windproof, water repellent, Anti-microbial, odour control, easy care etc.”

    Triumph has developed two series of specialized brassieres that use innovative fabrics for the woman on the go. Their Dynamic Lite series with 3D Powertech material is made from the innovative fabric Dynamic Lite, which offers flexibility that keeps its shape over time. It fuses three innovative fabrics in one, is a two-way stretch fabric, has a strong lightweight mesh and soft moisture management lining which are insightfully laminated together, allowing the bras to stay very light and adjustable to all body shapes. These features make the bra light and comfortable to wear with its functional unpadded fabric combination. This innovation received an honorable mention at the 2016 Red Dot Deign Awards.

    Elaborating on the second innovation, Jennifer Kapasi says, “Our Magic Motion series is made from the most comfortable fabrics. Powered by LYCRA sport technology, these bras have stay dry properties, bacteria-reducing fabric with moisture management mesh. Extremely elastic fabric using LYCRA, guarantees unique freedom of movement.”

    The next generation LYCRA® SPORT technology combines the proven stretch performance of LYCRA® fibre with demanding testing standards that measure fabric performance descriptors on a simplified 1-10 scale. The three indexes measure Power, Comfort and Energy (PCE™). Triumph has gone ahead to combine these indexes to create performance levels tailored to fit each garment’s end use.

    The range at Just F is made using polyester-spandex or polyester-cotton blend which well suits the Indian climate.

    Promoting Gym Wear

    Since gym wear is a part of the performance wear / active wear category, brands don’t actively engaging in marketing and promotion initiatives targeting gym goers. However, on the other hand, some brands like HRX go the extra mile to reach to their target audience right at the place they are at – i.e. the gym!

    Pallavi Burman reveals, “Ours is the first homegrown, successful fitness brand in the country. We have multiple partnerships for various verticals all-leading to and adding up to fitness. We have our active wear and athleisure collection exclusively available on Myntra, we have the signature HRX Work out available at all Cult gyms, we have HRX Athlete meal packs selling at Eat.fit and we have our Mi HRX fitness bands available with Xiaomi. Across the three partners we have active communication all around the year on Digital, TV, OOH and Cinemas. Needless to say Hrithik is the face of HRX and this is the biggest draw for building customer engagement.”

    On whether there is a genuine demand for gym / active wear in the country, especially by women, Jennifer Kapasi says, “Women who regularly work out and those who lead an active lifestyle desire sport specific garments designed to help optimize performance. They pay a lot of attention to the fabric when buying a sports bra. In general, they will tend to look for hi-tech fabrics with ‘moisture-wicking’ and ‘stay-dry’ features. One of the most important qualities women look for is a high percentage of Elastane which not only makes the bra comfortable to wear but also retains its shape after multiple uses.”

    To launch their Autumn/Winter ‘18 Triaction – a collection by Triumph – took a digital approach through the launch of an online campaign ‘Team Triaction’, featuring four inspiring women, undertaking a fitness challenges to test both mind and body.

    “Team Triaction is led by actress and fitness enthusiast Mandira Bedi. She is joined by celebrity fitness instructor and owner of a Pilates studio Namrata Purohit; popular yogi and influencer Yogasini (aka Radhika Bose); and lifestyle and beauty influencer Juhi Godambe. The campaign also included a weekly contest with four rounds for Instagram and Facebook fans,” states Jennifer Kapasi.

    Getting Future Ready

    While there are a lot of dedicated online portals for gym wear, it remains to be seen how these enterprises survive over a period of time with their niche offering. With fitness being seen as a goal on everybody’s to-do list, especially with the new year approaching, all the gyms will experience a full house and so the sale of gym wear eventually is going to go up, but it is completely upon these brands to maintain the tempo for after all.

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  • Vietnam labor costs highest among ASEAN comparators

    Vietnam labor costs highest among ASEAN comparators

    Vietnam’s labor cost is the highest among comparator countries in Southeast Asia, a World Bank report says.

    In a report on enhancing enterprise competitiveness and enhancing small and medium-sized enterprise (SME) linkages, it says Vietnam’s labor costs are higher than in comparable Southeast Asian peers.

    It defines labor costs for each firm as the cost of all payments to all workers divided by the number of workers.

    It says wage costs about $2,739 per worker for the median Vietnamese firm, about twice as high as in Laos, Myanmar and Malaysia, and about 30 to 45 percent higher than in Cambodia, Thailand and the Philippines.

    While Vietnam’s labor costs are higher than in the rest of the region, they seem in line with productivity levels and thus do not seem to be a major obstacle to competitiveness, the report says.

    The average manufacturing firm in Vietnam produces about $10,500 worth of value-added per worker per year, higher than in most countries in Southeast Asia. It is around $10,000 in Malaysia, and $5,000 in Cambodia.

    Vietnam’s relatively high value appears to be partly driven by high and growing use of capital, the report says.

    The report also breaks down labor productivity in the country by region. The north-central and central coastal regions of Vietnam have the highest productivity — of almost $16,000 value addition per worker — while the southeast comes in second at $14,000.

    The Red River Delta region has a productivity of only $7,000, and it is even lower in the Mekong River Delta at around $6,000.

    It also said that foreign-owned firms are generally more productive than domestic firms, which can be explained by their easier access to technology and finance through their parent companies.

    The World Bank report also says that capital productivity is low in Vietnam. The ratio of sales to value capital in Vietnam is around 160 percent, lower than in any of its peers in Southeast Asia. The bank’s data confirms that capital might not be used very efficiently in Vietnam.

  • LOTS to cheer for the Cash & Carry business in India

    LOTS to cheer for the Cash & Carry business in India

    LOTS Wholesale Solutions recently unveiled its second Cash & Carry wholesale distribution centre in India at Akshardham in East Delhi. The launch of LOTS’ second store follows closely on the heels of its first store three months ago. Inaugurated by Amitabh Kant, CEO, NITI Aayog, this is second of the fifteen distribution centres that the firm is aiming to open in India over the next three years.

    The newly launched store will cater to over 45,000 registered business customers, which include hotels, restaurants, and caterers (HoReCa), kirana stores, corporates, MSMEs and institutions such as government agencies, educational institutes, and hospitals.

    Spread over an area of more than 53,000 sq. ft., the newly opened store has all the facilities including automatic system orders forre-stocking, predicting the demand as per customer’s behaviour, and designated goods receiving and dispatching, live bakery, among many more. Other notable features are transparent pricing, round-the-year promotions, consistent product availability, customized last mile delivery and credit facilities, all of which are tailored to satisfy the needs of its registered members.

    “We had promised to open two wholesale distribution centres in India in 2018. Today, that promise has been fulfilled. From our first store, we have exceeded the expectations we had set for ourselves. We have been getting very good response and we are getting 600-1500 walk-in customers daily. We decided to open our second store in Akshardham in view of the unfulfilled potential of the area in terms of wholesale buying options. The facility is all set to cater to the requirements of our members in east Delhi and nearby catchment areas. Through this store, the business customers of LOTS Wholesale Solutions will have a wide range of more than 5,000 food and no-food products to select from. Besides, they will also benefit from customized delivery solutions, competitive pricing and personalized service through our business development associates,” Tanit Chearavanont, Managing Director, LOTS Wholesale Solutions, said commenting on the launch of the new store. With its expanding footprint in Delhi-NCR, LOTS Wholesale Solutions will generate 5,000 direct and indirect jobs over the next five years.

    The launch ceremony was presided over by the chief guest Amitabh Kant, CEO, NITI Aayog. Also present at the launch ceremony was Chutintorn Gongsakdi, Thailand’s Ambassador to India and LOTS’ global and Indian leadership team. “I congratulate LOTS Wholesale Solutions on opening its second store in Delhi-NCR. The Retail sector in India is poised for higher growth as we are growing at 8.2 percent. We have jumped 65 spot and moved up substantially in the ease of doing business. India is the only country to have repealed 1,300 regulatory laws as part of our efforts towards creating a better business environment. Indian FDI has grown 62 percent whereas globally the numbers have shrunk by 16 percent.

    This is a unique story for Indian retail and the government is pushing for greater financial inclusion and working closely with other stakeholders. Such enabling regulatory norms and liberalised FDI policy should make it easier for global companies like LOTS to invest in India and on mutually benefiting terms. We will act as a facilitator and assure them of all the support they need to excel and deliver on the demands and expectations of their customers,” said Kant.

    In recent years, India has emerged as one of the top destinations for FDI. The inflow of FDI into India has gone up significantly with receipts flowing in from across the world, which has given India access to the latest technology, best practices, and global innovations. The arrival of multinational companies like CP Wholesale Solutions in India, which has chosen a 100 percent FDI route to establish its operations in India, further vindicates the popularity of Brand India in the world. With India’s retail sector projected to grow to USD 1.3 trillion by 2020, the country is the land of opportunities for potential investors and companies looking to start operations here.

    There has been an overall growth of the Indian economy, which has increased the purchasing power of the people in rural areas opening development opportunities for the companies to expand their presence. This offers a huge potential for Cash & Carry players to target B2B customers – like kirana stores and catering to the rural audience. Also, the implementation of GST has created a favourable environment for companies like LOTS that aim to establish and expand operations across India. It rubs off positively on supply chain efficiency, uniform assortment of goods and in supporting the end consumers. Cash & Carry, also known as wholesale trade, is fast emerging in India, where Lots Wholesale competes with players such as Walmart, Metro Cash and Carry and Reliance Cash and Carry, a unit of Reliance Industries Ltd. According to Ambassador Chutintorn Gongsakdi, after the arrival of LOTS in India, business interest in the country has picked up substantially and many more companies from

    Thailand have begun making enquiries about starting operations in India. “As the Thai Ambassador to India, I have set an ongoing goal for India and Thailand to strengthen our economic relations. One target I had was to have at least two new businesses to come and start business in India during my term in office,” said the Ambassador. He remarked in a lighter vein that his task in India has already been accomplished within one and half years of taking up office. “With the registration ofCP Group’s LOTS Wholesale Solutions Pvt. Ltd. and SCG International Pvt. Ltd., I have already succeeded in meeting my target. I can go home but I have reset my target to bring in two new Thai companies per year.”

    Expressing his satisfaction and pleasure at India’s participation in Thailand’s eastern economic corridor, he observed: “Speaking on this occasion, I already know that two new businesses are in the process of registering their business in India. So things are very vibrant. I have witnessed all the hard work done by Tanit and his team with respect to LOTS’ first store. I would like to sincerely congratulate the LOTS team on the opening of the second store. To witness a Thai MNC such as CPGroup, known for great corporate governance and values, grow their business in India gives us great satisfaction and pride. India is a dynamic country with a great future and it is a moment of pride for the Royal Thailand government and myself that Thai companies are keen to play a contributory role in India’s economy.”

    Pointing out that the opening of the LOTS’ second store reflects the ongoing rise of Thai businesses in India and is proof of T ai investment successfully flowing into India, Ambassador Chutintorn Gongsakdi said: “LOTS and CP Group’s success will, in turn, have a halo effect on other companies in the CP Group and other Thai businesses wanting to enter India. As ambassador, I am pleased to see the full potential of Indo-Thai economic relations being developed through the engagement of CP Group and other Th ai MNCs and SMEs and also vice versa from the Indian side.We have now around 28 Thai companies in India and the 28 will soon be thirty and more. The trend is good and The Royal Thai embassy has been receiving many expressions of interest in doing business with Thailand from the Indian side as well. I will use my office as a business matching venue to put this act together. Thanks to the eff orts of Amitabh Kant, Niti Ayog, and others in team India, the government in India has been very successful in reforming the economy and making it friendly to investors. Th is is the right time for Th ai businesses to secure their place in India’s future. And this message is not only for Th ais but other ASEAN and other nationalities as well. It’s not too late to be in India and startnow but in another five years it will almost be too late. Thailand is ranked 26 in the ease of doing business and we also off er a very friendly setting for foreign investors wishing to set up operations in our country.”

    The Indian government, on its part, is actively favouring open-door policies in investment and trade. The government is pushing for financial inclusion and working closely with ministries like Commerce, DIPP and Food Processing to bring relief to farmers by doubling their income through better yield. “It is our vision to make India an ideal place for large format business groups to set up shop and contribute to the growing demands of our growing nation. I am impressed that LOTS with its values of “local love” and principles of 3Cs – country,community and company – is not just about profit making but also about focusing on contributing to the society in equal measure. My compliments to LOTS Wholesale Solutions for opening two wholesale stores within a span of three months,” Kant said.

    In India, LOTS is committed to invest over Rs 1,000 crore in the first five years and its plan of opening 15 wholesale distribution centres across northern India has already started taking shape. Within a span of one year of signing the Memorandum of Understanding (MoU) with the Ministry of Food Processing Industries, the company – CP Wholesale India Private Limited – was incorporated, LOTS brand was launched and two stores have started operations already. It plans to open a third one in Noida by the end of this financial year. Because of the real estate challenges in the country, the company has decided to open 25,000-50,000 sq. ft. stores inside the cities instead of outskirts. “If we build centres out of the city, it is very difficult for the people to travel. Th at is the reason why we continue to focus on building stores where the catchment is,” said Tanit.

    The company, which invests on average Rs. 60-70 crore in one centre, is also looking at opening stores in Lucknow, Kanpur, Varanasi, Jalandhar, and Kolkata. For the next 2-3 years, the company will continue to add more stores in north India as a part of its expansion plans and intends to have a national footprint in 10 years time. Besides, the company also plans to adopt the omni-channel system for integrating online sales channel with its brick and mortar stores and is also exploring the idea of having dark stores/fulfilment centre in India.

    “With regulatory changes like GST, demonetization, RERA and the Make in India policy bringing about a higher organization on the Indian retail scene, there is no time like the present for retailers from across the world to venture into the country and invest. Our parent company Siam Makro has defi nitive expansion plans in the ASEAN region and owing to a positive regulatory environment, India is the first on our list. We see a lot of potential and the right type of investing and retailing environment in the country, which is why we were ready to take the lead here,” said Sameer Singh, Director – Operations, Business Development and Expansion, LOTS Wholesale Solutions.

    He added that LOTS follows a cluster approach. The brand sets up stores basis the supplier/ customer base so that it can provide them with a hassle-free experience and build a robust supply chain and make the delivery process faster. “Our parent company Siam Makro has evolved into several separate store formats and we are bringing all these formats and this knowledge to India, ready to explore both large or small sizes and even multilevel sizes. We can look at different sizes, which could help us at different levels. It gives us that excitement to be part of the catchment itself, otherwise we might be stuck on a certain format,” explains Singh.

    This catchment-specific approach is extended to the daily needs and grocery sections of the product range of LOTS as well. All efforts are made to source fresh produce from local farming community, which helps farmers earn better while reducing wastage during transportation and storage.

    According to Singh, LOTS offers solutions to member companies, which help them undertake a path of sustainable growth. Our product selection is based on detailed research that is specific to the region as well as the community. A critical element is to provide support to the home-grown brands – an essential component of our region-specific business strategy. Therefore, apart from engaging with international brands, we are working very closely with Indian brands and local farmers.”

    Taking pride in working with the local community and giving back to society, LOTS has joined hands with farmers in Bhatinda to help them adopt progressive farming methodology. In addition to that, the company is committed to sourcing fresh produce from the local farming communities, share know-how and packaging and storage so that farmers can reduce wastage during transportation and storage and increase their income. The company hopes that its efforts will help to develop the agricultural sector in India.

    At the same time, LOTS is focused on customers’ needs and satisfaction. The company brings specially curated assortments, categorised into food and beverages, kitchenware, household appliances, home decor, furniture, bedding, textiles, stationery and office supplies, electronic products and others; making LOTS Wholesale Solutions a complete one-stop shop. Th e company also offers a varied set of benefits to its members, including a wide range of product selection at its stores, based on detailed research specifically catered to the catchment area and market demand. Th e company, which currently has a customer base of around one lakh members,will also offer its support to home-grown brands and local suppliers and is looking to turn profitable in the next five years.

    “We place our customers at the core of our business and aim to provide a hassle-free shopping experience, making LOTS Wholesale Solutions a one stop shop for all their business needs. We aim at sourcing our products from not only top international brands but also Indian brands as well. Additionally, we believe in supporting the local community so that they flourish without support,” emphasised Tanit Chearavanont.

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  • Inside the Indian sportswear industry

    Inside the Indian sportswear industry

    India today is at par with wider global fitness trends. The booming economy and changing lifestyle preferences have compelled Indian consumers to be more health conscious and add new health and wellness routines to their hectic lifestyles. This trend has largely benefited the sportswear industry in India, which now is among the top in demand fashion segments of the country.

    According to a research report published by Global Industry Analysts Inc., the global market for Sports and Fitness Clothing is projected to reach US $231.7 billion by 2024. The research also indicates that technological developments designed to improve comfort and performance has also led to the growth in sales of sports apparel. The report points out that the Asia-Pacific region is expected to be fastest growing region, with a CAGR of 6.9 percent over the forecast period. Sales came from emerging markets, such as India and Thailand, as well as the US, the world’s largest sportswear market.

    The Indian Market

    According to reports from various internet sources, the Indian sportswear market grew 22 percent from 2015 to 2016, outpacing the segment’s global increase of 7 percent.

    As documented by a Euromonitor research, the sportswear market in India has grown from Rs. 24,000 crore in 2014 to Rs. 37,000 crore in 2016 at more than 50 percent over the past two years. A same study has shown a 23.7 percent CAGR for the 2011-16 period with a forecast of 11.3 percent for the 2016-2021 period.

    Men’s wear comprises the biggest share of the Indian sportswear market followed by the women’s and kids’ segments. In the recent past, the women’s market is progressively showing positive signs of accelerated growth. “Women’s wear is the fastest growing segment in the sportswear industry in India now — both for the industry and for us. Earlier, it was highly underpenetrated, but now it’s a booming segment. The men’s segment continues to grow at a steady pace of 40 percent,” says Sandeep Mukim, Managing Director, Proline.

    “While the men’s segment in sportswear is growing fast as numbers of sale, it is the women’s segment that is registering a higher growth percentage. This is due to the growing awareness of women for individual sports category like running, marathon, and other fitness activities. The kid’s segment is highly influenced by team sports – and the segment is growing fast along with the increasing popularity of cricket, football, etc.” says Mohit Prabhakar, GM, Nivia.

    “For our brand, as also for the category as a whole, the growth is largely driven by the men’s category. The women’s and kids market has not grown at the same pace, largely for the need to be fashion-oriented and/or more colourful as opposed to the fact of being more functional and performance-driven. Also, given the same budget, women are likely to purchase more garments to match element of their wardrobe and hence are more likely to buy, say, 2 pieces of stretch leggings rather than 1 track bottom,” says Sakshi Juneja, Key Accounts Manager of Black Panther, a unit of Juneja Global.

    “It is very difficult, almost impossible to accurately estimate the market size for sportwear, considering the fragmented nature of this particular industry and the overlapping categories such as lounge wear, athleisure and even sleepwear and undergarment brands vying for a slice of the activewear pie by styling themselves as sportwear brands. Added to this is the huge unorganized sector with a full-fledged and well-developed market for counterfeit merchandise of global brands, retailing brazenly through not only MBOs but also leading online portals,” she adds.

    As a whole, the sportswear market in India has traditionally been dominated by the big international brands, aptly named the ‘Big Four’ — Reebok, Adidas, Nike and Puma. Most of these brands entered the country in the 1990s and in the years that followed established their presence through a flood of local franchisees.

    But, in the recent past, given the enthusiasm of consumers towards sports and sportswear in general, a slew of brands, both home grown and foreign, have mushroomed absorb the market tendencies to cater to the rising needs of the consumers. Indian brands, although young, have an edge over their international peers – the price segment in which they operate. “In the case of apparel, international bigwigs are growing at very slow rate compared to homegrown brands due to their high price points. Indian brands are creating huge demand due to their capability of manufacturing compatible quality in India and offering products at very affordable prices,” explains Mohit Prabhakar.

    Of late, a legion of celebrity launched brands have surfaced in an attempt to cash in on the mammoth popularity they enjoy among the commonality. “With fitness fever gripping the nation, celebrities have also caught on to this trend. Bollywood stars Hrithik Roshan and Jacqueline Fernandez have launched their own sportswear brands which are gaining popularity amongst the general audience. However, for those who are more seriously into fitness, they still stick to more international and well-established brands because of proven technologies and brand equity,” remarks Vishal Gupta, Director – Retail, Puma India.

    Growth Drivers

    The average, modern Indian consumer’s lifestyle is undergoing a massive metamorphosis. Rising incomes and discretionary expenditure in urban India have allowed people to focus increasingly on health and wellness, as well as rising awareness of lifestyle diseases. The proliferation of international brands represented by sports and Bollywood stars have kept sportswear in the public eye fuelling this drive as well.

    Contemporary trends like taking long vacations, going on bike rides, hiking, travelling and indulging in recreational activities has been instrumental in driving growth of outdoor, sports inspired apparel. Most of the reputed brands of the sportswear domain have a wide range of outdoor apparel that makes a significant contribution to the total brand revenue.

    Driving the sportswear trend further into the masses are Indian pop culture icons, who are becoming self-proclaimed spokespersons of the fitness movement that is sweeping the country by storm. The proliferation of international brands represented by sports and Bollywood stars have kept sportswear in the public eye, fuelling this drive.

    The flourishing online retail market is yet another catalyst that has been successful in bolstering the growth of the sportswear market in India. E-commerce has especially been instrumental in aiding brands reach to smaller cities and towns where they are not physically present of yet. “E-commerce is a channel which is going to stay and keep becoming stronger because of its massive reach and the huge Indian population. As a brand we would never be able to reach them all with physical retail and hence would have to depend upon online. The younger population is also very tech savvy and spends a lot of their time on social media where they not only get to know fashion / trends but also make purchase decision,” says Vishal Gupta.

    “E-commerce is filling the availability gap for the consumers and thus growing fast. As physical retail would expand in these towns, we foresee that consumers would be happier to experience the products and buy,” says Sandeep Mukim.

    Considering that the second innings of the Indian retail revolution is all set to start from the country’s smaller cities, these geographical locations have emerged as key points of importance for the sportswear industry too.

    “The next big consumer group to adapt to this trend is currently in the smaller towns and cities of India. Their rising aspiration makes our availability in these locations a prime priority,” adds Sandeep Mukim.

    “Sportswear is a brand-driven category and footwear even more so, and footwear is what gives international brands the edge. Added to this is the fact that sports footwear has a largely undeveloped domestic manufacturing capability in terms of material, styling and technology. So the sourcing from manufacturing bases like China entails high MOQs and huge investments. Also, footwear having a low shelf life is a high-risk business. As such, global brands have an edge as it gives them the critical value and volume to sustain EBOs and premium retail space in megastores,” explains Sakshi Juneja.

    “However, Indian brands are pulling up their socks by smart sourcing of limited styles in footwear. Also, global brands are largely marketers who are dependent on local and international vendors for their apparel sourcing. Local brands like Black Panther, having vertically integrated manufacturing facilities are able to adapt and customize to customer preference more efficiently and will always have their own space,” she adds.

    The Indian Consumer

    The modern Indian consumer too has metamorphosed over the time and the Indian sportswear market now speaks to a more educated consumer who is aware of the importance of the right type of gear. “Through the internet and via international trends the consumer is updated with the latest in sportswear technology. To keep up with the evolving consumer, sportswear brands now launch products and technology at the same time as their global counter parts. The coolest and latest technology is brought to Indian audiences, giving them a taste of the type of innovation and experience the brand has to offer. Along with performance technology, trends such as athleisure and street style have played a big role in inspiring product and collections for the Indian market,” says Vishal Gupta.

    Although Indian consumers have come a long way from their earlier price conscious selves, vestiges of this trait are still witnessed today. In line with this, brands still have to make deliberate efforts in their pricing policies. “Our prices are competitive with other international players in the market. We also try to ensure that our price points are more or less the same in India and internationally. The key is providing an awesome product with cutting edge technology while keeping the pricing competitive,” says Vishal Gupta.

    “Nivia is capitalizing in a big way on our affordable price and technical products. In our factory at Jalandhar, we have total control from fabric designing to the final garment which is helping us in keeping our prices affordable for most products,” states Mohit Prabhakar.

    Conclusion

    The sportswear segment in India, like many other fashion segment, is undergoing an astounding change of perception as well as evolution. A noticeable change in the Indian sportswear industry is that it’s becoming increasingly organized; and modern retail is picking pace in small cities too, much to the delight of brands, suppliers and retailers of sportswear and sports lifestyle products.

    Overall, the industry is poised to grow, and India will be a key market as the awareness about sports and fitness increases and people become aware of being healthy.

    “We are extremely positive of the future and next opportunity is in making products for India at local prices. There is large population waiting to consume this category, which has stayed away till now because of the absence of trustworthy home grown players. The domestic brands would take this advantage as local manufacturing is becoming more updated,” concludes Sandeep Mukim.

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  • Signify launches Interact IoT platform in India

    Signify launches Interact IoT platform in India

    Signify (formerly known as Philips Lighting), the world leader in lighting, has launched its new Internet of Things (IoT) platform, called Interact in India, which will enable its professional customers to unlock the full potential of connected lighting for the IoT.

    The platform delivers new insights to help customers drive operational efficiencies and take more effective decisions. It also supports the company’s strategy to deliver new data-enabled services as value expands from lighting products and systems to services.

    Signify has already installed 29 million connected light points worldwide and plans for every new LED product it produces to be connectable by 2020. This growing number of connected light points, sensors and devices, as well as systems, can collect large volumes of data for which Interact was designed to handle. The highly secure, scalable cloud-based Interact platform uses sophisticated and modern data management and data processing capabilities, including machine learning, to bring sense to all manner of data – creating data-enabled services for customers that will deliver benefits beyond illumination. It also offers a growing suite of licensed open application program interfaces (APIs) which will foster innovation from third-party developers, development partners and customers, enabling various data enabled services to be developed.

    A typical example of such a service is occupancy data from different buildings, combined and analyzed to help managers to understand and predict how people use office space. Such insights can help deliver savings by optimizing the use of existing office space and support better designed, more efficient buildings.

    In addition, data from authorized third-parties can also be analyzed by Interact. For example, for a municipal authority, news articles and social media posts, reacting to a new lighting installation on a bridge, can be analyzed and data sent to a social impact app dashboard that summarizes the public sentiment.

    Launching the platform in India, Sumit Padmakar Joshi, Vice Chairman and Managing Director of Signify’s operations in India said, “First, we led the way in energy efficient LED lighting, then in connecting lighting to deliver operational benefits for our customers. Now that light points are smart enough to collect data on their performance and the environment around them, we are tapping into that intelligence. By analyzing the data from our connected lights, devices and systems, our goal is to create safer cities, energy efficient buildings and industries and smarter retail stores in the country. We are confident that this platform will deliver immense value for our professional lighting customers in India”.

    Interact connected lighting systems

    These connected lighting systems, offering a unified user experience, feature applications that address industry-specific verticals. Available now are:

    – Interact Office – enables you to turn your office into a smart sustainable workspace with software that allows you to increase building efficiency and employee productivity.

    – Interact City – helps improve street lighting, safety, reduce energy consumption, improve efficiency and support your sustainability goals and beautify the urban landscape across roads.

    – Interact Retail – enables customers to group, zone and schedule connected lighting to create stopping power in stores. It also supports in-store location-based marketing services to increase shopper engagement and indoor navigation to improve staff productivity.

    – Interact Landmark – aids in managing and triggering light shows with dynamic architectural lighting to help increase tourism, regenerate downtown areas, and stimulate commerce.

    – Interact Sports – aids in monitoring, managing and coordinating across all lighting infrastructure from a single dashboard from pitch lighting, entertainment light shows, hospitality areas and exterior architectural lighting.

    – Interact Pro – an intuitive cloud-based software for small and medium enterprises that automates lighting and allows management via the Interact Pro dashboard.

    Signify became the new company name of Philips Lighting as of May 16, 2018. The legal name of Signify will be adapted in India in the beginning of 2019.

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  • How Pizza Hut is mixing technology with pizza

    How Pizza Hut is mixing technology with pizza

    Yum! Restaurants-led Pizza Hut is betting big on technology. The brand is investing technology at each every step from taking orders to delivery of the pizza. Elaborating more on the same, Managing Director, Pizza Hut (India Subcontinent), Yum! Restaurants, Unnat Varma said, “We are using technology in sorting out our kitchens. So kitchens are becoming better in terms of layout, efficiency, optimising labour. Apart from this, we are also using technology to schedule riders to make sure that pizzas reach hot and fresh to the consumers.”

    “To ensure a seemless experience to the customers we have again using technology. We have a new online experience for customers, it is one of the best friction-less experience. From getting customer’s location to ordering the pizza, the entire process has been reduced to a four-step journey,” he added.

    The brand is also not shying away from using drones to deliver the pizzas in the near future.

    “We are closely watching the drone delivery space. However, there is no current successful model. There has to be regulation, approval from the Government that drones can fly in the air space and to understand that how does it work for food as food is very atypical, it cannot loose temperature and it has to be accurate, it has to reach in a certain stipulated time and it has be delivered straight. We will host the space, we are very open, we are transforming ourselves digitally and technologically, if this space helps us unlock some future possibilities, we will definitely go ahead with it,” Varma revealed.

    Enhancing Customer Experience

    To add to the overall consumer experience, the brand has been constantly improving its products.

    According to Varma, “These days the customer experience is always around product and product excellence and there we have been making a continuos effort to make our product more delicious, fresh and hot but in addition to that it is about the entire experience – how fast customer can place the order, how fast cusotmer can locate our store, can we give cusotmers a great value deal, can we understand their requirements, can we customise, can we help them earn and let them use some loyalty points in the future.”

    Expansion Plans

    Pizza Hut India plans to open over 200 more outlets in India by 2022 to expand its retail footprint. Currently, it operates 422 stores in the country.

    “‘Pizza Hut is a very democratic brand, it is used by segments of the consumers in the market, so our attempt is to go to as close to consumer as possible, it could be going after the shoppers in the shopping mall or it could be going close to residential areas, or going to captive locations where we have people working, so we are open to all kind of opportunities that exist. We are even open to open our outlets at airports and railway stations too,” asserted Varma.

    The pizza chain runs a franchise model in the country, where investments for opening new outlets mainly comes from franchise partner.

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  • Xiaomi India to foray into appliances, white goods space

    Xiaomi India to foray into appliances, white goods space

    Xiaomi is all set to convert its India arm into an end-to-end consumer durables company. According to a report, Xiaomi officials are currently identifying potential categories including air-conditioners, washing machines, refrigerators, laptops and small appliances like vacuum cleaners and water purifiers for the Indian market. All the products will be smart appliances based on Internet of Things (IoT) or which can connect to the internet and other devices, and operated remotely.

    Xiaomi entered the Indian television market in February this year with products 30-50 percent cheaper than the top three brands — Samsung, LG and Sony. It eventually expanded TV sales to offline stores and started assembling them in India in partnership with contract manufacturer Dixon. It recently announced having shipped more than a million televisions into the Indian market.

    The company will follow the same model for appliances. The products will be priced aggressively in line with its announced strategy of keeping just 5 percent profit margin for itself and start local assembly after gaining some scale to take advantage of Make in India duty benefits, according to the report.

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  • UK-based international chain bar Toy Room enters India

    UK-based international chain bar Toy Room enters India

    Toy Room, one of the most talked-about premium and international brand which has attracted visits from A-listers around the world including Jessie J, Lindsay Lohan and Nicole Scherzinger, has opened its first outlet in India in Aerocity. According to Akshay Anand, Owner Toy Room India, “Present in eight different countries, Toy Room is one of the biggest and hottest UK-based international entertainment brands with outposts already operating in London, Dubai, Istanbul, Rome, Mykonos, Athens, São Paulo and now India.”

    “This was the right time to introduce the brand in the country as food service industry is at its full-bloom all thanks to the well-informed and frequent travelling consumers,” he adds.

    Toy Room is the first international nightlife brand to enter the Indian market.

    Elaborating more about the brand, Anand says, “Toy Room is a playful, provocative, unpretentious and sexy place with a special focus on intimate hospitality and service and that is going to set it apart from other brands in the same category.”

    “With capacity for over 400 guests and a Hip-hop/ Rock ‘n’ Roll only music policy, Toy Room is derived from an urge to create an intimate setting for people to have fun,” he adds.

    Spanning across 4,500 sq.ft. Toy Room has been positioned as a finest party place that delivers an upscale nightclub experience with a focus on delivering premium hospitality, while still retaining its brand of sexy and provocative playfulness, which made it a worldwide sensation.

    The Toy Room brand internationally is known for placing children’s toys and imagery in an entertaining setting for adults, bringing together the notion of innocence alongside deviant party behaviour.

    “We are eyeing Rs 25 crore per annum revenue from Toy Room and going ahead we will be opening more outlets in Mumbai and Goa,” Anand concludes.

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  • ‘E-commerce share in India’s FMCG retail sales triples in 2 years’

    ‘E-commerce share in India’s FMCG retail sales triples in 2 years’

    Growing consumer trust and confidence in online buying has helped e-commerce platforms expand their share in India’s total FMCG retail sales by as much as three times, according to market researcher Nielsen. This has led to online purchase of a broader range of categories, with a particularly interesting upswing seen in fresh and packaged groceries, Nielsen said in a report.

    It further stated that global online grocery purchasing is up 15 percent in the last two years, leading to an estimated US$ 70 billion additional sales in online FMCG.

    The 2018 Nielsen Connected Commerce Report said e-commerce categories — travel (69 percent), fashion (66 percent), and IT and Mobile (63 percent) continue to account for the largest proportion of online transactions in the country.

    Interestingly, categories posting the most significant growth in e-commerce channel included packaged grocery (where 40 per cent of respondents said they made a purchase), fresh groceries, and baby and children products.

    “From tracking the e-commerce evolution in pioneering countries like South Korea where online sales now account for a staggering 20 percent of the total FMCG sector, we know that consumers follow a certain pattern of online shopping behaviour,” Sameer Shukla, Executive Director (Retail Measurement Services), Nielsen South Asia said.

    Travel, fashion and IT/ Mobile products are typical categories for first-time online shoppers and as their familiarisation, comfort and trust levels increase, their category repertoire expands into areas like beauty, personal care and baby products, he added.

    “… and then moves even wider afield to packaged and fresh grocery categories, and this is evidenced in the significant jump we’ve seen in online purchasing within grocery and food delivery in recent years,” he said.

    The report also revealed that consumers are more open to purchase packaged and fresh groceries online when they are offered certain purchasing options and quality assurances.

    About 60 percent of consumers pointed towards the need to offer and improve hassle-free refund, replacement experience as well as free cost delivery, which if offered, would boost their confidence to buy online with higher frequency.

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  • Miniso to set up warehouses in Delhi, Mumbai, Kolkata and Bengaluru

    Miniso to set up warehouses in Delhi, Mumbai, Kolkata and Bengaluru

    Japanese retail brand Miniso plans to source India-made products for its stores in the US and Australia, said a top company official. According to a report: Miniso India is also investing to set up its own warehouses in Delhi, Mumbai, Kolkata and Bengaluru to cater to its expanding network.

    “We are looking into getting more local purchase and we also want to sell Indian products to other countries,” Yang Liu, Chief Business Development Officer, Miniso Indi said.

    He further said, “We have built up a system. We do not only want to import here but also export from here to markets like Australia and the US.”

    The initial line-up of products to be sourced from India include socks and snacks, he said.

    About the local purchase, Liu said by December 2019, around one third products at Miniso India would be sourced locally.

    As per FDI norms, it is mandatory to source 30 per cent goods from India in single brand retail trade.

    “The products which are selling are not only from China but some cosmetics are from South Korea and Thailand also, and I think before the end of next year, we would be able to put our local purchase to 30 per cent,” Liu said.

    He further added that the company is working in this direction and has already signed contract with some local manufacturers.

    The company would also set up small warehouses around tier II & III cities for its new franchise stores.

    Miniso launched retail operations in India in August 2017 and clocked Rs 700 crore revenue in one year. It plans to take its store count to 800 by 2019.

    It operates around 3,000 stores in over 70 markets.

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  • Food delivery start-up Swiggy raises US$ 1 billion from venture funds

    Food delivery start-up Swiggy raises US$ 1 billion from venture funds

    Leading food ordering and delivery start-up Swiggy has raised US $1 billion (Rs 7,000 crore) venture funds from existing investors led by Naspers, to strengthen its technology and hire talent, it said on Thursday. “Swiggy will use the funds to bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens, as well as hire talent and strengthen the technology,” the city-based app provider said in a statement.

    The Series H round of funding, led by Naspers, also includes the participation of existing investors DST Global, Meituan Dianping and Coatue Management.

    The funding round saw the participation of new investors Tencent, Hillhouse Capital and Wellington Management Company, the company said.

    The firm will also use the capital to hire talent, especially for machine learning and engineering roles across mid and senior levels, as well as strengthen its technology backbone.

    “The company will focus on building a next-generation Artificial Intelligence (AI)-driven platform for hyperlocal discovery and on-demand delivery,” it added.

    Inclusive of the latest round, Swiggy said it has raised a total of US$ 1.26 billion (Rs 8,825 crore).

    In June, the food-tech start-up raised US$ 210 million (around Rs 1,500 crore) from multiple investment firms, including Naspers, DST Global in Series G funding and US$ 100 million (around Rs 700 crore) in Series F in February from multiple investors.

    Details of the promoters’ equity holding in their firm after the latest round of funding are not made public by the company.

    “As we add more firepower to our vision of elevating quality of life for urban consumers by offering unparalleled convenience, our global investors also share our purpose and have made a significant investment in our future,” Swiggy’s Chief Executive Sriharsha Majety said in the statement.

    Founded in 2014, Swiggy claims to have 50,000 restaurant partners across 50 cities, including New Delhi, Gurugram, Hyderabad, Bengaluru, Chennai, Mumbai, Kolkata and Pune, and receives about 25 million food orders a month.

    The company, which has over 4,000 employees, reported an operating revenue of Rs 442-crore for fiscal 2017-18.

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