Future Group gets going
with its smaller retail format
Biyani''s Future Group is working on a new retail format, aimed at boosting online
sales in the festive shopping run-up to Diwali.
Group plans to launch half a dozen small stores sized at 150 sq ft in Mumbai,
hosting 40-inch digital screens for customers to use to browse through the entire
range of products. Using online screens, consumers would be able to get a feel
of the company''s entire range of products.
manning the store will personally welcome customers and also help them browse
through relevant sections based on their preferences. Customers will also have
the option of placing an order then and there, with the product being home-delivered
within a few hours.
at leveraging consumers who are not very internet-savvy, the in-store online format
would help them save travel time to hypermarkets or malls at distant locations.
stores are likely to be up and running in about two months, with the exact suburban
locations to be announced soon.
opine that this format could result in a shrinking of real estate costs, as floor
space needed for retailing is much lower than other retail formats, along with
cost benefits coming from optimised inventory management. In most cases, products
could be shipped directly from manufacturers, eliminating inventory altogether.
Time and overhead
cost saves are also facilitated by the online order mechanism, which facilitates
instant communication of the order to manufactures, for onward delivery to the
to an Internet & Mobile Association of India (IAMAI) survey, leading categories
for online buying are books and electronic gadgets, followed closely by apparel
accessories, gifts, and computers.
to industry experts, with organised retail getting bigger, e-commerce will soon
become an integral part of business strategies, and will form a significant part
of the overall format mix for retailers.
Mercedes-Benz as public transport? Not entirely unthinkable
maker of the Mercedes-Benz and the world''s biggest commercial vehicle manufacturer
has, unveiled plans to launch Mercedes-Benz buses in India by early 2008.
German auto giant is reportedly looking at collaborating with Sutlej Motors, Punjab-based
bus body maker to bodies built on the Mercedes-Benz chassis manufactured by DaimlerChrysler
is said to encompass the development, production, marketing, sales and after sales
services for rear-engine luxury coaches. DaimlerChrysler will handle the sales
and after-sales of these coaches.
premium end of the bus market in the country is still in its nascent stage, with
market leader Volvo selling under 600 units annually. However, rising per capita
incomes and a better road and highway network have fuelled demand for luxury highway
transport, and the segment is set to heat up soon.
have already started to demand more comfort and convenience from bus travel, and
the pressure is on the manufacturer to provide products with higher safety and
Motors is a manufacturer of coaches, buses and application vehicles, manufacturing
luxury, inter-urban, long-distance, and modern low-floor city buses. The company
also makes low-floor buses for use at airports, along with mini buses.
green-field unit is scheduled to be ready around 2009. Industry sources indicate
that the initial roll out of these buses could well happen out of Sutlej''s manufacturing
unit, citing that Volvo has a similar tie-up with Jaico to manufacture 1,000 bus
bodies, and Tata Motors has an alliance with Brazilian Marco Polo.
business of people: Temps in Retail too
Kolkata: "Temping", or
the hiring of temporary staff to tide over the 30-40 per cent surge in footfalls
during weekend or festive shopping seasons is on the rise.
temping business has gained prominence in recent years, with modern business such
as call centres and data processing set ups regularly hiring temps. Getting temp
staff provides businesses with greater flexibility of hiring at short notice,
minus the hassle of beefing up their payroll. Typically, undergraduates, and even
homemakers fit the profile for temps, making a quick buck in the process.
more organised temping, the temps get all social security benefits, which are
managed by an HR company who places them at other businesses.
at a marginal difference in salary costs, retailers and other business hiring
temps gain a he advantage in not devoting managerial time to non-core activities.
retail, temps are typically part of three categories - frontline temps managing
counter jobs, merchandising temps who have some previous retail experience, and
a third group typically hired by speciality retailers.
such as Ma Foi and Team Lease form the organised temping market. Ma Foi is said
to have 30,000 temps, with Team Lease claiming to be the largest temporary staffing
company in the country with 70,000 people on the rolls.
so far have been utilised typically on back-end activities like laying out stores,
inventory movement, etc. Going forward, the focus is likely to shift towards manpower
optimisation, which will see them manning frontline jobs as well.
company Kelly Services has been reportedly approached by retail chains Subiskha
and Vishal Retail, among others, for weekend staff. The Future Group apparently
prefers not to use temps, instead staggering its existing work force according
to its needs.
Complete Man" to be accompanied by "The Complete Woman" from Raymond
Delhi: Completing its tag line, "The Complete Man", Raymond announced
its foray into the Rs800-crore women''s western wear market, with the launch of
the next three years, ColorPlus Women will reatil through 175 points of sale.
The range will comprise day wear, sports wear, business wear and formal wear,
and is targeted at the upper middle and premium class.
between price points of Rs900 and Rs1,900, the line will be available at ColorPlus
flagship stores in multi-brand outlets, as also in large format stores across
Raymond has plans to open five exclusive ColorPlus Women stores, plus 12 lifestyle
stores that will feature the new range, by end 2007. ColorPlus Women will be launched
initially in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad.
the market growing at a healthy 20 per cent, the company plans to achieve a turnover
of Rs150 crore over the next two years from the new women''s range.
major JWT ties up with Mindset in Hyderabad
Hyderabad: Advertising agency
JWT has set up a presence in Hyderabad through a partnership with Mindset e.y.w
Advertising Pvt Ltd.
a press release, JWT CEO Colvyn Harris said, "We were planning to set up
a new office to add to our network and found Mindset to be the right partner and
Hyderabad the city to be in".
has Microsoft in Hyderabad as among its major clients. Other well known names
in its client list include ITC, Unilever, Godrej, Tata Steel, Hero Honda, and
resources and expertise will help Mindset to offer clients a whole new level of
advertising and brand building to its clients in Hyderabad.
has 315 offices worldwide.
Poddar group unveils aggressive plans for Oxemberg, other retail brands
The Siyaram Poddar group has unveiled plans to focus on marketing its garment
brands, with particular emphasis on its flagship Oxemberg brand.
garments added Rs64 crore to the Rs1,500-crore turnover of the group during the
last financial year and the company now plans to roll out an aggressive television
textile and ready-made business is sailing through a patch where brand loyalty
ranks low, and most brands are vying for shelf space in malls and large format
stores, along with mind space through advertising and promotions.
is present in Central, Future Groups'' large format store and Siyaram is said to
be in talks with In-orbit and other malls to get acquire retail space. According
to sources, the brand plans to set up 100 retail outlets by the end of 2008, across
40 tier-II and tier-III cities. Special focus will be accorded to the south Indian
market and new outlets will be located in malls and high street locations.
company currently has 33 outlets in 10 cities.
estimated outlay for each outlet will come to about Rs30 lakh on lease rentals,
and Rs50 lakh to Rs1.25 crore on outright purchase deals. The stores will carry
inventory worth Rs10-12 lakh.
company is evaluating the adoption of a cluster approach, and plans to roll out
standalone stores wherever viable. Post expansion, the Rs65-crore brand is looking
at revenues of up to Rs100 crore.
Unilever to set up ''hairwash domes'' to promote Dove
Mumbai: Having secured
a one per cent value share over the three month period since its launch, Hindustan
Unilever Ltd (HUL) is now set to take its Dove haircare brand to malls and beauty
company has also allocated part of its promotion and advertising budget on the
internet and mobile platforms to further increase awareness about the brand.
company is planning to target 12 - 13 malls across metros by setting up ''hairwash
domes'', where consumers can come in for a free hairwash experience.
of these consumers would have the option of getting themselves photographed by
professional photographers, and have their photographs displayed at a hair exhibition
to be organised by the company under the tag ''Dove beautiful hair gallery''.
evaluate consumer concerns and perceptions about their hair, HUL is surveying
women consumers on how they feel about their hair, and whether they are really
happy with it.
hairwash experience would be provided to consumers who have been unhappy with
their hair. The Dove photo-gallery exhibition is to be the culmination of HUL''s
concept of ''Real Women, Real Beauty'', with Dove showcasing pictures of real women.
is being positioned as a wellness brand; differentiated form HUL''s other beauty
hair care brands such as Sunsilk and Clinic. The company plans to leverage the
brand to create a new segment in hair care, with the new treatments available
under the Dove brand in conditioning and nourishment.
the price and product overlaps with other hair care brands, HUL wants to build
Dove on the wellness platform, expanding on the equity of its soap brand under
the same name.
might sell Nissan''s small cars
New Delhi: Mahindra & Mahindra (M&M)
just might be the one to market small cars, without having to manufacture them.
sources suggest M&M is in the advanced stages of negotiations, which would
see the forging of a marketing tie-up with Nissan Motor Company for its small
has earlier made public that it has plans to enter the Indian car market with
some of its existing small cars. That announcement had not indicated how its products
would be marketed.
company has a marketing arm in the country, which sells its SUV, the ''X-Trail'',
and ''Teana'', but industry sources opine that the company may not have adequate
infrastructure and reach to cope with the demands of small car distribution.
M&M too may be keen to establish a marketing joint venture with Nissan, similar
to the one it has with Nissan''s sister company, Renault. That tie-up has put M&M
in the car segment in India, with the Renault Logan. M&M holds the majority
stake in Mahindra Renault India.
and Nissan, along with Renault, are equity partners in a manufacturing project
at Chennai. Nissan plans to eventually manufacture its small cars in India, leveraging
M&M''s widespread M&M dealer network to market their products. The Renault
Logan is already being sold across the country via the existing M&M dealer
Chennai project has M&M holding 50 per cent equity, with the remaining resting
with the Nissan-Renault combine.
plant would have an installed capacity of four lakh vehicles per year, and is
reportedly facing a delay in its 2009 launch plans.
partners US chain Coffee Bean & Tea Leaf
Mumbai: Pantaloon Retail India
Ltd has entered into a franchise agreement with the US chain The Coffee Bean &
joint venture will see a the formation of a privately held speciality chain, with
Blue Foods, Pantaloon''s joint venture company, being the master franchise.
deal could see the set-up of another coffee chain, similar to Lavazza Group''s
Barista, Whitbread Costa Coffee and Cafe Coffee Day, which have seen robust growth
driven by modern retail formats, and higher disposable incomes.
reported to be keen on a franchise deal with coffee chain Starbucks, newspapers
report that the deal was scuttled after India''s foreign investment board (FIPB)
rejected the application citing an unclear equity structure.
New Delhi: TheOneAlliance distribution joint venture
of SET India and Discovery Communications, has brought into its fold popular international
music channel VH1, which is a sibling of MTV.
agreement with Zee-Turner''s distribution ended in August 2007, following which
it has decided to move in with its siblings MTV and Nick, which are already part
joint venture, SET Discovery Private Ltd, has SET India and Discovery Communications
as partners since April 2002. The company presently distributes 15 channels under
TheOneAlliance brand to over 61 million homes across 4,000 cities and towns in
a viewership of approximately 20 million households in the country.
channels that are part of TheOneAlliance include Sony Entertainment Television,
SET Max, SAB, SET Pix, AXN, Animax, Discovery, Discovery Travel & Living,
MTV, Animal Planet, NDTV 24X7, NDTV India, NDTV Profit, Nick and Ten Sports.
92.7FM plans to syndicate its content to Asian FM in the US
address the ''home'' radio station need for the PIO (People of Indian Origin) community
in the US, Big 92.7FM is looking at syndicating content to a US based radio station,
Asian FM, which has a listener base catering to the South Asian community out
there. This could also prove to be an interesting alternative source of revenue
for the station.
FM claims to be the only provider of 24 hour programming of Asian music, and wants
to include the large Indian community into its listener base, for which it finds
content from Big92.7 FM ideally suited.
part of the agreement, Big FM would provide mainly non-music content to Asian
FM, which would include but not be limited to humour, romance, and health, which
reflects the contemporary flavour of India.
FM expects this to be a huge hit with the large Indian and Pakistani communities
of the US, anticipating that people of these communities in the US want to hear
a lot more of India, be it humour, devotion, television or Bollywood-related trivia.
With this initiative, Big92.7 FM is seeking seeks to replicate the international
non-traditional revenue model, which contributes between 30 to 40 per cent of
a station''s revenue. Typically, content syndication, events and other on-ground
activities for part of these revenue sources.
this one of a kind deal almost in place, Big92.7 FM is reportedly seeking similar
associations in other markets as West Asia, Europe, Africa and Southeast Asia.
2003, Asian FM is a 24-hour radio station, broadcasting different kinds of Indian
music that ranges from Bollywood chart toppers to devotional songs, in addition
to local, national and international news, and also covers cricket.
FM now plans to adopt a language specific programming format, with programming
in Urdu, Gujarati, Punjabi and Bengali. It reaches the South Asian/PIO population
across 5 regions: Long Island (NY), Atlanta (GA), Houston (TX), Detroit (MI),
and Chicago (IL).
its February 2007 launch of Asian FM USA, a subscriber-based radio channel on
Dish Network (Echostar), Asian FM is available across all of the United States
via the satellite service. These two radio networks are the first Indian-owned
networks in the U.S.
F1: Marketing, The Vijay Mallya way
Since UB Group''s acquisition Scottish
distiller Whyte & Mackay, a move which elevated the group to second place
in the global spirits market, chairman Vijay Mallya has most definitely been looking
to overtake something and ensure that he is the first to cross the line with the
Ferrari is most likely what it is. Mallya has decided to get himself a Formula
One team, happily investing a cool €90 million over a weekend, and in the
process, exponentially expanding marketing opportunities for his flagship brand,
estimates that Spyker could pull in €25 million in television revenues next
year, and plans to cut costs for the loss making endeavour by relocating some
of the research capabilities to India. An Indian team, ideally with an Indian
driver - is an almost sureshot route to unlocking untapped marketing potential
in a country where half the 1.1 billion population is under the age of 25, a substantial
chunk of which keenly follows F1.
ratings are set to skyrocket, with potentially every Indian kid tuning into F1,
given their ownership in it as a country. If even half of the cricket mania is
replicable here, Kingfisher is most definitely home and dry.
as Kingsher presently adorns Toyota''s team as part of a $5-million deal ending
next year, it could be some time before Spyker wears the Kingfisher shade of red.
In the interim, other UB group brands could possibly find themselves on the team.
As any flyer
on Kingfisher airlines would testify, having viewed Vijay Mallya''s personal ''welcome
aboard'' address on the aircraft''s in-flight entertainment system, Mallya is all
about building brands. The F1 acquisition presented a value-creation opportunity
that he possibly couldn''t pass up.
Indians can expect some style, flamboyance, and pizzazz from Mallya''s latest personal
endeavour, and of course, can also be sure that he will most definitely make some
money off it as well.
fashion sportswear brand Kappa launched in Bangalore
Bangalore: The Italian
fashion sportswear brand Kappa, opened its first store in India in Bangalore earlier
this week, accompanied by a theme launch branded, "Do the Kappa", which
attracted several personalities from the mini metro.
Bangalore-based personalities including badminton icon, Prakash Padukone, photographer
Waseem Khan and model, designer and entrepreneur Mariam Handa, radio jockeys Chaitanya
Hegde and Sheetal Iyer, marathoner Gul Mohammed, Asian Championship medalist and
Arjuna Awardee Reeth Abraham, fitness evangelists Shardul and Satya Sinha, and
consultant Harish Bijoor with wife Nina.
brand roped-in Bangalore''s who''s-who to recreate the unique 40-year old logo,
which is showcased as a ''Do the Kappa'' wall at the Kappa store, created with pictures
of these celebrities, and unveiled by Fazle A Naqvi, executive director, LMG Brands
India (P) Ltd.
is recognised across the world thanks to its unmistakable ''Omini'' logo. Forty
years ago, a photographer during a shoot realised that he had more than just a
pretty picture - a shot of a young man and woman sitting back-to-back, which formed
the genesis of Kappa''s Omini logo.
on this occasion, Naqvi said, "The idea of recreating the Omini logo, 40
years after its birth, was an idea that excited all of us at the Kappa team. The
underlying thought was to create a unique ''connect'' with our patrons and engage
them with the brand in an innovative manner. We are delighted at the support extended
by Bangalore''s leading personalities and are confident that our youthful consumers
will be eager to ''Do the Kappa.''
Kappa sponsors various sports disciplines of national football and golf teams,
several top-level club sides in rugby, cycling, yachting and motor sports. Most
recently, Kappa has become the official apparel partner of the Indian Rugby team.
Airways plans on going west
Thiruvananthapuram: Paramount Airways is considering
expanding into the western region through an acquisition, if the right opportunity
to M Thiagarajan, managing director, Paramount Airways, discussions with other
airlines to evaluate a possible acquisition are in progress. He also said that
in addition to inorganic expansion opportunities, Paramount Airways is also growing
organically, and currently claims to control a 26-per cent market share in South
to expand to the Western region by next year and into the northern region by 2009,
with a pan-India presence by 2011.
company has signed a memorandum of understanding (MoU) with aircraft manufacturer
Embraer for procuring around 40 aircraft. Embraer is a leading player in the regional
Retail Ltd''s Croma gears up for festive-sesaon sales
Pune: Croma, the
Tata Group''s chain of electronic and consumer durables outlets, is experimenting
with mailing product catalogues containing information on ''deals'' and best buys
to potential customers.
Retail Ltd, the owner of the Croma brand, is a 100 per cent subsidiary of Tata
Sons. It has partnered with Australian retail major Woolsworths Ltd to source
all the products.
September, the new initiative, obviously directed at the festive-buying wave that
gathers momentum as a run-up to the Diwali season, will be rolled out in Mumbai,
Pune and Ahmedabad, according to CEO and managing director of Infiniti Retail
Ltd., Ajit Joshi.
first store in Pune was inaugurated at Ishanya mall, off the Airport road. Joshi
said around 70,000 such catalogues are being mailed out across Pune alone, and
a second store in Pune is to be launched later at the Krome mall on Solapar Road.
This will take the tally of Croma stores in India to eight.
company plans to roll out 40 stores, which typically cover an area ranging from
10,000 to 20,000 sq ft each, by the end of March 2008, and plans to have 100 stores
in Delhi, Bangalore, Hyderabad, Baroda, Chennai, Surat, Mumbai, New Mumbai, Ahmedabad,
Nashik and Pune with locations at high streets or malls, by March 2010.
outlets stock 6,000 products comprising 180 national and international brands
under eight categories, viz. home entertainment, small appliances, white goods,
computers and peripherals, communication, music, imaging and gaming.
forays into three-wheeler segment; rolls out 7 vehicles
Hosur: TVS Motor
Company has launched seven vehicles. Marking its foray into the three-wheeler
segment, the new launches include three variants of its new three-wheeler.
products are expected to be available across the Indian market in a phased manner
between October and November this year. Prices will be announced prior to the
launch function was branded Dhoom 7, and was held in its Rs125-crore new three-wheeler
plant at Hosur. Company chairman and managing director Venu Srinivasan announced
that the fourth quarter of this fiscal would see a changed TVS with many more
aggressive and focused products, and will be marked by a change in the company''s
marketing and input costs had impacted the company''s bottom-line last fiscal.
The company estimates the automobile industry''s continued growth at 12 per cent
per annum, given the economy''s growth at about 9 per cent. Srinivasan said that
the company has been spending about 3 per cent of sales on R&D efforts, and
results would be evident in the new vehicles that would sport new technology features
company''s three variants of its new three-wheeler include petrol, CNG and LPG
versions, sporting two-stroke engines that comply with the emission and noise
norms. TVS is working on a four-stroke engine platform, to be launched in about
a year. 90 per cent of the market for passenger three-wheelers is polarised in
four southern states plus Gujarat, Maharashtra, and Delhi.
also rolled out a new 125cc bike christened ''Flame'', which is a variant of the
StaR City. It also launched an electric variant of Scooty Teenz and the Apache
RTR 160 FI in the performance bikes category with electronic fuel injection.
Flame and the new Apache EFI 160 will serve as technology showcases for TVS. The
Flame reportedly sports the country''s first three-valve CC VTi (controlled combustion
variable timing intelligent) engine, developed in collaboration with AVL of Austria.
TVS expects to manufacture about 35,000 units a year.
the new variant, the Apache RTR 160 has been upgraded to include electronic fuel
injection. The EFI technology has enabled TVS to boost peak power of this recently
launched bike. The company did not disclose the price differential between the
existing and new version, but market sources estimate the differential to be around
Scooty Teenz electric vehicle has been built on the same platform as its earlier
two-stroke version. The EV sports an imported electric motor, and is expected
to be capable of a top speed of 40 kph, with a maximum range of 50 km on a single
eyes 10 per cent share of the GSM market by 2008
New Delhi: Aimed at cornering
a 10-per cent share of the GSM market by 2008, LG Electronics India, the Indian
arm of the South Korean electronics giant LG, has unveiled future plans for its
mobile business in India, saying that it would target GSM rather than CDMA, as
the latter had seen an erosion of its market share due a market inundated with
the company plans to use India as an export hub for Middle East and Africa in
to managing director and president, South West Asia, Moon B Shin, the company
does not think that CDMA is a profitable option in India. In recent months, the
company has witnessed shrinking profitability due to low-cost Chinese models.
sees GSM as the future growth engine for India, and is looking at being one of
the top three players in domestic market. It has put in place a strategy to take
on number one Nokia.
wants to increase its GSM market share from the current 1.4 per cent to 8-10 per
cent by 2008, driven by product leadership, an enhanced distribution network and
after-sales support, and a range of new models in the premium segment. On Thursday,
LG launched two new premium GSM handsets, which are part of its ''black label''
series. The models are called LG Shine, a sliding handset priced at Rs15,999,
and the LG Shine bar phone priced at Rs8,999.
of its Pune-based production unit is also on the anvil, with plans to make it
serve India as well as Middle East and African markets by producing locally. Till
now, the company has invested $60 million in the Pune factory, with more coming
in future years to add a minimum of two production lines every year. The company
envisions it to be a strategic facility three or four years down the line, with
a 1-million handset capacity per annum.
on the decreasing profitability of its CDMA offerings, Moon said LG India''s turnover
for CDMA phones in 2005 was at $300 million, which declined to $250 million last
year. This year, it is expected slide further to about $150 million. In volume
terms, LG sold 9 million CDMA handsets and 1.2 million GSM handsets in India last
year. CDMA sales are foreseen to decline further to 6-7 million, while GSM handsets
would grow to over two million handsets this year.
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