There are clear indications that the farmer in rural India does not have the same kind of income that he had last year to spend on the festive occasion of Dhantheras and Diwali. The sentiment is highly visible amongst farmers. In a survey in Central India amongst farmers, most of them have indicated a shortfall of almost 30% in yield due the drought conditions in the early part of the Kharif season. This was further aggravated by unseasonal rains in the last few days which has not only delayed harvesting of crops but has also resulted in loss of crops.
Large farmers ( holding of above 25 acres) do not expect to spend less this Diwali , however small and medium farmers are certainly spending less this season. The greatest impact has been on the small farmer.
The heavy buying of consumer durables and other household products that happens during Dhantheras will also be subdued this year. In rural India, many consumers buy for the wedding season which follows Diwali during Dhantheras. However this year due to the delayed harvest and consequent delay in encashment of crops, this will be pushed back and buying will happen only in November and that too on a subdued note.
Retailers need to take note of this changed scenario.
Saturday, October 10, 2009
Monday, October 5, 2009
ADHAR PLANS 200 OUTLETS IN RURAL INDIA
Adhar , formerly Godrej Adhar, now a joint venture of Future Group and Godrej Agrovet is going aggressive in rural markets with plans to expand to 200 outlets pan India from its existing 70 outlets. The retail chain plans to leverage the strength of the Godrej Brand with retail expertise of Future Group. The chain has also restructured its format and changed the look and feel of its outlets. The outlets now sport ' The world of Godrej ' section and ' Big Bazaar Best Deals ' section.. About 10 existing outlets have already been transformed to the new outlet and the balance are expected to be converted by the end of this year.
With this expansion of outlets, the retail scene in rural India is certainly hotting up and established players like Haryali can foresee some excitement in the otherwise dull rural retail sector.
With this expansion of outlets, the retail scene in rural India is certainly hotting up and established players like Haryali can foresee some excitement in the otherwise dull rural retail sector.
Sunday, October 4, 2009
11 THINGS WAL-MART HAS BANNED by ETHAN TREX
Saw this interesting article by Ethan Trex on Wal-Mart through Digg on Mental Floss and would like to share it with all my readers.
11 THINGS WAL-MART HAS BANNED by ETHAN TREX
Retail giant Wal-Mart is the world’s largest public company, and whether or not you’re a fan of shopping at the House that Sam Walton Built, you’ve got to admit that the store stocks just about everything. But not quite, though. There are a number of things that Wal-Mart has banned from its stores at some point. Let’s take a look at a few of them.
1. Barbie’s Pregnant Pal
In 2002 Wal-Mart cleared its shelves of Barbie’s pregnant friend, Midge. The doll, which featured a removable stomach complete with deliverable baby, was part of Mattel’s “Happy Family” set that also included her husband and son. However, customers complained about seeing pregnancy enter into Barbie’s universe, and Wal-Mart pulled all of the Happy Family sets from its stores.
2. This underwear
That’s right: panties that say, “Who needs credit cards…” on the front and “When you have Santa” on the rear. The undergarments started showing up in Wal-Mart’s juniors departments in December 2007 and quickly started an Internet firestorm over the perceived message of using Kris Kringle as a sugar daddy. While the same joke would be fairly harmless on, say, a t-shirt, many women felt that its placement on underwear added a sinister sexual undertone aimed at adolescent girls. In response to the public outcry, Wal-Mart pulled the offending underthings from its shelves.
3. Confederate-Themed Barbecue Sauce
You may remember the raucous debate about whether the Confederate flag should be flown over the South Carolina State House in 2000, but you probably didn’t know the battle spilled over into Wal-Mart’s grocery aisles. At the time, 90 Southern Wal-Marts were marketing a mustard-based sauce created by Maurice Bessinger, an outspoken advocate of flying the Rebel flag over the State House and owner of eight Piggie Park restaurants.
During the flag debate, Bessinger replaced all American flags at his eateries with Confederate flags, a move that Wal-Mart saw as objectionable and needlessly provocative, so the company yanked his sauces from its stores. (Don’t feel too bad for Bessinger, though; it took nothing less than a 1976 Supreme Court intervention to force him to serve African Americans in his restaurants.)
4. A Shirt That Read “Someday a Woman Will Be President”
In 1995 a Miami-area Wal-Mart pulled this shirt from its racks after consumer complaints. The shirt, which featured the character Margaret from Dennis the Menace, ran afoul of “the company’s family values,” so it went back to the stock rooms. Eventually more reasonable, non-Stone-Age heads prevailed, and the shirt made it back onto the shelves after three months in limbo.
5. Workplace Romance
In November 2005, German courts ruled that Wal-Mart could not ban all workplace romance at its German stores. The retailer had unsuccessfully tried to force all employees to sign off on a 28-page code of ethics that included prohibitions on “lustful glances and ambiguous jokes” and “sexually meaningful communication of any type.”
6. An Al Snow Action Figure
In 1999 Wal-Mart put the brakes on selling an action figure featuring WWE hardcore wrestler Al Snow. Snow’s wrestling gimmick at the time involved walking to the ring while carrying and talking to a mannequin head. Naturally, his action figure came with the head as an accessory, but two professors at Georgia’s Kennesaw State University saw the inclusion of the head as a problem. They told the press that by selling the action figure society was “normalizing violent treatment of women. We are telling little boys that this is acceptable behavior.” (Please, parents: don’t ever give your sons the impression that carrying and talking to part of a mannequin is acceptable.) Following this high-profile outcry, Wal-Mart quit stocking the Al Snow action figure.
7. Megan Fox
The Wal-Mart in the starlet’s hometown supposedly banned her for life following a teenage shoplifting bust. A 2008 report on contactmusic.com alleged that Fox got the heave-ho after being caught swiping a $7 tube of lip gloss during a rebellious shoplifting spree, which earned her the lifetime ban.
8. Lad Mags
If you’re a frisky 17-year-old looking for the latest Maxim, Stuff, or FHM, don’t head to Wal-Mart. Since 2003 the store has banned the so-called “lad mags” due to their racy photo spreads and bawdy editorial content.
It’s actually not all the uncommon for Wal-Mart to give a single issue of a magazine an ax, too. In the past, the store has refused to stock issues of Sports Illustrated’s swimsuit edition and a 2001 issue of InStyle that featured an artistic nude shot of Kate Hudson.
9. Music
Wal-Mart has long declined to stock any music bearing a parental advisory warning for explicit lyrical content, but the company’s fastidiousness with regards to music doesn’t stop there. When the store carried Nirvana’s album In Utero, it changed the song title “Rape Me” to the less offensive (and less coherent) “Waif Me.” Similarly, the store declined to carry Prince’s 1988 album Lovesexy because of a fairly tame cover that featured a nude photo of the artist.
10. Superbad DVDs
When the comedy Superbad hit store shelves in 2007, it came with a little extra: a replica of the fake Hawaii driver’s license used by the self-dubbed “McLovin’.” Most movie fans would simply see this freebie as a little reminder of one of the movie’s funniest scenes, but Hawaiian authorities simply felt it was a fake ID. Honolulu mayor Mufi Hannemann requested that Wal-Mart pull the DVD from store shelves across the state, and the retailer quickly complied.
11. Cuban Pajamas
Wal-Mart’s Canadian stores found themselves in a pickle in 1997. The Canadian subsidiary had begun selling Cuban-made pajamas at eight bucks a pop across our neighbor to the North, which enraged both the company’s home office and the U.S. Treasury Department.
The stores quickly pulled the offending PJ’s, which led to a second problem: this action may have violated a Canadian law that forbids abiding by the American embargo of Cuba. After the Ottawa government pointed out that Wal-Mart could face a million-dollar fine for pulling the sleepwear from its shelves, the Canadian Wal-Marts reversed the ban after one week. [Underwear & T-shirt images courtesy of Feministing.com.]
11 THINGS WAL-MART HAS BANNED by ETHAN TREX
Retail giant Wal-Mart is the world’s largest public company, and whether or not you’re a fan of shopping at the House that Sam Walton Built, you’ve got to admit that the store stocks just about everything. But not quite, though. There are a number of things that Wal-Mart has banned from its stores at some point. Let’s take a look at a few of them.
1. Barbie’s Pregnant Pal
In 2002 Wal-Mart cleared its shelves of Barbie’s pregnant friend, Midge. The doll, which featured a removable stomach complete with deliverable baby, was part of Mattel’s “Happy Family” set that also included her husband and son. However, customers complained about seeing pregnancy enter into Barbie’s universe, and Wal-Mart pulled all of the Happy Family sets from its stores.
2. This underwear
That’s right: panties that say, “Who needs credit cards…” on the front and “When you have Santa” on the rear. The undergarments started showing up in Wal-Mart’s juniors departments in December 2007 and quickly started an Internet firestorm over the perceived message of using Kris Kringle as a sugar daddy. While the same joke would be fairly harmless on, say, a t-shirt, many women felt that its placement on underwear added a sinister sexual undertone aimed at adolescent girls. In response to the public outcry, Wal-Mart pulled the offending underthings from its shelves.
3. Confederate-Themed Barbecue Sauce
You may remember the raucous debate about whether the Confederate flag should be flown over the South Carolina State House in 2000, but you probably didn’t know the battle spilled over into Wal-Mart’s grocery aisles. At the time, 90 Southern Wal-Marts were marketing a mustard-based sauce created by Maurice Bessinger, an outspoken advocate of flying the Rebel flag over the State House and owner of eight Piggie Park restaurants.
During the flag debate, Bessinger replaced all American flags at his eateries with Confederate flags, a move that Wal-Mart saw as objectionable and needlessly provocative, so the company yanked his sauces from its stores. (Don’t feel too bad for Bessinger, though; it took nothing less than a 1976 Supreme Court intervention to force him to serve African Americans in his restaurants.)
4. A Shirt That Read “Someday a Woman Will Be President”
In 1995 a Miami-area Wal-Mart pulled this shirt from its racks after consumer complaints. The shirt, which featured the character Margaret from Dennis the Menace, ran afoul of “the company’s family values,” so it went back to the stock rooms. Eventually more reasonable, non-Stone-Age heads prevailed, and the shirt made it back onto the shelves after three months in limbo.
5. Workplace Romance
In November 2005, German courts ruled that Wal-Mart could not ban all workplace romance at its German stores. The retailer had unsuccessfully tried to force all employees to sign off on a 28-page code of ethics that included prohibitions on “lustful glances and ambiguous jokes” and “sexually meaningful communication of any type.”
6. An Al Snow Action Figure
In 1999 Wal-Mart put the brakes on selling an action figure featuring WWE hardcore wrestler Al Snow. Snow’s wrestling gimmick at the time involved walking to the ring while carrying and talking to a mannequin head. Naturally, his action figure came with the head as an accessory, but two professors at Georgia’s Kennesaw State University saw the inclusion of the head as a problem. They told the press that by selling the action figure society was “normalizing violent treatment of women. We are telling little boys that this is acceptable behavior.” (Please, parents: don’t ever give your sons the impression that carrying and talking to part of a mannequin is acceptable.) Following this high-profile outcry, Wal-Mart quit stocking the Al Snow action figure.
7. Megan Fox
The Wal-Mart in the starlet’s hometown supposedly banned her for life following a teenage shoplifting bust. A 2008 report on contactmusic.com alleged that Fox got the heave-ho after being caught swiping a $7 tube of lip gloss during a rebellious shoplifting spree, which earned her the lifetime ban.
8. Lad Mags
If you’re a frisky 17-year-old looking for the latest Maxim, Stuff, or FHM, don’t head to Wal-Mart. Since 2003 the store has banned the so-called “lad mags” due to their racy photo spreads and bawdy editorial content.
It’s actually not all the uncommon for Wal-Mart to give a single issue of a magazine an ax, too. In the past, the store has refused to stock issues of Sports Illustrated’s swimsuit edition and a 2001 issue of InStyle that featured an artistic nude shot of Kate Hudson.
9. Music
Wal-Mart has long declined to stock any music bearing a parental advisory warning for explicit lyrical content, but the company’s fastidiousness with regards to music doesn’t stop there. When the store carried Nirvana’s album In Utero, it changed the song title “Rape Me” to the less offensive (and less coherent) “Waif Me.” Similarly, the store declined to carry Prince’s 1988 album Lovesexy because of a fairly tame cover that featured a nude photo of the artist.
10. Superbad DVDs
When the comedy Superbad hit store shelves in 2007, it came with a little extra: a replica of the fake Hawaii driver’s license used by the self-dubbed “McLovin’.” Most movie fans would simply see this freebie as a little reminder of one of the movie’s funniest scenes, but Hawaiian authorities simply felt it was a fake ID. Honolulu mayor Mufi Hannemann requested that Wal-Mart pull the DVD from store shelves across the state, and the retailer quickly complied.
11. Cuban Pajamas
Wal-Mart’s Canadian stores found themselves in a pickle in 1997. The Canadian subsidiary had begun selling Cuban-made pajamas at eight bucks a pop across our neighbor to the North, which enraged both the company’s home office and the U.S. Treasury Department.
The stores quickly pulled the offending PJ’s, which led to a second problem: this action may have violated a Canadian law that forbids abiding by the American embargo of Cuba. After the Ottawa government pointed out that Wal-Mart could face a million-dollar fine for pulling the sleepwear from its shelves, the Canadian Wal-Marts reversed the ban after one week. [Underwear & T-shirt images courtesy of Feministing.com.]
Saturday, October 3, 2009
RETAIL ADS - LAUNCH OF THE FESTIVE SEASON
This week is seeing a flurry of promotional activity by all the retailers in the print media with focus on the coming festive season. Themes focus around
SHOPPERS STOP has 'Offers to express your Love this Karva Chauth' . The interesting black and white ad has offers for bags, watches , fragrances, cosmetics and jewellery - all targeted as gifts for women. Incidentally, Karva Chauth falls on the 7th of this month and this does offer an opportunity to all retailers to cash in on this occasion.
The GOLD SOUK mall in Gurgaon is the first mall to start its promotional activity with retailers in the mall participating in offers. A special is the 'Karva Chauth Festival from the 4th to 7th October.
HOME STOP has a 'Dream Diwali Offer' special free offers on purchases of particular values.
RELIANCE JEWELS has ' Celebrate the New' headline and has offers on diamond and gold jewellery making charges - upto 100% off.
RELIANCE DIGITAL has ' Sparkling Celebrations' with 3 main offers - Digital home celebrations, Digital computer celebrations and Digital telecom celebrations. Mark down prices and free offers are the dominant features.
WESTSIDE plans to take advantage of the festive season with it's 'Diwali Delight' theme. The articles on offer - free Diamond Pendant and a free Titan Watch.
HOME TOWN talks about Festive Homes and ' 30% Money Back + Exciting Offers for your Home ' Product oriented ad with focus on the different offerings.
VISHAL MEGA MART with its full page ad talks about ' Deepawali ke Deep Jalagoe' and has lucky draws, free gifts and B1G1 offers.
MOM & ME , the Mahindra group retail venture for mothers to be and kids too is advertising its 'Festive Offers' with discounts upto 50%.
- Karva Chauth
- Diwali
SHOPPERS STOP has 'Offers to express your Love this Karva Chauth' . The interesting black and white ad has offers for bags, watches , fragrances, cosmetics and jewellery - all targeted as gifts for women. Incidentally, Karva Chauth falls on the 7th of this month and this does offer an opportunity to all retailers to cash in on this occasion.
The GOLD SOUK mall in Gurgaon is the first mall to start its promotional activity with retailers in the mall participating in offers. A special is the 'Karva Chauth Festival from the 4th to 7th October.
HOME STOP has a 'Dream Diwali Offer' special free offers on purchases of particular values.
RELIANCE JEWELS has ' Celebrate the New' headline and has offers on diamond and gold jewellery making charges - upto 100% off.
RELIANCE DIGITAL has ' Sparkling Celebrations' with 3 main offers - Digital home celebrations, Digital computer celebrations and Digital telecom celebrations. Mark down prices and free offers are the dominant features.
WESTSIDE plans to take advantage of the festive season with it's 'Diwali Delight' theme. The articles on offer - free Diamond Pendant and a free Titan Watch.
HOME TOWN talks about Festive Homes and ' 30% Money Back + Exciting Offers for your Home ' Product oriented ad with focus on the different offerings.
VISHAL MEGA MART with its full page ad talks about ' Deepawali ke Deep Jalagoe' and has lucky draws, free gifts and B1G1 offers.
MOM & ME , the Mahindra group retail venture for mothers to be and kids too is advertising its 'Festive Offers' with discounts upto 50%.
AUTO SALES ZOOM
The Consumer Confidence Index may have dropped in the month of September, but this certainly does not seem to be reflected in the auto sector as car sales reached record heights in the month. The festive season along with more bonuses and increasing job confidence seems to have driven this frenzy of buying. Another important factor has been the availability of cheaper finance. The month of September saw an impressive 1.60 lac units being sold against 1.32 lac units sold in Sep 08. This is an impressive 21% growth in a sluggish environment.
Even the traditionally inauspicious period of Sharad did not effect sales with consumers continuing their spending binge.
With this conflicting consumer behavior, it would be interesting to see how sales pick up across other categories during the month of October - the most important festive season for all retailers.
Even the traditionally inauspicious period of Sharad did not effect sales with consumers continuing their spending binge.
With this conflicting consumer behavior, it would be interesting to see how sales pick up across other categories during the month of October - the most important festive season for all retailers.
Thursday, October 1, 2009
LOW CONSUMER SPENDING IN SEPTEMBER
Consumer confidence seems to have dipped lower in the month of September . With worries on inflation, state of the economy, inadequate monsoon and job security, consumers have switched to savings mode rather than spending mode. In September, the CNBC-TV18 Boston Analytics Consumer Confidence Index dropped by 1%. compared to August.
With increased propensity to save by consumers, the savings component of the Index showed a rise. The study revealed that the upcoming festive season does not seem to have propelled spending either which continues to remain extremely weak. Of the respondents interviewed, only 20% were willing to buy consumer durables this year as against 60% last year.
Industry players however maintain that though September was a slow month, things are picking up and trends after the period of Sharads show a 25 - 30% growth. Mr V Ramachandran, Director Marketing maintains that the outlook is positive.
The 1st week of October should give an indication of how the season would shape up.
With increased propensity to save by consumers, the savings component of the Index showed a rise. The study revealed that the upcoming festive season does not seem to have propelled spending either which continues to remain extremely weak. Of the respondents interviewed, only 20% were willing to buy consumer durables this year as against 60% last year.
Industry players however maintain that though September was a slow month, things are picking up and trends after the period of Sharads show a 25 - 30% growth. Mr V Ramachandran, Director Marketing maintains that the outlook is positive.
The 1st week of October should give an indication of how the season would shape up.
Monday, September 28, 2009
NILKAMAL TO INCREASE STORES THREE FOLD
News from the Nilkamal stable is that they plan to increase their stores to 65 from the current 15 stores by 2013. Nilkamal stores branded @home are currently located in the major metros. The plan is to expand to Tier II and Tier III towns in North and East India.
One of the largest players in the moulded furniture market, Nilkamal is planning to invest Rs 140 crores in this activity.
One of the largest players in the moulded furniture market, Nilkamal is planning to invest Rs 140 crores in this activity.
Sunday, September 27, 2009
LIFESTYLE PLANS TO DOUBLE TURNOVER
Lifestyle International , the Indian arm of the Dubai based Landmark group plans to double its turnover from the current 1400 crores to 3000 crores in 2 and a half years.
The Landmark Group - a Rs 16,800 crore retail conglomerate plans to invest Rs 1000 crores in India to expand its activity in India. The main emphasis would be on Lifestyle and Home Centre. This was stated by Mr Kabir Lumba , Executive Director in an interview recently.
The current turnover of the group in India is Rs 1400 crores with Rs 1000 crores coming from Lifestyle and Home Centre.
Besides the 3 formats of Lifestyle, Home Centre and Max Retail, the company has no plans to introduce any other format. However they are planning to enter Tier II towns like Kanpur and Nagpur in 2011-12 with a change in price positioning.
The Landmark Group - a Rs 16,800 crore retail conglomerate plans to invest Rs 1000 crores in India to expand its activity in India. The main emphasis would be on Lifestyle and Home Centre. This was stated by Mr Kabir Lumba , Executive Director in an interview recently.
The current turnover of the group in India is Rs 1400 crores with Rs 1000 crores coming from Lifestyle and Home Centre.
Besides the 3 formats of Lifestyle, Home Centre and Max Retail, the company has no plans to introduce any other format. However they are planning to enter Tier II towns like Kanpur and Nagpur in 2011-12 with a change in price positioning.
Saturday, September 26, 2009
RURAL RETAIL DOWNTURN
Indications and news from rural India are that all is not well over there. There are strong signs of a slowing down in that market. Organised retailers in rural India are facing an all round slowing of sales and the pick up in sales that happens during this festive season is just not there.
So far it had seemed that the rural markets were insulated from the downtrend that had gripped the rest of India . It now seems that the impact of a late and weak monsoon is having its effect in these markets. The consumer electronics markets too have seen a slowing down in the months of June to August. This has picked up - but only slightly.
In large parts of India, the periods of Navratras and Diwali see a huge upswing in sales . Whereas this is missing till now, the next few days would be a good indicator of the direction that the markets would take.
Retailers therefore need to be careful in their buying plans as they could land up with large unsold inventories at the end of the season.
So far it had seemed that the rural markets were insulated from the downtrend that had gripped the rest of India . It now seems that the impact of a late and weak monsoon is having its effect in these markets. The consumer electronics markets too have seen a slowing down in the months of June to August. This has picked up - but only slightly.
In large parts of India, the periods of Navratras and Diwali see a huge upswing in sales . Whereas this is missing till now, the next few days would be a good indicator of the direction that the markets would take.
Retailers therefore need to be careful in their buying plans as they could land up with large unsold inventories at the end of the season.
Monday, September 21, 2009
CONSUMER DURABLES GROWTH RATES
The consumer durables market in India is showing very aggressive and promising growth. The following table gives the projected growth rates in 2009.
It must also be kept in mind that the period October to January normally shows a 3 times growth in sales over the previous quarter. The festival season coupled with the marriage season that falls during this period gives this spurt in sales.
It must also be kept in mind that the period October to January normally shows a 3 times growth in sales over the previous quarter. The festival season coupled with the marriage season that falls during this period gives this spurt in sales.
IS BIYANI HIVING OFF BIG BAZAAR
Reports say that Kishore Biyani is looking to hive off his hypermarket Big Bazaar chain of outlets. This is part of his ambitious restructuring and growth plans as this would enable release of locked value. Biyani's plans to make his group into a 25,000 crores group.
The group is looking at various options to raise funds as it is planning to add 18 million sq feet of retail space across its different formats by the year 2015. Currently there are 116 Big Bazaar hypermarkets across the country with total retail area of 4 million square feet and markets over 1.6 lac products.
The current turnover of the group is Rs 10,000 crores. It is planning to achieve a target of 13,000 crores by 2010.
The group is looking at various options to raise funds as it is planning to add 18 million sq feet of retail space across its different formats by the year 2015. Currently there are 116 Big Bazaar hypermarkets across the country with total retail area of 4 million square feet and markets over 1.6 lac products.
The current turnover of the group is Rs 10,000 crores. It is planning to achieve a target of 13,000 crores by 2010.
Saturday, September 19, 2009
CONSUMER DURABLES PENETRATION
Some important data on penetration of consumer durables in rural and urban markets in India :
TVs : 76 % urban penetration against 36% rural penetration
Refrigerators : 32% urban and 5% rural penetration
Washing Machines : Only 1% rural penetration
Air Conditioners : Urban penetration of 3% and rural less than 1%
In the process of increased penetration, it is evident that rural market consumers require brands. It is brands and the heavy marketing activity that is possible by these brands that would increase penetration. The rural markets are growing and major increases can be expected.
TVs : 76 % urban penetration against 36% rural penetration
Refrigerators : 32% urban and 5% rural penetration
Washing Machines : Only 1% rural penetration
Air Conditioners : Urban penetration of 3% and rural less than 1%
In the process of increased penetration, it is evident that rural market consumers require brands. It is brands and the heavy marketing activity that is possible by these brands that would increase penetration. The rural markets are growing and major increases can be expected.
Friday, September 18, 2009
CONSUMER DURABLES MARKET
With the onset of the Festive Season, there will now be a big spurt of demand for the entire range of consumer durables consisting of white goods (Refrigerators and Washing Machines) , Kitchen appliances and Consumer Electronics consisting of audio video equipment. Stocking by all major retailers as well as smaller individual outlets would already have started in earnest in anticipation of the season and it is not uncommon for manufacturers not being able to cope up with the demand. Prudent retailers therefore stock before the season. . Normally the market increases almost 3 fold during this time. ALL BUYERS THEREFORE SHOULD ENSURE THAT THEIR BUYING FOR THE SEASON IS COMPLETE AT LEAST A MONTH BEFORE DIWALI.
The consumer durable market in India is a dynamic and fast growing market. With disposable incomes increasing, there is an increasing demand for these products. The market size in India is today estimated to be around Rs 25000 crores, The chart below gives a graphic representation of the market size of different segments of this industry.
The consumer durable market in India is a dynamic and fast growing market. With disposable incomes increasing, there is an increasing demand for these products. The market size in India is today estimated to be around Rs 25000 crores, The chart below gives a graphic representation of the market size of different segments of this industry.
SMALL IS BIG
Small packs of FMCG products priced between Rs 2 and ten are doing roaring business. These are expected to contribute to 35 to 40% of total sales. Industry specialist say that consumers are going in for these smaller packs because of the inflationary pressures that exist this year. All major FMCG companies are focusing on small unit pack sizes from where they expect the volumes. In this environment, price points play an extremely important role . Both the big players - HUL and ITC are focusing on the Rs 10 price point products and their advertising campaigns too are targeted to customers with these products in mind.
Wednesday, September 16, 2009
FESTIVAL PUBLICITY
A few days back I wrote that retailers are planning to unleash a publicity blitz in the coming festival season in expectation of a buoyant season.
The first retailer to kick off their festival advertising campaign is Big Bazaar with a full page ad in national dailies in Delhi.
The message ' WELCOME ! FESTIVE SEASON ! '
Focus is on attractive offers - Buy 2 get 1 Free on stainless steel utensils, Sandwich toaster for Rs 549, Pressure Cooker for Rs 399 and many more offers.
Expect some real action this season !!
Tuesday, September 15, 2009
KHUSHALI BAZAAR DOWNS SHUTTERS
According to informed sources, Triveni Retail Ventures, the retail arm of Triveni Engineering and Industries is shutting closing down all it's retail outlets . The company has 42 'Triveni Kushali Bazaar ' spread across 25 small towns and offers agri, consumer products and financial services.
Triveni has for some time been looking for a buyer for its retail venture but has not managed to find any as yet. The Triveni Group is a big player in sugar and engineering equipment and entered the retail sector in 2007 with 45 stores. It had planned to increase the no of stores to around 250 by mid 2010.
The other players in the retail sector in rural and semi-urban India are DSCL's 'Haryali Kisaan Bazaar', 'Adhar' ( formerly Godrej Adhar but now a part of Future Group) and ITC's 'Choupal Saagar' . Hariyali Kisaan Bazaar with over 300 outlets spread over nine states is the most aggressive and successful offering a range of agri products, consumer goods and apparel .
Triveni has for some time been looking for a buyer for its retail venture but has not managed to find any as yet. The Triveni Group is a big player in sugar and engineering equipment and entered the retail sector in 2007 with 45 stores. It had planned to increase the no of stores to around 250 by mid 2010.
The other players in the retail sector in rural and semi-urban India are DSCL's 'Haryali Kisaan Bazaar', 'Adhar' ( formerly Godrej Adhar but now a part of Future Group) and ITC's 'Choupal Saagar' . Hariyali Kisaan Bazaar with over 300 outlets spread over nine states is the most aggressive and successful offering a range of agri products, consumer goods and apparel .
Monday, September 14, 2009
Are Carrefour and Future Group Hooking up ?
Lars Olofsson, the Global Chief Executive of the world's no 2 retailer - Carrefour was here in India recently on a hush-hush visit . He met with Mr Kishore Biyani of Future Group to discuss the possibility of a tie up between the 2 companies.
The discussions between the 2 companies focuses on a cash and carry model. The advantage for the Future Goup is the immense experience and expertise that Carrefour would bring while Carrefour would have the advantage of entering the Indian market with the biggest player in India as it's partner.
Both the leaders also visited Big Bazaar outlets in Delhi
The discussions between the 2 companies focuses on a cash and carry model. The advantage for the Future Goup is the immense experience and expertise that Carrefour would bring while Carrefour would have the advantage of entering the Indian market with the biggest player in India as it's partner.
Both the leaders also visited Big Bazaar outlets in Delhi
Sunday, September 13, 2009
Top Retailers of the World
This is a list of top retailers in the world with their ranking in world trade.
The biggest of course is Wal-mart with a turnover of US$ 410 billion which is larger than the domestic product of 39 countries of the world. In a sense Walmart almost qualifies as a country by itself
Figures in Brackets is the rank in world trade and the first no is rank as retailer.
1. (8) Wal-Mart, US 2. (83) CVS Caremark, US
3.(127) Home Depot, US 4. (137) Target, US
5.(166) Lowe's, US 6.(186) Walgreen, US
7.(257) Costco Wholesale, US 8.(288) PPR, France
9.(298) Best Buy, US 10.(457) Ebay, US
11.(459) Staples, US 12.(469) Marks & Spencer, UK
13.(477) Aeon, Japan 14.(494) Kohl's, US
15.(520) Amazon.com, US 16.(561) H&M Hennes & Mauritz, Sweden
17.(597) Kingfisher, UK 18.(640) Gap, US
19.(655) TJX Cos, US 20.(706) Lotte Shopping, South Korea
21.(718) Macy's, US 22.(728) JC Penney, US
23.(739) Sears Holdings, US 24.(774) Shinsegae, South Korea
25.(845) Yamada Denki, Japan 26.(880) Isetan Mitsukoshi Holdings, Japan
27.(895) Home Retail Group, UK 28.(904) AutoZone, US
29. (935) Shoppers Drug Mart, Canada 30.(962) Sherwin-Williams, US
31.(966) Esprit Holdings, Hong Kong/China
32.(1002) Bed Bath & Beyond, US 33. (1016) Fast Retailing, Japan
34.(1039) Falabella, Chile 35.(1055) Suning Appliance, China
36.(1058) Cencosud, Chile 37.(1095) Next, UK
38.(1101) GameStop, US 39.(1106) Arcandor, Germany
40.(1165) Grupo Elektra, Mexico 41.(1208) Nordstrom, US
42.(1232) Rite Aid, US 43.(1271) Ross Stores, US
44.(1307) Liberty Media-Interactive, US
45.(1352) Family Dollar Stores, US
46.(1362) Daiei, Japan 47.(1364) Canadian Tire, Canada
48.(1384) Inchcape, UK 49.(1412) Limited Brands, US
50.(1482) DSG International, UK 51.(1517) Advance Auto Parts, US
52.(1557) El Puerto de Liverpool, Mexico
53.(1601) J Front Retailing, Japan 54.(1603) Dollar Tree, US
55.(1627) Fastenal, US 56.(1671) D'Ieteren, Belgium
57.(1676) Takashimaya, Japan 58.(1689) AutoNation, US
59.(1714) Office Depot, US 60.(1734) Carphone Warehouse, UK
61.(1817) Penske Automotive Gp, US
62.(1845) Soriana, Mexico 63.(1888) O'Reilly Automotive, US
64.(1902) Pendragon, UK 65.(1906) BJ's Wholesale Club, US
66.(1925) CarMax, US 67.(1998) Kesa Electricals, UK
No Indian retailer finds a place amongst the top 2000 companies in terms of trade ranking,
The biggest of course is Wal-mart with a turnover of US$ 410 billion which is larger than the domestic product of 39 countries of the world. In a sense Walmart almost qualifies as a country by itself
Figures in Brackets is the rank in world trade and the first no is rank as retailer.
1. (8) Wal-Mart, US 2. (83) CVS Caremark, US
3.(127) Home Depot, US 4. (137) Target, US
5.(166) Lowe's, US 6.(186) Walgreen, US
7.(257) Costco Wholesale, US 8.(288) PPR, France
9.(298) Best Buy, US 10.(457) Ebay, US
11.(459) Staples, US 12.(469) Marks & Spencer, UK
13.(477) Aeon, Japan 14.(494) Kohl's, US
15.(520) Amazon.com, US 16.(561) H&M Hennes & Mauritz, Sweden
17.(597) Kingfisher, UK 18.(640) Gap, US
19.(655) TJX Cos, US 20.(706) Lotte Shopping, South Korea
21.(718) Macy's, US 22.(728) JC Penney, US
23.(739) Sears Holdings, US 24.(774) Shinsegae, South Korea
25.(845) Yamada Denki, Japan 26.(880) Isetan Mitsukoshi Holdings, Japan
27.(895) Home Retail Group, UK 28.(904) AutoZone, US
29. (935) Shoppers Drug Mart, Canada 30.(962) Sherwin-Williams, US
31.(966) Esprit Holdings, Hong Kong/China
32.(1002) Bed Bath & Beyond, US 33. (1016) Fast Retailing, Japan
34.(1039) Falabella, Chile 35.(1055) Suning Appliance, China
36.(1058) Cencosud, Chile 37.(1095) Next, UK
38.(1101) GameStop, US 39.(1106) Arcandor, Germany
40.(1165) Grupo Elektra, Mexico 41.(1208) Nordstrom, US
42.(1232) Rite Aid, US 43.(1271) Ross Stores, US
44.(1307) Liberty Media-Interactive, US
45.(1352) Family Dollar Stores, US
46.(1362) Daiei, Japan 47.(1364) Canadian Tire, Canada
48.(1384) Inchcape, UK 49.(1412) Limited Brands, US
50.(1482) DSG International, UK 51.(1517) Advance Auto Parts, US
52.(1557) El Puerto de Liverpool, Mexico
53.(1601) J Front Retailing, Japan 54.(1603) Dollar Tree, US
55.(1627) Fastenal, US 56.(1671) D'Ieteren, Belgium
57.(1676) Takashimaya, Japan 58.(1689) AutoNation, US
59.(1714) Office Depot, US 60.(1734) Carphone Warehouse, UK
61.(1817) Penske Automotive Gp, US
62.(1845) Soriana, Mexico 63.(1888) O'Reilly Automotive, US
64.(1902) Pendragon, UK 65.(1906) BJ's Wholesale Club, US
66.(1925) CarMax, US 67.(1998) Kesa Electricals, UK
No Indian retailer finds a place amongst the top 2000 companies in terms of trade ranking,
Saturday, September 12, 2009
RETAILERS PLAN HIGHER MARKETING SPEND FOR THE COMING FESTIVE SEASON
Retailers are all ready to unleash a promotional blitz in the forthcoming Festival season. It is expected that the Indian retail sector will up its marketing and promotional expenditure by at least 20 percent. Traditionally the period from October to January is peak season for all retailers. Sales move into top gear at the end of Sharaads and beginning of Navratras which start from the 18th of September this year.
Retailers normally spend about 40% of thier marketing budgets on advertising and the balance is spent on promotional schemes and special festival discounts.
With the revival of the monsoon and lifting of the stock markets, retailers are buoyant about the coming festive season and expect to do good business.
Retailers normally spend about 40% of thier marketing budgets on advertising and the balance is spent on promotional schemes and special festival discounts.
With the revival of the monsoon and lifting of the stock markets, retailers are buoyant about the coming festive season and expect to do good business.
Wednesday, September 9, 2009
Bharti introduces Walmart's Private Labels
Bharti Stores in India have introduced 8 Walmart private labels. In a first, the world's largest supermarket chain have introduced their labels in stores not owned by them. Amongst the private labels being introduced are its top selling 'Great Value' food brand and 'George' clothing brands.
Private labels play a prominent role in the overall merchandise strategy of this $ 400 Billion ( Annual) chain. Walmart currently operates in 16 countries though a network of 7800 stores. It is estimated that the food private labels alone contribute to about 16% of the turnover.
Private labels play a prominent role in the overall merchandise strategy of this $ 400 Billion ( Annual) chain. Walmart currently operates in 16 countries though a network of 7800 stores. It is estimated that the food private labels alone contribute to about 16% of the turnover.
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