Trollies are seen outside an IKEA store in Wembley, north London January 28, 2015. IKEA Group, the world’s biggest furniture retailer, posted on Wednesday a…

Written By Suneera Tandon

IKEA seems more obsessed with doing it right than doing it fast.

The Swedish furniture retailer, which has been present in India for close to five years, has waited all this while to open a store in the country. Over these years, IKEA has been studying the Indian market and understanding consumer preferences in order to localise its offerings.

But days before its much-awaited launch, the company has again postponed the plan owing to quality concerns. The store, scheduled to open in the southern Indian city of Hyderabad on July 19, will now be inaugurated on Aug. 09.

“IKEA Retail India decided to move the date as it needs some more time to live up to its expected quality commitments towards customers and co-workers,” Peter Betzel, CEO of IKEA Retail India, said in a statement. “Our main priority is to create an inspiring and safe experience for both customers and coworkers.”

The delay has upset its potential customers, but the company is doing everything to ensure the disappointment doesn’t last.

Brand experts say that in the long haul the delay may not matter much.

“In the lifetime of a brand, this is unlikely to have an adverse effect,” said Kiran Khalap, co-founder and managing director of brand consulting firm Chlorophyll. ”Most desirable brands have long waiting periods, yet buyers don’t abandon them.”

Firefighting

This isn’t the first time IKEA’s encountered such a situation. Earlier this year, bad weather forced it to postpone the launch of its outlet in Exeter, England, at the last minute.

Within minutes of announcing the delay in Hyderabad, the company’s social media handles began addressing customers’ concerns. These channels have been in damage control mode since then.

“IKEA’s launch is high-profile and will be dissected deeply by everyone, not only customers,” said Devangshu Dutta, CEO of retail consultancy, Third Eyesight. “Rather than have a launch that is marred by defects or incomplete in some ways, it is sensible from an operational perspective and responsible from a branding point-of-view, to delay the launch and communicate the delay widely.”

Source: qz

Written By Rasul Bailay, ET Bureau

NEW DELHI: Reliance Industries has identified last-mile delivery as the biggest challenge for its planned online marketplace venture and will focus on nurturing this aspect of the business, where rivals Flipkart and Amazon have asignificant head-start, sources said.

“Last-mile delivery and the overall customer experience are going to be priority areas for Reliance,” a source said, asking not to be identified. Reliance plans to invest heavily to build a robust supply chain, including its own delivery logistics, and will also use third-party companies as “it wants to take ownership of delivery and experience,” the source said.

Source: economictimes

Written By Varsha Bansal, ET Bureau

BENGALURU: With fashion being the second-most important category after smartphones for the Flipkart Group, its Myntra and Jabong units plan to invest $300 million over the next three years to improve market share, according to people familiar with Flipkart’s three-year outlook.

Myntra-Jabong also expect to triple their gross merchandise value — a proxy for gross sales—to $4 billion in three years, from $1.2 billion in fiscal year 2017-18. The retailers intend to triple their combined customer base and improve their share of the domestic online fashion market to 50%, from an estimated 35% now, these people said. Myntra chief executive .

Source: economictimes

Written By Shelley Singh, ET Bureau

The $20-billion online shopping mart is set for a mega clash of the titans, Amazon.in vs Walmart, in the coming months. This period, dotted with festivals, deep discounts and big sale days, which has so far seen Flipkart compete with Amazon, will now see the two US giants battle it out in the local market, writes Shelley Singh

“Expect them to outbid each other and make a big splash. The festive season bonanza could actually become bigger around Diwali this year,” says Vidhyashankar, executive director, Grant Thornton India. Adrian Lee, research director, Gartner, says, “User choice should improve. Greater range of Walmart private labels will differentiate the merchandise.”

On May 9, Walmart bought a 77% stake in Flipkart for $16 billion, pitting it directly against Amazon, which launched India operations in June 2013. Amazon has already spent $3 billion of its committed $5 billion to grow in the Indian market. Discounts will continue as ecommerce penetration in India is low — at 15% of

Source: economictimes

Will the shoemaker’s recent revamp in India succeed in hitting the right notes?

Written By Ankita Rai

European footwear brand Bata, which has been undergoing a makeover both in terms of products and imagery, hopes to leverage its strong legacy of reliability and trust in the Indian market to redefine its women and youth categories. Apart from launching and renovating stores, with a focus on large format retail experiences, it has also launched an internationally designed collection and forayed into sports apparel with the launch of the first Power store in NCR. While Bata has the advantage of mind-share among consumers, can the 85 year-old brand shed its ‘pedestrian’ image?

“At this point, with growing fashion consciousness and brand sensitivity among consumers, it is imperative for Bata to create and communicate a refreshed image,” observes Devangshu Dutta, chief executive, Third Eyesight.

Changing perceptions

With international brands coming in to India, the ubiquity of Bata — which was once its strength — became its biggest weakness. The brand became distinctly stodgy and unglamorous. “While its quality was never in doubt, it acquired an unfashionable image and got caught between the new, exciting and aspirational foreign brands and the cheaper Indian imitators, remaining relevant only as sturdy school shoes,” says Samit Sinha, managing partner, Alchemist Brand Consulting.

As Bata attempts to move away from solely a value for money proposition to a more premium brand, the same is being reflected in its communication. Bata has doubled its marketing spend this year. “A majority of it will be spent on changing the perception about brand Bata. This includes investing in properties like Bata Fashion Weekend, Femina Miss India, and working with influencers to speak the language of the youth and increase our social media presence,” says Anand Narang, VP — marketing, Bata India. Currently, nearly 70% of the revenue comes from the men’s and kids’ segments. and the rest is women’s.

But unlike last year’s campaign, Me. And comfortable with it which gave the brand an international look and feel, its recent TVC featuring Kriti Sanon appears apologetic. “It should instead be celebrating its heritage and building upon it, just as Levi’s has managed to do internationally,” opines Sinha. In fact, communicating its future vision is the key. “If I ask someone to not think about a pink elephant, it is almost inevitable they will end up thinking about a pink elephant. Positive, forward looking imagery works far better than saying we are not what we were in the past,” explains Dutta.

Retail expansion

In addition to a new product range, Bata’s investments are also going towards in-store technology and launching red concept stores which are designed as per consumer preferences. In addition, it has launched three new formats — Power Stores, Bata Women and Bubblegummer. Armed with 1,400 stores in 350 cities, it is planning to spend Rs 80-100 crore on retail expansion and open 100 stores this fiscal. The focus is also on building omnichannel capabilities.

“While footwear will remain a core category, we will keep expanding our portfolio in accessories and apparel,” says Narang.

The pricing of the new Red Label collection is upwards of Rs 2,000. “The entry of international brands has moved up the price threshold. What used to be Bata’s highest priced products are now merely seen as premium to mid-premium. This will allow Bata to derive better pricing and better margins from larger stores, at least in major cities,” says Dutta.

Earlier also, Bata had introduced other brands such as North Star (casual wear) and Power (sports) to address different segments and product needs, including apparel. However, these met with mixed success. “There are several legacy brands that have managed successful legacy makeovers — Lipton, Lifebuoy, Burberry and Old Spice — without being apologetic about their past. If the product is sufficiently modernised and continues to be in line with changing consumer preferences, the chances of success increase,” Sinha sums up.

Source: financialexpress