The apparel retail sector worldwide thrives on change, on account of fashion as well as season. In India, for most of the country, weather changes are less extreme, so seasonal change is not a major driver of changeover of wardrobe. Also, more modest incomes reduce the customer’s willingness to buy new clothes frequently. We believe pricing remains a critical challenge and a barrier to growth. About 5 years ago, Third Eyesight had evaluated the pricing of various brands in the context of the average incomes of their stated target customer group. For a like-to-like comparison with average pricing in Europe,…
Poornima Kavlekar, The Smart CEO July 15, 2011 Who doesn't love to strike a deal, especially if discounts could vary anywhere from 10 per cent to 90 per cent on lifestyle products and services? Exactly the reason why group buying (discount deals) businesses show strong potential for growth in India. But there are many variables that these businesses need to pay attention to in order to succeed in this space. A strong consumer-merchant equation, a clear understanding of each of these interested parties and the capability of bringing them together in the most profitable manner are the foremost parameters. This…
By VISHAL KRISHNA Business World 11 July, 2009 When Martin Dlouhy, managing director of Metro Cash & Carry India - a 100 per cent subsidiary of the German firm - signed a Rs 900-crore agreement with the Punjab government earlier this year to set up six stores in the state over a fiveyear period, it seemed to reinforce the intention of global retailers wanting to penetrate the Indian market. Foreign direct investment (FDI) in multi-brand retailing is not allowed under the current policy regime; besides, most consumers in India still buy the bulk of their retail products from the neighbourhood…
Raghavendra Kamath, Business Standard Mumbai June 28, 2011 Trent, the flagship retail arm of Tatas, is in talks with Spanish retailer Inditex group to bring another fashion brand, Massimo Dutti, to India, according to a person close to the development. However, it is not known whether both parties would enter a joint venture (JV) or go for a franchise agreement. Trent has a JV with Inditex for Zara, wherein the Spanish company owns 51 per cent. The JV runs five stores in India. If the talks succeed, Trent may set up a couple of stores in metros in the initial…
Pradeep Pandey & Pramugdha Mamgain, The Economic Times Mumbai/New Delhi, June 28, 2011 Apparel sales in the country have slumped about 20% since March, forcing many brands to start end-of-season discount sales two weeks earlier than usual. Companies blamed high apparel prices-increased due to the mandatory 10% excise duty on branded garments introduced in the Union budget and soaring cotton prices-for the fall in demand. "The present trend indicates that the industry will hardly be able to sustain a growth of 10-15% as margins are under tremendous pressure," said Rahul Mehta, president of Clothing Manufacturers Association of India ( CMAI).…
Brands are ready to roll the red carpet for consumers this festive season. But for #India's #jewellery brands this #Diwali will likely be a tad different from previous ones.
Reliance Retail & 7-Eleven ending 5-year franchise deal in India @SagarMalviya_ET
@devangshu:"convenience stores pressured by q-comm; family-kiranas survive with lower overheads & different margin expectations than corps"
Speciality Restaurants expanding into high-margin QSR and cloud kitchen spaces - @devangshu shared his perspective on the opportunities and realities of managing a diverse "house of brands" in the food service sector #India #strategy #diversification
