Reporting by Aniruddha Basu; Editing by Harish Nambiar Reuters, Mon May 31, 2010 India's top textile firms are generating additional revenue streams by developing or selling precious real estate as land rates rise in a buoyant economy. Bombay Dyeing & Manufacturing, Century Textiles & Industries, Provogue India and Alok Industries are some of the firms intent on developing or selling valuable land parcels to boost cash flow and cut debt. Property prices in major Indian cities such as Mumbai and Delhi have nearly doubled in the past year, as home and office buyers return and mortgage rates are still in…
By Vishal Krishna Businessworld, May 28, 2010 Even the cautious are now convinced about the Indian recovery. The GDP projections are creeping up, production figures look good and, more importantly, demand is back. Organised retailers are heaving a sigh of relief with an uptick in sales after a bad year. But one group in the organised retail business is still not smiling: the mall owners. The usual practice for mall owners is to have a revenue-share agreement with retailers. Most get about 5-7 per cent of monthly net sales, and if sales fall below a minimum level, the builder gets…
By Vishal Krishna Businessworld, 24 May 2010 A change in rules may have put a pause on organised retail's expansion Just as French retailer Carrefour prepares to launch wholesale cash-and-carry (C&C) operations - a key part of the supply chain - in India, the government stunned the organised retail companies with a clarification on the rules that govern the C&C business. Now, any retailer tying up with foreign C&C wholesale businesses can source only 25 per cent of the stock keeping units (SKUs) from such a venture. By implication, the C&C business will effectively have to supply 75 per cent…
A lively discussion / debate took place on Retailwire.com about whether retailers were using chargebacks as justifiable penalties for poor performance by vendors or an unjustified means of generating income for the retailers. The fact is that fees, discounts and chargebacks are becoming more common, and in private conversations - when no retail customer is within earshot - vendors will verify this. Retailers say that such chargebacks are only compensation for vendors not complying with processes that have been clearly laid down and agreed to, since non-compliance creates extra costs for the retailer, or loses the retailer margin. But is vendor…
Sapna Agarwal & Gouri Shah Mint, Mumbai, May 18, 2010 Across Mumbai, New Delhi and Gurgaon, children’s apparel and accessories store Okaidi has been inviting customers for happy hour sales over the past week. No, the French chain hasn’t suddenly started selling drinks; it’s offering a flat 20% discount on the purchase of its usual T-shirts, chemises and other items between 10am and noon, Monday through Thursday. The marketing mantra may sound incongruous outside a bar, but retailers from a range of sectors have started borrowing it to push sales in traditionally lean hours—betting that everyone loves discounts. “It’s definitely…
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
Geopolitical friction has again sparked renewed concerns over inflation and rising input costs for FMCG companies as @itmeansjustice @whysnavi write. @devangshu commented.
