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Vol. 2 Issue 7 - July 2007
In this Issue
Featured Product
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International
Sure, everyone is excited with the great Indian retail opportunity. Not all, it would seem, agree that the time to enter the country is NOW.
Chillibreeze Research Team
Tommy Hilfiger to add stores in India
Starbucks by winter most likely!
Tesco criticizes retail “frenzy” towards entering Indian market
HR News
The retail sector is going to be a big employer and creator of jobs. As a fallout, it is also likely to draw talent from other sectors. Having said that, shortage of skilled manpower continues to haunt the industry.
Chillibreeze Research Team
McDonald’s India facing severe shortage of trained manpower
Retail to be one of the sectors with maximum jobs
Retail sector to pull talent from other sectors
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Editorial
We believe inclusive growth is to be celebrated even more than the dizzy heights individual retail majors are scaling.
This month is almost an ode to this thought – topping the list is Reliance working with small vendors, albeit in response to public David v/s Goliath reactions and some political pressure. The means are important as are the ends - Reliance Retail plans to partner with local fruit and vegetable vendors and has launched pilot projects in Hyderabad and Ranchi. The small vendor either stands to gain a regular fixed income or an advantage through Reliance’s low cost sourcing and supply chain infrastructure.
The other trend we want to highlight – major food retailers are all focussing on the masses – be it with bulk purchases or low prices with category killers – in a bid to tap that fortune at the bottom of the pyramid. We say taking retail cheer to every section of the population also makes for great strategy.
Chillibreeze Research Team
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Big players - Plans and Investments |
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Food for thought - one more big name, the Tata group, draws plans to enter the happening food retail sector. What holds our attention this month though is how Reliance plans to work with small vendors. As we always said, growth through collaboration is really the only way forward.
Chillibreeze Research Team |
Big Players...
Tata Group to foray into food retail
Reliance Fresh procures Solan vegetables
New brand identity for Spencer’s Hyper
Bharti and Wal-Mart getting closer to a deal
Landmark plans to increase investment by Rs. 4.5 billion in India
Reliance to form partnerships with local vegetable vendors
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Unique Formats |
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The retail bandwagon draws some unlikely candidates – the Indian railways looking to leverage its large tracts of land, and Indian Oil Corporation, with its first non-fuel foray.
Chillibreeze Research Team
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Unique Formats...
Railways offers its space to retailers
Reliance Money keen on tying up with retailers
Indian Oil Corporation to launch rural malls
Category killers to be the next hot format?
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Government Policy |
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Regulations pertaining to FDI are the key to further growth in the retail sector; and to more and more international players entering the market.
Chillibreeze Research Team
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Government Policy...
Is the government planning to introduce licensing in retail sector?
Government to redo FDI norms for franchise agreements
Government likely to liberalize certain sectors for FDI
Feedback
We continue inching forward; always learning more about the sector that has India interested and excited. Our Retail Newsletter, is being downloaded nearly through the month.more importantly, we have an increasing number of readers posting a query on our site India Reports (www.india-reports.com). This is feedback of another kind; it keeps us on the roll, thinking and analyzing as we answer these queries, and prepares us to move on to the next level with new reports and analysis.
You can help us by sending your suggestions . how do we become the preferred newsletter in the Retail space?
Write to us:
epublishing@chillibreeze.com
In an effort to build our retail bouquet of information on India Reports, we have initiated a Consumer Reports section, where you can put up your views of and experiences at retail outlets…the good and the bad (http://www.india-reports.com/biz-buz.aspx.). We plan to feature some of these contributions in our future issues.
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General Trends & Information |
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Indians top consumer confidence studies; other studies predict an upsurge in consumer spending in the latter half of 2007 and yet another study indicates that the Indian youth spends as much as its elders – so are retailers confident of laughing their way to the bank? Not really, it would seem as entering and staying in India’s retail sector is no cakewalk!
Chillibreeze Research Team |
General Trends & Information...
No cakewalk for retail biggies
FDI curbs not for franchise deals
‘Youth spending on apparel, accessories on par with elders’
Shakeout in the Indian retail industry on the horizon?
India remains the top retail investment destination
Mall growth to ease up
Smaller cities increasingly attractive for retailers
Majority of malls in India not successful
NextGen stores coming near you
Indians increasingly doing online shopping

Buy our Omnibus edition featuring 4 Retail Reports covering the fast growing retail scene in India. >> updated March 2007
Buy our just published reports on the Cheese and Wine Industry in India.
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Support Industries |
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Logistics, packaging, advertising – they are all caught up in the retail race. Our pick of the month is Amway, which plans to offer its impressive distribution network to MNCs wanting to enter the sector.
Chillibreeze Research Team |
Support Industries...
Amway offers its distribution network to MNCs
UK retail experts to take on staff shortage
Lack of infrastructure can undo retail boom
JWT gets Bharti Retail ad account
DLF planning malls on a large scale
Wal-Mart looking for a warehousing partner
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Regional Trends |
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We could debate on the number of malls a city can take, but real estate developers see bigger promise in developing malls in smaller cities and towns.
Chillibreeze Research Team |
Regional Trends...
Retail and real estate biggies look for opportunities in small towns
Commissariat Road, Bangalore is the next retail hotspot
Godrej to focus on rural market
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Food & Grocery |
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Loads of news in this segment…however our favourite trend is the one where big players zero in on the fortune at the bottom of the pyramid.
Chillibreeze Research Team
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Food & Grocery...
Café Coffee Day plans 50 outlets in Pak, Austria
NZ ice creams in India
Big Apple to invest Rs. 450 million in retail stores in NCR
Subhiksha focuses on the masses
Vishal Retail plans to open 150-200 stores by 2010
Subhiksha looking to install a wireless retail solution
Reliance Retail plans to enter packet tea market
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