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Vol. 2 Issue 1 - January 2007
In this Issue
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International
The party didn’t end with the New Year – word is out that its still on for the retail sector, with as many new entrants as there are domestic firms planning international forays.
Chillibreeze Team
 Shing to enter Indian retail market
Burger King will probably use the franchise model in India
SF Jeans sets up store in Sri Lanka
French retailer Decathlon scouting for Indian partner company
Carrefour in talks with Wadias
Gitanjali Gems purchases US jeweller
Government Policy
Any industry with a sizable number of employees must face management-union debates sooner than later. So also with the Indian Retail sector. Here’s hoping to a win-win situation ahead!
Chillibreeze Team
CPM’s trade union arm Citu in talks with US labour group AFL
Bharti, Wal-Mart agreement to be checked out by PMO’s office
Support Industries
Support functions were in the limelight this month – watch out for new tactics and techniques from players big and small. The hunt for quality personnel continues, as does the search for prime property at affordable rates.
Chillibreeze Team
Searching for talent
Railways keen on retail
Visual Merchandising is where the emphasis is
Retailers and real estate developers prepare to battle it out
Future Group focusing on media
TCS creates interest in Wal-Mart and Target with its Personal Shopping Assistant
Future Group switches account to Starcom
Retailers eye container trains for transportation
Metro Cash & Carry, RIL engage ICICI Bank to identify retail properties
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Editorial
A whole new exciting year for Indian Retail…another year gone by for the rest of India Inc. And the excitement and hum around retail is only getting louder.
We had said in one of our earlier issues – and we repeat, as retail grows, don’t miss out on the development of the support industries. The comet and its tail are inseparable! December was surely the month for several new initiatives and strategies, all associated with the development of support activities like media, advertising, marketing, real estate scouting…the list is endless.
With Wal-Mart and Reliance Retail in the fray, there is an overall increase in the advertising spends. Pantaloon, Shopper’s Stop, Ebony and Trent have upped their marketing budgets to revitalize their brands and compete better. The focus on below-the-line activities like loyalty programs and direct marketing is slightly diluted as retailers with a certain amount of visibility are turning to advertising and other above-the-line approaches to reach out to the king…oops! The customer.
 Chillibreeze Team
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Big players – Plans and Investments |
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We may call retail a sunrise sector, but the industry is moving fast forward in time – signs of a shakeout, consolidation and realignment are unmistakeable!
Chillibreeze Team
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Big Players...
 Pantaloon plans to dilute stake in divisions
Adani Group begins process of selling to Reliance
Trinethra acquisition gives Birlas the upper hand
Aditya Birla Group acquires Trinethra
Bharti and Wal-Mart fine-tune agreement
Reliance to open its first specialty store this month
ITC to open 54 Choupal Fresh horticulture stores
Wal-Mart plans to export farm goods
Reliance acquires Adani Retail
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Unique Formats |
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Retail-speak is growing…and our new word for this month is “rural malls”- fair price shops in a brand new avatar! Retailers are also revisiting the idea of selling on the net. At Chillibreeze, we believe e-commerce will be big in 2007.
Chillibreeze Team |
Unique Formats...
Gujarat opens ‘rural malls’
Pantaloon launches its e-retailing portal
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
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General Trends & Information |
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Everyone associated with Retail in India is getting market-savvy – call it a quest for success or sheer survival instinct. On one hand, farmers ensure their produce is handled with care so that they get the best price, and on the other hand, retailers are scouting for best bargains globally. Continued expansion for better reach translates into a mad scramble of real estate.
Chillibreeze Team |
General Trends & Information...
Retailers on the looking for more space
Domestic retailers keen on global sourcing
Chain stores to increase in India
Average consumer spending increasing
Farmer’s retail revolution
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Strategy |
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Everyone has a different take on the key question – how to engage the consumer long enough to influence a purchase decision, in your favour. The search is on for different formats and forums to attract the customer.
Chillibreeze Team |
Strategy...
Nike to target women in gyms
Sachets likely to decrease in popularity
Be ready to buy small appliances at grocery stores
Spencers’ opt for a cluster model of expansion
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Featured Product |
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While outsourcing helps companies reduce costs, focus on core competencies and gain a competitive advantage, essential planning and management is critical for any outsourcing process to succeed. An ABCD analysis before outsourcing would help:
Alignment: Is outsourcing the right move for your business?
Business case: Have you taken all costs into consideration?
Culture: Can you bridge the cultural difference between your company and the outsourcer?
Delivery: How will you define success?
Outsourcing Report
Read our report on “The Top 10s in Outsourcing” for all this and more! |
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