Retail Dude

http://thedailyretail.com/Retail_news/Indian_rn/article/index.php?article_name=25nov01&mailer=1

The first one, as usual, took a long time coming! Big boys, you see, use all the resources to extend the first rapture. The “partner” should not feel cheated or dissatisfied. If that means an IPO viagra, so be it. One BIG, shattering run on board then?

http://thedailyretail.com/Retail_news/Indian_rn/article/index.php?article_name=25nov03&mailer=1

Not as explosive as the 1st burst. But longer, sweeter, mellower. Took more effort as most of the stored resources were spurted out in the “urban, glam retail” push-ups (debut). But this is a wonderful lingering feeling, makes one a wee bit “floaty” and the ambience feels surreal like a foggy winter early morning. BUT that’s fine, as we will either need to follow the tail-lights of that huge 16 wheel tractor trailor from Wisdom Roadways ahead of us. Rest can stop for a while, have a cat nap & move with renewed vigour when the sun’s up and strong. It always is…..

http://thedailyretail.com/Retail_news/Indian_rn/article/index.php?article_name=25nov02&mailer=1

Almost Heaven….FMCGiana, no-ridge arbi chips, bathing by the river….

A slightly mutialted line, borrowed from “country” king Denver. So, finally we are all singing the same song…country roads! We had to take a looooong break before we could regenrate our anatomies, before they could rise to the real challenge again. BUT what’s important is they DID. Hansa (remember Khichdi, the terrific comedy series?) would be saying “suppukk” & the ever-confident “Prafuls” have most probably been “blown” (mind Silly) away by now! That article was close to Nirvana, almost….

http://thedailyretail.com/Retail_news/Indian_rn/article/index.php?article_name=25nov04&mailer=1

As expected, this was hardly pleasurable! But, nevertheless, this was the least I could do, while NOT being in Texas. Oh! How I want to convert, to the Church, under that “godly” Bishop…. No, there was no glamour, no Givenchy, no Satya Pauls, but pure “truth” in the new, toned six-packs we see around us, dragging carts, drawing waters, hammering red-hot sickles. They are glistening, without any make-up. Ready to give me my final bliss of the day.

My eyelids are getting heavy…I am fading out….my dreams are on their way.

India can & will shine, brighter, stronger, longer than any other state. We just needed a little re-orientation, to look at the market, rather than “marketing”. 

Thank you guys. 4 in a row is ”rare, very rare”. BUT you guys must get it “well-done” this time around. Not all the cutleries are as sharp as their B-Schools claim

- Arnab

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India, loves to challenge management theories and come across as a winner. A few days ago, I wrote an article about how India is individually poor but collectively rich, and now during the times of rising inflation and sub-prime crisis, there is nothing more attractive than a lower price and there is a cut throat competition amongst retailers, to lower down there prices, bundle a lot of offers and then ultimately make a sale. One such company (FMCG) realised the potential way back in 1983, and since then has been selling a sachet of shampoo for exactly Rs. 1, (Damn you! Inflation) Chik Shamoo - which rules the rural India, and has made CavinKare, What all it is today, and led to a revolution which we all know as the Sachet Revolution  of India. CK Ranganathan, the man behind this revolution, launched Chik shampoo in 1982, after unsuccessful attempts of selling talcum powder in a small sachet, and what followed was a very successful rural advertisement campaign (They even showed them how to wash hair using shampoo), and slowly the company rose to power to challenge HLL and P&G head on in the Indian market. As of December 20, 2007, an estimated 4 billion sachets of shampoos had been sold annually, which accounts to the 70% of the total sales.

What followed this revolution was a major conversion drive, thus we had:

• Ketchup Sachet
• Sugar Sachet
• Tea Bags
• Mini Maggi
• Chota Pepsi
• Chota Parachute Oil
• Chota Gold Flake - Oops
• and Chota what not?

” In consumer goods parlance, `economy pack’ has usually referred to larger pack sizes. The economy pack is the marketer’s way of rewarding a consumer who buys more of his brand at one go. But in 2001, the new rage for low-priced sachets in the shampoo market had just reversed this logic. With most shampoo sachets, one saves more if one buys less.     

For instance, while a consumer buying the 8 ml sachet of Sunsilk Black (Rs 2) is paying just 25 paise an ml, a consumer buying the larger 200 ml bottle would be shelling out 45 paise an ml. 

But this was rectified after few months, so that sachets will be just convenient and not economical. 

The other viewpoint is that India is a huge market with 1.05 billion population and around 0.2 billion household. So even considering the very low price of shampoos, if 20% of the household buy a shampoo sachet per month of Rs.2 then the monthy sachet shapoo market is 0.2*0.2*2=Rs. 0.08 billion =80 million = Rs 8 crores .. so annual sales - 8*12=Rs. 96 = approx 100crore. So thats the size “

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“India will ‘certainly’ look at removing the cap of 51 per cent in single-brand retail”, Industry and Commerce Minister Kamal Nath said.

India already has 51% FDI allowed in Single-Brand Outlet, whereas 100% FDI is allowed in Cash and Carry business. However there is no FDI in case of Multi-Brand store in India due to wide political opposition. Allowing 51% FDI lead to entry of many luxury retailers into India like Louis Vuitton, Cartier, Armani etc. But now these brand is looking for 100% FDI. President of Louis Vuitton Yves Carcelle, who raised the question of removing the FDI cap, said, “Why will anybody come unless they allow 100 per cent?”

Apart from Single-Brand store, government is also pondering on allowing 51 per cent FDI in multi-brand retail of electronics goods, computers, sports goods as well as watches. But this wont be an easy task for them. However government will protect groceries and consumer goods for Indian Retailers. This move will come with various conditions like mandatory sourcing from Indian Vendors.

This move will lead to entry of brands like IKEA, Curry’s, Sports Direct etc in India. It will also motivate existing players to expand their presence in India. Louis Vuitton entered India in 2003 but still they have only 4 stores compared to 25 in China. “We would like to have the right to own 100 percent of our retail company rather than 51 percent today that is our request and we will continue to talk to the Indian authorities,” Louis Vuitton Chief Executive Yves Carcelle said. A recent survey done by the United Nations Conference on Trade and Development (Unctad) on 300 international retailers found that more than a quarter of them have either opened or are planning to open their stores in India if the country relaxes the norms further. Allowing 100% FDI in Single Brand store will encourage more luxury retailers to enter India as they will have a stronger foothold in one of their biggest untapped markets to date, potentially worth $15 billion.

- Rajeev Damani

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With a strong sense of passion and committment towards the society, the TATA Group has created spaces in millions of beating hearts over the years. One such mentionable act was when Tata Chemicals Limited (TCL) set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur and Babrala, where its facilities are located.

Under this initiative, the women of Okhlamandal (Gujrat) have their own flagship brand called the OKHAI (http://okhai.org). Their traditional art has come alive; mirror work, patchwork and embroidery are all a vibrant expression of their way of life, their rituals and their legends is now out into the open for all cultures to see. The brand now has its first store launched 4th July in Himalayan Mall in Ahmedabad and plans for more.

The most important thing about this retail initiative is just the cause behind it. It supports hundreds of women in the region and has become their livelihood for a better future. There is no factory production or a line up to facilitate more churn out. All products in the store are very much made the same way by the women in the Mithapur Facility itself. Though there are efforts being made to make it large scale. Okhai has a websire of its own where you can shop too!. Hints of modern retailing linked to rural roots. Now thats rural retailing according to me.

- Sudip

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