E-commerce companies log $2.7bn in sales in 1st 4 days of festive sale: RedSeer

Source: Economic Times, 09 October 2021

E-commerce platforms, including social commerce and grocery, garnered about USD 2.7 billion in sales in the first four days of the festive sale and are on track to achieve the USD 4.8 billion gross GMV mark, consulting firm RedSeer said on Saturday.

RedSeer Consulting had last month forecast that online platforms would see 30 percent year-on-year growth in gross GMV at USD 4.8 billion during the first week of festive sale. These platforms are expected to potentially clock over USD 9 billion gross GMV (Gross Merchandise Value) during the entire festive season this year as against USD 7.4 billion last year – a growth of 23 percent.

Gross GMV refers to the total value of goods sold on the platform prior to subtracting cancellation or return.

“…the first week (October 2-5) of festive sale of 2021, e-commerce platforms, including social commerce and grocery, altogether the platforms garnered about USD 2.7 billion in sales and are on track to achieve USD 4.8 billion gross merchandise value (GMV)…” RedSeer said in its ‘Mid-Festive Check In’ report.

It added that the first four days of the festive week in CY2020 accounted for 63 percent of the overall festive week sales – as compared to this year where it accounts for about 57 percent of the projected sales.

Smartphones contributed about 50 percent of GMV during the first four days of sales.

“With the festive sales lasting longer than last year (9 days compared to 7 days) – we are observing the customer demand being more spread out across the period than being concentrated in the first half of the Festive week. To that tune, we have observed sales of about USD 2.7 billion across e-commerce platforms and we expect another further about USD 2.1 billion over the next five days,” Redseer associate partner Ujjwal Chaudhry said.

The report estimates that over 75 percent customers are planning to buy equivalent to or more than last year across categories like mobiles, large appliances, beauty and fashion.

E-commerce companies see a large chunk of their annual business coming in during the festive sales and they make significant investments ahead of time to ramp up their capacity and add features to be able to handle the spike in orders, while ensuring a smooth experience for shoppers and sellers.

Companies across the spectrum including Flipkart, Amazon, Snapdeal and Myntra have lined up new launches and offers to woo shoppers during the festive season. Players hold multiple sale events that are timed around Dussehra and Diwali.

Global retail market has reached pre-Covid levels: Lulu Group

Source: Economic Times, 11 October 2021

The global retail market, including India, has almost reached the pre-Covid level. A full recovery is expected very soon with the renewed demand and bounce back of retail, said M.A. Yusuff Ali – CMD, Lulu Group.

Lulu Group has faced a delay of its three mall projects in the country due to the disruption caused by the pandemic and the subsequent lockdown impacting the retail industry the hardest.

“While no business has been immune to the pandemic over the last two years, I am confident that it is just a matter of time before the retail sector bounces back. We faced some delays in the projects, but there were no plans to drop any investment plans because of the COVID-19 created business situation,” said Yusuff.

LuLu Group International has committed Rs 5000 crore to develop retail malls across Bangalore, Trivandrum and Lucknow. The firm had earlier planned to open these stores last year. However, the outbreak of pandemic globally halted its plan.

“India holds a huge potential in the retail sector, and there is no slowing down of investment from LuLu Group globally. The second investment phase will be a sizeable amount in India over the coming years,” said Ali.

The firm’s two projects – in Lucknow (Uttar Pradesh) and Thiruvananthapuram (Kerala) are expected to open by the end of this year and early next year. The group has also extended its second retail destination, an 8 lakh sqft Global Mall in Bangalore. While the Lulu Hypermarket – the giant Hypermarket in Bengaluru is spread across 2 lakh sqft, and Funtura is set up across 60,000 sft, the largest indoor entertainment zone in India.

At the onset of the pandemic, consumer behaviour shifted towards ‘conscious buying’, leading to a significant shift in consumer purchase behaviour across physical retail and E-commerce. The F&B, E-commerce, pharmaceuticals, and the traditional grocery retailers as the top-performing sectors witnessed steady growth despite the pandemic.

The Abu-Dhabi based firm plans to further expand to more tier I and tier-II cities in the coming years to tap into the growing retail market in the country. “We will set up more than one store in big cities, but smaller cities will have only one store. We see a revival across our malls globally, including India,” he added.

With an annual turnover worth $ 7.4 billion, and a workforce of over 50,000 globally, its business portfolio ranges from hypermarket operations to shopping mall development, manufacturing and trading of goods, food processing plants, wholesale distribution, hospitality assets, and real estate development across 22 countries. Currently, Lulu Group operates 215 Lulu stores and 23 shopping malls across the GCC, Egypt, India, and the Far East, serving services to more than 1,100,000 shoppers daily.

Green shoots of recovery were witnessed in India’s retail segment with significant improvement in sales and getting closer to the pre-COVID levels. Delhi and Bangalore are leading the sectors’ growth with an expected addition of over 5 Mn Sq. ft of the overall organised retail stock respectively followed by Hyderabad expected to add over 3 Mn Sq.

CBRE South Asia in its latest report titled ‘India Retail Reboot 2021, said the report highlights that India’s organised retail stock has reached 64.3 Mn Sq. ft as of H1 2021 and is expected to cross 82 Mn Sq. ft by 2023.

Livspace plans business expansion with $50 million investment

Source: Economic Times, 18 September 2021

New Delhi: Livspace, an omnichannel home interiors and renovation platform, plans to invest $50 million for its retail business expansion across India and Asia Pacific(APAC), the company said in a press release.

The company holds a 65% market share in the organised home interiors sector and also plans to set up 150 Design Experience Centre (ECs) over the next 18 months.

With this phase of expansion, the company expects to capture the demand for modular solutions from markets such as Indore, Surat, Lucknow, Mysore, and more.

“The home industry suffers from massive fragmentation. By setting up another 150 Design Experience Centres in over 60 cities in India and over 20 cities in the Asia Pacific we intend to bring the same goodness to these new markets”, said Ramakant Sharma, founder, and COO, Livspace.

The new centers will supplement an existing network of over 25 stores in both metros and non-metros, such as Delhi-NCR, Bengaluru, Mumbai, Ahmedabad, Jaipur, Kochi, etc.

During this phase, the company will look to onboard over 1,000 new design entrepreneurs across the country and also look to grow the team overseas.

The Man Company eyes Rs 300 crore net revenue in three years; steps up o􀀀line retail expansion

Source: Economic Times, 06 September 2021

Men’s grooming products brand The Man Company aims to log over Rs 300 crore in net revenue in three years as it expands its retail presence in the country via hypermarkets and its own exclusive stores. The company, which is backed by Emami, is also looking at achieving break-even by September next year.

“In our 􀀁rst year, we sold 70,000 units. Since then we have grown manifold and are now targeting 50 lakh product sales by March 2022. We are targeting a net realised revenue of Rs 110 crore by March next year and Rs 300-plus crore in three years,” The Man Company co-founder and Managing Director Hitesh Dhingra told PTI.

He added that the company is currently witnessing 20-25 per cent month-on-month growth, and the company is looking at achieving break-even by September 2022.

The company has over 150 employees and 85-100 stock-keeping units (SKUs) of products.

“When we started in September 2015, the men’s grooming category was literally non-existent. There were hundreds of brands catering to women when it came to personal care and grooming but for men, there was hardly anything and we realised that there’s an opportunity to create niche and experiential products for men,” he said.

He added that the company started as a digitally-native brand and has since then expanded to o􀀀line retail.

Dhingra pointed out that The Man Company was not present in hypermarkets and supermarkets about a year back but that has now changed. The Man Company – which gets a large portion of its sales from online channels – has already signed up with 34 partners in the hypermarket/super market segment.

“Pre-pandemic, about 60 per cent of our sales was online and 40 per cent was o􀀀line. However, with the pandemic, there has been a change in the mix and the share of online has grown to 75 per cent. We expect to get back to the 60- 40 mix (pre-pandemic levels) by the end of the 􀀁scal year depending on the third wave,” he said.

Under the o􀀀line channel, the company’s products are present across lifestyle format stores, organised pharma and wellbeing stores, hypermarkets and supermarkets, and its own exclusive stores.

“We are increasing the number of points where our products are available in pharma and wellbeing stores, and hypermarkets from 1,200 to 10,000 (by March 2022). About 90 per cent of these are in tier II and beyond,” Dhingra said, pointing out that 45 per cent of its sales comes from locations outside the top 10 cities.

Its collaborations include supermarkets like Spar, spencer’s, More, Reliance

Smart, hypermarkets like Metro Cash and Carry, Lulu, luxury format stores like Shoppers stop, Central, Lifestyle and lifestyle pharmacies like Apollo, Med Plus and Guardian among others.

Dhingra said the company is also expanding the number of its exclusive stores and that will increase from 20 to 65 by March next year.

The brand is opening four such outlets in Ghaziabad, Jammu, Amritsar, and Lucknow later this month.

“We are expanding o􀀀line with more new retail outlets so that consumers can purchase premium quality products more e􀀀iciently and most importantly, get that experiential value by touching, feeling, and knowing everything about the products, especially under the guidance of our dedicated team of beauty advisors. We are expecting 2X retail growth from new openings,” he said.

The company has raised about Rs 75 crore in funding till date, of which Rs 70 crore was from Emami and rest from friends and family. It has 11 third-party manufacturing partners for making its products in the country.

Asked about expansion of the product lineup, Dhindra said the company is looking at adding two new categories, which is in the works and is about 3-6 months away.

Ikea plans to open small-format city stores across metros

Source: Livemint, 24 August 2021

NEW DELHI : Swedish furniture retailer Ikea will open its first ‘city store’ in India at Mumbai’s high-rise Worli area by the end of 2021, a top company executive said.

The €15 million store at Kamala Mills, popular for its upmarket cafes and pubs, will house a restaurant and offer personal shopping, remote planning, and home deliveries, the company’s India market and expansion manager Per Hornell said.

Ikea is also planning another such city store in Mumbai for a 2022 opening, Hornell said in an interview.

Ikea already has a large format store in adjoining Navi Mumbai, and another in Hyderabad. While the large format stores are roughly 500,000 sq.ft and located in the outskirts of large cities, the city stores are much smaller at 50,000-100,000 sq.ft. The retailer is also scouting for similar opportunities in Bengaluru and Delhi-NCR.

“Bangalore is another priority city. We are looking for opportunities by ourselves, and with the developers for similar city store formats. A city that we’re really passionate about is Delhi,” Hornell said.

The Mumbai city store, spread across three floors, will stock 6,500 products, mostly smaller furniture items and accessories. Of these, 2,200 products will be available for takeaway and the rest will be home-delivered.

Ikea has been pivoting to smaller stores in top global cities such as Shanghai, Moscow, New York and Paris, as it aims to move closer to shoppers and drive more sales.

Globally, Ikea plans to open 50 new smaller-format stores in top cities, the retailer said last year.

Ikea had earlier said that Mumbai is prioritized for “fast expansion”. By 2030, the retailer has outlined investments of ₹6,000 crore in the western state. It started with online sales in the state, which was followed by the Navi Mumbai store. Since its launch in Navi Mumbai in December, Ikea has seen 400,00 visitors. However, the store has been hit by recurring closures due to the second covid-19 wave.

While online sales are growing, Ikea is still on a “journey” to scaling it and is working on building capacity to shorten delivery timelines, Hornell said.

Phoenix Mills, Singapore’s GIC set up JV to invest in retail properties

Source: Business Standard, June 01, 2021

Singapore’s sovereign fund GIC and Phoenix Mills (PML) on Wednesday said that they have formed a $733 million joint venture (JV) to set up and operate retail-led mixed-use properties (malls) in the country.

GIC will acquire a significant minority stake in PML’s portfolio of developments in Mumbai and Pune. The assets have a total of 3.4 million sq ft in leasable retail and office space.

PML recently formed a JV with Canada’s CPPIB to set up a mall in Kolkata.

Atul Ruia, chairman of Phoenix Mills, said: “Through this platform with GIC, we intend to jointly explore value accretive acquisition opportunities. Proceeds from the transaction received by PML will act as growth capital to both PML and its subsidiaries. We will explore and further enhance our portfolio of annuity income assets.”

Lee Kok Sun, chief investment officer of real estate, GIC, said, with the management capabilities of a leading partner like PML, GIC believes that the JV will generate resilient long term returns.

Shishir Shrivastava, managing director (MD) of Phoenix Mills, said: “This investment will ensure the continuity of PML’s business model of developing, owning and operating dominant consumption hubs in tier 1 city centric micro markets it chooses to be present in.”

Recently, CPPIB and PML have agreed to invest up to Rs 800 crore in their joint venture ISMDPL in tranches, in the ratio of their respective shareholdings.

The joint venture was formed in 2017 to develop, own and operate retail-led, mixed-use developments across the country. Phoenix Marketcity in Whitefield, Bengaluru, served as the seed asset for the alliance. In addition to owning and operating Phoenix Marketcity, ISMDPL owns – and is currently developing – three retail-led, mixed-use projects at Wakad in Pune, Hebbal in Bengaluru, and Indore.

India retail: A nearly $900 billion market dominated by mom-and-pop stores

Source: Business Standard, Mar 22, 2021

MUMBAI (Reuters) – India’s expanding retail landscape is changing fast, with global and domestic consumer and retail behemoths fighting tooth and nail to woo shoppers, as many choose large, clean supermarkets over crowded local stores and ordering online.

Data from Forrester Research shows India’s retail market was worth an estimated $883 billion last year, of which grocery retail accounted for $608 billion. By 2024, the market is expected to grow to $1.3 trillion.

India – population 1.3 billion – has over the years become a sought-after retail destination with a growing base of young and affluent shoppers. The sector contributes 10% to India’s gross domestic product and accounts for 8% of India’s employment, according to Invest India, the country’s investment promotion arm.


India’s mom-and-pop stores sell everything from clothes and footwear to groceries and electronics. Most of India’s grocery retail happens at kiranas – small- and mid-sized mom-and-pop outlets which account for 75-78% of the consumer goods market, Ambit Capital estimates.

Store owners typically have a strong and regular customer base in their neighbourhood, with home delivery and taking orders on phone a common phenomenon.

Hundreds of household items are crammed inside wall-to-wall glass or wooden shelves, or in the open, at such stores. Many outlets are so small and cramped that customers don’t set foot inside – products are handed over by store staff who stand behind a counter.

Many of these shops also offer staples – such as pulses, rice and flour – in loose or unbranded form. They typically operate from early morning till late evening.


This segment is a growing trend in India, with companies like Reliance Industries, led by India’s richest man Mukesh Ambani, Future Retail, led by Kishore Biyani, and Avenue Supermarts’ DMart all competing for customers.

This segment accounts for about 12-15% of consumer goods sales, according to Ambit. A long-established store format in the West, supermarkets are the polar opposite of kiranas; tidy, well-lit and with plenty of space for customers with shopping carts to seek out items from neatly stacked shelves themselves.

Mini-supermarkets in built-up residential areas are also spreading in response to the need to cater to urban shoppers buying supplies in smaller volumes on a daily basis rather than in a once-a-week drill. Most supermarkets operate during usual business hours and shut in late evening.


Shoppers in India are increasingly turning to e-commerce to shop for everything from electronics to groceries, boosted by online discounts and the development of rapid delivery services across the country.

While companies such as Amazon.com Inc and Walmart’s Flipkart dominate the market, smaller startups have also introduced app-based services for daily delivery of morning essentials like milk and eggs. Boston Consulting Group says e-commerce currently accounts for about 5-6% of Indian retail. But growth is phenomenal: India’s e-commerce retail market stood at $30 billion in 2019 but is set to expand by an annual 30% to $200 billion by 2026, Invest India estimates.

New national retail policy: Licence rationalisation among five focus areas

Source: Business Standard, Nov 24, 2020

Mumbai: The government had identified five areas in its proposed national retail policy, Anil Agrawal, joint secretary in the department for promotion of industry and internal trade (DPIIT), Ministry of Commerce, said on Tuesday. Agrawal was addressing delegates at the Confederation of Indian Industry’s (CII’s) virtual retail summit, saying a discussion paper had been launched and that the final stages of revision would be undertaken shortly.

The five areas that would be addressed in the policy are ease of doing business, rationalisation of the licence process, digitisation of retail, focus on reforms and an open network for digital commerce.

“Offline retail and e-commerce have to be looked at in an integral manner. There is also a need for skilling and reskilling the retail workforce,” Agrawal said.

Setting up a shop or department store requires 24 to 57 licences, with the compliance burden having grown in the past few years.

The need to unwind the knots in retail has been necessitated owing to its importance in the country’s economy. Retail is India’s third-largest sector, showed a report by consultancy firm Kearney released at the CIl summit. Growing at the rate of 10-11 per cent in the past few years, its pace has now slowed to about 9 per cent, due in part to the Covid-19 pandemic, which has curtailed business activity.

Of the segments seeing a surge in business include channels like e-commerce, which has been growing at the rate of 28 per cent per annum. This came as digital adoption continued to increase in the pandemic and post-pandemic world, Kearney said.

Modern trade and general trade, on the other hand, have been growing at the rate of 10 per cent and 8 per cent each per annum, the consultancy said, with the need for a truly omni-channel play to be adopted by retailers for future development and growth.

Also, close to 50 million people were employed in the country’s retail sector, implying that jobs had to be protected and nurtured, even as digitisation improved efficiency, experts said.

Shashwat Goenka, chairman of the CII national committee on retail, said the industry had the potential to create an additional 3 million jobs, if a cohesive national retail policy was introduced in the country. Goenka is the head of the retail and fast-moving consumer goods verticals at the RP-Sanjiv Goenka group.

“Moving forward, as the industry revives from its slump, new and emerging models need to be deliberated in order to accelerate the recovery process. The industry is still hampered by the loss in demand. Therefore, proactive steps need to be taken in order to revive consumer confidence,” Goenka said.

The national retail policy was expected to address concerns of small and medium retail entrepreneurs who had borne the brunt of the lockdown and pandemic, analysts said.

“The government has always been proactive for the retail sector and has taken several measures to help create a robust environment which has allowed retail to thrive. However, now as we recover from the pandemic, a policy-led approach where the industry and government work together cohesively will allow the retail industry to bounce back and grow exponentially in the years to come,” Goenka added. The Kearney report says that improving access to capital, especially for traditional retailers, rapid adoption of technology and modernisation by offline players, bridging logistics and supply chain infrastructure gaps, and enhancing labour participation and productivity are some of the building blocks for the future.

Retail sector sees marginal recovery in August: RAI Survey

Source: ETRetail.com, Sept 10, 2020

New Delhi: Retailers witnessed a marginal recovery in their business in August compared with July, even though localised lockdowns in some states during the Unlock 3.0 phase interrupted the growth of retail in the country, according to a Retailers Association of India survey.

The sixth edition of the Retail Business Survey, however said retail sales shrank 52% from a year earlier in August.

According to the survey, the only category that showed a significant improvement in August was consumer durables, though sales were still 23% less than a year earlier. Food & grocery (-46%), footwear (-47%), apparel & clothing (-54%), sports goods (-58%) and beauty & wellness (-56%) all recorded sales around half of August last year. The southern region fared slightly better (-46%), followed by East (-52%) and West & North (-54%), on a y-o-y basis. Across regions, large retailers performed marginally better than medium-sized ones.

“The retail industry has started to witness some green shoots, especially in states that are allowing retail to operate with fewer interruptions. Support from governments at local levels across the country with the assurance of no more localised lockdowns will help fast-track recovery of sales during the upcoming festive season to almost to the same levels as last year … perhaps just 20% short of last year’s figures. Some segments may even do better,” said Kumar Rajagopalan, the association’s chief executive.

Despite the unlock 4.0 orders by the central government, local authorities in some states continue to impose partial lockdowns, which is dampening consumer sentiment and hampering recovery, the association said in a statement.

The industry body has appealed to the Department for Promotion of Industry and Internal Trade and the home ministry to instruct these states to adhere to the central government’s guidelines as any shutdowns should be very carefully calibrated to ensure a balance between lives and livelihoods.

American private equity firm Silver Lake invests Rs 7,500 crore in Reliance Retail for 1.75% stake

Source: The Economic Times, Sept 09, 2020

Reliance on Tuesday announced that Silver Lake will invest Rs 7,500 crore into its subsidiary Reliance Retail Ventures Ltd (RRVL) for 1.75% stake. This investment values the retail business of Reliance at Rs 4.21 lakh crore.

This marks the second billion dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35 billion investment in Jio Platforms earlier this year.

Reliance operates India’s largest retail business of onset 12,000 stores nationwide with 640 million footfall.

Commenting on the transaction with Silver Lake, Reliance Industries chairman and managing director Mukesh Ambani said the extension of relationship with Silver Lake will add to its transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector.

“We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian retail,” said Ambani.

Egon Durban, co-CEO and managing partner of Silver Lake, said, Mukesh Ambani and his team at Reliance have created an outstanding world leader in retail and technology through their courageous vision, commitment to societal benefits, innovation excellence and relentless execution.
“The success of JioMart in such a short time span, especially while India, along with the rest of the world, battles the
COVID-19 pandemic, is truly unprecedented, and the most exciting growth phase has just begun. Reliance’s new commerce strategy could become the disruptor of this decade. We are thrilled to have been invited to partner with Reliance in their mission for Indian retail,” Durban said.

With more than $60 billion in combined assets under management and committed capital and a focus on the world’s great tech and tech-enabled opportunities, Silver Lake is the global leader in large-scale technology investing. Its other investments includes Airbnb, Alibaba, Alphabet’s Verily and Waymo units, Dell Technologies and Twitter.

The transaction is subject to regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Latham & Watkins and Shardul Amarchand Mangaldas & Co acted as legal counsels for Silver Lake.