Online retail sales in India seen growing to $32.7 billion this year

Source: LiveMint.com, June 08, 2018

Bengaluru: Online retail sales in India are expected to grow by 31% this year to touch $32.70 billion, led by e-commerce players Flipkart, Amazon India and Paytm Mall, according to a report by marketing research firm eMarketer. However, India’s growth rate in e-commerce is yet to catch up with countries such as China and Indonesia in the Asia Pacific market.

Flipkart, Amazon and Paytm Mall have been expanding into new sectors, including grocery, and with Walmart’s recent $16 billion acquisition of Flipkart, e-commerce in India is expected to launch more offline retail stores with private labels playing a larger role in segments such as fashion and electronic accessories. Read the rest of this entry »

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Big consumer brands losing market share to smaller rivals

Source: LiveMint.com, Apr 10, 2018

Mumbai: The last five years have been telling on India’s consumer market. Increasing broadband penetration, growth of private label brands from retailers like Big Bazaar, BigBasket, Reliance Fresh and More along with the growing economic might of a younger demographic have challenged the top brands across categories from home care to packaged foods and beverages.

Between the years 2012 and 2017, eight of India’s top 12 brands have ceded nearly 40 basis points to two percentage points of either volume or value market share to newer entrants in home care, packaged foods and beverages categories, according to research firm Euromonitor.

A basis point is 0.01%. Market share is calculated based on volumes and value. While volume refers to the number of units sold, value is the price component.

These brands are Thums Up, Horlicks, Tata Tea, Amul, Britannia, Mother Dairy, Brooke Bond and Surf, Euromonitor said.

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BigBasket to invest Rs500 crore to ramp up farmer sourcing, technology

Source: LiveMint.com, Jan 22, 2018

Mumbai: Online grocery store BigBasket expects to spend up to Rs500 crore to strengthen its technology and back-end farmer supply chain as it looks to more than double its customer base to 20 million by 2020, a top company executive said.

“We are focusing significantly on strengthening our back-end farmer supply chain programme called Farmer Connect. Presently we are working with 1,800 farmers, and we will bring about 5,000 farmers into our fold in a year’s time,” Hari Menon, co-founder and CEO of BigBasket, said here.

“We ensure they get better prices, paid on time. About 85% of our produce comes directly from farmers and we are going to strengthen that. We work closely with hotels, and restaurants as well as nearly 2,000 kirana stores. We want to deepen our engagement with farmers for the supply,” he added. Read the rest of this entry »

Reliance Retail scripts mega cash-&-carry plan

Source: Business Standard, Dec 09, 2016

Mumbai: Mukesh Ambani’s Reliance Retail plans to add six times the current number of its cash and carry (wholesaling) stores over the next three years.

The company is planning to set up 300 of these in another three years, to take on the likes of Walmart, Metro and others, said a source. Experts feel with the cost of fitouts, land and construction, they’d need to spend about Rs 4,000 a square ft or Rs 4,800 crore for 300 stores.

This is the second such big expansion by Reliance Retail. It had added hundreds of Reliance Digital stores which also acted as sales and service points for its Jio telecom service.It has 45 cash & carry stores under the Reliance Market brand at present, the average size being 40,000 sq ft. It opened the first Reliance Market in 2011 and has expanded to 37 cities; it claims about 2.5 million members.

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Adidas gets approval for FDI in retail

Source: The Economic Times, Aug 03, 2016

Kolkata: Adidas India has received the government’s approval to bring in foreign direct investment (FDI) in retail through its existing wholesale entity, and won’t have to set up a separate retail company for thea purpose.

The company plans to open 30-50 company-owned Adidas stores in large cities by 2020, and will file another FDI application by this month for Reebok to set up its company stores. Read the rest of this entry »

New FDI rules for single brand retail seen as mixed bag

Source: LiveMint.com, Jun 21, 2016

Mumbai: The government has made it easier for single brand retailers to setup operations in the country with an extended window of eight years before the application of the local sourcing norms come into play. However, for companies like Apple Inc. which were hopeful of getting a complete relaxation of sourcing norms on the grounds that they are a “state-of-the-art” and “cutting-edge technology” company, it is a change in the opposite direction.

Under earlier rules for single brand retail, companies opening wholly-owned stores in India were required to comply with the local sourcing norms of 30% within five years of their first store opening. On Monday, this rule has been further tightened for entities undertaking single brand retail trading and seeking exemption from local sourcing norms will get a waiver only for three years along with a relaxed sourcing regime for five more years.

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Easier Customs norms for IKEA

Source: Business Standard, Apr 29, 2016

New Delhi: Swedish furniture maker IKEA has asked the government for a faster Customs clearance mechanism for smooth business operations as it is gets ready to open its first store in India.The finance ministry has assured the company, which is making the largest foreign direct investment so far in the single-brand retail space, of speedier clearance of cargo at ports to help it save time and cost. The first store will be opened in Hyderabad in 2017.

“IKEA has assured compliance to us and we have assured them time. The company has got into partnerships with the Customs of the 16 countries they operate in for faster clearance of cargo. They want a similar arrangement in India,” said a government official.

The company’s warehouse is coming up near Jawaharlal Nehru Port, east of Mumbai. It would bring in FDI of Rs 10,500 crore.

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