H&M narrows gap with Zara on the back of new stores, low prices

Source: ETRetail.com, Oct 07, 2019

MUMBAI: Swedish retailer Hennes & Mauritz (H&M) has narrowed the gap with global rival Zara in India’s fast-fashion market with more new stores as well as merchandise priced lower than most rivals.

The Indian unit of the world’s second biggest clothing chain posted sales of Rs 1,237.7 crore last fiscal, compared to Rs 893 crore a year ago, according to financials sourced from Veratech Intelligence.

Net profit jumped 29% to Rs 45 crore. The brand had opened its first India store in October 2015, competing mainly with Spanish chain Zara, which entered India five years earlier in 2010. Inditex Trent, which runs Zara stores in India, saw its revenue rise 17% to Rs 1,438 crore in 2018-19 with net profit of Rs 71 crore. Read the rest of this entry »

FDI norms eased for single brand retail, digital media, manufacturing

Source: Business Standard, Aug 29, 2019

New Delhi: The Union Cabinet on Wednesday relaxed the rules for single-brand retail, more than seven years after the foreign investment cap was removed for the segment to attract marquee foreign brands such as Gucci, Louis Vuitton, Ikea and others into the country. The latest government move is in line with the recent Budget announcements on FDI changes.

While 30 per cent local sourcing remains a mandatory condition for single-brand retail, the government has now agreed to a long-standing industry demand to make things easier for foreign retailers. With the change, foreign retailers’ India buy for exports will be factored in to meet the 30 per cent domestic sourcing norm. Companies in the single-brand space can also start online retailing without opening brick-and-mortar stores first, something that was not allowed earlier. While 100 per cent FDI is allowed in single-brand retail, whenever the foreign investment exceeds 51 per cent, the mandatory local sourcing norm kicks in. Read the rest of this entry »

No global company in multi-brand retail: Piyush Goyal

Source: ETRetail.com, Jun 18, 2019

NEW DELHI: Commerce and industry minister Piyush Goyal on Monday said the government would not allow multi-brand retail trade by foreign ecommerce companies and that they could only be agnostic platforms.

Goyal said this at a meeting with ecommerce companies including Amazon, eBay and Walmart-owned Flipkart, and other global digital giants such as Facebook, Dell, SAP, Google, PayPal and IBM. “The minister forcefully said that India will not allow multi-brand retailing by foreign companies…they can only be an agnostic platform,” said an official present in the meeting.

In December last year, the Department for Promotion of Industry and Internal Trade (DPIIT) tightened the foreign direct investment (FDI) rules for ecommerce companies through a Press Note. It barred marketplaces from selling products from sellers in which they have an equity interest and entering into deals with brands to sell product exclusively on their platforms. Read the rest of this entry »

Future Retail inks pact to bring convenience store chain 7-Eleven to Indian

Source: Business Sandard, Feb 28, 2019

Mumbai: Putting all speculation to rest, the world’s largest convenience store chain 7-Eleven on Thursday said it was launching in India through a franchise arrangement with Future Retail. The plan included setting up stores, which would roll out this year, with the help of master franchisee SHME Food Brands, an arm of Future Retail.

In a statement to the stock exchanges, Future Retail said its board had approved execution of the master franchisee agreement with 7-Eleven, pitting the latter against conventional grocery retail chains such as DMart and Reliance Smart at one end and round-the-clock chains such as 24Seven, promoted by Modi Enterprises.

24Seven, for the uninitiated, is led by Samir Modi, youngest son of industrialist KK Modi. He could not be immediately reached for his comments on the competitive intensity in the sector. But Abneesh Roy, senior vice-president, research (institutional equities), Edelweiss, said the franchise deal would give Future Retail an additional revenue basket. Read the rest of this entry »

After record FDI in 2018, retail sector gears up for more M&As in new year

Source: The Hindu Business Line, Dec 20, 2018

New Delhi: With the lines getting blurred between organised brick-and-mortar model and new-age online platforms, retail sector is ending the year 2018 with a record level of FDI and is gearing up for more mergers and acquisitions, partnerships and other deals in the new year.

According to the sector experts, the year 2018 brought big tickets investments across all formats while bridging the online and offline divide to bring their customers closer and the trend may continue further.

The sector, which employs over 60 million people and received one of the largest FDI in 2018 would continue to invest on supporting tools like data analytics, virtual reality and artificial intelligence to boost trade volumes, while new tie-ups, innovative thinking and accelerated adoption of omni channel systems should also become order of the day. Read the rest of this entry »

Organised retail firmly on a roll in Bharat

Source: The Hindu Business Line, Nov 14, 2018

Mumbai: People in smaller towns are increasingly shopping at organised retail stores such as supermarkets and hypermarkets.

According to market research firm Nielsen, smaller towns and villages are fuelling the growth of FMCG sales on the back of growing income, increased use of plastic money, and the rise of regional FMCG players. Read the rest of this entry »

India’s retail sector projected to grow to $1.3 trillion by 2020

Source: The Hindu Business Line, Oct 04, 2018

Bengaluru: India’s retail sector is projected to grow to $1.3 trillion by 2020 from the level of $672 billion in 2017, said Anuj Kejriwal, Managing Director & CEO, Anarock Retail.

“The India’s retail sector is on a faster roll than ever before and the boosters acting on retail sector are rapid urbanisation and digitisation, rising disposable incomes and lifestyle changes, particularly that of the middle-class,” he explained. Read the rest of this entry »