Foreign Investment in Muti-Brand Retail – Part -1
The Government is engaging into discussions to open Multi-Brand Retailing for Foreign Companies. You can Study the Current Foreign Investments in Indian Retail sector here. With recent discussions, we believe that modern retail sector will be opened with certain restrictions, like – 1. JV with local retailers, capping the FDI holding to 49/51%; 2. Minimum 50% of investment on setting up back-end supply chain (Cold chains, warehouses, etc.); 3. Restriction on Cities in which foreign retailers can come in (e.g., 40 cities with population of more than 1mn); 4. some sourcing and business opportunities to be given to SMEs.
This should help the sector to realize its potential of becoming a US$250bn industry by 2020 vs. the current (more…)
Lingerie Industry Sizzles with Organized / Modern Trade
The Indian Lingerie industry is witnessing a robust growth on the back of Strong Brand introductions and choices for the consumer, especially the Indian Women.
In volume terms, men’s innerwear market constitutes 48% of the total innerwear market in India while the women lingerie segment holds a 52% share. In value terms, women lingerie segment enjoys 66% share of the total lingerie market, thereby enjoying a higher Average Selling Price (more…)
Hypermarkets Vs Department Stores – Margins + Capex
We would liek to quickly share some Insights into the operating metrics of Hypermarkets and Departmental Stores in India compared to the rest of the world.
Margins for retailers in India tend to be in the region of 8-10%. The notable thing is that there is not much difference between margins of hypermarkets and department stores. In the Western World, hypermarket margins (more…)
Status of Indian Retail Industry – Dec-2010
The last few months have been extremely busy for all our analysts. However, before we end the year, we would like to report the status of the Indian Retail Industry after the Boom, 2009 Bust and Stabilization cycle of 2010.
India is the fifth largest retail market globally, with a size of US$500bn., and has been growing at 7% per annum. Retail (more…)
Interesting Punch Lines about Indian Consumers & Retail
Some of the interesting anecdotes from the India retail summit by distinguished speakers are as follows. Do let us know what you think of the same.
1. 8 in (more…)
Insight into the Shopping Consumers Mind
In the Retail Forum 2010, Bindu Sethi, Chief Strategy Planning Officer, Grey Asia Pacific offered a glimpse of Consumer Minds while Shopping, which is particularly applicable to South Asia and India.
1. Retail is a school not a store: (more…)
Pantaloon Vs Future Value Retail
Since the business restructure enabling different chains to grow, we would like to compare on how they have speard their retail wings despite difficult times in the Industry.
The (more…)
Myth & Reality of Titan’s Business + Strategies
In continuing coverage on Titan we would like to discuss about some of the Myths & Realities of Titan’s Retail Business.
Competitive Industry Impacts Margins – Titan has a huge competitive advantage in both its Jewellery and Watches businesses with strong brands, design capabilities and distribution. Titan’s financials have demonstrated the entry barriers to the business: despite the entry of a number of players in the industry.
The (more…)