Challenges in Retailing
The industry is facing a severe shortage of talented professionals, especially at the
middle-management level.
Most Indian retail players are under serious pressure to make their supply chains more efficient in order to deliver the levels of quality and service that consumers are demanding. Long intermediation chains would increase the costs by 15 per cent. Lack of adequate infrastructure with respect to roads, electricity, cold chains and ports has further led to the impediment of a pan-India network of suppliers. Due to these constraints, retail chains have to resort to multiple vendors for their requirements, thereby, raising costs and prices.
The available talent pool does not back retail sector as the sector has only recently emerged from its nascent phase. Further, retailing is yet to become a preferred career option for most of India’s educated class that has chosen sectors like IT, BPO and financial services. Even though the Government is attempting to implement a uniform value-added tax across states, the system is currently plagued with differential tax rates for various states leading to increased costs and complexities in establishing an effective distribution
network.
Stringent labor laws govern the number of hours worked and minimum wages to be paid leading to limited flexibility of operations and employment of part-time employees. Further, multiple clearances are required by the same company for opening new outlets adding to the costs incurred and time taken to expand presence in the country.
The retail sector does not have ‘industry’ status yet making it difficult for retailers to raise finance from banks to fund their expansion plans. Government restrictions on the FDI are leading to an absence of foreign players resulting into limited exposure to best practices.
Non-availability of Government land and zonal restrictions has made it difficult to find a good real estate in terms of location and size. Also lack of clear ownership titles and high stamp duty has resulted in disorganized nature of transactions.
Wednesday, December 15, 2010
Friday, December 3, 2010
Retailing Formats
Retailing Formats
Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains.
Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains.
Source: IT Retailing: Are You In The Loop?, July 16, 2006
However, kiranas still continue to score over modern formats primarily due to the convenience factor. The organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and timely promotional campaigns.
The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The Government also stands to gain through more efficient collection of tax revenues. Along with the modern retail formats, the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct to home service. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets.
In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. At present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-a-million or more. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years.
Traditionally, the small store (kirana) retailing has been one of the easiest ways to generate self-employment, as it requires minimum investments in terms of land, labour and capital. These stores are not affected by the modern retailing as it is still considered very convenient to shop. In order to keep pace with the modern formats, kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc.
The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores.
Looking at the vast opportunity in this sector, big players like Reliance and K Rahejas has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities.
Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros.
In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India.
Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros.
In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India.
Sunday, October 24, 2010
Retail Segment analysis
The structure of Indian retail is developing rapidly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150 new shopping malls by 2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to co-exist with the modern formats of retailing.
Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby kiranas viz. Kolam for daily use. With the introduction of organized retail, it has been noticed that the sale of Basmati rice has gone up by four times than it was a few years back; as a superior quality rice (Basmati) is now available at almost the same price as the normal rice at a local kirana. Thus, the way a product is displayed and promoted influences its sales. If the consumption continues to grow this way it can be said that the local market would go through a metamorphoses of a change and the local stores would soon become the things of the past or restricted to last minute unplanned buying.
1 . Food and grocery retail
The food business in India is largely unorganized adding up to barely Rs.400 billion, with other large players adding another 50 per cent to that. The All India food consumption is close to Rs.9,000 billion, with the total urban consumption being around Rs.3,300 billion.
This means that aggregate revenues of large food players is currently only 5 per cent of the total Indian market, and around 15-20 per cent of total urban food consumption. Most food is sold in the local ‘wet’ market, vendors, roadside push cart sellers or tiny kirana stores. According to McKinsey report, the share of an Indian household's spending on food is one of the highest in the world, with 48 per cent of income being
spent on food and beverages.
2. Apparel retail
The ready-mades and western outfits are growing at 40-45 per cent annually, as the market teems up with international brands and new entrants entering this segment creating an Rs.5 billion market for the premium grooming segment. The past few years has seen the sector aligning itself with global trends with retailing companies like Shoppers’ stop and Crossroads entering the fray to entice the middle class. However, it is estimated that this segment would grow to Rs. 3 billion in the next three years.
3. Gems and Jewellery retail
The gems and jewellery market is the key emerging area, accounting for a high proportion of retail spends. India is the largest consumer of gold in the world with an estimated annual consumption of 1000 tonnes, considering actual imports and recycled gold. The market for jewellery is estimated as upwards of Rs. 650 billion.
4. Pharmaceutical retail
The pharma retailing is estimated at about Rs. 300 billion, with 15 per cent of the 51 lakh retail stores in India being chemists. Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food, apparel etc).
A few corporates who have already forayed into this segment include Dr Morepen (with Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4 from Global Healthline Pvt Ltd, and the recently launched CRS Health from SAK Industries. In the south, RPG group’s Health & Glow is already in this category, though it is not a pure play pharma retailer but more in the health and beauty care business.
5. Music Retail
The size of the Indian music industry, as per this Images-KSA Study, is estimated at Rs.11 billion of which about 36 percent is consumed by the pirated market and organized music retailing constitutes about 14 percent, equivalent to Rs.1.5 billion.
6. Book retail
The book industry is estimated at over Rs. 30 billion out of which organized retail accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to be emerging with text and curriculum books accounting to about 50 per cent of the total sales. The gifting habit in India is catching on fast with books enjoying a significant share, thus expecting this sector to grow by 15 per cent annually.
7. Consumer durables retail
The consumer durables market can be stratified into consumer electronics comprising of TV sets, audio systems, VCD players and others; and appliances like washing machines, microwave ovens, air conditioners (A/Cs). The existing size of this sector stands at an estimated US$ 4.5 Billion with organized retailing being at 5 per cent.
The structure of Indian retail is developing rapidly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150 new shopping malls by 2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to co-exist with the modern formats of retailing.
Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby kiranas viz. Kolam for daily use. With the introduction of organized retail, it has been noticed that the sale of Basmati rice has gone up by four times than it was a few years back; as a superior quality rice (Basmati) is now available at almost the same price as the normal rice at a local kirana. Thus, the way a product is displayed and promoted influences its sales. If the consumption continues to grow this way it can be said that the local market would go through a metamorphoses of a change and the local stores would soon become the things of the past or restricted to last minute unplanned buying.
1 . Food and grocery retail
The food business in India is largely unorganized adding up to barely Rs.400 billion, with other large players adding another 50 per cent to that. The All India food consumption is close to Rs.9,000 billion, with the total urban consumption being around Rs.3,300 billion.
This means that aggregate revenues of large food players is currently only 5 per cent of the total Indian market, and around 15-20 per cent of total urban food consumption. Most food is sold in the local ‘wet’ market, vendors, roadside push cart sellers or tiny kirana stores. According to McKinsey report, the share of an Indian household's spending on food is one of the highest in the world, with 48 per cent of income being
spent on food and beverages.
2. Apparel retail
The ready-mades and western outfits are growing at 40-45 per cent annually, as the market teems up with international brands and new entrants entering this segment creating an Rs.5 billion market for the premium grooming segment. The past few years has seen the sector aligning itself with global trends with retailing companies like Shoppers’ stop and Crossroads entering the fray to entice the middle class. However, it is estimated that this segment would grow to Rs. 3 billion in the next three years.
3. Gems and Jewellery retail
The gems and jewellery market is the key emerging area, accounting for a high proportion of retail spends. India is the largest consumer of gold in the world with an estimated annual consumption of 1000 tonnes, considering actual imports and recycled gold. The market for jewellery is estimated as upwards of Rs. 650 billion.
4. Pharmaceutical retail
The pharma retailing is estimated at about Rs. 300 billion, with 15 per cent of the 51 lakh retail stores in India being chemists. Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food, apparel etc).
A few corporates who have already forayed into this segment include Dr Morepen (with Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4 from Global Healthline Pvt Ltd, and the recently launched CRS Health from SAK Industries. In the south, RPG group’s Health & Glow is already in this category, though it is not a pure play pharma retailer but more in the health and beauty care business.
5. Music Retail
The size of the Indian music industry, as per this Images-KSA Study, is estimated at Rs.11 billion of which about 36 percent is consumed by the pirated market and organized music retailing constitutes about 14 percent, equivalent to Rs.1.5 billion.
6. Book retail
The book industry is estimated at over Rs. 30 billion out of which organized retail accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to be emerging with text and curriculum books accounting to about 50 per cent of the total sales. The gifting habit in India is catching on fast with books enjoying a significant share, thus expecting this sector to grow by 15 per cent annually.
7. Consumer durables retail
The consumer durables market can be stratified into consumer electronics comprising of TV sets, audio systems, VCD players and others; and appliances like washing machines, microwave ovens, air conditioners (A/Cs). The existing size of this sector stands at an estimated US$ 4.5 Billion with organized retailing being at 5 per cent.
Sunday, October 10, 2010
Retail in India - Current Status
Retail in India - Current Status :-
India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010.
The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is huge-by 2010, organised retail is expected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3 per cent which at present is estimated to be $ 6 billion, according to the Study undertaken by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon.
Organised retail in India has the potential to add over Rs. 2,000 billion (US$45 billion) business by the Year 2010 generating employment for some 2.5 million people in various retail operations and over 10 million additional workforce in retail support activities including contract production & processing, supply chain & logistics, retail real estate development & management etc.
It is estimated that it will cross the $650-billion mark by 2011, with an already estimated investment of around $421 billion slated for the next four years.
India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010.
The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is huge-by 2010, organised retail is expected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3 per cent which at present is estimated to be $ 6 billion, according to the Study undertaken by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon.
Organised retail in India has the potential to add over Rs. 2,000 billion (US$45 billion) business by the Year 2010 generating employment for some 2.5 million people in various retail operations and over 10 million additional workforce in retail support activities including contract production & processing, supply chain & logistics, retail real estate development & management etc.
It is estimated that it will cross the $650-billion mark by 2011, with an already estimated investment of around $421 billion slated for the next four years.
Saturday, October 2, 2010
Investment Opportunities in the Retail Sector
AT Kearney’s study on global retailing trends found that India is the least competitive as well as least saturated of all major global markets. This implies that there are significantly low entry barriers for players trying to setup base in India, in terms of the competitive landscape. The report further stated that global retailers such as Walmart, Carrefour,Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Other retailers
such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure.
A good talent pool, unlimited opportunities, huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world's best retail economies by 2042, according to industry players. The retail industry in India, according to experts, will be a major employment generator
in the future. Currently, the market share of organised modern retail is just over 4 percent of the total retail industry, thereby leaving a huge untapped opportunity.
The Potential of the Indian Retail Sector
The high growth projected in domestic retail demand will be fuelled by:
Opportunities for investment in supply chain infrastructure: Cold chain and logistics
India also has significant potential to emerge as a sourcing base for a wide variety of goods for
international retail companies
Total fashion sector was estimated at Rs 1,914 billion and forms about 15 per cent of the country's retail market of Rs 12,000 billion. Commanding such a large chunk of the organised retail business in India, fashion
retailing has indeed been responsible for single-handedly driving the business of retail in India.
such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure.
A good talent pool, unlimited opportunities, huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world's best retail economies by 2042, according to industry players. The retail industry in India, according to experts, will be a major employment generator
in the future. Currently, the market share of organised modern retail is just over 4 percent of the total retail industry, thereby leaving a huge untapped opportunity.
The Potential of the Indian Retail Sector
The high growth projected in domestic retail demand will be fuelled by:
- The migration of population to higher income segments with increasing per capita incomes
- An increase in urbanisation
- Changing consumer attitudes especially the increasing use of credit cards
- The growth of the population in the 20 to 49 years age band
- Food and Grocery: The largest category; largely unorganised today
- Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated in the next 10 years
- Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure: Cold chain and logistics
India also has significant potential to emerge as a sourcing base for a wide variety of goods for
international retail companies
- Many international retailers including Wal-Mart, GAP, JC Penney etc. are already procuring from India.
Total fashion sector was estimated at Rs 1,914 billion and forms about 15 per cent of the country's retail market of Rs 12,000 billion. Commanding such a large chunk of the organised retail business in India, fashion
retailing has indeed been responsible for single-handedly driving the business of retail in India.
Saturday, September 18, 2010
Competing in Retail
Point to keep in mind to competing in Retail :-
Part of running a successful retail store is being able to compete with other stores or even online web sites that sell products identical to yours. You have to find something that makes you unique and push it. You don't necessarily need expensive advertising or marketing to make a name for yourself, but you do need to promote yourself in different ways.
1) Make sure that people are aware of what makes you special. You may want to put signs in your front window displaying what special brands you carry. The manufacturers will often send you free promotional material if you ask. If you run newspaper ads, magazine ads, or other types of paper communication, make sure that you include details about your store in the print. Be careful not to only mention a sale and forget that a new customer might be reading and need to know why they should come to your store as opposed to going online and finding your products at a discount.
2) Promote yourself socially. There are several social web sites that can help you to become popular. Not only will you notice jumps in search engine rankings, but you'll notice that it's easy and free to communicate with your customers. Holding contests or having give-aways are great ways to get new fans. People that talk about you to their friends are immensely valuable and social sites are the easiest way to make that happen.
3) Give your customers something to talk about. People love to get a good deal. How many times have you complimented someone on their shirt, shoes, handbag, or accessories only to hear a response that tells you how they came about owning them? You rarely hear, "Oh yes, these shoes are very well made." More often you hear something along the lines of "I got the best deal on these!" People are excited to share their shopping experiences, whether they are good or bad. So, make sure that each person that enters your store has a great experience, even if they didn't buy a thing.
4) Pay attention to the little details that can make people happy to shop in your store. No one likes to dig through cramped racks or bins. They also don't want to be smashed up against other customers while they shop. Use a slatwall display system to keep the store nice and neat. When items are displayed on slatwall or slatwall panels, they are highly visible and easy to browse. You can easily maneuver slatwall accessories to accommodate different inventories at different times of the year, with very little effort. Spotlights can give texture to the space while increasing product "pop" and deterring theft. Don't blast music so loud that it gives people a headache. Make sure that your staff always exhibits unwavering customer service skills and always goes above and beyond for your customers.
Part of running a successful retail store is being able to compete with other stores or even online web sites that sell products identical to yours. You have to find something that makes you unique and push it. You don't necessarily need expensive advertising or marketing to make a name for yourself, but you do need to promote yourself in different ways.
1) Make sure that people are aware of what makes you special. You may want to put signs in your front window displaying what special brands you carry. The manufacturers will often send you free promotional material if you ask. If you run newspaper ads, magazine ads, or other types of paper communication, make sure that you include details about your store in the print. Be careful not to only mention a sale and forget that a new customer might be reading and need to know why they should come to your store as opposed to going online and finding your products at a discount.
2) Promote yourself socially. There are several social web sites that can help you to become popular. Not only will you notice jumps in search engine rankings, but you'll notice that it's easy and free to communicate with your customers. Holding contests or having give-aways are great ways to get new fans. People that talk about you to their friends are immensely valuable and social sites are the easiest way to make that happen.
3) Give your customers something to talk about. People love to get a good deal. How many times have you complimented someone on their shirt, shoes, handbag, or accessories only to hear a response that tells you how they came about owning them? You rarely hear, "Oh yes, these shoes are very well made." More often you hear something along the lines of "I got the best deal on these!" People are excited to share their shopping experiences, whether they are good or bad. So, make sure that each person that enters your store has a great experience, even if they didn't buy a thing.
4) Pay attention to the little details that can make people happy to shop in your store. No one likes to dig through cramped racks or bins. They also don't want to be smashed up against other customers while they shop. Use a slatwall display system to keep the store nice and neat. When items are displayed on slatwall or slatwall panels, they are highly visible and easy to browse. You can easily maneuver slatwall accessories to accommodate different inventories at different times of the year, with very little effort. Spotlights can give texture to the space while increasing product "pop" and deterring theft. Don't blast music so loud that it gives people a headache. Make sure that your staff always exhibits unwavering customer service skills and always goes above and beyond for your customers.
Wednesday, September 15, 2010
INVESTMENT POLICY AND INITIATIVES - Retail Sector
India has kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrand retail with prior Government permission. FDI is also allowed in the wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is already operating through the cash-and-carry wholesale mode.
The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community. Government is considering opening up of the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment.
Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods, electronics and stationery is also being contemplated. The Government has to walk a tightrope to ensure a `level playing field' for everyone. The policy of permitting 51 per cent FDI in single-brand product retailing has led to the entry of only a few global brands such as Nike (footwear), Louis Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear), Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down furniture), Argenterie Greggio (silverware, cutlery, traditional home accessories and gift items) and Toyota (retail trading of cars), into retail trading. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to make a presence through retailing directly.
Business models for entry in Indian markets
Due to the FDI restrictions the international players are looking for alternative avenues to enter the Indian markets. However FDI restrictions in retailing have not deterred prominent international players from setting up shops in India.
In recent developments, the Australian retail giant Woolworth Ltd made in innovative entry in India’s retail space, with India’s Tata group. The Tata group has floated Infiniti Retail Ltd, in venture with which will sell consumer goods and electronics across the country. Infiniti Retail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusion of Rs 4 billion. This Tata retail venture joined hands with Australian retail giant Woolworths Ltd, which currently operates more than 2,000 stores in 12 different formats. While Infiniti will own and run retail operations in India, Woolworths, which has attained notable success in selling electronics and consumer goods through its Dick Smith Electronics chain, will provide technical support and strategic sourcing facilities from its global network.
Thursday, September 9, 2010
Guide to Starting a Business Tips, New Businesses Ideas and Tips
Guides to Starting a Business
The following guides will help you to prepare a comprehensive business plan and determine if your idea is feasible, to identify questions and problems you will face in converting your idea into reality and to prepare for starting your business.
Operating a successful small business will depend on:
a practical plan with a solid foundation;
dedication and willingness to sacrifice to reach your goal;
technical skills; and
basic knowledge of management, finance, record keeping and market analysis.
As a new owner, you will need to master these skills and techniques if your business is to be successful.
Here is a list of guides that will teach you all aspects of starting a small business.
So you are thinking of starting your own business.
This can have advantages and disadvantages. Starting your own business will bring a sense of independence, and a sense of accomplishment. You will be the boss, and you can't be fired, though there may be days when you would welcome it. Because you can pay yourself a salary and the profit or return on your investment will also be yours, you anticipate a good income once your business is established. You will experience a pride in ownership - such as you experience if you own your own home or your own automobile. You can derive great satisfaction from offering a product or service which is valued in the market place.
Here are some new business ideas. By being boss you can adopt new ideas quickly. Since your enterprise undoubtedly will be a small business - at least in the beginning - you will have no large, unwieldy organization to retrain, no board to get permission from, each time you wish to try something new. If the idea doesn't work you can drop it just as quickly. This opportunity for flexibility is one of small businesses greatest assets.
These are some of the advantages and pleasures of starting and operating your own business. Now take a look at the other side. If you have employees, you must meet a payroll week after week. You must always have money to pay creditors - the man who sells you goods or materials, the dealer who furnishes fixtures and equipment, the landlord if you rent, the mortgage holder if you are buying your place of business, the publisher running your advertisements, the tax collector, and many others. All of these must be paid before you can consider the "profits" yours.
Among the new business ideas presented here is the notion that you must accept sole responsibility for all final decisions. A wrong judgment on your part can result in losses not only to yourself but, possibly, to your employees, creditors, and customers as well. Moreover, you must withstand, alone, adverse situations caused by circumstances frequently beyond your control, To overcome these business setbacks and keep your business profitable means long hours of hard work. It could very well not be the work you want to do. As someone else's employee you developed a skill. Now, starting a business of your own, you may expect to use that skill 40 or more hours a week. Instead, you must perform the management tasks as well. You must keep the books, analyze accounting records, sit back and do long range planning, jump and handle the expediting and, when everyone has gone home and you finally have caught up with the paper work, you may even have to sweep the floor.
As your new business grows and you become more successful, you may not do some of these activities. As an owner-manager, however, you must - at least at first - give up the technical aspects you know and enjoy doing, and focus on the management aspects. To get your business off to a successful start, you must be a manager not an operator.
"You will never be entirely your own boss"
No matter what you choose - manufacturing, wholesaling, retailing or service business - you must always satisfy your customers. If you don't give the customers what they want, they'll go somewhere else and you'll be out of business. So every customer, or even potential customer, is your boss. Your creditors will also dictate to you, and your competitors' actions may force you to make decisions you don't want to make. National and local government agencies will insist that you meet certain standards and follow certain regulations. The one thing you can decide yourself is how you will satisfy all of these bosses.
Are You the Type to Succeed in a New Business?
You will be your most important employee. It is more important that you rate yourself objectively than how you rate any prospective employee. Appraise your strengths and your weaknesses. As a prospective operator of your own business, acknowledge that you are weak in certain areas and cover the deficiency by either retraining yourself or hiring someone with the necessary skill.
Numerous studies have been made of small business managers over the years. Many look at traits and characteristics that appear common to most people who start their own businesses. Other studies focus on characteristics that seem to appear frequently in successful owner-managers.
First, consider those characteristics that seem to distinguish the person who starts his own new business from the person who works for someone else. These studies investigated successful and unsuccessful owners, some of whom went bankrupt several times. Some were successful only after the second or third try. The characteristics they share might almost be said to predispose a person into trying to start a business. Of course, not all of these characteristics appear in every small business owner-manager, but the following seem to be most predominate.
People who start a business may be members of different political parties, feel differently about religion, economics and other issues. They are like everyone else. The difference is they usually feel and express themselves more strongly. This is consistent. If you are going to risk your money and time in your own business you must have a strong feeling that you will be successful. As you will see later, these strong feelings may also cause problems.
If you want to start your own business you probably have mixed feelings about authority. You know the manager must have authority to get things done, but you're not comfortable working under someone. This may also have been your attitude in a scholastic, family or other authority structure.
If you want to open you own business you are likely to have a strong "Need for Achievement". This "Need for Achievement" is a psychologist's term for motivation and is usually measured by tests. It can be an important factor in success.
The person who wouldn't think of starting a business, might call you a plunger, a gambler, a high risk taker. Yet you probably don't feel that about yourself. Studies have shown that very often the small business owner doesn't differ from anyone else in risk avoidance or aversion when measured on tests. At first thought this seems unreasonable since logic tells us that it is risky to open your own business. An Ohio State professor once explained this apparent contradiction very simply. "When a person starts and manages his own business he doesn't see risks; he sees only factors that he can control to his advantage."
If you possess these traits to some degree or other it doesn't mean you will be successful, only that you will very likely start your own business. Some of these characteristics in excess may actually hamper you if you are not careful.
The characteristics that appear most frequently among "successful" small business managers include drive, thinking ability, competence in human relations, communications skills and technical knowledge.Drive, as defined in the study, is composed of responsibility, vigor, initiative, persistence and health. Thinking ability consists of original, creative, critical, and analytical thinking. Competency in human relations means emotional stability, sociability, good personal relations, consideration, cheerfulness, cooperation. and tactfulness. Important communications skills include verbal comprehension, and oral and written communications. Technical knowledge is the manager's comprehension of the physical process of producing goods or services, and the ability to use the information purposefully.
Motivation or drive has long been considered as having an important effect on performance. Psychologists now claim you can increase the motivation and the personal capacities that will improve your effectiveness and increase your chances for success. Much of the development of such achievement motivation depends on setting the right kind of goals for yourself.
Many of you have already decided what business to choose. Others may still be seeking answers from counselors. Whether you have decided or not, you will find it helpful to continue your self-evaluation.
Begin by summarizing your background and experience. Include jobs. schooling, and hobbies. Then write down what you think you would like to do. Does what you would like to do match up with what you have done? It is helpful if your experience and training can be put to direct use in your new enterprise.
What are your prospective needs? What are your prospective customers' needs? You may make money doing something you don't like if people will pay for it. On the other hand, you will never make money if people don t need your product or service no matter how happy you are doing it. Experts have said more companies fail because they are in the wrong business than because they are "doing business wrong".
Read, listen to the experts, talk to business people, try to determine where growth will occur. Most new businesses can only get customers by taking them away from someone else, or by attracting new people entering the area. In other words, don't start a contracting business in a community where the population is decreasing even if you are a good contractor.
At this point, try to match your background and interests with what you see the needs to be. If they match, wonderful. Now all you have to do is discover how to offer the customers more for their money than do your competitors.
If the needs and your background don't match, don't despair. Get training by working in a company that provides a product or service that is needed. Find a job in a well managed, successful company of the kind you are contemplating. Then absorb as much management know-how as you can while learning the technical skills.
Education can help too. While there may be no educational requirements for starting your own business, the more schooling you have along the right lines the better equipped you should be.
(Some fields require licenses, certificates, even degrees in specific educational areas.) Certainly it is helpful if you have had courses in record keeping, sales and communication. These needn't be college or even high school courses. They can come from adult education programs and the like.
Is there a need for what you want to sell or do? Are you prepared to fill that need? Are you interested in the area? Can you learn what you need to? Will there be a continuing and growing need for your product or service?
Your Chances of Success in Starting Your Own Business (New Business Ideas)
What are your chances of success if you go into business? New businesses are always being started. Almost as many are failing or being discontinued. A year of poor business conditions is likely to be followed by a greater than average number of failures or closings. A year of good business conditions tends to be followed by large increases in the total number of businesses. In general, the number of firms increases with increases in human population, total personal income and per capita income and since these factors have increased regularly, the total number of small businesses usually rises every year.This growth is not free of growing pains, however. At the same time new businesses are being born other businesses are being discontinued. Some of these discontinuances are legally business failures; other owners give up to avoid or minimize losses and are not failures in the strict sense. Still others discontinue for reasons such as the death or retirement of the proprietor, the dissolution of a partnership, or the sale of the business to a new owner.
Younger businesses tend to discontinue first. Many do not make it through the first year. The discontinuation rate of those that survive this first year "burn-in" declines steadily until at the end of several years the rate has dropped dramatically. So, your chances of success improve the longer you stay in business.
Poor new business management is the largest single cause of business failure. Year after year, the lack of managerial experience and aptitude has accounted for around 90 percent of all failures analyzed by Dun & Bradstreet, Inc.
Many factors may adversely affect individual firms over which owners have little control. In such cases, the astute manager can often soften the blow or, sometimes, change adversity into an asset. Examples of factors over which the owner has little control are overall poor business conditions, relocations of highways, sudden style changes, the replacement of existing products by new ones, and local labor situations. While these factors may cause some businesses to close, they may represent opportunities for others. A local market place may decline in importance at the same time new shopping centers are developing. Sudden changes in style or the replacement of existing products may bring trouble to certain businesses but open doors for new ones. Adverse employment situations in some areas may be offset by favorable situations in others. Ingenuity in taking advantage of changing consumer desires and technological improvements will always be rewarded.
In the final analysis, it is up to you. Will your management be competent? Will you be able to judge, and then satisfy, your customers' wants? Can you do this accurately and quickly enough to more than compensate for risks due to factors beyond your control? Such accomplishment requires expert management.
Your Return on Investment
Will the rate of return on the money you invest in your business be greater than the rate you could receive if you invested your money elsewhere? While your decision to go into business for yourself may not depend entirely upon this, it is a factor which should interest you. Too frequently people invest money in their own businesses under the misapprehension that the financial return will be far greater than the return from other investments. Investigation of the average annual returns in the line of business in which you are interested may be worthy of your time.
Your decision to go into business may not depend entirely on financial rewards. The size of the potential return on your investment may be overshadowed by your desire for independence, the chance to do the type of work you would like to do, the opportunity to live in the part of the country or city you prefer, or the feeling that you can be more useful to the community than you would be if you continued working for someone else. Do not overlook such intangible considerations. But remember, you cannot keep your own business open unless you receive an adequate financial return on your investment.
Friday, September 3, 2010
Retail :- Implementing EAN/UPC Barcodes on retail products
Implementing EAN/UPC Barcodes on retail products
The following steps needs to be followed for implementation of barcoding on retail products (Stock Keeping Units)
Step 1. Registration with EAN-India:
Companies need to get registered with EAN-India to get a unique company prefix. This unique company prefix identifies the company. The number of digits in company prefix depends on the number of product types (or SKU’s) you have indicated in the EAN/UPC application form submitted to EAN India.
Step 2. Read the Implementation Guide:
It is suggested that you read the implementation guide provided to you by EAN India at the time of registration (which may be in the form of CD/Book). Implementation guide provides introduction about bar coding, EAN.UCC standards, its uses and how to proceed for the implementation of the same.
Step 3. Product code allocation:
Use the company prefix allotted to you on registration, allot product code to all your product types. The product code that you will give to your product types will comprise of three parts:
a. Company prefix: This is the company prefix allotted to you on registration by EAN India.
b. Item Id: The next few digits should be used by a company to allocate Item Id’s to each of its products for identification. For example for the products
Gulab Jamun Mix 100gms - Item Id may be 00001
Gulab Jamun Mix 200gms carton - Item Id may be 00002
Idli Mix 200gms - Item Id may be 00003
Different Item Id’s should be allocated to products for different packaging sizes, different colors, different variants, and different constituents.
Please note the length of the Item Id depends on length of company prefix allocated.
c. Check Digit: The last digit is the check digit, which is a number calculated according to the algorithm called modulo 10. Check digit calculators are available on the following page on EAN India website http://www.eanindia.com/SERV/checkdgt.htm and in the implementation CD provided.
An example has been given below:
8 9 0 4 0 0 0 X X X X X C has been allotted to you. 8 9 0 4 0 0 0 is your prefix which will be common for all the product codes. The Item Id’s given for products and check digits have been given below:
Product Company Prefix Item Id allocated Check digit using calculator Product Number
Gulab Jamun Mix 100 gms 8904000 00001 0 8904000000010
Gulab Jamun Mix 200 gms 8904000 00002 7 8904000000027
Idli Mix 200gms 8904000 00003 4 8904000000034
Step 4. Entry of product codes into www.eanindia.org:
The product codes allocated in Step 3 need to be entered into the website www.eanindia.org. This will give you two benefits:
1) Approval of the allocated product codes can be done online by EAN India
2) Your company and product data will become a part of a worldwide buyer-seller database, which will give a lot of visibility to your products in the national and international markets.
Steps to enter product details into www.eanindia.org :
a. Log in to www.eanindia.org. In the “User Name” field at the bottom of the screen, enter your EAN/UPC Company prefix. The password has been communicated in the letter sent to you at time of registration. (You are advised to change the default password immediately by clicking on “Change Password “)
b. Choose option “Add / Modify Products” on the left side of the screen. You can now access “Product management ”. You can now click on “Add” button and enter details of each product including Segment, Product category, Sub category, GTIN (This is the number allocated in Step 3, Product Name, Height, Width, Length, Weight/ Volume of product, Customs Harmonized code if relevant to your product.
c. Click “Submit” - On submitting, product information will come for product approval to EAN-India.
d. The above steps (a – c) need to be repeated for each of your product types.
e. The Products after approval from EAN-India will be available for various search features on the site. To check on your status of approval go for Steps a & b click “Approval Status summary” after login. This gives you a list of approved and not approved products of your company.
EAN India has launched a new enhanced feature to enable hosting of product images. To view details of the service please click on the following URL: http://www.eanindia.org/Ean/Ean_Letter.html
Step 5. Barcode Printing:
Now that the complete numbers for all the products have been allotted to all your products. The next step would be to get these numbers generated into bar-codes for incorporation as a part of the product packaging design or the barcodes be printed as stickers to be pasted on the package.
Option 1: Modifying artwork to incorporate barcode: A one-time modification to the artwork will be required. The cost involved in this step will be low and organizations involved in generating your packaging (advertising agency or printer) are aware of how to incorporate barcode on product packaging. In case of any clarifications required they may contact the EAN India office.
Option 2: Barcodes printed as stickers to be pasted on products: You can get stickers made by a bar-code solution provider or you may procure a barcode printer from solution providers and generate stickers on your own. This decision will depend on the number of stickers you generate on an annual basis. An indicative list of bar-code solution providers is provided on www.eanindia.com website
Step 6. Barcode Verification:
The next step after generation of bar codes is verification of bar code by EAN India. Barcode verification of products helps a company to access the scannability and quality of barcode on its product packaging. In the verification exercise “Verifier” equipment is used which checks the following barcode size, barcode printing quality, barwidth gain, structure of barcode, correct margins, correct color combinations and various other features and gives a detailed report. The facility is available at Rs.150 per product and you will need to send your sample with packaging to EAN India office along with the amount as DD/Payorder. The modifications suggested in the Verification report (if any) will need to be carried out in your artwork. It is recommended that before going in for mass printing of product packaging, get the barcodes verified by EAN India.
The following steps needs to be followed for implementation of barcoding on retail products (Stock Keeping Units)
Step 1. Registration with EAN-India:
Companies need to get registered with EAN-India to get a unique company prefix. This unique company prefix identifies the company. The number of digits in company prefix depends on the number of product types (or SKU’s) you have indicated in the EAN/UPC application form submitted to EAN India.
Step 2. Read the Implementation Guide:
It is suggested that you read the implementation guide provided to you by EAN India at the time of registration (which may be in the form of CD/Book). Implementation guide provides introduction about bar coding, EAN.UCC standards, its uses and how to proceed for the implementation of the same.
Step 3. Product code allocation:
Use the company prefix allotted to you on registration, allot product code to all your product types. The product code that you will give to your product types will comprise of three parts:
a. Company prefix: This is the company prefix allotted to you on registration by EAN India.
b. Item Id: The next few digits should be used by a company to allocate Item Id’s to each of its products for identification. For example for the products
Gulab Jamun Mix 100gms - Item Id may be 00001
Gulab Jamun Mix 200gms carton - Item Id may be 00002
Idli Mix 200gms - Item Id may be 00003
Different Item Id’s should be allocated to products for different packaging sizes, different colors, different variants, and different constituents.
Please note the length of the Item Id depends on length of company prefix allocated.
c. Check Digit: The last digit is the check digit, which is a number calculated according to the algorithm called modulo 10. Check digit calculators are available on the following page on EAN India website http://www.eanindia.com/SERV/checkdgt.htm and in the implementation CD provided.
An example has been given below:
8 9 0 4 0 0 0 X X X X X C has been allotted to you. 8 9 0 4 0 0 0 is your prefix which will be common for all the product codes. The Item Id’s given for products and check digits have been given below:
Product Company Prefix Item Id allocated Check digit using calculator Product Number
Gulab Jamun Mix 100 gms 8904000 00001 0 8904000000010
Gulab Jamun Mix 200 gms 8904000 00002 7 8904000000027
Idli Mix 200gms 8904000 00003 4 8904000000034
Step 4. Entry of product codes into www.eanindia.org:
The product codes allocated in Step 3 need to be entered into the website www.eanindia.org. This will give you two benefits:
1) Approval of the allocated product codes can be done online by EAN India
2) Your company and product data will become a part of a worldwide buyer-seller database, which will give a lot of visibility to your products in the national and international markets.
Steps to enter product details into www.eanindia.org :
a. Log in to www.eanindia.org. In the “User Name” field at the bottom of the screen, enter your EAN/UPC Company prefix. The password has been communicated in the letter sent to you at time of registration. (You are advised to change the default password immediately by clicking on “Change Password “)
b. Choose option “Add / Modify Products” on the left side of the screen. You can now access “Product management ”. You can now click on “Add” button and enter details of each product including Segment, Product category, Sub category, GTIN (This is the number allocated in Step 3, Product Name, Height, Width, Length, Weight/ Volume of product, Customs Harmonized code if relevant to your product.
c. Click “Submit” - On submitting, product information will come for product approval to EAN-India.
d. The above steps (a – c) need to be repeated for each of your product types.
e. The Products after approval from EAN-India will be available for various search features on the site. To check on your status of approval go for Steps a & b click “Approval Status summary” after login. This gives you a list of approved and not approved products of your company.
EAN India has launched a new enhanced feature to enable hosting of product images. To view details of the service please click on the following URL: http://www.eanindia.org/Ean/Ean_Letter.html
Step 5. Barcode Printing:
Now that the complete numbers for all the products have been allotted to all your products. The next step would be to get these numbers generated into bar-codes for incorporation as a part of the product packaging design or the barcodes be printed as stickers to be pasted on the package.
Option 1: Modifying artwork to incorporate barcode: A one-time modification to the artwork will be required. The cost involved in this step will be low and organizations involved in generating your packaging (advertising agency or printer) are aware of how to incorporate barcode on product packaging. In case of any clarifications required they may contact the EAN India office.
Option 2: Barcodes printed as stickers to be pasted on products: You can get stickers made by a bar-code solution provider or you may procure a barcode printer from solution providers and generate stickers on your own. This decision will depend on the number of stickers you generate on an annual basis. An indicative list of bar-code solution providers is provided on www.eanindia.com website
Step 6. Barcode Verification:
The next step after generation of bar codes is verification of bar code by EAN India. Barcode verification of products helps a company to access the scannability and quality of barcode on its product packaging. In the verification exercise “Verifier” equipment is used which checks the following barcode size, barcode printing quality, barwidth gain, structure of barcode, correct margins, correct color combinations and various other features and gives a detailed report. The facility is available at Rs.150 per product and you will need to send your sample with packaging to EAN India office along with the amount as DD/Payorder. The modifications suggested in the Verification report (if any) will need to be carried out in your artwork. It is recommended that before going in for mass printing of product packaging, get the barcodes verified by EAN India.
Monday, August 23, 2010
T - Shirts Industry - India - VI - Final Blog
Selections of Tees on latest trends give you a superior look
Wearing a T-shirt of your choice gives your looks more attractive but what type of T-shirt you select gives your looks better than others. Your personality depends on the selection of right type of T-shirts like size differences, fabric, color, printing process etc and depends on the latest trends too. Selections of Tees on latest trends give you a better look and enhance your personality.
Selection of Fabric
T-shirts can be made from many materials and fabric decides many features about a T-shirt, such as how well a T-shirt will give its shape after wearing and washing. And it also depends for what purpose T-shirts you are going to wear, i.e. the selection of soft and flexible or durable heavy fabric or non- shrinkable material like polyester/cotton blends, selection of fiber contents etc. Select the fabric of T-shirt or its material according to your purpose.
Colour and Design and Garment distortion
Different brands provide different color choices and designs. To avoid color fading, choose appropriate and long lasting color shade T-shirts to your wearing purpose. Over and over again a brand new T-shirt leaves the washer and dryer in an unsatisfactory condition. All T-shirts will shrink to some extent when they are first washed. Shrinking is become more problem while it shrinking continually by washing. To avoid this problem select cotton polyester blend T-shirts, this will shrink less.
Differences of sizes
The selection of T-shirts is depends on the size of that T-shirt you wear and ultimately it affects on your personality. Sizing varies vividly from brand to brand. Not only does the general size change drastically, but the length and width proportions differ as well. Your figure and style will decide what brand will give you the right fit. Check out sizing of T-shirts.
Pilling
On the surface of the garment sometimes pilling is appeared. To reduce this, purchase no-pill or low-pill materialized T-shirt.
Neckband
The neckband should choose a knit to stretch over the head, then reshape in its original. A firm knit ribbing is often utilized. A nylon blend ribbing provides added reinforcement.
Care Tags
Most T-shirts are generally provided with care label, with suggestion to required garment care. Some T-shirts can be cleaned in hot or warm water and tumble dried; others may need more extraordinary care such as machine washing in cold water and line drying or lying flat to dry. T-shirts with transfer prints and decorated, generally require special care, such as turning the T-shirt wrong side out before laundering. Keep in mind to maintain garment appearance; you should have to follow care recommendations.
Latest trend
And at the last but not the least purchase T-shirts to suits your mood , the purpose of wearing and the latest trends of designs, color combination etc in the market.
Wearing a T-shirt of your choice gives your looks more attractive but what type of T-shirt you select gives your looks better than others. Your personality depends on the selection of right type of T-shirts like size differences, fabric, color, printing process etc and depends on the latest trends too. Selections of Tees on latest trends give you a better look and enhance your personality.
Selection of Fabric
T-shirts can be made from many materials and fabric decides many features about a T-shirt, such as how well a T-shirt will give its shape after wearing and washing. And it also depends for what purpose T-shirts you are going to wear, i.e. the selection of soft and flexible or durable heavy fabric or non- shrinkable material like polyester/cotton blends, selection of fiber contents etc. Select the fabric of T-shirt or its material according to your purpose.
Colour and Design and Garment distortion
Different brands provide different color choices and designs. To avoid color fading, choose appropriate and long lasting color shade T-shirts to your wearing purpose. Over and over again a brand new T-shirt leaves the washer and dryer in an unsatisfactory condition. All T-shirts will shrink to some extent when they are first washed. Shrinking is become more problem while it shrinking continually by washing. To avoid this problem select cotton polyester blend T-shirts, this will shrink less.
Differences of sizes
The selection of T-shirts is depends on the size of that T-shirt you wear and ultimately it affects on your personality. Sizing varies vividly from brand to brand. Not only does the general size change drastically, but the length and width proportions differ as well. Your figure and style will decide what brand will give you the right fit. Check out sizing of T-shirts.
Pilling
On the surface of the garment sometimes pilling is appeared. To reduce this, purchase no-pill or low-pill materialized T-shirt.
Neckband
The neckband should choose a knit to stretch over the head, then reshape in its original. A firm knit ribbing is often utilized. A nylon blend ribbing provides added reinforcement.
Care Tags
Most T-shirts are generally provided with care label, with suggestion to required garment care. Some T-shirts can be cleaned in hot or warm water and tumble dried; others may need more extraordinary care such as machine washing in cold water and line drying or lying flat to dry. T-shirts with transfer prints and decorated, generally require special care, such as turning the T-shirt wrong side out before laundering. Keep in mind to maintain garment appearance; you should have to follow care recommendations.
Latest trend
And at the last but not the least purchase T-shirts to suits your mood , the purpose of wearing and the latest trends of designs, color combination etc in the market.
Thursday, August 19, 2010
Allow FDI in multi-brand retail: Ministry
Dear All please send your comment / feedback on following article published in Times of India Today....
The industry ministry on Wednesday made out a strong case for opening up the multi-brand retail sector for foreign direct investment (FDI), stating that the move will help both consumers and producers, particularly of agricultural items.
"The objective will be to enhance operational efficiency of back-end infrastructure in the retail sector, reduce wastage in the agriculture sector, enhance benefit to producers... and benefit consumers through greater consumption," minister of state for commerce and industry Jyotiraditya Scindia said in a written reply to the Rajya Sabha.
The department of industrial policy and promotion had floated a discussion paper — FDI in Multi-Brand Retail Trading — and invited comments on it. It has received suggestions from a large number of stakeholders, including global retail chains like Carrefour. However, Scindia did not indicate how soon a decision on the issue will be taken.
"It is expected that the views and suggestions received in response to this discussion paper will enable the government to take an appropriate policy decision at the appropriate time," he said. The issue of FDI in the sector is considered politically sensitive, as over 90% of India's retail trade is in the unorganised sector — with kirana shops employing as many as 33 million people.
Currently, the government allows 51% FDI in single brand retail and 100% FDI in wholesale cash-and-carry trade. However, FDI is not permitted in multi-brand retail.
Ref :- Time of India
The industry ministry on Wednesday made out a strong case for opening up the multi-brand retail sector for foreign direct investment (FDI), stating that the move will help both consumers and producers, particularly of agricultural items.
"The objective will be to enhance operational efficiency of back-end infrastructure in the retail sector, reduce wastage in the agriculture sector, enhance benefit to producers... and benefit consumers through greater consumption," minister of state for commerce and industry Jyotiraditya Scindia said in a written reply to the Rajya Sabha.
The department of industrial policy and promotion had floated a discussion paper — FDI in Multi-Brand Retail Trading — and invited comments on it. It has received suggestions from a large number of stakeholders, including global retail chains like Carrefour. However, Scindia did not indicate how soon a decision on the issue will be taken.
"It is expected that the views and suggestions received in response to this discussion paper will enable the government to take an appropriate policy decision at the appropriate time," he said. The issue of FDI in the sector is considered politically sensitive, as over 90% of India's retail trade is in the unorganised sector — with kirana shops employing as many as 33 million people.
Currently, the government allows 51% FDI in single brand retail and 100% FDI in wholesale cash-and-carry trade. However, FDI is not permitted in multi-brand retail.
Ref :- Time of India
Tuesday, August 17, 2010
T - Shirts Industry - India - V
The future of T-shirt Industry in India
Movies, film stars and celebrities play an important role in suggesting the youths to wear stylish T-shirts. Sometimes people become aware of a new collection only after the film stars or celebrities wear them in movies. Film stars make a fashion statement by wearing their words on T-shirt, while other celebrities make their statements a bit in a different way or in their choosy styles. Even Sushmita Sen's sari-look in 'Main Hoon Na' movie liked by people but personally she prefers to wear jeans and a T-shirt.
T-shirts are also increasingly being used in Indian corporate houses to motivate employees, to build brand loyalty in the market as well as to display the company's attitude by displaying its motto or slogan in front of stakeholders. Today in major corporate houses promotional T-shirts became very popular as corporate gifts and more and more corporate or promotional T-shirts are demanding in the market, manufacturers are also manufacturing best quality designer-type pieces with buyers' logos, institutional advertising, slogans and emblems on T-shirts as well as for the end users. During the last cricket world cup, one of the Net portals sold some 60,000 promotional T-shirts in 60 days.
After WTO textile quotas were removed in January, traders of T-shirts in India observed export demand growth by 25 percent in the first quarter of this year in against the same period of 2004.
The export of ladies' blouses is up 26% to 29 million euros, jerseys and pullovers are up 12%, and men's T-shirts are up 37%. The collective export of blouses, skirts and T-shirts were about Rs 9,000 crore last year. The India's accomplishment has been amazing in four categories (as below) which had been eliminated by quota and it has been capable to maximize the use of quota levels, these cover T-shirts (Cat-4), ladies blouse (Cat-7), gents shirts (Cat-8) and ladies dresses (Cat-26). Amid the above categories, T-shirts has a bigger share in the top 10 categories trapping around 8.2 per cent of the total MFA imports of EU.
To satisfy the increased demand and seize market opportunities, many manufacturers and traders are adding new production lines and even building new factories. Many companies are improving their technology too. Main production centers of T-shirts in India are Tirupur, Mumbai, Kolkata, Delhi and Ludhiana.
Recently Tetriberica, a Portugal based apparel manufacturing company has opened an India office at Tirupur with the aim of providing sportswear and T-shirts in Indian market, and many international companies are looking towards the growth by targeting the Indian market. A new production unit in Gujarat has been establishing by T.T. Ltd for T-shirt manufacturing. Pytex Hosiery Mills is also constructing a new factory in Haryana to increase its production capacity. And many Indian T-shirt manufacturers are improving their production facilities and developing their capability among the challenge of stiff competition passed on by the lifting of quotas.
Movies, film stars and celebrities play an important role in suggesting the youths to wear stylish T-shirts. Sometimes people become aware of a new collection only after the film stars or celebrities wear them in movies. Film stars make a fashion statement by wearing their words on T-shirt, while other celebrities make their statements a bit in a different way or in their choosy styles. Even Sushmita Sen's sari-look in 'Main Hoon Na' movie liked by people but personally she prefers to wear jeans and a T-shirt.
T-shirts are also increasingly being used in Indian corporate houses to motivate employees, to build brand loyalty in the market as well as to display the company's attitude by displaying its motto or slogan in front of stakeholders. Today in major corporate houses promotional T-shirts became very popular as corporate gifts and more and more corporate or promotional T-shirts are demanding in the market, manufacturers are also manufacturing best quality designer-type pieces with buyers' logos, institutional advertising, slogans and emblems on T-shirts as well as for the end users. During the last cricket world cup, one of the Net portals sold some 60,000 promotional T-shirts in 60 days.
After WTO textile quotas were removed in January, traders of T-shirts in India observed export demand growth by 25 percent in the first quarter of this year in against the same period of 2004.
The export of ladies' blouses is up 26% to 29 million euros, jerseys and pullovers are up 12%, and men's T-shirts are up 37%. The collective export of blouses, skirts and T-shirts were about Rs 9,000 crore last year. The India's accomplishment has been amazing in four categories (as below) which had been eliminated by quota and it has been capable to maximize the use of quota levels, these cover T-shirts (Cat-4), ladies blouse (Cat-7), gents shirts (Cat-8) and ladies dresses (Cat-26). Amid the above categories, T-shirts has a bigger share in the top 10 categories trapping around 8.2 per cent of the total MFA imports of EU.
To satisfy the increased demand and seize market opportunities, many manufacturers and traders are adding new production lines and even building new factories. Many companies are improving their technology too. Main production centers of T-shirts in India are Tirupur, Mumbai, Kolkata, Delhi and Ludhiana.
Recently Tetriberica, a Portugal based apparel manufacturing company has opened an India office at Tirupur with the aim of providing sportswear and T-shirts in Indian market, and many international companies are looking towards the growth by targeting the Indian market. A new production unit in Gujarat has been establishing by T.T. Ltd for T-shirt manufacturing. Pytex Hosiery Mills is also constructing a new factory in Haryana to increase its production capacity. And many Indian T-shirt manufacturers are improving their production facilities and developing their capability among the challenge of stiff competition passed on by the lifting of quotas.
Wednesday, August 11, 2010
T - Shirts Industry - India - IV
Demand: trendy and flourishing T-shirt market of India
The branding game
In India T-shirts industries have raised by 27 percent followed by blouses/shirts and trousers. Recent market report survey says this segment of clothing in India accounts for 4.22 per cent of the Indian apparel market with sales of Rs. 2,419 crores, this includes T-shirts for women and have become trendy.
According to KSA Techno Park, Nike is the market leader, followed by Reebok in three of the income segments, except for Adidas in the Rs. 15,000 to Rs. 25,000 income segment, and Nike has an 8.3 percent share.
The income analysis of women explains that Reebok is the top women's "active wear" T-shirt in the lower income segment, Nike in the middle income segment and Adidas leads the highest income bracket.
Duke is the most popular brand in clothing of the lowest income segment of consumers; it is second in the next higher income slab to Lee and third in the Rs. 50,001 to Rs. 1 lakh income group. The top five in the highest income group is considered Wills Sports followed by Lacoste, Allen Solly, Lee and Classic Polo in order-wise.
Benetton is the second most popular brand in the segment of income of Rs. 50,001 to Rs. 1 lakh and has received fifth rank in the Rs. 15,000 to Rs. 25,000 segment. In the lowest income bracket Peter England is among the top five favorites and Crocodile gets similar approval in the Rs. 25,000 to Rs. 50,000 income segment. In the next higher income segment, Allen Solly and ColorPlus are considering.
The report says, there are two sub-categories in T-shirts market, one is active wear and second is casual wear. Generally, people are likely to wear active wear brands for their morning jogging or routine work while the casual T-shirts used for the purpose of informal clothing. Active wear clothing tends to have a high recall because of many international brands have become more or less generic with active wear.
The branding game
In India T-shirts industries have raised by 27 percent followed by blouses/shirts and trousers. Recent market report survey says this segment of clothing in India accounts for 4.22 per cent of the Indian apparel market with sales of Rs. 2,419 crores, this includes T-shirts for women and have become trendy.
According to KSA Techno Park, Nike is the market leader, followed by Reebok in three of the income segments, except for Adidas in the Rs. 15,000 to Rs. 25,000 income segment, and Nike has an 8.3 percent share.
The income analysis of women explains that Reebok is the top women's "active wear" T-shirt in the lower income segment, Nike in the middle income segment and Adidas leads the highest income bracket.
Duke is the most popular brand in clothing of the lowest income segment of consumers; it is second in the next higher income slab to Lee and third in the Rs. 50,001 to Rs. 1 lakh income group. The top five in the highest income group is considered Wills Sports followed by Lacoste, Allen Solly, Lee and Classic Polo in order-wise.
Benetton is the second most popular brand in the segment of income of Rs. 50,001 to Rs. 1 lakh and has received fifth rank in the Rs. 15,000 to Rs. 25,000 segment. In the lowest income bracket Peter England is among the top five favorites and Crocodile gets similar approval in the Rs. 25,000 to Rs. 50,000 income segment. In the next higher income segment, Allen Solly and ColorPlus are considering.
The report says, there are two sub-categories in T-shirts market, one is active wear and second is casual wear. Generally, people are likely to wear active wear brands for their morning jogging or routine work while the casual T-shirts used for the purpose of informal clothing. Active wear clothing tends to have a high recall because of many international brands have become more or less generic with active wear.
Wednesday, August 4, 2010
T - Shirts Industry - India - III
The Cool 'n' Trendy T-shirts becoming hot in India
Demand: trendy and flourishing T-shirt market of India
A peep inside casual wear stores here suggests that T-shirts have a presence that cannot be ignored and also have an ally even among the not-so-fashion-conscious people here.
A splash of colours, a few funky words do a mighty bit towards endearing them to any crowd, young or old. T-shirts now serve as the easiest canvass for a piece of art ranging from a Superman to political slogans. The scope of playing around with words and wearing it on you is tremendous.
There is availability of the standard, fashionable and designable distinctive varieties of T-shirts in the Indian market. There is significantly more demand of embroidery, Jewellery and custom designed T-shirts too.
The current trends of T-shirts also include flocking T-shirts where "Flocking" - is a process by which vat-dyed fibers are tied to the fabric with a heat transfer process, and are becoming demanding more and more. These T-shirt are distinctive in terms of fit, feel and styling. There are many T-shirts manufacturers are manufacturing light weight T-shirts to satisfy the needs of the light weight T-shirts consumers.
In addition to manufacturers many designers have geared up their styles of making T-shirts in the form of arts like jewelled designed T-shirts, crystal designed T-shirts, embodied T-shirts, and Digital Jewelled designed T-shirts etc. Recently, National Institute of Fashion Technology graduate Mr. Shantanu of Kolkata (India) designed jewelled T-shirts with the theme of God Kirshna's character. These kind of Jewelled and embroiled T-shirts are hot in metro cities of India. This fashion trends are affecting more and more to the young and the trendy people. Digitally printed jewelled T-shirts bearing opulent Mughal theme with attitude slogans are still popular among youths.
Currently, In India, fashion is considered as a serious business and the market demand will be booming. Tight T-shirt with mini skirts or jeans pants is hot trend in Indian youngsters. Most of young ladies are accepting to be an ultra-sexy by wearing mini skirts with tight and short T-shirts or feminine long skirts with off shouldered sexy T-shirts. India experiences the West, that's the big trend. The slim fit, fluorescent and fast color T-shirts were sold out more during last Diwali.
Demand: trendy and flourishing T-shirt market of India
A peep inside casual wear stores here suggests that T-shirts have a presence that cannot be ignored and also have an ally even among the not-so-fashion-conscious people here.
A splash of colours, a few funky words do a mighty bit towards endearing them to any crowd, young or old. T-shirts now serve as the easiest canvass for a piece of art ranging from a Superman to political slogans. The scope of playing around with words and wearing it on you is tremendous.
There is availability of the standard, fashionable and designable distinctive varieties of T-shirts in the Indian market. There is significantly more demand of embroidery, Jewellery and custom designed T-shirts too.
The current trends of T-shirts also include flocking T-shirts where "Flocking" - is a process by which vat-dyed fibers are tied to the fabric with a heat transfer process, and are becoming demanding more and more. These T-shirt are distinctive in terms of fit, feel and styling. There are many T-shirts manufacturers are manufacturing light weight T-shirts to satisfy the needs of the light weight T-shirts consumers.
In addition to manufacturers many designers have geared up their styles of making T-shirts in the form of arts like jewelled designed T-shirts, crystal designed T-shirts, embodied T-shirts, and Digital Jewelled designed T-shirts etc. Recently, National Institute of Fashion Technology graduate Mr. Shantanu of Kolkata (India) designed jewelled T-shirts with the theme of God Kirshna's character. These kind of Jewelled and embroiled T-shirts are hot in metro cities of India. This fashion trends are affecting more and more to the young and the trendy people. Digitally printed jewelled T-shirts bearing opulent Mughal theme with attitude slogans are still popular among youths.
Currently, In India, fashion is considered as a serious business and the market demand will be booming. Tight T-shirt with mini skirts or jeans pants is hot trend in Indian youngsters. Most of young ladies are accepting to be an ultra-sexy by wearing mini skirts with tight and short T-shirts or feminine long skirts with off shouldered sexy T-shirts. India experiences the West, that's the big trend. The slim fit, fluorescent and fast color T-shirts were sold out more during last Diwali.
Tuesday, July 27, 2010
T- Shirts Industry - India - II
The Cool 'n' Trendy T-shirts becoming hot in India
T-shirts are most preferred and acceptable in Indian market
In India, earlier, T-shirts were preferred by children and teens only, but now a days people of all age-groups wears T-shirts. Generally old age people prefer mostly collared T-shirts with branded names. Kids buy T-shirts of styles Pokemon and Spiderman and with many cartoon themes.
Recently, T-shirts with plain colors like white, bottle green, emerald green, kelly green, sky blue, navy, orange, royal blue, sunflower, heather, ash, olive, khaki, deep navy, navy, aqua etc are preferred in office or with the corporate logo or slogans. Today, a new corporate trend of dressing observed in India, especially in the information technology industry where you can come with a blazer or sports jacket and attend a meeting wearing T-shirt too.
Ladies are also wearing T-shirts in corporate houses with contrasting bound neck band and cuffs, short sleeve T-shirts. Even many offices are also favoring Western wear including corporate T-shirts. Indian fashion trends are going to West now a days.
Shopping malls have been growing in India like mushrooms and selling branded T-shirts and clothes to youngsters. In India most ladies are wearing T-shirts, Indian women are giving up their traditional wears like saris, salwar kameez and pajamas and replacing these with western wear, like skirts and trousers, jeans wear, short and tight T-shirts etc. Women find Western clothing is like skirts and trousers, jeans wear, short and tight T-shirts etc. Women find Western clothing are more convenient, especially when office hours or while traveling. Along with a short T-shirt women are used to wear low-cut pants/jeans with a tight belt is a hot and new trend in India.
T-shirts are most preferred and acceptable in Indian market
In India, earlier, T-shirts were preferred by children and teens only, but now a days people of all age-groups wears T-shirts. Generally old age people prefer mostly collared T-shirts with branded names. Kids buy T-shirts of styles Pokemon and Spiderman and with many cartoon themes.
Recently, T-shirts with plain colors like white, bottle green, emerald green, kelly green, sky blue, navy, orange, royal blue, sunflower, heather, ash, olive, khaki, deep navy, navy, aqua etc are preferred in office or with the corporate logo or slogans. Today, a new corporate trend of dressing observed in India, especially in the information technology industry where you can come with a blazer or sports jacket and attend a meeting wearing T-shirt too.
Ladies are also wearing T-shirts in corporate houses with contrasting bound neck band and cuffs, short sleeve T-shirts. Even many offices are also favoring Western wear including corporate T-shirts. Indian fashion trends are going to West now a days.
Shopping malls have been growing in India like mushrooms and selling branded T-shirts and clothes to youngsters. In India most ladies are wearing T-shirts, Indian women are giving up their traditional wears like saris, salwar kameez and pajamas and replacing these with western wear, like skirts and trousers, jeans wear, short and tight T-shirts etc. Women find Western clothing is like skirts and trousers, jeans wear, short and tight T-shirts etc. Women find Western clothing are more convenient, especially when office hours or while traveling. Along with a short T-shirt women are used to wear low-cut pants/jeans with a tight belt is a hot and new trend in India.
Saturday, July 24, 2010
Retail business: T - Shirts Industry - India - I
Retail business: T - Shirts Industry - India - I: "Wearing Tees: It is all about your personality and attitude The Cool 'n' Trendy T-shirts becoming hot in India T-shirts are those simple, ..."
T - Shirts Industry - India - I
Wearing Tees: It is all about your personality and attitude
The Cool 'n' Trendy T-shirts becoming hot in India
T-shirts are those simple, comfy cotton casuals, an influence of the West, which blends easily with Indian style of dressing. T-shirt, if the funny name makes you wonder, here is the history. The name apparently is credited to its simple design. Indian Tennis player Sania Mirza wears T-shirt bearing the words like "Well-behaved women rarely make history", "Attitude Unlimited" and many more. Today she is facing a tough time in answering the questions from the media related to skin tight T-shirt she wears. Indeed a hot issue of cool T-shirt!
Everyone believes that what you dress or wear says a lot about your personality. It displays your character and behavior. Sometimes T-shirts gives a perfect attitude of a person when displaying some slogans or logos and it also displays the community or religion you belong to or association / group associated with it, hence it leads to intelligent conversation or displays what you want to speak about. That means it convey your messages in the form of slogan or logo and ultimately your attitude!
Normally, teens prefer short sleeves T-shirt with attitude slogans. Many young people prefers T-shirts with attitude slogans like "God bless everyone"," Bad attitude", "I am on summer holiday", " Flower Friend", , "I have an attitude!", etc. If you care about the animals show it with "Animal's friend", if you care about environment wear T-shirt with slogans like "Think Green", "Protect Earth from Pollution" and the possibility of playing around with words, designing and wearing it on you is immense. And all it depends on what you want to show and what you are wearing that ultimately describe your attitude.
The Cool 'n' Trendy T-shirts becoming hot in India
T-shirts are those simple, comfy cotton casuals, an influence of the West, which blends easily with Indian style of dressing. T-shirt, if the funny name makes you wonder, here is the history. The name apparently is credited to its simple design. Indian Tennis player Sania Mirza wears T-shirt bearing the words like "Well-behaved women rarely make history", "Attitude Unlimited" and many more. Today she is facing a tough time in answering the questions from the media related to skin tight T-shirt she wears. Indeed a hot issue of cool T-shirt!
Everyone believes that what you dress or wear says a lot about your personality. It displays your character and behavior. Sometimes T-shirts gives a perfect attitude of a person when displaying some slogans or logos and it also displays the community or religion you belong to or association / group associated with it, hence it leads to intelligent conversation or displays what you want to speak about. That means it convey your messages in the form of slogan or logo and ultimately your attitude!
Normally, teens prefer short sleeves T-shirt with attitude slogans. Many young people prefers T-shirts with attitude slogans like "God bless everyone"," Bad attitude", "I am on summer holiday", " Flower Friend", , "I have an attitude!", etc. If you care about the animals show it with "Animal's friend", if you care about environment wear T-shirt with slogans like "Think Green", "Protect Earth from Pollution" and the possibility of playing around with words, designing and wearing it on you is immense. And all it depends on what you want to show and what you are wearing that ultimately describe your attitude.
Sunday, July 18, 2010
Planning the retail - The tangibles of touch points
Setting up retail outlets is one form of forward integration that gives a company access to additional customer touch points by way of product sales and after-sales service. Successful retail operations strengthen the company brand and enhance customer loyalty. In the Indian context, there have been several examples of SMEs who sensed a retail opportunity and came up with innovative business models that were eminently successful.
The Amalgamated Bean Coffee Trading Company (ABCTCL) today is more recognised by its chain of branded coffee outlets known as Café Coffee Day. ABCTCL is an integrated coffee company in India with a presence across the entire value chain from plantations to retailing. The company has about 5,000 acres of
plantations spread over Chickmagalur, one of Karnataka’s coffee-growing districts. The company started off as a grower and exporter of coffee beans and later forayed into retail operations. Today the highly popular Café Coffee Day chain has about 552 stores spread across 90 cities, that source coffee from its own plantations and as well as local suppliers.
A lower pricing strategy compared to competitors and the offer of an equivalent quality product combined with excellent service has made it the most successful coffee chain in India. This thriving forward integration
has enabled Café Coffee Day to charge around Rs40 per cup of cappuccino against Rs4 worth of coffee
bean ingredients. Entry into retail has resulted in a faster growth for ABCTCL vis-Ã -vis CCL Products, an exporter of coffee.
Kitchen appliances maker TTK Prestige operates Smart Kitchen showrooms across India. The company has expanded from 50 outlets in 27 cities in 2004-05 to about 200 outlets in 100 cities in 2006-07. The Smart Kitchen is a one-stop shop that showcases the entire range of Prestige kitchenware. Besides presenting the best and latest products from the Prestige staple to consumers, these showrooms use the ambience of a live kitchen with plush interiors to enhance the brand image. The company uses the retail chain to channelise TTK’s new customer care tools such as Prestige Privilege Club (a loyalty programme) and Prestige Kitchen Care (a service programme).
Namdhari Fresh is a retail venture from the Namdhari Group, the largest Indian manufacturer of hybrid seeds.The unique value proposition of Namdhari Fresh is the supply of quality produce, the majority of which they grow organically. The freshness of the produce is achieved through use of superior cold storage systems
that maintain temperatures of about 10 degrees in the room and the vegetable sales rack. This value
proposition (freshness and superior quality) has helped Namdhari Fresh in commanding a price premium for its fruits and vegetables over regular markets.
Koutons is a leading apparel manufacturing company that has forward integrated into retail under the
Koutons and Charlie Outlaw brands through a network of 1,147 + exclusive brand outlets. The company started as an apparel manufacturing unit in 1993 and started retailing operations only in 2002.
What is unique to Koutons is that, while most Indian apparel manufacturers cum retailers sell through a mix
of exclusive outlets, national chain stores and multi brand outlets, Koutons sells only through its exclusive
outlets. This strategy has enabled them to focus on quality maintenance and customer satisfaction without
any channel conflict. Not surprisingly, Koutons has grown faster than the Zodiac Clothing Company which
retails mainly through multi-branded outlets.
Internationally, one of the best examples of forward integration into retail is the Apple store. Apple has built stores that offer a unique customer experience through innovative use of store design. The layout simulates the usage environment at a customer’s home or office, and has less than 20 products on sale.
Apple has done away with checkout counters and replaced them with wireless credit card readers carried by the salespeople who also handle payments. There is a strong service element within the store as well.
Every store has a Genius Bar, where trained and highly qualified personnel share insights, technical advice and technical support on different products. All these activities have resulted in the Apple stores grossing maximum annual sales per square feet in comparison to other retail stores like Best Buy, Circuit City, etc.
The Amalgamated Bean Coffee Trading Company (ABCTCL) today is more recognised by its chain of branded coffee outlets known as Café Coffee Day. ABCTCL is an integrated coffee company in India with a presence across the entire value chain from plantations to retailing. The company has about 5,000 acres of
plantations spread over Chickmagalur, one of Karnataka’s coffee-growing districts. The company started off as a grower and exporter of coffee beans and later forayed into retail operations. Today the highly popular Café Coffee Day chain has about 552 stores spread across 90 cities, that source coffee from its own plantations and as well as local suppliers.
A lower pricing strategy compared to competitors and the offer of an equivalent quality product combined with excellent service has made it the most successful coffee chain in India. This thriving forward integration
has enabled Café Coffee Day to charge around Rs40 per cup of cappuccino against Rs4 worth of coffee
bean ingredients. Entry into retail has resulted in a faster growth for ABCTCL vis-Ã -vis CCL Products, an exporter of coffee.
Kitchen appliances maker TTK Prestige operates Smart Kitchen showrooms across India. The company has expanded from 50 outlets in 27 cities in 2004-05 to about 200 outlets in 100 cities in 2006-07. The Smart Kitchen is a one-stop shop that showcases the entire range of Prestige kitchenware. Besides presenting the best and latest products from the Prestige staple to consumers, these showrooms use the ambience of a live kitchen with plush interiors to enhance the brand image. The company uses the retail chain to channelise TTK’s new customer care tools such as Prestige Privilege Club (a loyalty programme) and Prestige Kitchen Care (a service programme).
Namdhari Fresh is a retail venture from the Namdhari Group, the largest Indian manufacturer of hybrid seeds.The unique value proposition of Namdhari Fresh is the supply of quality produce, the majority of which they grow organically. The freshness of the produce is achieved through use of superior cold storage systems
that maintain temperatures of about 10 degrees in the room and the vegetable sales rack. This value
proposition (freshness and superior quality) has helped Namdhari Fresh in commanding a price premium for its fruits and vegetables over regular markets.
Koutons is a leading apparel manufacturing company that has forward integrated into retail under the
Koutons and Charlie Outlaw brands through a network of 1,147 + exclusive brand outlets. The company started as an apparel manufacturing unit in 1993 and started retailing operations only in 2002.
What is unique to Koutons is that, while most Indian apparel manufacturers cum retailers sell through a mix
of exclusive outlets, national chain stores and multi brand outlets, Koutons sells only through its exclusive
outlets. This strategy has enabled them to focus on quality maintenance and customer satisfaction without
any channel conflict. Not surprisingly, Koutons has grown faster than the Zodiac Clothing Company which
retails mainly through multi-branded outlets.
Internationally, one of the best examples of forward integration into retail is the Apple store. Apple has built stores that offer a unique customer experience through innovative use of store design. The layout simulates the usage environment at a customer’s home or office, and has less than 20 products on sale.
Apple has done away with checkout counters and replaced them with wireless credit card readers carried by the salespeople who also handle payments. There is a strong service element within the store as well.
Every store has a Genius Bar, where trained and highly qualified personnel share insights, technical advice and technical support on different products. All these activities have resulted in the Apple stores grossing maximum annual sales per square feet in comparison to other retail stores like Best Buy, Circuit City, etc.
Saturday, July 10, 2010
Innovations in online retail models - II
Expedia is the leading online travel agent in the US having an approximate 5 per cent share of the overall $247 bn US travel market in 2007. Expedia has developed a niche for itself in the leisure segment of the market by offering customised vacations to price sensitive customers at cheaper rates than traditional travel agents. This has been done by strategic tie-ups with suppliers and leveraging economies of scale.
Little or no ownership of inventory (thanks to the reliance on strategic alliances / networks) and minimal physical presence have resulted in the achievement of EBIDTA margins of about 25 per cent which are way above the industry average of 10 –15 per cent.
Online models have also been successful in categories such as jewellery, that require high customer involvement and where a physical store model would have earlier seemed indispensable.
Blue Nile (revenue of $319mn in 2007) is a leading online seller of jewellery in the US. The company has adopted a virtual model in which it does not put any of its capital at risk and carries little inventory. It provides a shop window for suppliers and simply takes a cut when a transaction occurs. This model enables it to sell at 30-40 per cent below the price of a traditional jewellery store and 50 per cent below the high-end shops.
The key feature of Blue Nile is its focus on on-site consumer education via online tools like guides to diamond grading. Most of the diamonds sold on the site come with Gemological Institute of America or the American Gem Society Laboratories certifications and a 30-day return policy. This innovative business model has enabled Blue Nile to become one of the top ten specialty jewellery retailers in the US, confounding predictions that luxury and e-commerce would never mix.Technology can be a key driver in online retailing. For example, Amazon, a leading online retailer of books, has launched a new service that allows customers to buy products and compare prices through their mobile phones, in addition to the internet.
Little or no ownership of inventory (thanks to the reliance on strategic alliances / networks) and minimal physical presence have resulted in the achievement of EBIDTA margins of about 25 per cent which are way above the industry average of 10 –15 per cent.
Online models have also been successful in categories such as jewellery, that require high customer involvement and where a physical store model would have earlier seemed indispensable.
Blue Nile (revenue of $319mn in 2007) is a leading online seller of jewellery in the US. The company has adopted a virtual model in which it does not put any of its capital at risk and carries little inventory. It provides a shop window for suppliers and simply takes a cut when a transaction occurs. This model enables it to sell at 30-40 per cent below the price of a traditional jewellery store and 50 per cent below the high-end shops.
The key feature of Blue Nile is its focus on on-site consumer education via online tools like guides to diamond grading. Most of the diamonds sold on the site come with Gemological Institute of America or the American Gem Society Laboratories certifications and a 30-day return policy. This innovative business model has enabled Blue Nile to become one of the top ten specialty jewellery retailers in the US, confounding predictions that luxury and e-commerce would never mix.Technology can be a key driver in online retailing. For example, Amazon, a leading online retailer of books, has launched a new service that allows customers to buy products and compare prices through their mobile phones, in addition to the internet.
Thursday, July 8, 2010
Retail business :- Innovations in online retail models
Online retailing has been adopted by an entire spectrum of categories ranging from low to medium customer involvement — such as, travel, books, event tickets — to the high involvement categories of jewellery and accessories.
Through this format, companies can lower costs on real estate rentals, inventory and overheads to offer a price-sensitive value proposition to customers seeking alternate points of purchases.
Achieving this requires a thorough understanding of customer needs, their relative importance and an in-depth knowledge of the value chain to bring in supply chain efficiencies. This format also brings in the added advantage of convenience at points of purchase and delivery.
Through this format, companies can lower costs on real estate rentals, inventory and overheads to offer a price-sensitive value proposition to customers seeking alternate points of purchases.
Achieving this requires a thorough understanding of customer needs, their relative importance and an in-depth knowledge of the value chain to bring in supply chain efficiencies. This format also brings in the added advantage of convenience at points of purchase and delivery.
Sunday, June 27, 2010
Retail : Opportunities for Indian companies
In India, an appropriate mix of physical stores and online formats, aided by technology drivers like mobile phones, could be used by companies to create unique retail models that reach out to a wider customer base in shorter times and at lower costs.
Companies in India should seriously consider leveraging existing lines of business into retail formats, whether
through a chain of stores or online sales models. There are ample niche opportunities for companies who wish to enter the retail business and develop unique value propositions for their customers.
Companies in India should seriously consider leveraging existing lines of business into retail formats, whether
through a chain of stores or online sales models. There are ample niche opportunities for companies who wish to enter the retail business and develop unique value propositions for their customers.
Thursday, June 24, 2010
"Me ( Re ) - Tailing"
As power moves inexorably from seller to buyer and retailing morphs into “Me-tailing”, retail organizations will need much more than customer centricity and supply chain optimization to achieve high performance.
*Stores as we know them will no longer be relevant—many
shoppers will never even visit one
*Consumers will shop seamlessly across multiple
channels—and expect to find relevant content on all of them
*The lifecycle of products will be significantly shorter, making
product innovation an even more critical differentiator of
high performance.
*“Fast fashion” will be the de facto industry standard—with
dramatic consequences for store inventory levels
*Supply chains will be optimized across the full product
lifecycle—right through to disposal
*Consumers themselves will help form communities of
service talent
* Report of accentur
*Stores as we know them will no longer be relevant—many
shoppers will never even visit one
*Consumers will shop seamlessly across multiple
channels—and expect to find relevant content on all of them
*The lifecycle of products will be significantly shorter, making
product innovation an even more critical differentiator of
high performance.
*“Fast fashion” will be the de facto industry standard—with
dramatic consequences for store inventory levels
*Supply chains will be optimized across the full product
lifecycle—right through to disposal
*Consumers themselves will help form communities of
service talent
* Report of accentur
Wednesday, June 23, 2010
Retail :- New hot Mkt. places -- Indian Airports
The modernization drive across domestic airports within India have made them very attractive to several lifestyle brands such as Swarovski, Hidesign, Satya Paul , Odyssey, ethos,Fabindia ,!!!! etc, who find a ready audience amongst the high volume of passengers in transit.
Branded Explore, the retail space at T3 Delhi Int. Airport officialy opening on July 3 , 10 will stock some 20,000 kinds of products and nearly 1,000 brands. It will have stores by fashion and jewellery companies such as Versace Group, Marks and Spencer Group Plc, WH Smith Plc ,
Passenger currently spends less than $3 (Rs138) on average while shopping at Indian airports, according to retail industry estimates. The global average is $15.
Branded Explore, the retail space at T3 Delhi Int. Airport officialy opening on July 3 , 10 will stock some 20,000 kinds of products and nearly 1,000 brands. It will have stores by fashion and jewellery companies such as Versace Group, Marks and Spencer Group Plc, WH Smith Plc ,
Passenger currently spends less than $3 (Rs138) on average while shopping at Indian airports, according to retail industry estimates. The global average is $15.
Tuesday, June 22, 2010
Retail :- Cash theft on the rise
According to a report by Retail Systems Research (RSR), retailers are increasingly concerned about workers stealing cash. The survey titled "Loss Prevention 2010: Retailers Battling Shrink in Tough Times" said more than 45% respondents listed theft of cash by employees as one of their top three concerns, which is 13 % more than in 2008. Traditionally employee theft has been the largest portion of the retail crime pie. The report further noted that shoplifting or theft by consumers and gangs is on the rise. The industry is reducing the number of employees in the stores and creating more opportunities for shoplifting and gangs. Further, the recession has led to increased opportunities to re sell discounted stolen items online to bargain-hungry consumers.
Monday, June 21, 2010
Relations in Retail
"Retailing is a uniquely complicated business . It is industry that maintain the closet n most personal relationship with customers, often intersecting there live monthly, weekly or daily basis " is the answer of " Why have so many Retailers failed to go , much less succeed, out side there home mkt. " Thus achieving successful personal relationship is for more challenging when doing it in an alien culture.
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