cool retail

Piramyd Retail eyes 'global' JVs to take on rivals

Stunned by a fierce competition, the Piramyd Retail, owned by the
Ashok Piramal group, is revamping its business operations, and has
initiated joint venture talks with foreign retailers to set up new
formats like speciality stores or hypermarkets.

Unlike in the past, its core brands, Piramyd and Trumart will now be
handled as separate business units (SBUs). The company is also
ramping up the number of stores under both outlets and has set up a
team to identify new business opportunities.

"We have realised that there is a lot of catching up to do and are
in a hurry to do that. We have tied up additional space in the last
one year. There is a complete change across functions in the way we
look at business and a lot of dynamism is being brought in. Our team
is in place and the growth focus is clear," said Nandan Piramal,
executive vice-chairman. While Bipin Gurnani will head Piramyd, ex-
Lever hand, Upamanyu Bhattacharya will head Trumart. The expansion
may be funded either through internal accruals or private equity.

Trumart is being positioned as an upscale kirana outlet with a focus
on local catchment areas. "Instead of setting up single stores
across cities, we are planning to progressively exhaust each city by
ramping up Trumart outlets in residential areas and building up
scale in each market. Grocery, home and personal care products are
high-volume-low-margin-business and it makes better business sense
to focus on scales to be competitive," said Mr Bhattacharya.

Currently, there are 7 Piramyd outlets and around 14 Trumart outlets
across the country. "We are also identifying differentiators for the
malls, from a first-mover advantage to the service aspect. We are
looking at personalising loyalty benefits targeting individual
consumer needs based on their previous buying patterns," said Bipin

Piramyd Retail, which was listed on the bourses in '05 was one of
the first few retail outlets to open shop in the country. A few
years back it was seen as a strong competitor to players like
Shopper's Stop and Pantaloon.

However, lack of strong management focus and an unclear growth
vision saw the brand slipping at a time as competition picked up
steam in the last two years. Analysts say the company may seek
foreign equity partnership at a later point to keep pace with fierce
competition. "It is not something we are looking at immediately. For
now, our focus is to tone up the current core businesses, identify
new growth formats and ensure that support systems are in place to
gear up for the change in approach," Mr Piramal said.

The Piramal Group sold Crossroads to the Pantaloon Group and put all
future retail expansions under Crossroads on hold. Following the
merger of Piramal Holdings with Morarjee Realties, Crossroads had
been left out of the group's retail plans. All future retail forays
were to be done only through Piramyd, the retail arm of the Piramal


Par 100 posts (V.I.P)
The significance of lower prices must be emphasized. Without considering prices, many people confuse money with wealth, and thereby make themselves susceptible to serious errors in judging an action's or policy's effect on wealth. Income is typically thought of in nominal terms. Nominal income is the quantity of monetary units (e.g., dollars) of income. Real income is the amount of wealth that can be acquired with income; it is the ratio of nominal income to prices. So, for example, if a person makes $50,000 a year and the prices of everything he buys fall by 50%, his nominal income has not changed, but his real income has
doubled since he can buy twice as much wealth. If he gets a pay raise from $50,000 to $100,000 and the prices of everything he buys also double, his nominal income has doubled, but his real income has not changed since he can't buy any more wealth.
To determine the level of wealth that income represents, real income should be considered and not nominal income. Prices are equally as important as dollar incomes; they are half the equation. To a person's well-being, a fall in prices (other things unchanged) is the equivalent of an increase in pay (other things unchanged). As will be shown, Wal-Mart critics are completely ignorant of the fundamental significance of prices for real incomes.
The abundance of wealth and consequently lower prices, for which Wal-Mart is responsible, causes an increase to the real incomes of all its customers. It allows them to acquire more wealth with the money they have. Of those customers, the ones whose real incomes increase by the highest percentage are those who spend the highest portion of their incomes on Wal-Mart products. This group is made up primarily of people with lower incomes. Wal-Mart offers a good portion of what you need to get by in this world, and if you have a low income, Wal-Mart is your best friend. By shopping there, even with the lowest of wages, most
people can afford to live pretty well, or at least much better than they otherwise could.


Par 100 posts (V.I.P)
Retail news

Big players – plans and investments

1. Future Group to invest $250 million in hospitality sector

The Future Group will soon be getting into the hospitality sector by setting up a chain of fast-food thali restaurants. The company is still finalizing strategy to enter the hospitality sector. The company will be investing close to $280 million through its financial division Futures Capital. According to sources, the company will be leveraging its Yatra brand for the chain of thali restaurants.

The Future Group is also looking for partners in the hospitality business for setting up budget hotels and mixed use hospitality services and is likely to target business hubs such as Gurgaon, Noida, Mohali, Navi Mumbai, Bangalore and Hyderabad.
Tuesday, November 21, 2006


Par 100 posts (V.I.P)
2. Reliance Retail looks for new partners
Reliance Retail is looking to tie up with companies such as Dabur, Sanyo, Godrej and Timex as suppliers to boost its organized retail venture. The company will be reviving its `Vimal' brand with a Rs. 400 million marketing and advertising campaign. The company will soon be appointing a brand ambassador to popularize this brand.
Reliance is also working to include several small garment manufacturers in Gujarat to supply merchandise. After its launch in Hyderabad, the company will be opening stores in Delhi by December 28, 2006, opening 22 stores in the city, including stores at Star City mall in East Delhi, Noida, Paschim Vihar and Gurgaon.
Reliance will also be opening stores in Bangalore and Ahmedadad in December 2006. The feedback from the Hyderabad store opening have been encouraging, especially for the business to business sales strategy. In this format, Reliance stores open at 4am for small vendors and local buyers at a wholesale rate. The company's loyalty programme has also received good reports, with 27,000 members signed up so far.
Friday, November 24, 2006


Par 100 posts (V.I.P)
3. Future Group to open more stores in Kolkata
The Future Group announced that it will be opening all-formats to Kolkata, including its mega stores, in the next two years. At present the company has 31 formats under its Pantaloon Retail name and will be adding more on a regular basis. While some of these formats are clubbed together at Pantaloon of Big Bazaar stores, most function separately such as Food Bazaar or Fashion Station.
The company's mega stores are currently located in Mumbai and Ahmedabad and will be opening in other cities. Most of these stores have over 200,000 sq ft of space and are both stand alone or as part as malls. Pantaloon Retail has classified all its formats as either value or lifestyle.
Tuesday, November 21, 2006


Par 100 posts (V.I.P)
Now some internationally related Retail news
1. Shoprite firming plans to open in India
South African retail chain Shoprite Holdings, a division of wholesaler Shoprite has been making firm plans to enter the Indian retail market. The company is the largest retail chin in Africa, with 846 outlets over 17 countries in Africa, the Indian Ocean Islands and South Asia.
The company is planning to launch wholesale trade in food products, with their own trademark and brand. The Indian division will pay royalty to the parent company for the use of its brand. At present the Shoprite proposal is under consideration with the Foreign Investment Promotion Board (FIPB). Metro of Germany has been in the country in the wholesale sector for the past few years.
According to reports, Shoprite will be investing Rs. 250 million in the Indian company, with Rs. 60 million in the initial phase. Shoprite will be setting up a cold chain in suburban areas of large cities,with an eye on good road connectivity from highways. Shoprite is also keen on providing technology to kirana stores to work with them, instead of competing with them.
Saturday, November 25, 2006


Par 100 posts (V.I.P)
2. Future Group in talks with WPP
The Future Group is reportedly in talks with $10 billion worth communications group WPP to possibly set up Future Media, a new division to oversee development and management of the retail media. If it goes through, Future Media will add all of WPP clients as advertisers. Sources also suggest that WPP could invest in Future Media.
Although, Kishore Biyani MD of Future Group declined to comment, he spoke of talking with several players to increasing company revenues, and a clearer picture is likely to be seen after November 2006 end.
Tuesday, November 21, 2006


New member
Hey frnd,
I am working on Retail project and I think ki jitni info is thread mein hain, that is more than enough for my rearch part.
Thanks alot.


Par 100 posts (V.I.P)
50% of India's workforce is self-employed


NEW DELHI: One big reason for the very high retail shop density in India is the fact that there aren't enough jobs in the other sectors. The results of the 61st round of NSS, released recently, show that while wage employment is falling, self-employment is increasing.
Roughly half of India's working population is no longer working for an employer, whether on a casual or on a regular basis. This segment is instead eking out an existence on its own. While this mostly comprises cultivators, the trend is significant in urban areas too.
More and more workers are being crammed into certain types of services like trade, construction and hospitality. Besides occupations such as pulling cycle rickshaws (just selling labour to random buyers), the other major means of earning or supplementing incomes is the retail trade selling tea, vegetables or peanuts, or just working in shops. The large disposable income in the hands of
one section of the population helps maintain many of these shops.
So, what happens when retail chains wade into this ocean of small shops? A study by the US Bureau of Census of the major restructuring that shook up the US retail industry in the 1990s indicates that large national chains displaced the single unit stores through use of technology, sourcing cheap materials and squeezing out the small retailer.
Will the big chains provide goods at cheaper rates? Perhaps they will. According to research done by retail consultant KSA-Technopak , the consumer pays about 3.5 times of the cost that the farmer gets for agricultural produce like vegetables. The same study shows that even if there is one consolidator in the field, prices will be 2.4 times those given to the farmer.
By controlling both ends of the supply chain, buying cheap and selling dear, they will still be raking in enormous profits. If this indeed is the case, lower prices will almost certainly draw consumers to the big chains. And the net result will be that shop density in India will ease up.


Par 100 posts (V.I.P)
The retail price war: Subhiksha ready to fight it out with Big Bazaar

MUMBAI, January 4

Subhiksha, the 10-year-old Chennai based supermarket chain, has been preparing to take on the big retail giants ever since, last year, it stepped out of its shell and established a nationwide presence. Subhiksha now hopes to gain an edge over its competitors on the basis of its age-old premise – offering products at prices that are 8-10 per cent less than the maximum retail price (MRP).
Subhiksha can afford to do this because it obtains goods directly from the manufacturer, as opposed to from the wholesaler/distribu tor. This allows it bigger profit margins, a portion of which is passed on to the consumer by way of lower prices.
"There is a myth prevalent amongst consumers that they should cough up the MRP, which is not true," says Mohit Khattar, president, marketing, subhiksha. "The MRP includes the various retail margins, which customers need not pay." In an effort to educate consumers about this and raise their level of awareness, Subhiksha has launched its first pan-India communication effort, including a TVC,
press and outdoor ads, and below-the-line efforts (such as banners and leaflets).
The TVC, created by Orchard Advertising, Bengaluru, shows people from different walks of life (such as a college student and a housewife) questioning their neighbourhood retailers about the MRP for various products, including cell phones and groceries. The ad has people coming onto the streets in a mass movement
against `kharcha' or wastage of money, much like an election rally or a union protest. The ad concludes on the thought, `Bachat mera adhikaar, Subhiksha mera abhimaan (Saving money is my birthright, and Subhiksha empowers me to do that).'
"As people work hard for their money, it's only fair that they'll want their money to work hard for them, too," says Thomas Xavier, national creative director, Orchard. Therefore, the protagonists have been shown to be demanding and asserting their right to save.
Khattar claims that Subhiksha allows a household to save around Rs 400 every month on its basic necessities. "On a yearly basis, Rs 48,000 is what the average household spends on items such as groceries, vegetables and toiletries," he says. This amounts to Rs 3,000-4,000 per month, and as Subhiksha offers an 8-10 per cent reduction in price on the same items/brands as other shops, the
total saving is about Rs 400 a month. But how much would Rs 400 a month matter to the ever growing affluent middle class?
"Rs 400 amounts to significant savings for some," replies Khattar. He explains that Subhiksha's communication is not just about cutting down on expenses, but more a `Why should I pay more?' premise.
When it comes to the price war amongst retailers, Big Bazaar has been quite upfront about its `sabse sasta' or `lowest price' premise for quite a while now. With this communication, Subhiksha has taken the `Big Bazaar Challenge' head on. "If you ask me, Big Bazaar's promise can be questioned; the goods there aren't cheap by any standard," Khattar argues. "We sell around four-five times cheaper than Big Bazaar."
While those are Khattar's views, one can't dispute the fact that Big Bazaar has the first mover advantage when it comes to the `lowest price' premise. "Yes, while it came out with this earlier, Big Bazaar is more of a `once a month' store for people who don't stay in its vicinity," says Khattar. He adds that while the `Big B' can't boast of being a neighbourhood store, Subhiksha, with its vast
network, can.
At present, Subhiksha has around 450 stores across Delhi, Mumbai, Bengaluru, Ahmedabad, Vadodara and Hyderabad, and plans to take the toll up to a thousand by the end of 2007. In Mumbai and Delhi, Subhiksha has around 74 and 100 stores, respectively. Further, it offers home delivery of purchases.
According to Subhiksha executives, every city in which the supermarket has a presence has registered a 300 per cent increase in footfalls and a 145 per cent growth in sales since the initial campaign was launched.


Par 100 posts (V.I.P)

One Sunday in 1879 Harley Proctor, one of the founder of the candle
and soap firm P&G, heard a sermon based on the Forty-fifth
Psalm, "All thy garments smell of myrrh, and aloes, and cassia, out
of ivory palaces." The word "ivory" stuck in his mind - and became
the name of the firm's white soap.

Proctor had great ambition for his product. But it was a commodity.
He was an inquisitive young man who decided he was going to figure
out a way to differentiate his product. How does one go about doing
that? By simply going to the store where soaps were sold and
observing what went on over there. Proctor came to know the housewife
bought the soap to clean herself, her family and her home.

He had a cousin who was a chemist. He requested his cousin to analyze
his soap to see how pure it was. Cousin reported it is "99 and 44/100
percent pure". All the soaps were the same but Proctor decided to
capitalize on this knowledge.

In December, 1881, P&G ran their first Ivory ad stating that the
soap "floated" and that was "99 and 44/100 % pure," a dual claim
which has become one of the most famous ad slogans ever.

Ivory was a remarkable product in a time in which most soaps were
yellow or brown, irritated skin, and damaged clothes. The fact that
it floated had practical value to those used to being frustrated by
trying to find their soap in the bath. Ivory's brand name and and its
distinctive wrapping, gave customers confidence that they were
getting the mild, gentle soap they had always desired.

In 1882, Proctor spent $11,000 in a national ad campaign that
resulted in high level of brand awareness, and customer confidence
that the manufactrer was backing the product and would stand by it.

Then in 1885, a yellow soap named Sunlight, when introduced to
dreary, sunstarved England, became the start of Unilever, now one of
the largest firms in the world. Unlike Ivory, however, Sunlight gave
way to other brands, such as Lifebuoy, Lux, and Rinso.

P&G demonstrated its commitment to Ivory's brand equity during the
depression. In the face of tremendous economic hardships, P&G
resisted pressures to reduce advertising. In fact, in part by
sponsoring "The O'Neills," a radio "soap opera," Ivory doubled its
sales between 1933 and 1939.

The loyalty and market presence that Ivory had built was challenged
in 1941 by an Ivory clone called Swan from lever Brothers. It was
billed as "The first really new floating soap since the Gay
Nineties." P&G reacted with aggressive advertising to protect Ivory.
Without any clear product difference, Lever could not dislodge Ivory,
and ultimately withdrew from the market.

In few other companies is the power of branding so apparent. Without
question the key to the success of P&G is its commitment to the
development of brand equity, the brand management system that
supports it, and the ongoing investment in marketing that sustains it.

There are a few publicly available numbers that allow a crude
estimate of the profits that the Ivory brand name has provided to P&G
over the past century or so. Just over $300 million was spent on U.S.
measured media during the ten-year period from 1977 to 1987. It is
estimated that during this period measured media was about 75% of the
total advertising at P&G. If similar ratios hold for Ivory products,
the total Ivory advertising expenditure would be around $400 million.
Assuming an ad-to-sales ration of 7% (the ratio for P&G as a firm
ranged from 6% to 8% during this period), worldwide sales of Ivory
products would have been $5.7 billion. Assuming an exponential sales-
growth curve since 1887, the total sales of Ivory products since
Ivory was first introduced would be around $25 billion. Assuming an
average profitability of 10% (the average profitability for laundry
and cleaning products from 1987 to 1989 was 10%), a reasonable
estimate of total Ivory profits would be $2 to $3 billion.


New member
Hi everybody...

I would like to share an article on retail...

Since... I am a retail management student too... i was surfing for some retail articles to post in this thread...

I came across an article titled... These schools train you to be a retail superstar

How much these retail training schools charge... what they teach... what the programme is like... is mentioned in this article...

lemme know if its helpful...