Reliance retail finds an ally in Apple.

There are about a 100 million windows users who own iPods. Apples iPod sure has a fan following in India too and is becoming a cult brand. Microsoft recently launched the much hyped Zune player to rival iPod. There are now more than 3,000 accessories available for the iPod since it were launched on Oct 23^rd 2001. To sell its products Apple came up with its own retail chain the Apple iStore. Reliance Retail’s new baby the Reliance Digital has tied up with Apple to launch iStore in India. I saw the second iStore coming up in Hyderabad which intrigued me to search further about it [me being a Microsoft fan]. Reliance plans to start 10 such stores across the nation.

Reliance Retail Ltd (RRL) will set up 150 outlets of ‘Reliance Digital’, its consumer electronic concept mega store, across the country by 2011. After inaugurating Reliance Digital in Banglaore, Ajay Baijal, president and chief executive - Reliance Industries (CDIT Business), said the company would invest around Rs 5-6 crore for an outlet covering approximately 20,000 sq ft. Baijal said the current market size for consumer durable, home IT and telecom stood at Rs 70,000 crore and expected it to grow to Rs 1.4 lakh crore by 2011. The company is eyeing around Rs 20,000 crore business in these segments by 2011, he said.

- www.financialexpress.com

Apple's Massive Glass-Cube iStore -A New World Architecture & Technology Icon

The Apple glass cube crowns an underground store at the hub of what is arguably the world's richest mile of retail emporiums. Having outgrown it's immensely successful SOHO store, Apple's new Fifth Avenue store near New Yorks Plaza Hotel, will introduce a 24/7/365 always open service concept in one of the world's defining lifestyle centers.


Find more about this Retail Landmark here

HIGH STREET DESTINATIONS

In last couple of months Indian retail industry is in news. Sometimes for innovative moves of Biyanis, political turbulence in northern India or for opportunities too. This time Indian retail and real estate sector both are in news due to the surge in cost of retail location and market .

Today India as the 16th most expensive retail 'high street destination' in the world as per the report of Leading real estate consultants Cushman and Wakefield. New Delhi’s Khan Market has been rated as the most expensive retail destination in the country with rentals of Rs 950 per square feet per month in the second quarter of the current year.

The shopping complex saw an annual growth of 35.7 per cent over the same period last year said the report titled 'Main Streets Across the World (MSATW) 2007.KHAN MARKET DELHI

“Khan Market is the biggest riser in the ranking of the world's most expensive shopping locations in terms of retail rents, moving up eight places from last year’s 24th position," the report said.

"Retail is going through a revolution in India, although a part of the increase in rents is due to lack of high-quality space in the right location," Cushman & Wakefield India national head (retail) Rajneesh Mahajan said.

According to JLL report, Indian retail & real estate industry will surpassed the growth rate of IT industry by march 2008.
The report said India also figured among the world's top 10 locations that witnessed highest rental increase in local currency terms.

• Connaught Place in Delhi is the highest gainer in Asia and second only to Chicago's East Oak Street across the world, with an annual growth of 87.5 per cent.

• Kemp's Corner in Mumbai also saw high rental growth of 78.2 per cent, making it the fourth highest riser of rental growth.

The world's most expensive shopping streets
(rank 2007 (rank 2006), location, rent €/m²/year)

1 (1) Fifth Avenue, New York (US): 11,983
2 (2) Causeway Bay, Hong Kong (Hong Kong): 9,688
3 (3) Avenue des Champs Elysées, Paris (France): 7,364
4 (4) New Bond Street, London (UK): 6,498
5 (5) Ginza, Tokyo (Japan): 5,459
6 (6) Grafton Street, Dublin (Ireland): 5,340
7 (7) Bahnhofstrasse, Zurich (Switzerland): 3,926
8 (8) Pitt Street Mall, Sydney (Australia): 3,905
9 (10) Ermou, Athens (Greece): 3,600
10 (9) Gangnam Station, Seoul (South Korea): 3,441
11 (=10) Kaufingerstraße, Munich (Germany): 3,120
12 (=14) Via Montenapoleone, Milan / Via Condotti, Rome (Italy): 3,000
13 (12) Preciados, Madrid (Spain): 2,880
14 (13) Orchard Road, Singapore (Singapore): 2,597
15 (17) Kärntnerstraße, Vienna (Austria): 2,400
16 (24) Khan Market, New Delhi (India): 2,236
17 (16) Strøget, Copenhagen (Denmark): 2,227
18 (15) Tverskaya, Moscow (Russia): 2,226
19 (20) Wanfujing, Beijing (China): 2,137
20 (18) Na Prikope/Wenceslas Square, Prague (Czech Republic): 2,040
=21 (21) Kalverstraat, Amsterdam (Netherlands): 2,000
=21 (19) Karl Johan Gate, Oslo (Norway): 2,000
23 (27) Suria KLCC, Kuala Lumpur (Malaysia): 1,663
24 (26) Iguatemi Shopping, São Paulo (Brazil): 1,596
25 (22) Bloor Street, Toronto / Robson Street, Vancouver (Canada): 1,584
26 (23) Rue Neuve, Brussels (Belgium): 1,580
27 (25) City center, Helsinki (Finland): 1,500
28 (=28) Váci utca, Budapest (Hungary): 1,440
29 (32) Lambton Quay, Wellington (New Zealand): 1,430
30 (30) Bulevardul Magheru, Bucharest (Romania): 1,380

The rate of real estate is increasing like BSE sensex of our country. I believe that best investment for your money is real estate because its only investment which can give you 200% return in a year. I personally saw a live example in banaglore- An individual who was residing in Whitefield, Bangalore (location famous for IT companies offices and highly expensive too). That individual was willing to sold his property in 50 lacs approximately, but due to some problems he was unable to sold his property. In 6 months, same property value increased by 80% and finally he sold the property in 82 lacs.

Do you have smaller amount don't get depressed you can buy flats, shops etc because rental are also increasing on the same pace as sensex and land prices.

World’s Top ten locations for % rent rises in local currency June 2006-June 2007

1 East Oak Street, Chicago: 100.0%
2= Ansal Plaza, New Delhi: 87.5%
2= Connaught Place, New Delhi: 87.5%
4 Nevsky Prospekt, St Petersburg: 81.8%
5 Kemps Corner, South Mumbai, Mumbai: 78.2%
6 Rodeo Drive (Beverly Hills), Los Angeles: 71.4%
7 Greater Kailash I, New Delhi: 57.1%
8 Fort/Fountain, South Mumbai, Mumbai: 55.2%
9 Direita/Itapetininga, São Paulo: 54.0%
10 Visconde de Pirajá (Ipanema), Rio de Janeiro: 53.8%

SUGGESTION: check out the best place, location and buy some land surely prices of land will increase. Otherwise you will murmur this proverb---" Ab pactave kya hott jab chiriya chuk gayi kheth" means Dont think about what happened in past because the time is gone buddy..

Source: www.holland-re.com

www.indiaretailing.com

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Bloody supply chain of Retail

US retailer GAP had recalled some of its garments which it intended to sell in US and Europe for this Christmas because children were involved in manufacturing these fabric. Yes, the demon of child labor rises again for foreign retailers. The irony is that GAP wanted to use the same fabric for a kids line of clothing.

The hearsay began when British newspaper The Observer quoted that children as young as 10-13 were making clothes for Gap in filthy conditions, in a derelict building in Shahpur Jat, Delhi.

They had been sold to the sweatshop in Delhi by their families. The children, some of who worked for as long as 16 hours a day sewing clothes by hand, said they hailed from Bihar and West Bengal. They added that they were not being paid because their employer said they were still trainees; nor would they be allowed to leave till they could repay the amount for which they were bought from their families.

But this is not the first time that retailers have messed up with labor issues. This has been repeated numerous times. Recently another daily reported Calvin Klein contractors employing child labor in Bangladesh. Nike too had labor problems in China. It is evident that unless and until the media or social activist raise these issues these retail giants don’t seem to be bothered how their fabric is woven as long its cheap!

S-Commerce- new milestone in Indian retail

An innovative concept introduced in India to give new dimensions to the service industry & money value to the customers. It’s a new category & new brand genre of business model to provide every possible service to the consumer at one place on a single platform called “SUVIDHAA”.

This initiative is developed by Shapoorji Pallonji Group and called as Suvidhaa Infoserve Private Limited.

According to company, IT revolution helped them to develop this concept and but due unavailability of internet across the country, company will introduce “BRICK and MORTAR MODEL”. The SUVIDHAA service will be launch in September, 2007 (in the month of my birth; just Joking) in 25 cities (tier-1 and tier-2). According to company projections, in next two years this will be available in 75 cities of our country & generate 300000 lacs direct jobs.

An advanced version or prototype of bank’s “single window system”, Andhra government’s unified bill payment model- “e seva” and “mobile shop” joint venture of ESSAR and Virgin mobile . Under one roof, consumers will get the service related to travel (roadways, airways etc), telecommunication, education, telemedicine, entertainment, utilities, finance, sales, job opportunity, e-governance, life style, bill payment etc which are prime and basic requirement of ours.

SUVIDHAA will have three tier distribution network:

• SUVIDHAA flagship stores (company owned)
• SUVIDHAA points (neighbor convenience store)
• Shop-in-Corporate model.

Shop-in-Corporate model is really an interesting model in which company will generates & maintains key Corporate Accounts for companies and their employees.

The issue is does this concept is viable in Indian context where less than 10% people access internet & with huge set of demands and vast geography.

LETS WAIT AND WATCH……………..

Food &Groceries (F&G) Retailing:

Fast, Growing, Revitalizing India’s tail (dead/lost) business sector: Agriculture

“I no longer buy fruits & vegetables from street, when it is available at cheaper price with excellent ambience- with ACs, attractively shelved wares & half dozen uniformed assistants to attend on customers, specially now when temperature is scorching,”. Customer (50, Delhi)

According to the Indian retail report 2007, F&G business offers a beguiling prospect & estimates that retail pie was worth Rs 12 lac crores in 2006 with F&G accounting for 63% share.

According to CRISIL report, F&G share in retail was 74% in 2006. However, F&G accounts for a meager 18% of total ORS (organized retail sector).

India is second largest producer of fruits & vegetables (15% & 14% respectively) after china -34%.

The growth trend of following horticultural crops in India shows that F&G retail is not a fad. It’s a positive symbol for Indian farmers & agriculture industry which was dragging with only 2-4% growth in last years.

New INDIAN entrants in F&G retail are:

Agriculture ministry has taken cursory interest in this sector & set up the national horticulture mission to give a needed thrust to “Farm-to-fork-model”.

Lots of initiative has to be taken to promote public-private partnerships as they ensure efficient resource utilization and better management practices. There are many examples of successful public-private partnerships.

Safal market in Karnataka is an instance of the modernization of wholesale markets. ITC's e-Chaupal, Haryali Kisan Bazaar, Mahindra Subh Labh, Cargil Farmgate Business and Tata Kisan Sansar, Godrej Agrovet has tactfully used its marketing experience in rural areas by opening advice centers called “Aadhar” are all initiatives of marketing distribution in the PPP format.

Factors responsible for F&G boom:

• Growing consumer base: Current consumer base is 217m people, 27% of population, equivalent to US population, by 2013 another 200mn will add in this productive population bracket.
• High Disposable Income & Urbanization.
• Middle class dwelling revamped & hectic environment etc
• New technological Innovations i.e. credit cards, Debit cards, online payments etc
• One stop shopping

Challenges:

• High cost logistics
• Infrastructure & power supply
• Wastage of fresh produce: nearly 30% of produce is lost due to poor logistics during transportation; which affects the prices of F&G & bear by the customers
• Protest of local vendors & retailers.

Download full report from here

Retailing Scenario

The time line of Indian economy resembles a chain reaction. Maybe it’s not just one reaction; but a combination of fissions and fusions. It started the IT&ITES boom, then Manufacturing boom, followed by the retail boom, now the rupee boom and finally retail boom. India has really gone all guns blazing.

Is it true?

According to the CEO of Retailer’s Association of India-“India will be among the top five economies in the world by 2025 and no marketer can afford to miss out on the India opportunity”.

According to the CII & Morgan Stanley report:

• Today, Indian retail market is worth Rs 10,00,000 crores ($235 billion) in which only 90,000 crores ($21 billion) is organized sector nearly 8.9% in worth but market size of its (organized retail sector is 3%).”
• In next 2 years growth rate of ROS (retail organized sector) will be nearly 20%.
• 2 million direct jobs in the next two years.
• 20 per cent of organized retail employees would become tax-payers.
• More than 50 per cent of the total employees in modern retail would be women.
• Retail contribution is 30% in GDP.

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