Mall owners going for the revenue share model as retail rentals fall
Citing the slowdown in the economy, both mall owners and retailers are in troubled waters. Mall owners who are following the model of fixed rentals are worried due to 20-25 per cent fall in retail rentals. On the other hand, with market going slow, retailers have to watch their profits and are finding it difficult to pay fixed rentals.
The industry experts say that in such a scenario revenue sharing rental model works best for both retailers and mall owners. There could be a mix of fixed plus variable charge where fixed sum may be based on the brand equity of the mall while variable sum would be the share of revenue generated by the retailers agreed among both the parties. Such a model is practiced by various mall owners and is easy on pockets in both the good and bad times.
The whole article can be read at The Hindu Business Line
Giorgio Armani enters India with flagship boutique
After the entry of high-end international brands like Christian Dior, Louis Vuitton, Dunhill and others into the Indian market, fashion luxury brand Giorgio Armani launched its flagship boutique and a store in the capital on Thursday.
Both are located at the upmarket Emporio Mall at Vasant Kunj in south Delhi. "I am truly excited to finally have a presence in India. This country, which perfectly mixes the spirit of adventure, the sense of mystery and majesty with the principles of elegance, sophistication and modernity, has long been a wonderful source of inspiration to my collections," Giorgio Armani said in a statement.
The Giorgio Armani boutique covers over 277 square metres on one floor of the mall as against the Emporio Armani store that covers an area of over 210 square metres.
Spar forays into India
Global food retail chain Spar started its Indian opeartions on Friday inaugrating the company's first supermarket at Hyderabad.
The company has entered the Indian market under a licence agreement with global retail major Landmark Group's Indian subsidiary Max Hypermarkets, a release here said.
Under the agreement, Max Hypermarkets will be responsible for the entire business operation- from capex outlay to day-to-day operations including the management of the supermarket, while Spar would provide knowledge transfer and technical expertise, it added.
The 20,000 sq ft supermarket at Hyderabad offer products under categories like grocery, fruits and vegetables, bakery, dairy and take away foods, meat, poultry and fish, wine.
It will also stock beer, tobacco, home textiles, personal care, crockery, kitchen appliances, travel and IT accessories, including imported items from Europe and
Govt to set up Rs 10 cr fund to support young designers
Government will set up a Rs 10 crore fund at NID's National Design Business Incubator (NDBI) to help young designers become entrepreneurs in their field.
"Needy young designers desirous of pursuing their business ideas through incubation route at NDBI can now avail this rolling fund support," Commerce and Industry Minister Kamal Nath said in a statement. The need to set up a separate rolling fund has arisen especially when most financial institutions do not support young, fresh designers and first generation entrepreneurs who have just passed out from academic institutions without any industrial experience, it said. Government has also agreed to permit the National Institute of Design (NID) faculty to have a share in their consultancy work. The pattern of consultancy sharing would be on similar lines as those of other premier educational institutions in India such as IITs and IIMs. NDBI was set up by NID in 2005 with an aim to build on India's design strengths. Lack of adequate support in pursuing designers' ideas into business models has so far been a debilitating factor for young designers in setting up their businesses.
Falling Re may hike prices
The rapidly spiking dollar may increase the monthly bills of consumers in urban India. Already hit by double-digit inflation, the great Indian middle class may get yet another shock as retailers are contemplating to increase prices if they can’t contain the growing import bills. In fact, the dollar’s upward movement, from Rs 39 in January to Rs 47 in October, has already inflated the import bills of many retail chains though they have not increased the prices so far. Rajan Malhotra CEO Big Bazaar, India’s largest retailer by volume, says that they might hike prices if Indian rupee continues to depreciate further.
“If the trend of a rising dollar continues some prices are likely to move up as our forward bookings will get impacted. Since we are discount retailers, we will not be able to offer reduced pricing,” he says. The chain imports primarily suitcases, trolleys and toys from China, apart from food items. The company’s buying for the festive season is already over but imports in the next quarter are likely to be impacted.
Cash & Carry unhappy with Bloc terms
A high-level meeting to resolve the issue of granting a licence to Metro Cash & Carry failed to reach a consensus on Monday. While the state government claimed that the German giant had accepted most of the conditions imposed by the Forward Bloc-controlled APMC, company officials did not confirm it.
The Bloc is demanding that the German major should not be allowed to sell products less than Rs 5000 and the retailers, who will buy from the company, should have a licence from the Agricultural Produce Marketing Committee (APMC). The wholesale giant is, however, against these conditions.
To sort out the issues, a delegation of the company held a meeting with Chief Secretary Amit Kiran Deb at the Writers’ Buildings on Monday. Principal Secretary to the chief minister Subesh Das, APMC Chairman Naren Chatterjee and other officials of the agriculture department were also present at the meeting.
Enhancing the Retail Experience
We always talk about how to enhance the shopper's experience in Retailing world and communicate with them more effectively. Gesture Tek's products are one of such kind which allow users to control aspects of digital signs using their hands and feet. It is an amazing way to enhance the brand appeal and grab the customer's attention.
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Are Indian retailers up for grabs!!!
Rosebys all set to enter India's home decor market
Global home fashion and lifestyle major Rosebys has kicked off its retail roll-out in India with plans to set up 650 exclusive stores by 2012 for which it has roped in Bollywood actor Soha Ali Khan as brand ambassador.
Two years after its takeover by the USD 700 million Gujarat Heavy Chemicals (GHCL), Rosebys plans to penetrate the estimated Rs 10,000 crore Indian decor market using the franchise route with 600-1,200 sq ft stores in all metros and Tier-I and II cities.
"We will start our Indian roll-out with 150 franchise stores within the next six months in all metros, Tier-I and Tier-II cities. Our plan is to set up 650 stores by 2012," Rosebys Chief Executive Officer Aloke Banerjee said.
He said the company is planning to invest Rs 250 crore in advertisement and brand building during the next four years. "We are aiming for a turnover of Rs 1,000 crore by end of the 2011-12 fiscal. Our vision is to emerge as a leader in the affordable luxury brand segment," Banerjee said.
The company has signed up Bollywood actor Soha Ali Khan as brand ambassador for its exclusive lines and collections.
E-Shopping likely to go up by 180%: ASSOCHAM
In the wake of the recent terror attacks in major cities, e-shopping during the forthcoming festival season is likely to go up by 180 per cent in Delhi and other metros, according to an ASSOCHAM study.
Based on feedback from traders across the country, the study says the worst-hit would be footpath sellers, especially those who sell garments and household articles.
Also, during Dussehra and Diwali, white goods and bullion trade would in all likelihood not be as impressive as it was last year because little discounts to attract customers are being offered by consumer durables manufactures due to higher input cost. Inflation and loss of property and lives as a result of terror activities at various places have completely dampened the purchasing enthusiasm of common investors towards gold and silver.
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Enriching the shopping experience: Theme Malls
Guess what the growing wedding market has done to the retail business in the country. It has been able to create a successful business model — theme malls — which have been doing better than what retail malls are doing these days.
Theme malls such as Wedding Mall and Gold Souk (jewellery mall), catering to specific needs and occasions, have changed the dynamics of the Indian wedding bazaar.
And how? Delhi-based real estate developer Omaxe group is setting up India’s first chain of wedding malls. The first five wedding malls are coming up in Gurgaon, Agra, Ludhiana and Patiala at an estimated cost of Rs 1,000 to Rs 1,200 cr.
These malls will be a one-stop shop catering to all wedding-related needs of people, from designing and printing of invitation cards to buying honeymoon packages. The five malls will cover more than 9 lakh sq ft of space and the group plans few more in other cities.
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