As I stood outside the Grand Hyatt in Bombay after the Images Retail Awards, waiting for my car – I spotted Jesse Randhava in front of me. There were a few painted others who were younger and maybe from the time that I stopped following page 3 news. The inaugural HDIL India Couture Week was happening at the same venue and I couldn’t help but think that no matter what, recession never hits the Indian fashion industry. Or the real Estate Industry for that matter. Or if it hits them, it takes a long time for the message to sink in ! And in keeping with that spirit you have a real estate company called Housing Development & Infrastructure Limited ( HDIL) sponsoring the Couture Week ! He He ! Funny.

The organisers, FDCI had discreetly said earlier that said that the Couture Week was timed to appeal to India’s wealthy elite and expatriate Indians ahead of the autumn wedding season. And to catch the Big Fat Indian Wedding season, the Delhi Fashion Week begins on October 14, Wills Lifestyle India Fashion Week starts in Delhi the next day, and Lakme Fashion Week begins on October 20 in Bombay. Hallelujah !

The great indian wedding show, truly, deeply and always goes on.

I love the nimbu-mirchi – the most important ( and creative) element of Visual Merchandising in traditional Indian retail to ward off the evil eye ! Though of course you’ll also see it outside the poshest stores selling ‘firang’ labels.

If you’ve got a franchisee with a fertile Indian mind, you’d better develop the zen for green chillies and the lemon! 

The Collective

I love Barney’s Communication! Not Barney, the purple dinosaur but Barneys New York, the luxe retail brand. I love the Barney’s website, the mailers, the catalogue and those clothes. It’s a pity I don’t have the rich-punjabi-husband!

I was reminded of Barneys while reading in the ET the other day about Aditya Birla Nuvo’s plans to launch a chain of lux stores in India, inspired by Harvey ‘Nicks’ and the Barneys concepts! The stores will be called ‘Collective’.

I remember, on my first geeky trip to London, I carried a list of all the ‘must -visit and be photographed at’ places! There was Harrods topping that list and I hadn’t heard of Harvey Nicks! But my up market friends in London told me that Harrods was where the oldies go and so I landed at the imposing corner building a few streets away from Harrods.

It’s been 10 years that Aditya Birla went shopping for the Madura Brands and things have been rather quite since then. With ‘Collective’, the company will take a very big fashionable leap – targeted at the metrosexual man, the chain will have 12 stores to begin with in Bangalore, Mumbai and New Delhi. To support the backend, AFL Logistics has already set up the first-of-its-kind 12000 sq ft fashion and luxury retail distribution centre in Bhiwandi specially for the Madura Garments Lifestyle Retail Company. The second such Luxury distribution center will shortly be announced in Bangalore. 

What’s special about a Luxury goods warehouse? Well, pleased to be educating you – it has automated biometric access, infrared security and surveillance with high-end cameras which are capable of motion based capture, customised racking and a fully mapped warehouse management system. Binning and picking guided by a fisrt of its kind in India wireless radio frequency gun (RF gun) and more ! Phew, are we impressed !

Aditya Birla have lined an impressive array of the brands to be showcased at the ‘Collective’ – VF’s 7 Jeans, True Religion, Keneth Cole, Ted Baker & Valentino. This should make ‘Collective’ the hottest fashion spot for the ‘with-it’ Indian male!

Though, on another note can you imagine the possible remote consequences of pictures of Buddha playing the guitar? That’s ‘True Religion’ jeans for you. The Keneth Cole homepage celebrates ‘gender identity’ by showing a transgender woman kissing her boyfriend. All that with the likes of Ted Baker & Valentino makes it a rather eclectic mix. In a country looking for excuses to make politics, everything has potential! And thank God politicians don’t read (blogs).

 

Matchbox matters !

Was there life before the gas lighters ? It took me about 60 seconds to clear the fog over the last few decades of my life, even though I think I am still of relevant age ! The neighbourhood ‘Kiranedar’ would deliver the monthly ration in a neatly packed cardboard carton, brought up to our first storey flat by a random kid who would always look emaciated just like I did. Child labour was not a fashionable topic those days.    

Anyway, the point is that the random kid would lay out the contents of the cardboard content for display on the floor while my mother ticked off each item on her list. There would always be a familiar packet which I now think was green and yellow but I could be completely wrong about the color scheme. What I cannot be wrong about is the brand name : WIMCO encased in a diamond shape black box. Sometime along the way, my mother graduated to a gas lighter. At first it was treated like a decorative gizmo to supplement the matchbox routine and thereafter the matchbox was dumped and it became routine to swear profanities looking for the elusive matchbox whenever one needed to light up the candles on the birthday cake. The individual matchbox cost some obscenely small amount and then for the last many years I have no clue what a matchbox cost except that I’d routinely notice the paanwala throw a free ‘matchling’ of a box to anyone who cared to ask for a light. 
In the good old days match box brands and graphics were as creative as they come. There is even a book on Indian Matchbox designs by Shahid Datawala on Amazon. It seems that the book is an obituary to the death of the matchbox in urban Indian homes. So much so that I buy a cigarette lighter in my house to light my daily incense and the multiplication of birthday candles. I guess the ‘maachis’  has relegated itself to the kerosene stove, ‘choolah’ and the odd ‘bidi’. 
I did some quick search and found that the current industry consumer spend on matchboxes is Rs. 1250 crores p.a. for 24 billion match boxes. And that the government adopts a reservation policy on the matchbox business since it is considered a small scale industry.  ‘AIM’ – is India’s largest selling Safety Matches brand and that ITC acquired WIMCO Ltd. through its arm, Russell Credit in 2005 and therefore owns key WIMCO brands like Homelites, Ship, Cheetah Fight etc. 
And after 15 years of growing obscurity the good old matchbox is making Economic Times news today. After having been priced at a standard 50 paise, the Indian matchbox will now retail at double that amount. Is Mamta Banerji reading ? We can blame it on organised retail. 

I read this morning that  94 Thomas Bata, died in Toronto on Monday evening. For many years of my life I believed Bata was an Indian company. Something to do with the fact that Bata rhymed with Tata but more than that since Bata has been my generation’s childhood companion. I grew up with the Bata School shoes with a rather special relationship with my white  PT shoes which I used to religiously wash in detergent every Sunday and then carefully beautify with a white shoe paint. My rather long big toe would sometimes win a battle with the shoe to dig a small hole ahead. And it used to be time for the next visit to the Bata shop in Alambagh. 

Thomas Bata who turned businessman at 18, was passionate about India so much so that he held the global board meeting of his group at Batanagar, West Bengal earlier this year and announced two world-class shoe factories in Bihar at Mokamehghat and Bataganj.
Bata’s Indian footing begain in 1931 when Thomas Bata arrived in Kolkatta via Karachi to set up his  first factory at Konanagar. Till then, footwear in India was produced as handicraft in cottage units. Bata went public in 1973 and changed to Bata India Limited with a professionally run management at the helm with the Canadian company still holding 51 % equity in the Indian operations.   

Thomas Bata was called Tom by his friends and he had tremendous love for India and its people. His contribution to our country can never be forgotten and India accounted for the maximum Bata sales. Bata gave us our first shoes.  In the 75 years Bata has  a 35 % market share in the organized footwear sector and 8.5 % of India’s total footwear market. Bata retails from 1,250 stores across the country. It sells over 45 million pairs of shoes every year with an annual sales turnover of more than 178 million USD ( Rs 8 billion).

The company’s brands include Hush Puppies, Dr. Scholls, North Star, Power, Marie Claire and Bubbleguymmers. The company’s latest is a joint venture real estate project with the Calcutta Metropolitan Group to develop 262 acres land in Batanagar into a world-class integrated township called Calcutta Riverside. 

A bit  late in the day but Tesco has finally said ‘I do” to the Tata’s after wooing suitors like Bharti, the Wadias, DLF and Parsvnath among others.  Though it seems that in this case, Tesco seems to be having the cake and eating it too !
On one hand they have decided to enter the great Indian Retail party solo, the ‘cash-and-carry’ way, with the first wholesale outlet scheduled for launch in Mumbai, followed by 2 others in the next 2 years at an expected investment of 60 million pounds. On the other hand they will support Tata Group’s Trent Retail to launch its discount hypermarket format for a pre agreed fee. Trent launched its big box format Star Bazaar in 2004 and there are 4  Star Bazaar stores since then. Trent have now announced plans to open 50 stores in the next five years at a cost of Rs 2,000 crore.

According to this exclusive arrangement, Tesco will provide marketing, stock management, Information systems, cold-chain infrastructure and front-end services expertise to Star Bazar without the use of Tesco branding at the Star bazar outlets. In return, Trent Retail will source merchandise from Tesco’s wholesale outlets which will be exclusive suppliers to Start Bazar.
Tesco already operates sourcing 3 offices in Delhi, Bangalore & Tripur to feed its international stores. It may be noted that Tesco first came to India in 1998, wasn’t excited about retail but got excited about IT instead ! So it set up its IT systems in Bangalore & proceeded to enter Thailand. In 2006 it dated Bharti but would not commit. Its taken so many years for Tesco to finally take a call ! 

Trent Retail is the Retail Vertical of the Tatas and is headed by Noel TataTrent’s and operates Westside – apparel and lifestyle, Landmark – books and music and Sisley – Italian apparel brand. Tesco, a $99.5-billion company is UK’s largest retailer with over 2100 stores in the UK. It has 3729 stores in 13 countries around the world. 

Tesco’s German rival Metro was the first to enter India in 2003, through the wholly-owned cash-and-carry operations in which 100% FDI is allowed by the Indian Government. The other ‘Big’ boy, Wal-Mart has a 50%  JV with Bharti and Carrefour is still keeping the suitors guessing ! South African, Shoprite, which has a franchise arrangement with realty firm Nirmal Lifestyle. 
It is also interesting to note that the Tata group has also recently created joint venture between Tata Chemicals and Europe’s largest fresh produce company, Total Produce, to set up 20 cash-and-carry distribution centers across India. The JV is called ‘Khet-Se Agriproduce India’  and will invest Rs 212 crore until 2012. The first ‘Khet Se” franchise store has already been signed on in Ludhiana for wholesaling fresh fruits and vegetables. For this store, the company has set up a  cold storage and ripening facility at Malerkotla that functions as an integrated collection, processing and distribution centre. The franchisee on his part runs the store, which services local clientele such as vegetable vendors and small retail outlets. As we know the first of Bharti Easy Days is also located in Ludhiana ! Though of course there is not a shade of the Tesco connection, nevertheless, still sounds like a scoop. 

 

Tata Chemicals in fact already has a network of 613 Tata Kisan Sansar Kendras to sell agricultural inputs & advice farmers on crops to grow and farming practices to adopt. Therefore the natural progression for some of these stores would be to become fruits and vegetable wholesale stores. 

 

Mukesh Ambani may just have put his foot in his mouth by his open support to Project Nano !

Madam Banerjee has announced that she now wants to take on some more ! The last I read, she has organised a ‘dukandar’ rally of small shopkeepers in Singur to oppose (sic) the entry of corporates into retail since she fears it would lead to disaster !

It may be noted that after being ousted from Kolkatta last year, Reliance Fresh has just about opened 3 stores in Kolkatta once again. The paint may perhaps still be wet at the stores but it sure does smell trouble for them once more. 

All this, while she has slammed the breaks on Ratan Tata’s small car along with thousands of large trucks and other vehicles on the Durgapur expressway.

Though she seems to have broadened her ban to include all of the big boys like Kishore Biyani’s Pantaloon Retail, RPG’s Spencers, and Tata’s Westside. It doesn’t help that Kishore Biyani took his first step into organised retail in Kolkata and RPG’s Spencer’s is based out of Kolkata. Spencer’s in fact was forced to buy peace with street hawkers around its new hypermarket by agreeing to certain restrictions on trade placed  by Gariahat Hawkers’ Sangram Samiti and National Hawkers’ Federation. 

Madam Banerji thinks organised retail is a national “diasaster”.

God save the nation !

 

 

 

The only Job I know!

This is an unofficial blog about my ringside view of the Indian Retail Industry. The idea to write this blog came about quite by default while working upon the retailipedia.com concept. I wanted to create a space where I could write about the Retail I am passionate about, the news that stirs me, the happenings, behind the scenes of how a retail concept is created and live my thoughts on Retail on the pages of this blog.

Since Retail is the only job I think I know.

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