Consumer goods market in India to reach $104 billion by 2020

Oct 5, 2016 0

New Delhi– India’s market for fast moving consumer goods (FMCG) is expected to more than double to $104 billion by 2020 from the present level of $49 billion, a research report said on Wednesday.

According to the Assocham-TechSci Research report, steady economic growth, rising share of organised retail, improving awareness, and a favourable demographic dividend will give a boost to the industry’s growth.

The sector is expected to grow at a compounded annual growth rate (CAGR) of 20.6 per cent, the report said.

“It is certainly good news for giving a much-needed consumption boost to the economy,” said Assocham Secretary General D.S. Rawat.

The study titled “Indian FMCG Market 2020” elaborated that measures such as Goods and Services Tax Bill, Food Security Bill and increased limit of foreign direct investment will have a positive impact on the FMCG industry.

Currently, FMCG is the fourth largest sector in the Indian economy and provides employment to around three million people accounting for approximately five per cent of the total factory employment in the country.

However, India only accounts for a share of just 0.68 per cent of the global FMCG market.

Nevertheless, globally FMCG sector is expected to grow at CAGR of 4.4 per cent, which when compared to India is a lot slower.

“Many foreign FMCG multinationals have established themselves in India,” the report said.

“Globally, the FMCG companies have now shifted their focus on e-commerce due to the increasing mobile internet penetration.”

However, the share of online sales of FMCG products globally accounted for around five per cent in 2015, which is relatively higher than India where online FMCG sales accounted for a share of just 1-2 per cent of the overall FMCG market in 2015, the report said. (IANS)

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Liquor shops doubled in Odisha in 15 years

Sep 28, 2016 0

Bhubaneswar–Even as various social organisations in Odisha call for total prohibition in the state, the number of liquor shops has doubled in the past 15 years, a minister said on Wednesday.

The number of liquor shops has risen from 1,798 in 2001 to 3,843 in 2015, Excise minister Damodar Rout informed the state assembly.

The ruling Biju Janata Dal (BJD) come to power in 2000 and has been in office since last 16 years.

While the number of shops selling Indian Made Foreign Liquor (IMFL) was 753 in 2001, it has increased to 1,480 in 2015, said the minister.

He admitted that it has come to the notice of the government about the anti-liquor agitation in the state and vandalism of liquor vends by some women protesting against the sale.

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Beauty brand KIKO opens flagship store in India

Sep 17, 2016 0

Noida–Italian beauty brand KIKO MILANO has opened its first store here.

The beauty brand store, that will open its doors for customers on Saturday, is located on the ground floor in the DLF Mall of India here.

“The opening of our first store in India marks an exciting moment and an important milestone for KIKO MILANO as it embarks on its journey in the Asian subcontinent,” Mark Koprowski, International Director, Percassi Group, said in a statement.

“In the past decade, India has emerged as one of the fastest-growing beauty markets in the world where consumers are constantly looking out for products to pamper themselves,” the statement read.

With over 850 stores in 17 countries and an online presence in 35 nations, the beauty brand offers a range of more than 1,400 products, including make-up, beauty accessories and skincare products. (IANS)

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US-based Harman opens first center for lifestyle products in India

Sep 16, 2016 0

Bengaluru–US-based Harman International Industries, a connected technologies company for automotive, consumer and enterprise markets, on Friday announced the opening of its first Centre of Competence(CoC) for its lifestyle audio division here.

The new CoC, led by Srinidhi Kadagattur, will focus on developing robust and scalable software solutions for the company’s consumer and car audio business.

“India is a powerhouse of innovation and home to Harman’s largest pool of software engineers and architects and our teams here are focused on developing solutions that leverage cloud, data, app design and analytics to advance the connected lifestyle,” said Armin Prommersberger, Senior Vice President, Harman Lifestyle Audio Division, in a statement.

The company already has Indian R&D centres for their other three business units — connected cars, professional audio and connected services.

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Amazon to be No. 2 in Indian e-commerce market by 2019

Sep 15, 2016 0

New Delhi– Amazon is improving its foothold in India and the American e-commerce giant could be the second biggest player after Flipkart in the online retail market by 2019, says a new Bank of America Merrill Lynch report.

India could also become Amazon’s second largest market (after the US) as it plans to invest $5 billion in its India business, the report released on Tuesday said.

“For last couple of months, Amazon India gross sales are higher than that of Flipkart standalone (excluding Myntra),” it added.

“We now expect Amazon’s GMV (gross merchandise value) market share to improve to 37 per cent by 2019 from 21 per cent in 2015 and expect it to be close No 2 behind Flipkart,” the report said.

While revenues are relatively small to Amazon’s global scale, Amazon India could generate $81 billion in GMV and $2.2bn in operating profit by 2025.

Most of Amazon’s gains have come at the expense of Snapdeal and other sellers, not Flipkart, according to the report.

Flipkart still remains the market leader in India and “even in terms of customer satisfaction, reports indicate that it remains the leader, ahead of both Amazon and Snapdeal”, according to the report.

Amazon has been able to benefit from global brand and establishing reliability of service among consumers, concentrating on offering superior customer service and wider assortment of products.

Amazon has also tied up with Vakrangee, a franchisee with strong presence in rural/underdeveloped areas to fortify its rural presence at relatively lower investments.

As of June this year, Amazon is already active in more than 1,000 outlets, with plans to increase to 75,000 outlets by 2020, the report noted.

Alibaba is looking to enter into the Indian e-commerce market by early next year as a more direct entry, despite it having investments in PayTM/Snapdeal.

“We note that similar to Amazon, Alibaba likely considers India as the next big market apart from its home market and is looking to gain traction there,” the report said. (IANS)

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More young Indians shop online for overseas products

Aug 24, 2016 0

Bengaluru–More young Indians in 18-34 age group are shopping online for cross-border products like apparel and consumer electronics owing to their higher quality despite payment barriers, a report said on Wednesday.

“Our research showed that more (59 per cent) of millennials (young) choose cross-border products like apparel and consumer electronics for their higher quality,” a joint study by global online payment gateway PayPal and leading market research firm Ipsos noted.

The ‘PayPal Cross Border 2015 Millennial’ report is based on a survey of online and cross-border shopping habits of 23,000 internet users in 29 countries, including 517 millennials in India.

Around 85 per cent of millennials prefer global online stores like Amazon for shopping online for cross-border products.

“Nearly 79 per cent of Indian millennials shop for event tickets online,” the report said.

The US continues to be the most preferred nation for cross-border shopping followed by China, Britain and Singapore.

Making online payments has emerged as one of the key aspects of cross-border purchases though young shoppers thriving on options prefer paying in currency of their choice.

“Cross-border shopping is hindered by high delivery shipping costs, difficult return process, unclear duty and tax structures, long delivery times, unfavourable conversion rates and payment option only in foreign currencies,” the report highlighted.

About 60 per cent of millennials, however, are not comfortable with purchasing on websites that are not in their language and 82 per cent of them prefer paying in local or their own currency.

Mapping the evolution of online cross-border commerce among young Indians, the report identifies factors that drive them to buy across the border, barriers they face and their approach to making overseas payments online.

In light of the findings and its focus on the millennial segment, PayPal will soon roll out promotions and programmes for the millennials to experience how new money means no boundaries.

“As we are focussed on enabling digital payments in a safe and secure environment, our ‘New Money’ facility caters to the millennials, encouraging them to switch over to the new option,” said Anupam Pahuja, Country Manager and Managing Director, PayPal India, on the report.

The New Money caters to consumers as well as merchants while ‘PayPal.me’ is a personalised option for merchants to receive cross-border payments.

“A safer payment option takes priority over other factors, including discounts, which makes us a preferred payment option in view of our focus on risk and security,” added Pahuja.

With 184-million active customer accounts worldwide, the US-based PayPal Holdings Inc., operates in 200 countries, enabling payments in over 100 currencies, withdraw funds to their bank accounts in 57 currencies and hold balances in PayPal accounts in 26 currencies.

In 2015, 28 per cent of the 4.9-billion payments processed were made on a mobile device. (IANS)

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Fashion e-tailer Myntra claims $1 billion sales

Aug 22, 2016 0

Bengaluru– Leading fashion brands e-tailor Myntra on Monday claimed it has crossed $1-billion (Rs.6,720 crore) in sales after discounts in July.

“We have crossed $1-billion run rate in annualised GMV (Gross Merchandise Value) post discounts in July,” Myntra Chief Executive Ananth Narayanan told reporters here.

GMV indicates total sales in online retailing for merchandise sold through a particular marketplace over a specific timeframe.

Ananth Narayanan

Ananth Narayanan

“Sales volumes were propelled by growth of our brands, increased contribution of international brands, high growth in sportswear and womenswear category and ‘End of Reason’ sale,” said Narayanan on the occasion.

The billion-dollar milestone in terms of GMV came in the month (July) when e-tailer Flipkart-owned Myntra bought e-store Jabong from the London-based Global Fashion Group for $70 million (Rs.471 crore) in cash to consolidate its position in the fashion and lifestyle segment.

“This betters our January 2016 performance when we had clocked $800 million in annualized GMV and registered 70 per cent year-on-year growth in the first four months (April-July) of this fiscal (2016-17),” Narayanan recalled.

Bengaluru-based Flipkart acquired Myntra in May 2014 for an estimated $300 million.

Reflecting on Jabong’s acquisition, the top executive said the buyout had created the country’s biggest fashion shopping destination in the digital world.

“We are set to define the next generation of online shopping, with a combined base of 15 million monthly active users and offering the best of brands to Indian consumers,” Narayanan asserted.

Noting that the branded fashion market was expected to grow twice as fast as the overall fashion market over the next five years, Narayanan said the portfolio of domestic and international brands was expanding.

The brands include batting maestro Sachin Tendulkar’s True Blue, Khadi Originals from IndusDiva, TOMS and Meters/bonwe.

“We are also targeting growth in new segments such as home furnishing, re-launching personal care business and expanding sales of fine jewellery,” Narayanan added.

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Reliance Brands to bring Dutch fashion label Scotch & Soda to India

Aug 17, 2016 0

Mumbai– Reliance Brands, a part of the Mukesh Ambani-led industrial group, has entered into a master franchise pact with the premium Dutch youth fashion company, Scotch and Soda, to set up its stores in all major Indian cities by next year.

“Reliance will also grow the brand through other channels of sale in India, such as ecommerce, travel commerce, and leading multi-brand department stores,” the company said, adding the range will cover menswear, womenswear and childrenswear categories through all channels of sale.

Scotch and Soda has over 160 stores of their own globally, and can be found in over 8,000 oher outlets, including the best global department stores, as also on their Web store. The merchandise is designed at their church-turned-studio in the heart of Amsterdam.

“On the archipelago of fashion you have many islands. One island is for American sportswear another might be French luxury. Each island has several brands that share the same aspirations and dreams,” said Scotch and Soda Chief Executive Dirk Jan Stoppelenburg.

“Reliance recognizes our breakthrough brand of style and creativity. We are looking forward to growing our unique brand in collaboration with Reliance’s expertise in this fashion market and in this very important region,” he added.

Darshan Mehta, President and Chief Executive of Reliance Brands said it was an irony that in an increasingly crowded premium fashion space, getting a good tee or a well washed and well-fitting denim is rare!

“Scotch and Soda is one of the few companies dedicated to crafting quality garments rather than emphasising on the brand logo,” he said, adding: “The brand’s stores echo the theatre of their craft. Refreshingly differentiated. We now have the privilege and joy of partnering with them.”

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IKEA plans 25 stores in India over 10 years

Aug 11, 2016 0

Hyderabad– IKEA Group, the leading Swedish home furnishings company, plans to open 25 stores over next 10 years in India. It also plans to double its sourcing from India to 600 million euros by 2020.

The strategically-located, 13 acre store here is close to HITEC City, the IT hub. The next store will come up in Mumbai, where the company has purchased 24 acre land.

IKEA India CEO Juvencio Maeztu told reporters that this will be followed by opening more stores in Bengaluru and Delhi NCR.

He said the company had plans to open two to three retail stores every year. Ahmedabad, Chennai, Kolkatta, Pune and Surat are the other cities IKEA is looking at.

IKEA India CEO Juvencio Maeztu

IKEA India CEO Juvencio Maeztu

The company said some major cities may have more than one store.

IKEA is investing Rs 700 crore on the Hyderabad store spread over 400,000 sq feet. It will hire 500 direct workers and provide 1,500 indirect jobs.

Meztu said people would have access to affordable and good quality home furnishing products.

It will host 5-6 million customers every year.

“This is a big day for us. The store will exhibit home furnishing solutions. It will be more than retailing and offer a complete shopping experience,” he said.

He said while the customers could touch and feel the products at the store, they will also have the option of ordering the same online.

IKEA also plans to double its sourcing from India for Indian and global IKEA stores by 2020. The current volume of sourcing is 300 million euros. About 70 percent of the current sourcing is in textiles and rugs.

“We want to expand to new products and categories,” he said.

IKEA has been sourcing from India for 30 years for its global stores. The company has 328 stores in 28 countries.

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Adidas to launch its own retail store in India in 2017

Aug 9, 2016 0

New Delhi– Adidas India plans to launch its first own retail store in 2017 after getting approval from the Department of Industrial Policy and Promotion (DIPP) to operate fully-owned single-brand retail stores as well as cash-and-carry wholesale business under a single entity.

“We are delighted on being given the go-ahead to introduce our own retail format stores. India is a key market for us, and we are fully committed and focused to winning market and mind share in the key cities of the country,” said adidas Group India’s Managing Director Dave Thomas.

Dave Thomas

Dave Thomas

With this approval, the sports and lifestyle brand becomes first international brand to get 100 percent FDI for all formats like retail, e-commerce and wholesale.

It is working towards launching its first own retail store in 2017, the German sports goods maker said in a statement.

“Own retail will enable us to represent our brand in a more consistent and authoritative manner. Going forward, our strong emphasis in India is to grow profitably and consolidate our leadership position with an increased focus on the premium segment,” Thomas said.

It had the DIPP approval for 100 percent FDI in retail earlier in November 2015 when the centre eased the retail sector rules, allowing foreign entities with single-brand licence to have online operations too.

“But there was no clarity on whether or not the various services could be operated under single entity,” a company statement said.

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