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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Bata to stop opening 100 stores a year, to concentrate on same-store growth

Aug 4, 2016 0

Kolkata– Bata India has changed its strategy of opening over 100 stores a year and would start concentrating on same-store growth, a top company official said on Thursday.

The shoe-maker also plans to set up online kiosks in some major retail stores across the country and will be looking at opening franchise-based stores, mainly in tier-3 and tier-4 cities. The company will invest Rs 80-100 crore a year for modernisation, renovation of its manufacturing facilities and to strengthen its retail operations.

Uday Khanna (File Photo)

Uday Khanna (File Photo)

“The company has changed its strategy of opening 100-plus stores every year and is now concentrating more on achieving same-store growth,” said company Chairman Uday Khanna.

The shoe-maker added 26 new retail stores during the last financial year, he told shareholders at the company’s 83rd annual general meeting here.

“We used to open 100 stores a year and, going forward, we will be opening 50-60 stores in a year. We are looking at opening franchise-based stores. We have already opened 30 stores in Madhya Pradesh, Uttar Pradesh and Gujarat as a pilot project,” said company Managing Director and President (South Asia) Rajeev Gopalakrishnan.

“Our intention is to have 200-300 franchise-based stores in tier-3 and tier-4 cities and rural areas in the next couple of years,” he said.

Khanna also said the company is planning to set up online kiosks in some of the major retail stores across the country wherein customers shall have the option to buy footwear of their choice online.

The company continues to penetrate into tier-2 and tier-3 cities in India and other rural markets. “We will have to develop a separate kind of product line to cater to these markets,” said Gopalakrishnan.

“Manufacturing is our focus. We will invest Rs 20-25 crore in the next one-and-half to two years time for modernisation of Batanagar factory in West Bengal,” he said.

In addition to its modernisation programme, the company will invest another Rs 50 crore for retail operation. “Put together, a total of Rs 80-100 crore will be invested in a year,” he said.

In 2015-16, online sales reached Rs 40 crore. Online sales contribute 1.5 per cent of the total sales and the company has the target to scale up the share to 5 per cent in the near future. “Going forward, we will have 90 per cent exclusive collection for online platform,” he added.

The company reported standalone net profit of Rs 50.49 crore for the first quarter that ended on June 30 as compared to Rs 50.18 crore in the same period last year.

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Government to help open 3,000 Jan Aushadhi Stores across India

Aug 2, 2016 0

New Delhi–Under Pradhan Mantri Jan Aushadhi Yojana (PMJAY), the central government will open 3,000 Jan Aushadhi Stores (JAS) pan India by the end of this fiscal to make quality drugs available at affordable prices, parliament was told on Tuesday.

“In order to open JAS proposed within government hospital premises, a one-time financial assistance is provided to the extent of Rs 2.50 lakh and the margin available for the retailers is 20 per cent so as to ensure a reasonable level of profitability for them,” Minister of State for Chemicals and Fertilisers Mansukh L. Mandaviya told the Lok Sabha in a written reply.

In addition to the retailers’ margin up to 20 per cent, an 15 percent incentive on monthly sales subject to a ceiling of Rs 10,000 a month is also given for stores opened outside the government hospitals, he said.

For stores opened in northeastern states and Maoist-affected and tribal areas, the rate of incentive is 15 percent of monthly sales subject to a ceiling of Rs. 15,000 per month.

State governments, local bodies, individuals entrepreneurs, pharmacists, doctors, registered medical practitioners, NGOs, trusts, social and charitable institutions, private hospitals and self help groups or those with B.Pharma degree or D.Pharma diploma are eligible for opening of the stores.

Applicant should have own or hired space of minimum 120 square feet.

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US grill brand opens Grill Academy in India

Jul 27, 2016 0

New Delhi– US-based grill brand Weber-Stephen has forayed into north India with the launch of its first flagship store here and its first Grill Academy in the country.

Weber India, a subsidiary of Weber Stephen Products LLC, expanded its footprint with the opening of its flagship store on MG Road here on Wednesday and an exclusive experiential zone Grill Academy in the same premises, read a statement.

The manufacturing major has introduced its extensive range of grilling products for B2B and B2C customers, including the signature charcoal grills and gas grills along with grilling accessories.

At the launch event, two chefs demonstrated scrumptious fusion of local gourmet with a twist of American grilling culture, and showcased Weber’s unique method of cooking – “covered grilling”.

Manish Khandelwal, Managing Director, Weber-Stephen Barbecue Products India Private Limited, said: “Expansion to north India is a logical step as it has favourable climatic conditions and preference for grilled food.”

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Online marketplace Snapdeal joins hand with BookMyShow

Jul 21, 2016 0

New Delhi–Online marketplace Snapdeal on Thursday announced its partnership with e-ticketing platform BookMyShow and extended its service offerings.

With this partnership, customers can now book tickets for movies on Snapdeal.

“Snapdeal’s integration with a leading service provider like BookMyShow is another step in this direction. We are confident that the introduction of services on Snapdeal will bring us closer to our goal of 20 million daily transacting users by 2020,” said Tony Navin, senior vice president, Partnerships and Strategic Initiatives, Snapdeal, in a statement.

Marzdi Kalianiwala, BookMyShow’s vice president – Marketing and Business Intelligence, said that the association with Snapdeal will allow its users to meet their movie ticketing needs without having to leave the platform.

BookMyShow’s e-ticket booking service can be accessed through Snapdeal’s app as well. (IANS)

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Bengal to launch home delivery of farm fresh produce

Jul 18, 2016 0

Kolkata–Farm fresh organic produce at your doorstep is just a call away thanks to a chain of stores and home delivery services which will be launched by the West Bengal government in this eastern metropolis on Tuesday.

Christened ‘Sufal Bangla’, the initiative is aimed to benefit farmers through extension services and providing an interface between producers and consumers which would benefit both.

“There are no middlemen so consumers will get the produce at cheaper prices. One can check the website and order according to the daily price list,” said an official of the state agricultural marketing department.

On Tuesday, ‘Sufal Bangla’ store in south Kolkata’s New Alipore will launch operations with a list of seasonal fruits and vegetables, livestock as well as rare varieties of rice — like brown rice, Dudhsar and Banskathi alongside popular options like Basmati and Gobindabhog.

The agricultural marketing department aims to open more such counters city-wide.

“Home delivery is free for orders of Rs. 500 and above and within 1 km,” said a store official.

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