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Retail 19/06/23

Lulu Group launches premier hypermarket

19 June 2023, Mumbai

Lulu Group has unveiled its inaugural Lulu Hypermarket in Tamil Nadu's Coimbatore.

Opens Large-Scale Store

The grand-scale store, situated in Lakshmi Mills, Pappanaickenpalayam, offers an exceptional shopping experience to the residents.

The hypermarket boasts an extensive range of products and services, including ready-to-eat food, fresh produce, electronics, beauty products, and home appliances. The Government of Tamil Nadu's Minister for Industries, Investments, and Commerce, T.R.B. Rajaa, inaugurated the store on June 14 alongside Lulu Group's members.

Expansion Plan Includes Logistics Hub

With an investment commitment of Rs 3,000 crore, Lulu Group plans to undertake various projects in the state, such as a logistics hub and a rice mill.

Expects to Generate Employment Opportunities

Spanning approximately 1.1 lakh square feet, the hypermarket is set to create over 5,000 employment opportunities.

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Retail 19/06/23

E-com Policy: Equalizing Foreign and Indian Marketplaces

16 June 2023, Mumbai

Equity Prohibited in E-commerce Platforms; The new policy aims to prevent entities from holding equity in sellers or selling private labels on e-commerce platforms, ensuring fairness.

What all you need to know

Detailed Regulations Under Consumer Protection Act

Regulations are being formulated to provide comprehensive guidelines, addressing enforcement concerns effectively.

Direct Sale Restrictions and Transparency Assurance

The policy ensures no direct or indirect sale of products to registered sellers, while catalogues and search results will be transparent to consumers.

FDI Distinctions in E-commerce Models

Foreign direct investment (FDI) is allowed in marketplace models, but not in inventory-based models involving direct sales to consumers.

Leveling the Field Amidst Concerns

To address complaints of FDI norm violations, predatory pricing, and preferential treatment, the government is closely monitoring the e-commerce landscape.

2020 Rules Barred Affiliated Entities

Introduced under the Consumer Protection Act, the rules opposed by foreign-funded and Indian companies prevented affiliated entities from selling on e-commerce platforms.

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Retail 16/06/23

Myntra Implements Convenience Fee for Profitability

12 June 2023, Mumbai

India's second-largest fashion e-tailer, Myntra, has initiated a convenience fee of Rs 10 on orders exceeding Rs 1,000, as part of its efforts to achieve profitability.

Move Aims to Offset Costs

With daily order volumes estimated at five lacks, this fee is expected to generate a substantial corpus. Customers placing orders below Rs 1,000 already face a fee of Rs 99.

The convenience fee applies to all customers, including members of Myntra's membership program, Myntra Insider, making it an additional charge separate from other levies. Myntra justifies this fee by highlighting the technical expertise, brand aggregation, and post-sales support it provides.

Encourage Customer Loyalty

Myntra's average order value (AOV) is approximately Rs 1,400, making the Rs 10 fee significant. However, analysts believe that loyal customers, coupled with the brand's market share, are unlikely to be deterred by the fee.

In addition to the convenience fee, Myntra has implemented measures to curb returns, such as penalizing customers with higher return volumes and partnering with brands to offer non-returnable products with upfront discounts. These initiatives aim to optimize operational efficiency and reduce costs associated with returns.

While analysts view Myntra's steps as positive for the industry's profitability, opinions differ regarding their impact on customer experience. Some expect other companies to follow suit, while others caution that additional fees and complications in the return process may discourage shoppers.

To Boost Profitability

Myntra's recent moves reflect its drive to achieve profitability amid rising logistics costs and promotional spending.

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Retail 12/06/23

Pantaloons Debuts Store with Arjun Kapikad

09 June 2023, Mumbai

Pantaloons, the renowned fashion brand under Aditya Birla Fashion and Retail Ltd., celebrates the grand opening of its store at Fiza by Nexus, Mangalore.

Pantaloons Unveils New Store

Covering an expansive 13,500 sq. ft., the store was inaugurated by popular Tulu and Kannada actor, Arjun Kapikad. This milestone further showcases Pantaloons' commitment to delivering an exceptional shopping experience nationwide.

The store showcases Pantaloons' highly anticipated summer collection, featuring the latest trends in men's wear, women's wear, and kids' wear.

Leading Fashion Brands Offer Value Proposition

Alongside apparel, customers can explore a wide range of accessories, home decor, and lifestyle offerings. With an array of exciting brands catering to formal, casual, festive, and occasion wear, Pantaloons truly embodies its position as a fashion playground.

Having established its presence in over 195 cities, Pantaloons has become a prominent fashion brand for more than two decades. It caters to the diverse needs of Indian consumers, providing a modern retail environment and accessible contemporary fashion across the country.

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Retail 9/06/23

India's May inflation: 4.25%, 25-month low

15 June 2023, Mumbai

India's retail inflation decreased to 4.25% in May, down from 4.7% in April, as per government data. The clothing and footwear sector experienced an inflation rate of 6.64% during May.

Consumer Price Index-Based Inflation

The consumer price index-based (CPI) inflation in May reached its lowest point in 25 months. The Reserve Bank of India (RBI) witnessed retail inflation within its comfort zone for the second consecutive month, remaining below 6%.

Inflation eases

The RBI's monetary policy committee slightly lowered the inflation projection for the fiscal year to 5.1%.

Industrial Production Index Surges

In April, the index of industrial production (IIP) surged to 4.2%, significantly rising from 1.1% in March, according to the National Statistical Office (NSO) data.

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Retail 15/06/23

KVIC Expands Online, Raises Wages

10 June 2023, Mumbai

To achieve its target of an 18% boost in khadi sales, KVIC is focusing not only on expanding its presence beyond the Delhi store but also on nationwide expansion and capitalizing on the online marketplace.

What all you need to know

Additional stores are in the pipeline as part of KVIC's growth strategy, enabling wider reach and customer accessibility.

Maintaining Price Competitiveness

The Khadi & Village Industries Commission (KVIC) is implementing measures to maintain price competitiveness and market viability following a significant increase in wage rates. By exploring cost-sharing options with Khadi institutions, KVIC aims to minimize price hikes and ensure affordability for consumers.

The move comes after a long period without wage revisions, prompting the need for adjustments.

Alignment with Market Prices and Collaborations Drive KVIC's Innovations

KVIC aims to align the prices of its products, including mustard oil, with market rates while maintaining superior quality. Collaborations, such as the partnership with NIFT, facilitate engagement with a younger audience, with plans for specialized stores, including the first one at IIT Delhi.

Competitive Edge

Establishing solid foundations through government-owned entity partnerships further strengthens KVIC's position.

Exciting product launches, ranging from Khadi denim in collaboration with Arvind Mills to new aprons and innovative saree designs, are on the horizon, fueling KVIC's future growth.

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Retail 10/06/23

Increasing Number of New Stores Push Mall Rentals Surge

09 June 2023, Mumbai

Retailers' optimistic outlook for expansion in FY24 has resulted in a 5-7% increase in mall rentals compared to the previous year, according to the feedback with mall owners in cities like Mumbai, Delhi, and Kolkata.

Bullish Retail Outlook Drives Mall Rental Increase

Although mall rents typically increase by 15% every three years, this year stands out as the retail market faces a discretionary slowdown in categories like apparel and fast food due to inflationary pressures and financial uncertainty.

However, retailers continue to add stores, expecting a rebound in discretionary spending during the festive period in the second half of the year.

High single-digit rental growth is anticipated this year, building upon a strong base compared to the previous year. The Retailers Association of India's recent survey suggests a potential improvement in consumption patterns with the onset of the festive season.

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Retail 9/06/23

Indian Women's Wear Market Drives Transformation

15 June 2023, Mumbai

The Indian Women's Wear Market is poised to revolutionize the apparel industry in India. In 2020, its size reached a value of Rs 1,02,358 Cr.

This market overview provides insights into the recent revenue trends, definition, and structure of the Indian Women's Wear Market.

Changing consumer landscape

The market dynamics reflect a shift in consumer behavior, where modern Indian women prioritize uniqueness alongside beauty. Financial independence among women has increased affordability and boosted demand for clothing that enhances self-esteem.

Modernity with Tradition

Consequently, traditional clothing is transforming into contemporary designs, with the fusion of ethnic and Western wear gaining popularity among young consumers. Factors such as economic growth, seamless payment experiences, and convenience contribute to the market's growth.

India's emergence as a central fashion hub, driven by a growing middle class and a thriving manufacturing industry, cannot be ignored by international brands.

Emerging trends

Segmentation of the Indian Women's Wear Market reveals a significant market share for ethnic wear and Western clothing.

Ethnic wear, including sarees, salwar kameez, and blouse dresses, holds a prominent position. Sarees, with a market value of Rs 36,035 crore, remain widely accepted across urban and rural India.

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Retail 15/06/23

Trent's Westside and Zudio Flourish

10 June 2023, Mumbai

Trent Ltd has achieved impressive results in its fashion brands Westside and Zudio during the financial year 2022-23, driven by store expansions and improved profit margins.

Thrive in FY 2022-23

Westside, the leading fashion brand, added 14 new stores, bringing the total to 214. It achieved a remarkable 4 percent Compound Annual Growth Rate (CAGR) in sales per square foot, reaching Rs 11,973. Westside also achieved a record-high Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of 13 percent.

Zudio, Trent Ltd's popular fashion brand, experienced substantial growth with 119 net store additions, resulting in a total of 352 stores. Zudio achieved sales per square foot of Rs 18,000, with an estimated EBITDA margin of 4.7 percent.

Impressive Results

Trent, a Tata Group retail subsidiary, reported a significant improvement in Return on Invested Capital (ROIC) of 21 percent, up from 11 percent in FY 2020. This growth was primarily attributed to higher sales per square foot, reduced net fixed assets per square foot, and favorable tax rates.

Despite zero net store additions, the Zara joint venture showed an impressive 20 percent CAGR in sales per store between FY 2020-2023. Meanwhile, the Star Bazaar store network was streamlined to 63 outlets in FY 2023, down from 70 in the previous year 2021-22. The joint venture with TESCO sustained moderate losses.

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Retail 10/06/23

Boosting E-Commerce: Government Unveils National Policy

07 June 2023, Mumbai

The national e-commerce policy aims to create a favorable environment for sector development and boost exports, according to Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade.

Retail Policy Underway

The policy will establish a streamlined regulatory framework to facilitate business operations, embrace modern technologies, and integrate supply chains. Although the possibility of a regulatory body being considered, its establishment may require additional time. Projections estimate that global cross-border e-commerce exports will reach $2 trillion by 2025

India's e-commerce export potential is expected to range between $200 billion and $300 billion annually by 2030. The policy aims to address enforcement concerns, clarify various issues and undergo inter-ministerial consultations.
Traders' Associations' Demands

Local traders' associations advocate for an empowered regulatory body to ensure adherence to e-commerce rules.

The policy aligns with amendments proposed in the Consumer Protection (e-commerce) Rules 2020, aiming to serve as an overarching framework for the sector. Additionally, discussions are underway for a national retail policy, intending to facilitate growth in the physical retail sector.

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Retail 7/06/23

Early mid-season sales clear inventory

14 June 2023, Mumbai

Several lifestyle, apparel, and footwear brands have started mid-season and flash discounting ahead of the usual end-of-season sales (EOSS). This move comes in response to weakened demand over the past two months. Normally, EOSS launches by the end of June, preceding the arrival of fresh season merchandise.

Market Exhaustion and Demand Slowdown

However, brands have opted to cut prices or will soon begin a sale period.

Brands Deviate from Traditional Schedule

The decision to discount earlier than usual is driven by a slowdown in the overall market and the desire to clear existing inventory before new stock arrives in July. The market experienced spending exhaustion, resulting in lower growth rates even for premium products. In March and April, the overall growth dipped to 6%, marking the slowest sales expansion in over 14 months, according to the Retailers Association of India.

Brick-and-Mortar Stores Compete with Online

Retailers are now strategically discounting to compete with online retailers and fulfill mandatory quality control measures, such as obtaining BIS licenses. The aim is to exhaust the current inventory and prepare for the arrival of fresh stock.

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Retail 14/06/23

Forever New India Soars with Rs. 200 Cr. Milestone

10 June 2023, Mumbai

Forever New India celebrates its remarkable achievement, surpassing the Rs. 200 crore revenue milestone within a year, establishing itself as the country's fastest-growing high-premium fashion brand.

Leads as High-Premium Fashion Brand

With its timeless beauty and impeccable craftsmanship, Forever New India captivates fashion enthusiasts, while its ambitious expansion strategy targets tier 2 and 3 cities to reach more customers. Boasting 38 exclusive outlets, over 40+ concession stores, and Pooja Hegde as its brand ambassador, Forever New India enhances accessibility and expands its brand presence.

Targeting Expansion

The brand's commitment to excellence is evident through its availability in leading malls, user-friendly website, and strong online presence. Forever New India's vision extends to dominating the handbag and footwear categories, solidifying its status as a comprehensive fashion destination.

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Retail 10/06/23

EOSS as Crucial Amid Muted Fashion Demand: Flipkart

03 June 2023, Mumbai

Acknowledging the subdued demand in the fashion segment, Flipkart Fashion as quoted in ET, highlighted the significance of end-of-season sales in June and July as a key phenomenon for both offline and online retail markets.

These sales events would provide affordability to consumers and serve as an important factor in driving industry growth.

Driving Affordability & Industry Growth

While the market faces sluggishness, Flipkart Fashion has reported decent numbers. He emphasized the potential of untapped opportunities in tier 3 cities.

Flipkart Aims for Impressive Growth in Upcoming Sales

This year's end-of-season sale has witnessed the onboarding of numerous new sellers and brands, with a focus on regional fashion brands. Flipkart aims for significant growth compared to the previous year.

In the previous end-of-season sale, Flipkart recorded over 8.2 million orders from across the country, showcasing the scale and potential of the platform.

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Retail 3/06/23