Thought of the Day:
“Even the finest sword plunged into salt water will eventually rust”
Did you know?
Oenophobia is the Fear of wines
India:
International:
“Even the finest sword plunged into salt water will eventually rust”
-Sun Tzu
Did you know?
Oenophobia is the Fear of wines
India:
- Mercedes Expects India to be Among its Top 10 Mkts by 2020: Mercedes Benz has made a strong comeback in the Indian luxury car market. It has taken the second slot in 2013 and is growing faster than its peers and is threatening the leadership crown of Audi in India. Ola Källenius has taken over as the marketing and sales head for Mercedes-Benz Cars in October 2013 and going by the increasing appetite of Indians for luxury cars, he expects India to be among the top 10 markets for the German marquee brand. He spoke with ET’s Chanchal Pal Chauhan on the strategies to push the older luxury brand in the Indian market. “To achieve the No. 1 position globally is part of our Mercedes-Benz 2020 Strategy. The core foundation of this is the product portfolio backed by a strong aspirational brand.” Said Ola Källenius. “We will be launching 13 models without any predecessor globally by 2020. We are extremely bullish for the Indian market. By 2020, the share of luxury segment should grow proportionally in this emerging market. If you put all these together in the next 5-7 years we are expecting a double-digit growth in India.” He added.
- Motorola launches Moto G smartphone in exclusive tie-up with Flipkart: Struggling handset-maker Motorola Mobility, owned by Google but now moving to Lenovo, has launched its Moto G smartphone in India in an exclusive tie-up with online retailer Flipkart, re-entering the fast growing South Asian market within a year and a half of quitting from it. The US-based company that wrapped up operations in India in August 2012 has chosen the online-only strategy to regain a toe-hold into the Indian market, where more than 40 million smartphones have been sold over the last three quarters. "It (online-only) is a strong way to re-enter the Indian market", Magnus Ahlqvist, general manager for EMEA and Asia Pacific markets, said in a joint statement on Wednesday. "We're building it (the portfolio) in phases and are keen on delivering this in a controlled manner. We want to bring real quality experience to consumers and that's one of the reasons we've tied up with flipkart.com". Motorola though has to compete against the likes of South Korean major Samsung and home bred handset makers Micromax and Karbonn who together accounted for over 60% of the smartphone market during the July-September period in 2013 when nearly 13 million smartphones were sold, according to research firm IDC. The October-December IDC data isn't known yet.
- Paytm introduces chat feature that allows users to get discounts: Indians love bargaining with shopkeepers, and they can now do that online as well. One97 Communications' paytm.com mobile commerce site has introduced a chat feature that allows users to bargain live with vendors selling their products on the platform. Paytm, a new entrant into online retailing, expects the feature and growing smartphone usage to help drive traffic onto its website in a crowded market ruled by companies like Flipkart and Jabong. One97 chairman and managing director Vijay Shekhar Sharma said the chat feature, called Bargain, has been embedded into the Paytm app. "If a buyer is looking for a different colour, better deal, more discount or some freebies, he can tap on the Bargain feature and begin a live conversation with the vendor of that brand,"
- Indian buyer puts service over brand: For years carmakers have spent billions of rupees building their brands. Now a new study shows brand image is among the least important criteria for buying a car in India. The study, conducted by consultancy firm Deloitte, shows car buyers being driven by factors like dealer service experience, resale value and reliability rather than brand loyalty. That trend holds true for repeat buyers as for first-timers and for luxury cars and inexpensive, cheerful entry-level models. Titled 'Driving through the consumer's mind Considerations for Car Purchase', the survey found that Gen X consumers in the 37-48 year age group, who own a car between Rs 6 lakh-Rs 8 lakh, tend to evaluate more number of brands, with more than 40% having evaluated six or more cars for their last purchase. Less than 20% of Gen Y in the 19-36 year age group evaluated six or more cars across that price range. "The number of brands considered remains similar for non-luxury and luxury cars indicating the importance of value proposition in both consumer segments," the report said. The survey found that as buyers go through repeat purchases they don't necessarily behave any different from first-timers in shopping. "It does not seem to be a case where they identify themselves with brand in terms of personality or performance," said the report. Explaining the trend Kumar Kandaswami, leader manufacturing, Deloitte in India, said: "The study shows that the significance attached by buyers to a brand image or association is of least importance and that goes as much for entry level as for luxury products. Once the category is fixed, the consumer will look at all options in that segment. Only 5% of respondents said they will look at only one brand." The survey which covered 1,800 respondents across India as part of a global initiative covering 23,000 people in 19 countries found that Indian car buyers do not consider the vehicle an "individual choice" but a "family mobility solution".
- Auto Expo 2014 leaves a good first impression: The Delhi Auto Expo, South Asia’s largest, that is being held for the first time at a new venue at Greater Noida, has drawn admiring feedback from the heads of rival auto shows and even positive comparisons with similar events organized in Geneva, Tokyo and Frankfurt. Toyokazu Ishida, director general of the Tokyo Motor Show, and Thierry Hessy, an organizer of the Paris Motor Show, were among the people who were impressed. “The feedback that came out from them was very pleasant,” said an industry executive who works with these two organizers on various auto shows. “They were visibly impressed.” He requested anonymity . With the unveiling of around 40 new cars and two-wheelers being squeezed into a single day at the sparkling new venue, the biennial Delhi Auto Expo can now aspire to join the leagues of top global motor shows held in Tokyo, Geneva and Frankfurt. The Greater Noida venue also received strong positive responses on its opening day from the visiting officials of global car makers. An additional 30 products are expected to be unveiled on Thursday, the second day of the seven-day event. Out of the total 70, more than 26 vehicles, including 15 cars, will be unveiled for the first time globally at the Delhi Auto Expo.
- After snapping up $50 million, Myntra's now in talks to raise $40 million more: Online fashion retailer Myntra is in talks with investors to raise an additional amount of $40 million ( Rs 250 crore) following the closure of an initial round led by Premji Invest, the family office of Wipro chairman Azim Premji. The deal that closed this week in which the Bangalore-based fashion portal received $50 million (over Rs 300 crore) included funding from Belgium-based investment firm Sofina and existing investors Tiger Global, Accel Partners, IDG Ventures India and Kalaari Capital. For Sofina, this is the second investment in an Indian ecommerce company; last year the firm co-invested in online portal Flipkart. Myntra was valued at over $200 million ( Rs 1,250 crore) in this round, said a person with direct knowledge of the ongoing negotiations. "The company is in final talks with L Capital Asia and a few other investors to raise further funding at a higher valuation," said the same person. The investors now hold about 80% stake in the company with the rest owned by the founders and the senior management team. Mukesh Bansal, chief executive officer of Myntra, declined to comment on the ongoing negotiations but said the company is open for more funding. So far, Myntra has raised a total of $125 million (about Rs 780 crore) of risk capital funding. The capital infusion is expected to help the six-year-old company realise its ambition of becoming India's largest retailer. "We will very soon be half the size of Shoppers Stop and Lifestyle and in the next year and a half, we will overtake them," said Bansal, 38, who cofounded the portal in 2007 turning it into a multi-brand fashion retailer after three years.
International:
- Globe Trotter: Starbucks ramps up investment across digital, mobile, and e-commerce platforms: Starbucks' chief executive Howard Schultz is stepping away from the day-to-day running of the business to work more closely with the company's digital chief as part of a senior management shuffle to tighten its focus on "next generation" digital marketing initiatives reported Marketing Week. Starbucks is ramping up its investment across digital, mobile, card, loyalty and e-commerce. Schultz, in partnership with the company's chief digital officer Adam Brotman and chief strategy officer Matt Ryan, will focus on "rapidly evolving" its digital, mobile, card, loyalty and e-commerce presence from February 2014. The move is an attempt to tackle what the business has referred to in the past as the "seismic shift" in shopping habits with consumers increasingly moving from bricks to clicks in the fast-food arena. The changes aim to build on the momentum the company has forged in the loyalty and mobile marketing arenas in recent years. The operational changes come after the business admitted the rise of people ordering products online had dented sales in its latest quarter. It teased plans to introduce mobile ordering later this year; one of several digital marketing initiatives it claims will exploit 'next generation' retailing and payments opportunities.
- Wal-Mart to invest $500 million in Canada, create 7,500 jobs: Wal-Mart Stores Inc said on Tuesday it would invest about $500 million this year to strengthen its presence in Canada, creating more than 7,500 jobs including construction. The investments include more than $376 million for store projects, $91 million for distribution networks to expand fresh food capability and $31 million for e-commerce projects. The company plans to complete 35 supercentre projects in Canada in the fiscal year through January 31, 2015.
- Google to make 'significant' changes to avoid EU fine: Google has promised to make "significant" changes to how rivals appear in search results in an attempt to avoid a multi-billion euro fine. The latest changes should be sufficient to end a three-year investigation into the search company, the EU's competition commissioner said. Google had been accused of giving favorable treatment to its own products in search results. The company said it looked forward to resolving the matter. In a news conference, European Competition Commissioner Joaquin Almunia said he would not seek feedback on the deal from Google's rivals before it was formalized. "I consider at this point that we don't need a market test," he told reporters. The decision has prompted criticism from lobby groups, including the Microsoft-backed Initiative for a Competitive Online Marketplace (Icomp). "A settlement without third party review is a massive failure," the group said. "We need time and opportunity to ensure full technical assessment of how effective the proposed remedies would be." Google argued that its proposals were fair and wide-reaching. "We will be making significant changes to the way Google operates in Europe," said Google lawyer Kent Walker. "We have been working with the European Commission to address issues they raised." The move marks the third time Google has offered changes and concessions to its services in order to satisfy the EU's concerns. Previous offers - such as displaying logos to denote when a Google product was being promoted - were not deemed to go far enough.
- Analyst Values Net-a-Porter at Up to $3B: Talk of peddling Net-a-portermay have died down since the company’s parent Compagnie Financière Richemont denied last year that it was for sale, but that hasn’t stopped some from keeping the conversation alive. On Wednesday, Vontobel’s equity research team in Zurich wrote a short note about the expected initial public offering later this year of Zalando, the German online clothing retailer that stocks brands ranging from Benetton and Adidas to Tommy Hilfiger and G-Star Raw. It compared Zalando with Net, and said the latter could be valued between 2 billion euros and 2.5 billion euros, or $2.7 billion to $3.38 billion at current exchange, or 6 to 7 percent of Richemont’s market capitalization. That figure is based on a valuation of 4.3 times Net’s 2012 sales.
- Mapping Out Growth at Lord & Taylor, Hudson's Bay: The Northeast-concentrated department store and its sister Hudson’s Bay division spread through Canada have new agendas stretching the boundaries of where and what both retailers can sell. That’s the word from Liz Rodbell, the career L&T merchant who on Monday officially stepped up from executive vice president to president of the Hudson’s Bay Co. department store group. The business, estimated at about $4.2 billion in sales for 2013, includes the 49-unit L&T and the 90-unit Hudson’s Bay. For decades, both have lagged the competition in productivity, not to mention retail theater. Yet over the last several months, management has been stabilized with marketing, creative and administrative chiefs appointed, as well as elevating Rodbell, while strategies for growth and reviving some pizzazz have been unfolding fast. The $7.5 billion parent Hudson’s Bay Co. remains in a transformational period due to its recent Saks Fifth Avenue acquisition, which is separate from the department store group, and intensified efforts to renovate, develop shop formats and brand partnerships inside Hudson’s Bay and L&T and advance the underdeveloped online businesses at those two divisions.
- Twitter's sputtering user growth worries investors: Twitter Inc on Wednesday reported its slowest pace of user growth in recent company history, dimming hopes that the social media phenomenon can sustain its torrid pace of expansion and wiping out nearly a fifth of the company's value in after-hours trading. The San Francisco company posted better-than-expected fourth-quarter revenue of $243 million in its first results as a public company. But investors focused on the anemic user growth, as well as a severe decline in timeline views, a measure of user engagement. Twitter, which held a highly anticipated initial public offering in November at $26 a share, has divided investor opinion in recent months, as shares raced to more than $66 ahead of Wednesday's results despite an absence of news. Twitter's valuation has been predicated in part on the belief it could expand its mainstream appeal and eventually become as ubiquitous as Facebook Inc , which has five times as many users. Some analysts warned that its valuation looked increasingly bloated. User growth, a closely watched metric, in fact sputtered. Twitter averaged 241 million monthly users in the December quarter, up just 3.8% from the previous three months - the lowest rate of quarter-on-quarter growth since Twitter began disclosing user figures. "What this report will do is it will question how mainstream is Twitter as a platform," said Arvind Bhatia, an analyst at Sterne, Agee & Leach. "Both in the US and internationally, the monthly active user base did not grow as fast as people thought, and that has an impact on the number of timeline views." Shares fell sharply after hours on Wednesday to $54, down about 18% from a close of $65.97 on the New York Stock Exchange. The tumble came as a rude jolt for investors who had bid up Twitter shares to about 30 times projected 2014 sales, based on its Wednesday closing price - or more than twice as expensive as Facebook or LinkedIn Corp .
Currency:
· 1 USD= ₹ 62.444
· 1 EUR= ₹ 84.451
· 1 GBP= ₹ 101.838
· 1 AUD= ₹ 55.971
Glitter Meter: India
Gold (INR/10g) | Silver (INR/kg) | |||
City | Current | Change | Current | Change |
Chennai | 30020.00 | 0 | 44095.00 | 410 |
Mumbai | 29550.00 | 0 | 44095.00 | 410 |
Delhi | 29310.00 | 0 | 44095.00 | 410 |
Kolkata | 29430.00 | 0 | 44095.00 | 410 |
World Indices:
Exchange | Last | Change |
DJIA | 15440.23 | -5.01 |
FTSE 100 | 6457.89 | +8.62 |
CAC 40 | 4117.79 | +0.34 |
DAX | 9116.32 | -11.59 |
Nikkei | 14222.67 | +42.29 |
Hang Seng | 21369.26 | +99.88 |
Sensex | 20319.00 | +57.97 |
NASDAQ | 4011.55 | -19.97 |
*Disclaimer:
World One Consulting Pvt Ltd will not accept any liability for loss or damage as a result of reliance on the information contained within this newsletter including data, quotes, charts and buy/sell signals.
World One Consulting Pvt Ltd will not accept any liability for loss or damage as a result of reliance on the information contained within this newsletter including data, quotes, charts and buy/sell signals.