Thought of the Day:
“To live is the rarest thing in the world. Most people exist, that is all.”
Oscar Wilde
Did you know?
Gustave Eiffel, designer of the Eiffel Tower, enjoyed a successful career as an architect despite having dyslexia and a paralyzing fear of heights.
India:
International:
“To live is the rarest thing in the world. Most people exist, that is all.”
Oscar Wilde
Did you know?
Gustave Eiffel, designer of the Eiffel Tower, enjoyed a successful career as an architect despite having dyslexia and a paralyzing fear of heights.
India:
- $1 Billion. Flipkart Marches to History: Indian ecommerce flag-bearer Flipkart has crossed $1 billion (more than . 6,100 crore) in sales, achieving the key revenue figure a year ahead of target and some 17 months faster than it took Amazon, the global posterboy of e-commerce, to cross this crucial milestone. Bangalore-based Flipkart, which started off in October 2007 as an online retailer of books, took a little over six years to cross the $1-billion milestone. By comparison, one-time Indian IT bellwether Infosys Technologies took 23 years to hit $1-billion sales mark. USbased Amazon crossed the $1-billion mark seven years after its 1994 launch. “We are really proud and excited to announce that we have hit a run rate of $1 billion GMV one year before our target,” said Flipkart’s co-founders Sachin Bansal and Binny Bansal, both IITDelhi graduates who were former executives at Amazon India and launched Flipkart from a one-room rented apartment in India’s technology capital. “In March 2011, we announced that by 2015 we wanted to hit $1 billion in GMV. At that point in time our run rate was $10 million (a month).” GMV stands for gross merchandise value, an industry jargon for sales. Flipkart Far Ahead in E-Commerce. Flipkart’s revenue performance marks a coming of age for India’s ecommerce sector, which has of late started seeing sales gallop as consumers flock to their “marketplace” model and investors make a beeline to fund strong players. Rising Internet penetration, proliferation of smartphones and a wide array of choices are attracting consumers in droves to ecommerce portals. The sales performance puts Flipkart indisputably ahead in the race for the top spot in India’s fledgling $2 billion-ayear ecommerce industry.
- Samsung, Accenture Team up for Secure Mobile Platform, Apps: A quiet press note last week announced Android phone giant Samsung Electronics and Accenture, the world’s second-largest technology consulting and services provider, had teamed up. They aim to deliver three things: a secure mobile platform, managed procurement of mobile devices, and vertical-specific appsin-a-box focused on mobile users. At the very least, this helps corporations truly embrace BYOD (bring your own device), but at a more ambitious level, this brings Android, the world’s most popular smartphone and tablet software on the consumer front, firmly into the enterprise arena. “Accenture is not only pitching KNOX, Accenture is not only supporting vertical packages, not only delivering device lifecycle management … they are part of the business model,” said Ray Wang, founder and principal analyst at Constellation Research, who expects more such team-ups to evolve. Accenture will offer resale and go-to-market support for Samsung KNOX, a secure mobile platform for companies and employees, including technical support. Wang added: “This is the ultimate gain sharing … Accenture is saying, ‘we are going to risk our reputation, revenues, profits, and we are going to risk it with you, the partner’ ... this is a joint venture.” Gartner Research Director Bhavish Sood said the move was a “rare win-win partnership”, in the technology industry, where typically alliances tended to be lopsided.
- Bharti in Retail Tieup Talks with Carrefour, Aeon: Bharti Group, which runs India’s largest mobile operator by both revenue and subscribers, is in talks with two global retail chains — French major Carrefour and Japan’s largest retailer Aeon — with the intention of forming a new joint venture with one of them, said two people familiar with the negotiations. The new partner will replace Walmart, the world’s largest retail company, with which Bharti, owned by billionaire Sunil Mittal, had a strategic partnership till October last year. “Discussions with Carrefour were at an advanced stage. However, the talks were put on hold due to the entry of Japanese retailer Aeon,” said one of the people cited above. “Some of the senior officials of Bharti Retail are in favour of tying up with the French major as it has an existing footprint in India’s cash & carry space that would be a perfect match for Bharti Retail,” he said. Regardless of its eventual choice, Bharti’s retail venture will be structured along similar lines. Bharti and the foreign retailer will form joint ventures for the cash & carry segment, which caters to wholesale traders, and for the back-end of the retail chain selling to individual consumers. While Indian regulations allow 51% in multi-brand retail, individual states have the right to block foreign-owned retailers.
- Gurgaon's etailers face no threat from biggies like Flipkart, Jabong: Amidst the threat big online-retailers pose to smaller rivals, Gurgaon-based online retail players have thrown down the gauntlet. Some of them have emerged as a key competitor to established brands, and many have successfully created a niche to sustain in the vast online retail world. "Besides well-established big players, the survival, sustenance and growth of other players have been possible after locating the thriving space and market for them," said Radhika Ghai Aggarwal, co-founder, Shopclues.com. The portal started its operation two years ago and claims to be growing at 600 per cent YOY. She added that all the established players from small to large have taken the same route of success, though differently. It's just about following the apt business idea and targeting the right audience or the market. Explaining the niche of her venture, she explained, "We started its operations as India's first and the largest fully managed marketplace. As a managed marketplace, we were clear that we would only be the facilitator of buyer-seller transactions and our job would be to bring in customer traffic, provide infrastructure, and develop trust between people who come to transact in the space." Pearl Uppal, founder & general partner at 5ideas Startup Superfuel said that though the online world caters to the whole country yet many city-based players have found the niche for their company. The venture offers advice to startups and helps them in the business.
- India’s Billionaire Count Set to Double in 10 Years: More Indians will buy the world's most expensive homes as the number of billionaires here multiplies faster than in any other country, surpassing the number of billionaires in the UK. The number of billionaires in India is estimated to be growing at nearly 100% by 2023, superseding China's 80%, Russia and Brazil's 40%, according to property consultancy Knight Frank Global Wealth report 2014. “Continued global wealth creation, particularly in emerging economies, has been a key driver for prime property markets. This trend looks to continue with a forecast increase of 28% in the total number of Ultra High Net-Worth Individuals (UHNWIs) around the world by 2023. The growth of Ultra High Net-Worth Individuals in China and India, coupled with an eye-catching 144% increase in Indonesia and a 166% hike in Vietnam, will help push the total number of UHNWIs in Asia up by 43%,” said Liam Bailey, Global Head of Residential Research, Knight Frank. In 2003, the number of billionaires in India stood at 23, and in 2013, it touched 60. It is expected to climb to 119 in 2023. India will be ranked fourth in terms of the number of billionaires in the next ten years from the current 6th spot. The US, China and Russia will occupy the top three slots in this list with 503, 322 and 128 billionaires, respectively. “Wealth creation in India is expected to accelerate with the number of UHNWIs expected to double over the next decade. This reflects a more positive outlook for India's economy, after 2013 was marked by capital outflows and a sharp devaluation of the rupee,” said Shishir Baijal, CMD, Knight Frank India. In the next decade, top five future hotspots for property investments will feature Mumbai along with Sao Paulo in Latin America, Istanbul and Abu Dhabi in west Asia and Sydney in Australia, the survey showed.
- Fast-food chain Subway to enter upscale coffee house space with Subway Cafes: American fast-food chain Subway plans to break into the upscale coffee-house market in India by introducing Subway Cafes in select locations, to attract customers throughout the day with an extended menu. "We are launching Subway Cafe with proper coffee machines and pastries to fill the morning and afternoon part when some people don't really want sandwiches," Karen Eidsvik Moody, regional director-Asia at Subway, said. "As people taste evolves and more competition comes in, that also helps build the whole business," she said. Subway, known for its foot-long submarine sandwiches and salads, launched such cafe in the US three years ago. Its global rival and burger giant McDonald's had introduced cafes in India last year. Market observers say it would be difficult for Subway to establish itself in the Rs1,400-crore Indian cafe business which is becoming increasingly competitive and is mostly limited to cities. "While the potential remains high for cafe business, existing chains are finding it difficult to breakeven as consumer acceptance is still low currently," said Ruchi Sally, director at boutique retail consultancy Elargir Solutions. "Subway is known for sandwiches and it will also take time for consumers to accept its change in menu," she added.
- Arvind Singhal: The 'e' challenge to physical retail: Several fascinating changes are underway in India that will fundamentally transform how Indians will shop just a few years ahead, and thereby irreversibly alter the composition of various formats of retail businesses, especially those catering to the needs of urban, semi-urban, and even the relatively large (say, the top 50,000 of the estimated 650,000) villages. This change will create, in the near term, a rapidly escalating conflict between physical retailers (and mall owners having physical retailers as tenants or revenue-sharing partners) and the e-tailers. There are already many visible examples of this conflict with reports of threats from mall owners to brandowners to ensure "price" parity between the physical and online retail channels. However, such threats (or hopes) on behalf of physical retailers, select brands, and mall owners and shopping establishments' landlords are unlikely to work (notwithstanding even the questionable legality of such action from the point of view of competition laws) since the tide is clearly in favour of e-commerce (of both services and merchandise). Underpinning this transformation is one of the most important factor, is the increasing time-poverty of the core consuming class in urban India. The very rich are able to "outsource" many of their mundane, time-intensive activities to a retinue of assistants leaving them with more time for leisure, recreation, and shopping (the very poor may have the time but no disposable, discretionary spending income). But the middle class faces more pressures on its time as it juggles jobs, longer commutes, attending to the myriad needs of children, social obligations, higher cost and shrinking availability of trained domestic help, the nuclearisation of families and so on. Indeed, if time could be bought, it would command a rapidly growing premium from the typical middle-class urban Indian household.
International:
- Apple loses bid for US ban on sale of Samsung smartphones: A US judge on Thursday rejected Apple Inc's request for a permanent sales ban in the US against some older Samsung smartphones, a key setback for the iPhone maker in its global patent battle. US District Judge Lucy Koh in San Jose, California, ruled Apple had not presented enough evidence to show that its patented features were a significant enough driver of consumer demand to warrant an injunction. Representatives for Samsung could not immediately be reached for comment. Apple's request for the permanent injunction stems from the companies' legal fight over various smartphone features patented by Apple, such as the use of fingers to pinch and zoom on the screen as well as design elements such as the phone's flat, black glass screen. Apple has already won U.S. jury verdicts against Samsung Electronics Co Ltd totalling about $930 million. Koh had already rejected such a sales ban, but the U.S. Court of Appeals for the Federal Circuit ordered her to reconsider in November.
- Michelle Hoffman Promoted at Buckle: Michelle Hoffman, a regional manager at The Buckle Inc. since 2008, has been promoted to vice president of sales in a series of executive shifts at the Kearney, Neb.-based teen specialty chain.Hoffman succeeds Kari Smith, who last month was promoted to executive vice president of stores. She joined Buckle in 1979 and served as a store manager and district manager prior to her promotion to regional manager.In other promotions at the chain, Patricia Whisler and Robert Carlberg, vice presidents of women’s and men’s merchandising, respectively, have been promoted to senior vice president. Whisler had held her most recent title since 2001, and Carlberg since 2006.Karen Rhoads has been named senior vice president of finance after serving as vice president of finance since 1991. She continues as the company’s chief financial officer. Kyle Hanson, general counsel and corporate secretary, has added the title of vice president, and Brett Milkie, vice president of leasing since 1996, has been promoted to senior vice president of leasing. Buckle currently operates 450 stores in 43 states, with its heaviest concentration in the Midwest.
- Natalie Bader Named President of Clarins Brand: Natalie Bader has been named president of the Clarins brand, Groupe Clarins management said. The executive, who started in the role on Monday, had most recently served as chief executive officer of Prada France. In the past, Bader had also been ceo of Fred Jeweler and image director of Sephora in France. Bader now reports to Philip Shearer, ceo of Groupe Clarins, who had been running the Clarins brand.
- Kate Spade Wants to be Ralph Lauren, Seeking $4 Billion in Sales: Kate Spade wants to be Ralph Lauren. Looking to quadruple retail sales to $4 billion, the handbag maker is modeling itself on Lauren’s empire: a global lifestyle brand selling everything from apparel to home goods. Kate Spade & Co.’s Chief Executive Officer Craig Leavitt is focusing on categories with ready appeal — fragrances, jewelry, watches, sunglasses — and offering a range of price points to attract millennials on one end and luxury shoppers at the other. “Ralph Lauren is our business analog,” said Leavitt, 53, a former Lauren lieutenant who joined Kate Spade in 2008 and became CEO of the parent company last month. “We’re very confident in what we have set out to accomplish. It’s an audacious goal for a brand that’s one eighth the size of Ralph Lauren Corp. measured by fourth-quarter revenue, generates 75 percent of sales in the U.S. and is known mostly for quirky handbags beloved by gadabout urban women. Having parted ways with its namesake founder, Kate Spade also lacks a Ralph Lauren, whose curated image is as responsible for selling a modern Gatsby lifestyle as the products themselves.
- February Sales Improve Late in Month: Retail sales began the fiscal year on a chilly note in February, but sales trends improved along with the weather late in the month. Expected by Thomson Reuters to post median increases of 2.8 percent for the month, most retailers reporting monthly same-store sales came in at or slightly above expectations. L Brands Inc. reported comparable-store sales were up 2 percent during the month,, with Victoria’s Secret up an identical 2 percent, ahead of expectations for a 1.4 percent increase overall and a 1.3 percent gain at its biggest brand. Bath & Body Works fell short of expectations, generating a 1 percent increase versus the 2.4 percent gain anticipated, on average by analysts. Fresh off a 3.7 percent comp increase in fiscal 2013, Stein Mart Inc.’s February comps fell 2.1 percent against analysts’ estimate of a 2.5 percent improvement. Its Florida and Texas stores had increases, but “most other areas experienced sales declines due to severe winter weather, with the Northeast and Midwest being impacted the most,” the company said. The two remaining teen retailers in the comp sample did better than expected, with The Buckle Inc. down 1.4 percent and Zumiez Inc. ahead 2 percent. Analysts had expected Buckle to report a 4 percent decline and Zumiez a 0.9 percent increase. Specialty retailer Cato Corp. exceeded estimates with a 1 percent increase versus a projected 2 percent decline. "February sales were negatively impacted by winter storms the first two weeks of the month,” said John Cato, chairman, president and chief executive officer of the Charlotte, N.C.-based company. “However, that impact was offset by strong selling in the last two weeks of the month driven by warmer weather and tax refund spending.”
- Gap February Comps Hit the Skids: A bit of late-month traction was insufficient to pull Gap Inc.’s sales out of reverse last month. Reporting last — after the close of the markets Thursday — Gap’s numbers were in the uncustomary recent position of also being least, with comparable sales for the month down 7 percent, versus expectations among analysts for a 0.9 percent increase. Even net sales pulled back 3.8 percent for the four-week month, to $929 million from $966 million. By brand, Gap suffered the most, with comps down 10 percent, followed by Banana Republic, down 7 percent, and Old Navy, down 6 percent. Gap’s poor showing lowered the Thomson Reuters same-store sales index for the month to a gain of 1.8 percent, below the 2.8 percent median result expected. With the surprise decline, the median increase excluding drugstores was 0.3 percent, the weakest showing since a 2.4 percent pullback in August 2009.
Currency:
· 1 USD= ₹ 61.067
· 1 EUR= ₹ 84.622
· 1 GBP= ₹ 102.199
· 1 AUD= ₹ 55.480
Glitter Meter: India
Gold (INR/10g) | Silver (INR/kg) | |||
City | Current | Change | Current | Change |
Chennai | 30400.00 | -270 | 46665.00 | -660 |
Mumbai | 29920.00 | -270 | 46665.00 | -660 |
Delhi | 29670.00 | -270 | 46665.00 | -660 |
Kolkata | 29800.00 | -260 | 46665.00 | -660 |
World Indices:
Exchange | Last | Change |
DJIA | 16421.89 | +61.71 |
FTSE 100 | 6788.49 | +13.07 |
CAC 40 | 4417.04 | +25.79 |
DAX | 9542.87 | +0.85 |
Nikkei | 15220.05 | +85.30 |
Hang Seng | 22630.59 | -72.38 |
Sensex | 21597.33 | +83.46 |
NASDAQ | 4352.13 | -5.85 |
*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.