Thought of the Day:
“Mend it, fix it, make do, or do without”
-Brigham Young
Did you know?
Though it's rarely used, the word referring to half a computer byte is a "nibble."
India:
International:
“Mend it, fix it, make do, or do without”
-Brigham Young
Did you know?
Though it's rarely used, the word referring to half a computer byte is a "nibble."
India:
- Offline Retailers Open an Online Front: Top mobile phone and electronics retailers such as The Mobile Store, Future Group and UniverCell Retail are boosting their online presence with aggressive deals to counter e-commerce portals that have hurt their brick-and-mortar business with discount offers. These firms have slashed prices, launched exchange offers on old models and even offer faster delivery options for online purchases in a bid to curb losing business to the likes of Flipkart and Snapdeal. “It’s better to lose sales to one’s own e-commerce platform than to competition,” D Sathish Babu, CEO at cellphone retail chain UniverCell Retail, said. UniverCell is offering maximum possible discount for online sales and has started a one-hour delivery option in some southern cities, Mumbai and Pune, utilising its back-end infrastructure of 460-odd stores. The Mobile Store, too, has started exchange offers and discounted prices for online sales, while Videocon-owned PlanetM Retail said its e-commerce portal will benchmark prices with popular shopping sites. Future Group’s ezoneonline has started selling products at a lower price than what’s available in the firm’s physical stores, while a senior official at Reliance Retail said the company wants reexamine its online sales strategy. For more than a year these retailers, along with distributors, have been lobbying with manufacturers to stop indiscriminate discounting by Flipkart, Snapdeal and Amazon, which impacted their business. While some manufacturers such as Lenovo, Toshiba and Nikon have warned consumers against purchasing from online sites without checking warranty status, most manufacturers have not been able to plug the discounts. Canon reportedly plans to offer longer warranty on products bought offline to negate online discounts. E-commerce accounts for less than 1% of total retail sales in India, but it is the fastest growing retail channel. According to Assocham, India's e-commerce market grew 88% in 2013 to $16 billion, or about . 97,555 crore.
- Jewellers Lose Shine as Buyers Prefer Branded Products: Branded jewellery is making greater inroads into the Indian market, with companies such as Titan and Kalyan Jewellers seeing customers shifting towards them and away from traditional retailers. This migration, on top of the import restrictions on gold and the overall economic slump, has put the squeeze on small jewellery stores. Branded jewellery has close to a fifth of the market and maybe about twice that in the big cities. The trend is growing, said CK Venkataraman, chief executive of Titan's jewellery division, in an interview to ET. “Industry has started transforming. New regional and national players will benefit at the cost of other smaller players,” Venkataraman said. Titan sells jewellery under the leading Tanishq brand and gets almost 79% of its revenue of more than . 10,000 crore from the sale of gold and diamonds. Organised gold retailers, including Delhi-based PC Jewellers, Bangalore-based Titan and Kerala-based Kalyan Jewellers, currently have a 16% share of the $40 billion jewellery market, according to analysts at Mumbai-based Crisil Research. The transformation that’s under way is akin to what happened in the garment business in India — neighbourhood tailors giving way to branded readymade clothes. “Similar to what happened in the garment industry, with organised players like Madura Garments, Arvind in the apparel business, a similar trend will be seen here as more operators become national, become corporate,” Venkataraman said. Small retailers are facing difficulties as the majority of bullion dealers have been “crushed” by government regulations, thereby leading to a “huge supply crunch”, Venkataraman said. These “measures to curb demand by macroeconomic developments have actually aided. organisation of the industry”.
- Airtel to Tie up with GSM Cos in Africa, Middle-East: Sunil Mittal-founded Bharti Airtel and six other GSM majors serving the Africa and Middle-East markets will forge network infrastructure sharing pacts to provide Internet and mobile broadband access to unserved rural communities and drive down mobile services delivery costs for all sections of the population in these regions. The initial group of senior leaders from mobile operator groups who will support the initiative include Christian de Faria, CEO, Bharti Airtel Africa; Ahmad Julfar, Group CEO, Etisalat; Sifiso Dabengwa, CEO and President, MTN Group; Nasser Marafih, Group CEO, Ooredoo; Marc Rennard, senior executive vice president (Africa, Middle East & Asia), Orange; Serpil Timuray, CEO (Africa, Middle East & Asia Pacific Region) Vodafone Group and Scott Gegenheimer, CEO, Zain Group. The companies they represent collectively manage 76 mobile network operations across 47 countries in Africa and the Middle East, where many of the unconnected population live in rural areas, GSMA said in a media statement Tuesday. The GSMA is an industry lobby representing GSM operators worldwide. “We call on governments to support and encourage commercial infrastructure sharing arrangements that we aim to propose,” Manoj Kohli, managing director at Bharti Enterprises and Chair of the Public Policy Committee of the GSMA board, which also supports the initiative, said in a statement.
- India clears path for Singapore Airlines’ super jumbo A380: India has cleared an air services agreement with Singapore that will allow Singapore Airlines Ltd to fly its super jumbo Airbus A380 aircraft to India. The double-decker Airbus A380 can seat as many as 800 passengers in an all-economy configuration. Analysts say big international carriers will use this opportunity to tap the high-volume and price-sensitive Indian market. This will, however, affect national flag carrier Air India and set back Delhi airport’s dream of becoming an aviation hub. “There were minor changes required to the air services agreement we had with Singapore. Those changes have been made,” said a government official who declined to be named. A second official, who also declined to be named, confirmed the signing of the updated agreement between Singapore and Indian delegates at the Hyderabad air show, India Aviation, last week. Singapore Airlines confirmed it will be flying A380 planes to India soon.
- Fossil to invest $4.5million post FDI approval: Fossil India, the wholly owned subsidiary of the $3.2 billion American lifestyle brand Fossil Inc, will invest upwards of Rs 25 crore or $4.5 million in the country following regulatory approvals to set up single brand stores. Fossil is among the first batch of global lifestyle brands that were issued clearances by the Foreign Investment Promotion Board, after the Indian government raised the foreign direct investment (FDI) limit in single brand retail to 100% last year. India mandates foreign retailers to have 30% local sourcing, which Fossil said it would adhere to by ramping up production capacity of its watch -manufacturing unit at Palwan in Himachal Pradesh. Fossil manufactures a range of lifestyle products that include watches, jewellery, sunglasses, and leather goods. While the brand is well known as a watchmaker, 50% of Fossil's global sales come from its leather goods such as wallets, handbags, and belts. Vasant Nangia, MD, Fossil India, said that as per their FDI proposal, Fossil would open 21 retail stores in the next 36 months, primarily across the top metros.
- Coca-Cola plans to set up Rs 1,200-cr unit in AP; Nellore to be biggest greenfield facility in Asia: The world's largest beverage firm, Coca-Cola, plans to set up its biggest greenfield manufacturing facility in Asia at a cost of about Rs 1,200 crore in Nellore district of Andhra Pradesh to take on its rival PepsiCo, which has decided to build a similar unit in the same state. are currently waiting for clearances from their headquarters, are expected to sign an initial lease agreement with IFFCO over the next couple of weeks. The facility would come up over 150 acres of land in the industrial zones being developed by IFFCO in the region," the person told ET. Coca-Cola's move to choose the district is to bridge a growing demand for its products in the three southern states of Andhra Pradesh, Karnataka and Tamil Nadu, a person familiar with the development said. State officials confirmed Coca Cola's move and a company spokesperson said on condition of anonymity that talks were held with IFFCO for setting up the facility. "They had approached us earlier with a proposal but it was then not very clear whether they would set up the project on their own or one of their franchisees would invest," a senior bureaucrat with the state industries ministry said, "Pepsi-Co setting up its facility in Chittoor district may have prompted Coca Cola to expedite their plans and locate their unit close to their rival to compete on resources as well as markets."
- Smartphone rates may slip below Rs 2.5k by year-end: Come 2014-end, you could buy a fully-equipped smartphone for as low as Rs 2,350. The costs of making smart devices are poised to fall further, allowing handset makers to cut prices, which would be a further boost to India's fastgrowing smartphone market that is already doubling year on year. Analysts tracking India's billion-dollar handset industry predict that entry-level yet full blown smartphones would be sold at Rs 2,350 to Rs 2,450 by the end of 2014, as cost of chipset is expected to come down, bringing down the total cost of making the devices. "Prices of smartphones have been decreasing rapidly in the recent years, with the entry-level smartphones currently being available for as low as $50 (Rs 3,000). We expect the entry-level smartphone prices to settle at $38 to $40," said Convergence Catalyst's co-founder and partner Jayanth Kolla. The telecom research firm's recent study showed that "there is room for chipset prices to decline," while prices of display, memory and battery are near to the ground. He added that the smartphones at these price points will be able to give the complete high speed mobile internet experience, as opposed to present entry-level smartphones that have a lot of limitations, including speed.
International:
- New £1 coin to be introduced to combat counterfeiting: A new £1 coin, designed to be the "most secure in the world", is set to be introduced in 2017. It comes amid concerns about the 30-year old coin's vulnerability to counterfeiting, with an estimated 45 million forgeries in circulation. The new coin is based on the design of the old 3d (three penny) piece, or three penny bit, a 12-sided coin in circulation between 1937 and 1971. A competition will be held to decide the image on one side of the coin. The Royal Mint, which believes 3% of existing £1 coins are fake, said the move would increase "public confidence" in the UK's currency and reduce costs for banks and other businesses. The announcement comes as Chancellor George Osborne prepares to deliver his fifth Budget on Wednesday.
- Google and Viacom settle seven-year YouTube row: Google and Viacom have resolved a long-running legal battle regarding copyrighted material on YouTube. The out-of-court settlement brings to an end a dispute that began in 2007. Viacom had sought $1bn (£600m) in damages from the search giant. The companies said in a joint statement: "This settlement reflects the growing collaborative dialogue between our two companies on important opportunities, and we look forward to working more closely together." The terms of the deal were not disclosed, but the BBC understands no money has changed hands.
- Apple Introduces Cheaper IPhone 5c : Apple Inc. (AAPL) is selling a new, cheaper version of the iPhone 5c with less memory in the U.K., France, Germany, Australia and China. The latest iPhone 5c has 8 gigabytes and is priced at 429 pounds ($712) without a contract, compared with 469 pounds for the 16-gigabyte model, according to Apple’s U.K. store. The Cupertino, California-based company isn’t yet offering this version of the 5c in the U.S. Apple introduced the plastic-cased iPhone 5c last year in a bid to capture more budget-conscious smartphone buyers. Customers have instead favored the higher-end 5s model with a more powerful processor, sharper camera and fingerprint reader. In countries where wireless subsidies aren’t common, the full price of the iPhone 5C has held back sales, according to Brian Marshall, an analyst at ISI Group. The new iPhone 5c is being sold for 4,088 yuan ($660) on Apple’s online store in China, the world’s biggest handset market. China Mobile Ltd. (941), the No. 1 carrier, began selling iPhones in January after six years of negotiations as both seek to stem declining share there. Apple also updated its least expensive full-size iPad, adding better cameras and a faster chip to its $399 model to compete with products using Google Inc.’s (GOOG) Android software.
- French Firm Monette Finds White Knight: French lingerie brand Monette, created with ex-Lejaby lingerie workers, is to be acquired by a Luxemburg-based manufacturer Seven Fashion, according to the label’s founder Assya Hiridjee, a former designer for intimates firm Princesse Tam Tam. The company was recently forced into bankruptcy and the Paris commercial court gave its approval to the acquisition on Monday by Seven Fashion president Adrian Diaconu for 120,000 euros or $166,912 at current exchange rates, which includes all assets and 42 employees, Hiridjee told WWD. The company is to resume operations in the next days and is to remain based in France, Hiridjee noted. Monette specializes in high-end lingerie, mostly made with silk. Collections include pieces named after Parisian landmarks such as Pont des Arts, Lutetia and Café de Flore. The development comes after Les Atelières, an association of ex-Lejaby lingerie workers who set up their own plant in late 2012, announced early March it will be forced into bankruptcy before the end of the month if it does not receive 800,000 euros, or $1.1 million at current exchange, in funding. The cooperative company had received promises of funding from as well as support from an industry keen to support French manufacturing. A general assembly is set for Friday.
- Porsche Design Sales Gain 10%: The Porsche Design Group continued to chalk up double-digit growth in 2013, with sales gaining 10 percent to reach 128 million euros, or $166 million. Dollar figures are converted from euros at average exchange rates for the period in question. The German group encompasses the Porsche Design and Porsche Driver’s Selection business as well as the Porsche Design Studio in Zell am See, Austria. The group does not release earnings figures. Porsche Design said “above-average growth” was generated in the smartphone segment, with the introduction of the Porsche Design P’9982 smartphone from BlackBerry in late 2013. The first Porsche Design woman’s bag also hit the market in 2013, as did the first women’s Porsche Design Sport collection in cooperation with the group’s long-standing licensing partner, Adidas. The German group also further expanded its retail network, with 50 Porsche Design stores opening last year, bringing the total number of Porsche Design Stores and franchises to 152. Key 2013 openings included London, Miami, Düsseldorf, Prague, Istanbul, Macau, Hong Kong and Jakarta, Indonesia. Looking ahead, chief executive officer Juergen Gessler said, “We are working on a slight increase for 2014. However, due to restructuring and a change of our business model, such as buying back our shoe license or the end of our license agreement in regards to our watches, there are quite a number of uncertainties.” Not to mention some “huge investments” related to Porsche Design’s new flagship in Milan, the relocation of the Madison Avenue flagship in New York and the goal of opening a Paris flagship by the end of 2014. “Our plan is to double the turnover by 2108, to achieve a sales revenue of more than 300 million euros [$480 million at current exchange],” Gessler told WWD.
- Google Extends Android to Smartwatches: Google is staking its claim in the still-nascent, but promising category of wearable technology— and it’s tapped Fossil as a partner. The Web giant unveiled a project called Android Wear aimed at boosting the company’s presence in wearable gadgets. The effort begins with watches and further burnishes Google’s fashioncred. (The company introduced its buzzy Google Glass with the help of Diane von Furstenberg in 2012). “Most of us are rarely without our smartphones in hand,” wrote Sundar Pichai, Google’s senior vice president of Android, Chrome and apps, on the company’s blog Tuesday. “These powerful supercomputers keep us connected to the world and the people we love. But we’re only at the beginning; we’ve barely scratched the surface of what’s possible with mobile technology.” The existing Android operating system already works with hardware like smartphones, tablets and smartwatches — but Android Wear is a targeted technology designed specifically for wearable use, starting with watches, across vendors. Similarly, the Open Automotive Alliance was introduced earlier this year to bring Android to the automobile sector in a highly targeted way. Google is already working with electronics firms Samsung, Asus, HTC, LG and Motorola; chip makers Broadcom, Imagination, Intel, Mediatek and Qualcomm, as well as fashion companies such as Fossil Group. Watches powered by Android Wear are expected to be introduced later this year, and prices haven’t been released. Google’s basic Android operating system already has been used in wearable technology in the form of Samsung’s Galaxy Gear smartwatches. But Samsung last month revealed plans to switch from Android for the second generation of some of its smartwatches, releasing to software developers on Monday its own operating system called Tizen.
- Hyundai Flexes Muscles as Fashion Retailer: South Korea’s Hyundai Department Store Group is making its first steps overseas with the opening of a Tom Greyhound multibrand store here. Handsome Paris, the local subsidiary of South Korea’s Handsome Corp., has invested 3 million euros, or $4.2 million at current exchange, in the two-story unit at 19 Rue de Saintonge in the Upper Marais district, and plans to open additional stores in New York and Los Angelesin coming years. Founded in 1987, Handsome Corp. manufactures and distributes women’s and men’s apparel and accessories and was acquired by Hyundai in 2012. “In the wake of this acquisition, Hyundai wants to establish its expertise as a fashion retailer. We needed a tool to demonstrate our capacity overseas, so we chose the world capital of fashion: Paris,” said David Kang, general director of Handsome Paris. The 3,875-square-foot Paris boutique carries 60 percent women’s wear and 40 percent men’s wear, with ready-to-wear brands including Christopher Kane, Damir Doma, Helmut Lang, J.W. Anderson, McQ, Opening Ceremony, Sacai, Julien David and Ami Alexandre Mattiussi. In addition, it will carry Handsome Corp.’s men’s wear brand System and its newly launched women’s and men’s leather goods line Decke.
Currency:
· 1 USD= ₹ 61.073
· 1 EUR= ₹ 85.045
· 1 GBP= ₹ 101.351
· 1 AUD= ₹ 55.671
Glitter Meter: India
Gold (INR/10g) | Silver (INR/kg) | |||
City | Current | Change | Current | Change |
Chennai | 30400.00 | 30 | 46280.00 | -845 |
Mumbai | 29920.00 | -60 | 46280.00 | -845 |
Delhi | 29680.00 | -50 | 46280.00 | -845 |
Kolkata | 29800.00 | -50 | 46280.00 | -845 |
World Indices:
Exchange | Last | Change |
DJIA | 16336.19 | +88.97 |
FTSE 100 | 6605.28 | +36.93 |
CAC 40 | 4313.26 | +41.30 |
DAX | 9242.55 | +61.66 |
Nikkei | 14354.95 | -56.32 |
Hang Seng | 21567.19 | -16.31 |
Sensex | 21872.68 | +40.07 |
NASDAQ | 4333.31 | +53.36 |
*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.
