Daily News Digest- 11th Aug'14

Thought of the Day:

Today in History:

Following made the Headlines:

India:

• A napkin sketch, $ 2- bn investment & the grand Amazon plans: A week after Amazon’s surprise announcement that it would invest $ 2 billion in India, the American e- commerce major’s country head, Amit Agarwal, told Business Standard that the company’s business strategy — whether it was in Seattle, Bangalore or Mumbai — worked around a napkin sketch drawn by founder Jeff Bezos 15 years ago. It is perhaps that flywheel drawn by Bezos, showing the path to growth and low prices, that is arming Amazon to take on Flipkart in an all- out e- commerce war in the country. The battle gained more prominence recently, especially as Amazon decided to make its India warchest known — and a rare public statement of its financials in anon- listed market — within 24 hours of Flipkart raising a stunning $ 1 billion. Agarwal, with Mahendra Nerurkar, chief of Junglee. com, aprice comparison and search website owned by Amazon, visited Business Standard’s office here on Friday to interact with journalists. In a telling sign of what time meant in the e- retail space, Agarwal and Nerurkar turned up early, as had Flipkart Chief Executive Sachin Bansal for a similar session a few months ago. The Amazon India chief took to the whiteboard at the conference room, explaining Jeff’s flywheel. “ We always write the press release first and then get on to customers’ questions or FAQs ( frequently asked questions) before launching anything.” The idea is to start with the customer and then work backwards, Agarwal told an audience wanting to know more about the story behind the investment. 

• We're Still on Top, says Samsung India Chief: Samsung's India head has come down hard on research agencies claiming that the Korean major has lost its No. 1 position in the handset market, saying the reports were driven by `business motive', although he conceded the pace of growth for the electronics company had slowed. BD Park, president & chief executive for south-west Asia, told ET in an exclusive interaction that Samsung tion that Samsung still holds the lead in India with a share of almost half the market In the smartphones category , the sales of which are expected to cross 80 million units this year from 44 million in 2013, Samsung's share was twice that of the nearest competitor, Park said, citing the company's internal research and data from an external agency he didn't identify. “In India, there might be 1-2% up or down. Samsung's market share has doubled over the second place, so what is the meaning of comparing or saying that the gap is narrowing?“ Park asked.

• Jet Airways Aims to Save Rs 611.5 Cr: Jet Airways aims to save $100 mil (₹ 611.5 crore) by renegotiating lion contracts with its vendors and suppliers with help from its strategic partner Etihad Airways, India's second biggest airline by marketshare said in its latest annual report. “Whilst on one hand, the company is upgrading and repositioning itself based on its own operational strengths, on the other hand, it will exploit and capitalise on synergies arising from its alliance with Etihad as a strategic partner,“ the beleaguered carrier said in its annual detailed company statement for the year 2013-14. “Common areas of benefits include joint sourcing of aircraft and equipment, sharing of best practices, co-ordination of flights, leasing of spare aircraft, joint procurement of fuel and other services etc. resulting in cost savings for both the airlines,“ it added.

• Patel Logistics enters e- tailing: With Flipkart, Amazon, Snapdeal and the like hogging headlines for months, the ₹ 520- crore Patel Integrated Logistics is entering the etailing arena with a dedicated last- mile delivery vertical to serve this booming multi- billiondollar sunshine sector. One of the oldest organised homegrown players in the nascent logistics space and listed on the stock markets, the Patel group began with a one- truck entity in Mumbai more than 50 years ago. It has become a diversified logistics player with over ₹ 520 crore in revenues last financial year, and owns over 100 trucks, and operates around 2,000 on lease.

• Present is Bleak for Future at Pantaloons: Revenues at Kishore Biyani-led fashion company Future Lifestyle have taken a hit with Pantaloons department store chain, now owned by Aditya Birla Nuvo, considerably cutting down on Future Group's private brands and replacing them with own labels. “Overall sales growth was impacted due to drop in sales of company-owned brands sold through Pantaloons chain,“ Future Lifestyle said while announcing its results for the quarter ended June. It did not report the actual value of the financial impact from declining sales of its private labels at Pantaloons, which Future Group . 1,600 sold to Aditya Birla Nuvo in 2012 for ` crore to pare its mounting debt. Shital Mehta, CEO of Birla-owned Pantaloons Fashion & Retail, said the company has ramped up the share of its own private labels in Pantaloons outlets to 54% at present. Agile, Rang Manch, Akritii, Trishaa, Honey , Chalk, Annabelle and Alto Moda are some of the leading private brands from Pantaloons, now owned by Birla.

• Brands Bet on Pro Kabbadi for Rural Push: The Pro Kabaddi League (PKL), the ongoing Indian Premier League-style kabaddi tournament that has given a glamorous makeover to the rustic Indian game played mostly in the hinterland, has also given brands an opportunity to bond with India's rural masses Several companies, including leading utility vehicle maker M&M and Future Group, are piggybacking on a newly launched professional kabaddi league to connect with the semi-urban and rural folks and to market their products in villages, home to 70% of India's population. Ankit Patidar, VP marketing at Shakti Pumps, said its association with the league has helped the firm enhance its brand recognition in the rural areas. Shakti Pumps is sponsoring the Jaipur Pink Panther team in the Pro Kabaddi League.

• Indian whiskies top global growth chart: India's love for whisky just seems to be getting stouter, with no signs of anyone remotely saying `Yo Ho Ho and a Bottle of Rum' -a popular phrase from adventure novel “Treasure Island“. Data on alcohol consumption sourced from an annual report by Drinks International shows that seven among the top 10 fastest growing whisky brands in the world are Indian. Radico Khaitan's Crown clocked the highest global growth rate of 75% in the last calendar, followed by Pernod Ricard's Imperial Blue (40%), Allied Blenders & Distillers' Officer's Choice (31%) and United Spirits' (USL's) Haywards Fine (30%). Pernod's The Glenlivet single malt was the only global brand to feature in the top five with a growth of 25%. In terms of sales, Officer's Choice is currently the largest selling whisky brand globally with 23.8 million cases (of 9 litres each), ousting McDowell's No. 1 from the top spot last calendar. The famed Johnnie Walker is now the third largest selling whisky brand in the world with 20.1 million cases, according to Drinks International data.

• GoAir joins IndiGo on profitable flight path: IndiGo, for long India's only profitable airline, now has company. The Wadia Group-owned GoAir has flown into the black and is now firming up the launch of its international operations next May, apart from getting a foreign airline as FDI partner on board shortly. Speaking on the financials of the unlisted low-cost carrier (LCC), possibly for the first time, GoAir CEO Giorgio De Roni told TOI that the airline had made a profit of Rs 100 crore in FY 2012-13. “The subsequent financial year 2013-14 was also profitable -all purely from operational side and nothing else (hinting that there was no sale and lease-back earning) -but the figure was lower due to the fall of the rupee and the sharp rise in aviation turbine or jet fuel (ATF) price. India has the highest domestic ATF price globally . The first quarter of this fiscal was profitable and FY 2014-15 is set to be profitable,“ De Roni, the man behind the LCC's quiet turnaround, said.

• Global biggies eye stake in deal site Mydala: Daily-deals site Mydala has held talks with heavyweight internet investors, including Russian billionaire Yuri Milner's DST Global and Sweden's Kinnevik, as it looks to raise $40 million of fresh funds to expand operations. Mydala, which counts Sanjeev Bikhchandani-led InfoEdge India as its largest investor, is also said to be in discussions with Japan's Softbank and Tiger Global, the largest institutional investor in Flipkart, at a time when billions of dollars in risk capital have flown into consumer internet ventures in India. While $30 million will be raised in fresh capital, the Delhi-based company has planned a secondary sale of $10 million, sources, who did not want to be named as the fundraise is currently on, told TOI.

• Fiat Bets on Luxe Cars, Charts Out Plans to Drive in Maserati: Italy's Fiat Group is finalising plans to launch its high-end sports car Maserati in India as it seeks to grab a larger slice of the country's surging demand for luxury cars. A person with direct knowledge of the company's plans said it is hoping that Maserati's rollout on the Indian roads will also help Fiat consolidate its brand in the country. “A team from Maserati's global headquarters visited India in recent months. They had met potential dealers,“ this person said on condition of anonymity. The Italian carmaker plans to open exclusive company-owned stores in major cities. “The company has a plan to start with maybe two or three bigsize dealers in metros like Mumbai, Delhi and Bangalore,“ the person quoted above said.

• Flipkart, Govt Ink Pact to Offer Online Retail Training: In its attempt to get micro, small and medium enterprises online, Flipkart has joined hands with the Indian government to train people from semiurban and rural areas and possibly employ them at the company or its business partners. The Bangalore-based company , which has signed a memorandum of understanding with the Ministry of Labour and Employment's Directorate General of Employment & Training (DGET), is aiming to train at least 5,000 students by December. Flipkart has created courses of two weeks to four months in areas like photography , cataloguing, social media marketing and handling customer communications. The courses will be provided at government-run industrial training institutes and vocational institutes across the country in locations like Agra, Meerut, Varanasi, Aurangabad, Pochamalli, Salem, Guwahati and Shillong. This is part of Flipkart's attempt to get MSMEs and traditional artisans to sell their wares on its platform in the next couple of years. In June, Flipkart partnered with the Federation of Indian Micro and Small and Medium Enterprises and National Centre for Design and Product Development to bring about 50,000 MSMEs and traditional artisans on to the Flipkart platform as merchants.

International:

• FAA bans US airline over Iraq due to conflict: The US Federal Aviation Administration (FAA) has banned all US airlines from flying over Iraq until further notice. The FAA said the ban was introduced due to the "hazardous situation" created by fighting between militants from the Islamic State (IS) and Iraqi security forces. British Airways said it was suspending its flights over Iraq and would "keep the situation under review". The US launched air strikes against IS in Iraq on Thursday. The FAA had previously banned all air travel over Iraq below 30,000 feet on 31 July. On Saturday, Australian airline Qantas said it had suspended flights over Iraq, following similar actions by German airline Lufthansa, Dubai-based Emirates, Virgin Atlantic and Air France. Flying over conflict areas has come under increasing scrutiny since the crash of MH 17 in Ukraine in July.

• Authors rally against Amazon in Hachette dispute: More than 900 authors are making a public appeal to Amazon to end a bitter publishing dispute that they say has been "hurting" writers and readers. Authors including James Patterson and Donna Tartt have signed a letter to the retailer that is due to appear as a full-page advert in the New York Times. Amazon is in a battle with Hachette, one of the world's biggest publishers, over the terms of e-book sales. The authors said their books had been "taken hostage" by Amazon's tactics. The online retailer has delayed delivery, prevented pre-orders and removed discounts for books by some Hachette authors, who include JK Rowling, Stephanie Meyer and David Baldacci.

• Zynga: Online game maker cuts outlook: Online games maker Zynga has cut its outlook for 2014 as its losses continue to widen, and due to delayed launch of new games and features. The firm, which makes social games including Farmville, made a net loss of $63m (£37m) in the April-to-June period, up from $16m a year ago. It also reported a 34% drop in revenue for the quarter, from a year earlier. The firm announced that it will launch sports games in an effort to revive its performance. 

• Malls to Meeting Rooms Empty as Ukraine Becomes No-Go Zone: In November, Ukrainian Trade Guild Consulting fielded calls from retailers including Abercrombie & Fitch Co. and Japan’s Uniqlo Co. about leasing space before this year’s opening of the country’s biggest shopping mall. Then came protests, the street violence and Ukrainian President Viktor Yanukovych’s ouster. By January, UTG’s phones stopped ringing. Now, as deadly battles rage in the east, the 74-acre (30-hectare) Respublika concept, planned to include eastern Europe’s largest entertainment complex on Kiev’s busiest road, sits unfinished behind sagging chain-link and wooden fences, the project abandoned by foreign investors.

• Roberto Cavalli Said Near Deal to Sell Stake: Roberto Cavalli didn't wait for Christmas to give himself a present. Just as business activities slow down in Italy ahead of the central week of August, sources say the designer is close to inking a deal to sell 60 percent of his namesake company to VTB Capital, part of VTB Group, a major Russian investment bank, for 500 million euros, or $667.5 million. The sale is expected to be finalized as early as today or Saturday, with a closing in October. Earlier this year,negotiations with private equity fund Permira hit a bump over the price valuation of the company.

• Sir Stuart Rose to Become House of Lords Member: Sir Stuart Rose, the former chief executive officer and chairman of Marks & Spencer, will become a life member of the House of Lords, the upper house of the British Parliament. Life peers, as they are known, are appointed by the monarch on the advice of the prime minister and the leading political parties for their knowledge or experience in a particular field. However, they do not pass on their title. Peerages were traditionally granted to members of the land-owning aristocracy and favorites of the British monarch. In the late 19th century, however, they began to be awarded increasingly to industrialists and community leaders. The House of Lords has about 700 unelected members whose job is to scrutinize the work of the House of Commons, the lower house of parliament whose members are elected. Life peers must be British, Irish or Commonwealth citizens.

• Ramy Brook Opening First Store in New York: Ramy Brook, the contemporary sportswear and handbag company, is ready to take the retail plunge. The four-year-old company, which sells to stores such as Bergdorf Goodman, Neiman Marcus, Bloomingdale’s, Nordstrom and Saks Fifth Avenue, as well as Shopbop.com, will open its first retail store at 22 Prince Street in NoLIta on Sept. 26. The 360-square-foot shop will carry Ramy Brook’s tops, dresses, skirts, pants, jumpsuit and cover-ups, as well as handbags that launch at retail this fall, and exclusive jewelry. “We’ll use every inch of it,” said Ramy Sharp, president and creative director. She chose the neighborhood because “it’s hip and cool and a great place to browse,” noting stores such as Haute Hippie, Maje, Sandro and Vince are all neighbors. “It’s like a mall on the weekends, it’s packed,” she said.

• Urban Outfitters Said Eyeing Lorna Jane: Urban Outfitters Inc. is contemplating a more active future with Australia-based activewear retailer Lorna Jane. The Philadelphia-based retailer — which has been actively looking for deals — is taking part in the Credit Suisse-run auction for the chain, according to two financial sources. The auction is said to be in the “late second round” with the price tag near $500 million. Foot Locker Inc. is also said to be vying for the retailer, which was founded by creative director and former fitness instructor Lorna Jane Clarkson in 1990. Her husband, Bill, serves as chief executive officer.

Tech:

• Microsoft Launches Celeb News App: Are you into celebrity news and the owner of an iOS device? If so, Microsoft has you covered with a new app that quietly launched over the weekend. Snipp3t is a celebrity news app for Apple devices that lets you follow your favorite famous people to get news of their latest activities as it happens. To get started, simply follow the celebs that you want to keep up with… and that’s about it. News is presented in a timeline-style format that mixes updates from those you subscribe to with general “trending” stories from other famous folks. Microsoft has put a lot of emphasis on media here. Each news event includes multiple media reports, images, high-profile tweets, and even related YouTube videos. The app appears to use data from Bing — as The Verge points out — so Snipp3t may be another test of the company’s capabilities, following its So.cl social network, which landed on iOS and Android last December.

• Xiaomi Makes its iMessage-Like Service Optional: Fast-growing Chinese smartphone company Xiaomi is making the cloud messaging service that is automatically activated on its devices optional for users, following security concerns raised during the past week. The MIUI Cloud Messaging service works much like Apple’s iMessage. It routes SMS sent between fellow MIUI device owners via the internet, meaning that they can message each other for free. However, a recent report from F-Secure highlighted that the service appears to share a range of information with a server in China — including the device’s IMEI number, customer’s phone number, phone contacts and text messages received. The idea of sharing such data to a server in China, where it could be open to access from the government, naturally raised some concerns, particularly since there was no way to opt out.

• New Google Chrome Experiment Takes You into Space: Google has launched a new Chrome Experiment focused on ISEE-3, a small NASA spacecraft that has roamed the Solar System for 36 years. The craft has now been turned into a ‘citizen science’ project thanks to a crowdfunding campaign. The ISEE-3 is set to pass the Moon tomorrow and to mark this, Google has published a video documentary enhanced by WebGL graphics, a chance to explore data collected by the ISEE-3, and a live visualization of its current position – all built with the modern Web technologies the company likes to showcase.

• Skype Reverses Decision to Drop OS X 10.5 Support: Mac OS X 10.5 Leopard users recently found that Skype no longer works on their system: despite upgrading to the latest version they still can’t sign in. We got in touch with the Microsoft-owned company and after two days, we got confirmation that a solution was in the works. “We have a Skype version for Mac OS X 10.5 users which will soon be available for download,” a Skype spokesperson told TNW.

• SketchFactor app for unsafe areas in racism row: The BBC does not pay its staff a hardship allowance to live in New York City - but maybe it should. That's at least according to a new app, SketchFactor, which launched on Friday. The app uses crowd-sourced data from users to pinpoint "sketchy" areas as well as to provide safe walking directions. It says that just down the block from the BBC's bureau here, a "random, super tall, super heavy dude" is going about giving unwanted bear hugs. In fact, several alarming red flags pop up when one looks at the area around the bureau. But in reading the comments, some reports are not as threatening. "There's a homeless shelter or something that houses the poor here. The residents hang out front and never bother anyone, but it's uncomfortable as you pass an otherwise nice area," reads one.

• Microsoft to drop support for outdated web browsers: Anyone using older versions of Microsoft's Internet Explorer browser will soon no longer get security updates and bug fixes for the software. From 12 January 2016 Microsoft will only support the latest copy of IE for the different versions of Windows. The shift ends a long-standing policy of providing support for different versions of IE for many years. Microsoft said the move would aid security and help developers, who would only need to support newer browsers. In a blogpost explaining the changes, Microsoft said commercial customers who had "standardised" on earlier versions of IE should start preparing plans now to migrate to more up-to-date releases. In addition, Microsoft said it would provide resources and help for customers to ensure web-based applications and programs created for older versions of IE continue to work with newer versions. The change should help developers, said Microsoft, because they will no longer be required to support the out-of-date technologies in those older browsers.