Daily News Digest- 22nd Dec'14

Thought of the Day:

Today in History:

Following made the Headlines:

India:

• GoAir Offers 1.7 million Discounted Tickets: The Wadia Group promoted budget carrier GoAir on Sunday said it has put 1.7 million seats up for sale, offering fares as low as ₹ 1,469 for travel next year with a five-day booking period starting on Sunday, to stimulate demand during the lean period. The special offer is available on flights across the GoAir network for a travel period between January 1 and March 31, the airline said.The bookings under the offer can be made between December 21 and December 25, it said. The January-March quarter is traditionally a lean quarter... The purpose of introducing these fares is to make air travel affordable during the period,“ GoAir chief executive Giorgio De Roni told PTI here. Stating that lowering of ticket prices was not to trigger a fare war in the domestic skies, De Roni said, “It is not an offer on lowest price or the cheapest price but to make it affordable and more attractive during the lean period.“ GoAir is committed to offer the affor dable fares that allows it to deliver a sustainable result, De Roni said, adding “we can grow only when we are profitable and develop our network and the fleet.“

• Maruti to Retain Edge With New Models: Maruti Suzuki is preparing for a product onslaught in 2015 to expand its share in the Indian market where it already sells one in every two cars. After having outpaced rivals in 2014 sales and giving huge returns to shareholders, it is aiming to repeat the performance in the New Year. As many as four new products -the S Cross and Celerio diesel, a mini truck and a premium hatchback positioned above the Swift -are in the pipeline for launch in 2015, say people with knowledge of the matter. A facelifted Ertiga utility vehicle and a few minor model changes including in the Ertiga and Eeco are also on the cards. The number of launches is expected to better that in 1999, when the company launched the Baleno, WagonR and two versions of the Alto. It is considering automated manual transmission in models such as the Swift Dzire, Ertiga and WagonR, following the clutch-less technology's success with the Celerio hatchback. 

• X- mas sales: Santa yet to bring cheers to retailers: Call it a late arrival of winter or subdued consumer mood, retailers are seeing lower than expected sales growth in the days leading up to Christmas. Like Diwali, Christmas is one of the crucial sale periods for retailers and most of the retailers saw 15- 25 per cent like- tolike growth in pre- Diwali sales this year. “It is good. But not like Diwali sales. Retailers expected more than 15 per cent like- to- like growth. Its slightly lesser than that,” said Alok Dubey, chief executive officer ( CEO) of Arvind Lifestyle Brands, which sells labels such as US Polo, Nautica, Arrow and so on. However, the company is seeing total growth of 20 per cent over the past year, which is also coming from opening new stores, he said. “Sales are above budget, but we expected explosive sales due to improved range. Jacket sales have not taken off to a great extent,” said an executive with a European group. “ Women’s wear is doing good. We have to see how menswear will sell this weekend.” Some retailers are hopeful of things to picking up from the December 20 weekend. “ Pre- Christmas sales will start to pick up from the last weekend before Christmas. I am confident that it will see good pick- up,” said Himanshu Chakravarthy, CEO, The MobileStore.

• M&M Plans UV Blitz in the New Year to Win Mkt Share: Mahindra & Mahindra (M&M) has lined up close to a dozen launches for the New Year, as the leader in the utility-vehicle (UV) market attempts to gain back the ground lost to soft roaders such as the Renault Duster and Ford EcoSport in the past couple of years. Even as the company's market share shrank to an alltime low, its stock has lost lustre as well and underperformed the auto sector. With Maruti Suzuki and Hyundai Motor also lining up UV launches, Mahindra is aiming to hit the market with as many as seven utility vehicles in 2015. These are likely to include a soft roader (micro SUV), lifestyle UV (new Thar) and premium UV (facelifted XUV 500) as well as petrol and diesel hybrids and a proposed Bolero replacement codenamed U301. Never in the past has the company lined up so many launches for a year. M&M also intends to tighten its grip on the pick-up space with the facelifted Genio and Bolero, along with three mini truck options in the sub1.2-tonne space. The new offerings -the plans is to launch one every 35-45 days -are likely to bring in incremental volume of 80,000 to 90,000 units a year, several people close to the company said.

• Reliance Retail Plans a Virtual Push: Reliance Industries (RIL) plans to start online sales of mobile phones, laptops, televisions and home appliances next quarter, significantly expanding its e-commerce business currently confined to only grocery sales in Mumbai. But the country's largest private company is unlikely to start a price war with existing e-commerce majors such as Flipkart and Amazon, said three senior executives in white goods industry. According to them, the Mukesh Ambani-led group's retail arm Reliance Retail has already started trials of consumer electronics and home appliances e-commerce among its employees, which is likely to have a full-fledged debut next quarter.

• Walmart sharpens India focus again: Ending a two- year wait, Walmart, the $ 476- billion American supermarket chain, largest retailer in the world by revenue, is readying plans to open its 21st store in India. The latest cash- and- carry or wholesale outlet, for selling products from grocery to apparel and consumer electronics to businesses, offices and organisations, is coming up in Agra by the middle of 2015, it is learnt. This will be Walmart’s second store in Agra, converting what not- so- long- ago was operated by its French rival, Carrefour, the second largest retailer in the world. The latter chain shut its India operation recently due to mounting losses and unviable business. “We have recently received all internal approvals for opening a new store in Agra. Our team is working towards procuring all relevant licences and permits,” said Rajneesh Kumar, vice- president corporate affairs, Walmart India.

• Alibaba, SoftBank Walk in Lockstep to Seize India Mkt: Alibaba and SoftBank are in the middle of discussions to ensure that they walk in lockstep as they go about trying to secure a slice of India's consumer internet market, two people with direct knowledge of the talks have told ET. Executives from the Chinese ecommerce group and the Japanese conglomerate have held meetings with merchant bankers to discuss potential investment and acquisition opportunities in the country, according to two sources with direct knowledge of the developments. “The meetings were to discuss potential targets for both.Things are at a preliminary stage,“ said one of the sources, who was present at the meeting. One of the scenarios involves Alibaba participating in followon rounds of funding for companies in SoftBank's portfolio in India, a list that includes online marketplace Snapdeal, taxi services firm Olacabs and online real estate venture Housing.com. It could also acquire a majority stake in ventures identified by the Masayoshi Son-led group which expects to invest up to $10 billion (₹ 62,000 crore) in India.

• Celebrate New Year at 5-star for Rs. 5k: Just 10 days to the New Year's eve and if you are planning to escape the annual celebrations, then some great deals are waiting for you at five-star hotels in big cities, free from the usual rush of business travellers and tourists. As corporate business dips by 80% during the year end between December 20 and January 4, you could pamper yourself at a fivestar for prices starting as low as ₹ 5,000 plus taxes a night; the lowest tariffs of the year. “Hoteliers have realised that there's no point in holding on to tariffs during lean period, so they try and create demand through low tariffs,“ says Amit Taneja, chief revenue officer at travel portal Cleartrip, adding that the number of hotels offering special year-end packages on the portal has doubled this year from a year ago. According to Taneja, hotel tariffs are at the lowest during this period. Megh Vinayak, head -revenue and online marketing at The Lalit Suri Hospitality Group, says the corporate and inbound business take a huge dip during this period.

• Airlines decline SpiceJet vouchers: The Directorate General of Civil Aviation (DGCA) has directed all Indian carriers to accept passengers of SpiceJet's cancelled flights without charging exorbitant spot fares. “Spot fares are very high, especially in this peak travel season. We have asked airlines to charge a reasonable fare from passengers of SpiceJet flights cancelled at the last minute,“ said a senior official. The order is “subject to availability“ of seats in other carriers. After the Kingfisher experience, other airlines do not want to accept vouchers from SpiceJet as they are unsure of getting money from them. Hence passengers will have to pay other airlines to take their flight and get a refund from SpiceJet for the cancelled flight later,“ said the official. Former SpiceJet promoter Ajay Singh is eying a re-entry into the airline by pumping in Rs 1,200-1,500 crore along with a bunch of global PE funds. “ Ajay Singh is doing a due diligence of SpiceJet and that process will take about a month. But Singh has arranged for funds for the airline to keep operating till he and his PEs invest in the airline,“ said a source.

• Google Eyes Permanent Centre in Hyderabad: Internet giant Google plans to open its own “permanent and big“ campus in Hyderabad and is set to sign a memorandum of understanding (MoU) with the Telangana government shortly to take up the venture. “We are likely to sign an MoU with Google. They are likely to open their campus in Hyderabad. It will be the third campus they will have after the US and the UK,“ Telangana IT, Electronics and Communications Secretary Harpreet Singh said. Google currently operates from the rented premises in the state capital but wants to move to a “permanent campus“, he said.He, however, declined to go into further details of the venture, saying a press conference is scheduled to be held shortly on this. He added that it would be a “big campus“ and “Cisco, Airtel, Vodafone and a Taiwanese company, among others, have responded to the expression of interest floated by the state government on the proposal of making Hyderabad a wi-fi-enabled city.“ “Many of them are partnering,“ Singh said, adding that the Taiwanese firm, in fact, was behind making Taipei a wi-fi-enabled city. But he said the companies that have evinced interest have sought information such as detailed maps of the city, including roads, and clarifications with regard to certain specific points. “So, we are preparing the replies; we will give it to them“.“It will take time (to make the city wi-fi-enabled) because business model is the critical issue.Making wi-fi is not a big problem... but how to monetise it... is the key issue,“ he said. 

• Hidesign Shoe Stores by 2016: Homegrown leather bags and accessories maker Hidesign plans to open standalone stores for its shoes vertical by 2016 to tap the footwear segment. The company, which is entering into the footwear category with limited products in February 2015, will initially sell in 30 select existing stores in cities such as Mumbai, Delhi and Bangalore. It expects the footwear segment to be as big a category as bags in 5 years. “Shoes will be big for us. We are starting on an experimental basis but eventually it will move up to separate shops. By end of first year, we will have full product range. By second year, we will look at opening individual Hidesign Shoe stores,“ said Hidesign President Dilip Kapur.

International:

• McDonald’s faces 78 charges of flouting labour laws: The National Labor Relations Board announced on Friday that its general counsel had brought 78 charges against McDonald's and some of its franchise operators, accusing them of violating federal labour law in response to workers' protests for higher wages around the country. The general counsel's move immediately drew outrage from a variety of national business groups because the labour action deemed McDonald's a joint employer, a status that would make the fast-food titan equally responsible for actions taken at its franchised restaurants. The labour board's complaint asserts that McDonald's and numerous franchise operators in more than a dozen cities illegally retaliated and made threats against workers who had joined national protests pushing for a base wage of $15 an hour in the nation's fastfood restaurants. Business groups vigorously attacked the general counsel's complaint, saying that it was wrong to consider McDonald's a joint employer and seek to hold it jointly responsible for the actions of its franchise operators.

• In United States, drones take off as Christmas gifts: Andrew Steele, 15, chose a drone as a Christmas present. And he's not alone. Thousands of drone fans -- young and old -- turned out at a recent show in Los Angeles. While historically people have thought of drones as military aircraft or flying devices used by businesses, the growth of drones as recreational vehicles has exploded. And the range of devices on offer -- many of which could end up giftwrapped under the Christmas tree next week -- is as varied as the demand for them. "I really like how it stays static, how it stays at the same place when you move it," said the teenager, whose parents had to fork out USD 1,200 for his present.

• Wal-Mart Expands Enriqué Ostale's Role to Mexico: Enriqué Ostale, president and chief executive officer of Wal-Mart’s Latin American business, has been assigned the additional role of running Wal-Mart de México y Centroamérica as president and ceo of the company, effective Jan. 1. He retains his role as chairman of the board of Wal-Mart de Mexico. In October, Wal-Mart de Mexico said its president and ceo Scot Rank would step down after five years of heading the company. “Mexico and Central America is a priority market for Wal-Mart,” said David Cheesewright, president and ceo of Wal-Mart International and a member of the Wal-Mart de México y Centroamérica board. “Enriqué’s cross-functional experience will ensure that we remain well positioned to serve the two billion customers that count on Walmex every year.”

• DFS to Open T Galleria Store Near to Angkor Wat, Cambodia: After detailing plans to open a store in Venice in September, the luxury travel retailer DFS Group on Friday said it will open an upscale T Galleria store in the vicinity of another World Heritage Site, in the town of Siem Reap, Cambodia, near the temple and archaeological site of Angkor Wat. The 86,111-square-foot store will be located in downtown Siem Reap, a short journey from Angkor Wat, which was the site of the Khmer Empire from the ninth through to the 15th centuries. The unit is set to open in early 2016. During an interview here on Friday, Philippe Schaus, chairman and chief executive officer of DFS Group, which is majority-owned by LVMH Moët Hennessy Louis Vuitton, said he believes the store will be well placed to attract the attention of the millions of tourists who flock to the site each year. “There are already more than a couple of million tourists going there [a year], and it’s going to be six million by 2020,” said Schaus. “It is becoming a major destination in Southeast Asia, with a luxury-goods consumption-savvy [demographic of] Japanese, Korean and now Chinese [visitors] going there in big numbers.”

• Rent The Runway Raises $60M Series D Round: Rent the Runway has raised $60 million in a Series D round of financing to help fund its expansion of brick-and-mortar as well as engineering staff. The Web site has raised a total of $116 million so far. Its last round of funding was in March 2013. The latest round was led by Technology Crossover Ventures, with participation from Bain Capital Ventures, Highland Capital Partners and Advance Publications, parent of Condé Nast. Bain, Highland and Advance are existing investors. Technology Crossover is a new investor in the site. As part of the funding, Technology Crossover’s Daniel O’Keefe, a general partner at the venture capital firm, will join Rent the Runway’s board. O’Keefe said the company has “given a whole new generation of women access to high-end fashion” and that his firm is “looking forward to helping the company grow.”

Tech:

• Huawei Bags 4G Network Deal from Bharti: Chinese telecom gear maker Huawei Technologies has secured a three-year contract from India's No 1 telecom carrier Bharti Airtel for supply of base stations and other equipment for its 4G network in Karnataka and Tamil Nadu telecom circles. “We just got the deal from Bharti Airtel's high-speed data services on the 1800 MHz band using the FDD-LTE technology for two of their biggest telecom circles in the country,“ Huawei India chief executive Cai Liqun told ET. Cai did not disclose the size of the deal, the second in the country for rolling out services using the FDD-LTE technology, which uses the 1800 MHz band. Bharti Airtel has already started 4G services in 15 cities on the TDD-LTE technology that uses the 2300 MHz band. Huawei has been working with the telco for their TDD-LTE technology-based 4G networks in Karnataka and Delhi circles. Including the two, Bharti Airtel has the 2300 MHz frequency in eight circles. In addition, Bharti Airtel won airwaves in the 1800 MHz band in 15 circles including Delhi, Mumbai and Kolkata in February . Recently, it selected Swedish telecom gear maker Ericsson for 4G services in two circles on FDD-LTE, which is more widely accepted globally , compared with TDD-LTE.

• Truecaller to Set up R&D Centre in India: Phone directory app Truecaller, which has nearly half of its 100 million users in India, will ex pand its base in the country with a research and development (R&D) centre and more marketing personnel. The free mobile application shows name of the person calling to a user even if the number is not saved in the phone.

• 2015 F8 Developer Conference Will be Held on March 25-26: In a Save the Date note it sent out today, Facebook announced that its 2015 F8 Developer Conference will be held on March 25 and March 26, 2015 – the first time the company has expanded the event to two days. The company said the expansion comes because the “developer community is bigger today than it ever has been.” By allotting two days for the event, it hopes to “double the number of technical sessions, product demos and onsite experiences for Facebook’s growing developer community.” Facebook previously said that its next F8 Developer Conference will be held in Fort Mason Center in San Francisco, CA. Interested developers can sign up here to be alerted when registration officially opens in early 2015.

• Facebook's New App Lets You Add Stickers to Your Photos: Well, here’s something we weren’t expecting – Facebook is releasing a separate app for its Messenger stickers just in time for the holidays, dubbed Stickered for Messenger. The new app basically just lets you add stickers to your photos and then send them to your friends on Messenger. You can finally put huge emoticons and cute cartoon animals over your friends’ faces easily. Facebook is also introducing new holiday-themed tidbits to the regular Messenger app as well. These include frames for your New Year’s Eve selfies, snow globe chat heads and holiday-themed sticker packs. Stickered for Messenger will be available from the Play Store later today, and is “coming soon” to the iOS App Store.

• Reddit Plans to Pay Its Users With Mysterious Reddit Notes: After securing $50 million in outside funding back in September, Reddit had promised it would find a way to let the community own 10 percent of those shares. Today, it is revealing some details as to how: Reddit Notes. Details are still vague, but Reddit will host a random lottery to give away around 950,000 notes to divide among active users. They will then be able to deposit their notes into a virtual wallet, after which they can use the funds to “tip, donate or trade.” Reddit Notes started taking shape after listening to thousands of requests from users and considering some ideas of its own. The company notes its still working out the kinks – such as how the plan will work under government regulations – and plans to start handing out the notes in fall of 2015.