Daily News Digest- 7th Jan'15

Thought of the Day:

Today in History:

Following made the Headlines:

India:

• High-end Restaurants Fail to Get a High Here: Late last month, BBar, a specialty Japanese restaurant in South Delhi, reopened after a gap of five months, smaller in size and without private dining rooms that its owner Kunal Lalani said, “Delhi wasn't ready for“. Similarly, Cavalli Caffe -by famous designer Roberto Cavalli -just a few months ago closed a large section of the restaurant that was located in the atrium of a luxury mall in the capital. High-end international restaurants, night clubs and cafes are increasingly tweaking their business model in India through resizing, reworking rentals and leases, increasing the number of trading hours orand even reducing food prices to fight high rentals and competition from domestic brands, and boost demand. PB Lifestyle, which has brought Playboy nightclubs here, is offering a revenueshare to space owners to reduce the burden of high rentals. “Low rentals and revenue share is what we have done for the upcoming club in Mumbai and will follow the same for other upcoming projects,“ said Sanjay Gupta, chief executive of PB Lifestyle.

• Payment Cos Open Their Wallets for Big Bang Ad Blitz: Payment gateways and mobile wallets are planning to spend up to $100 million (about ₹ 600 crore) on multi-media advertising campaigns in 2015 as they seek to gain consumers' trust amid robust growth in India's mobile and Internet penetration, and a boom in the country's e-commerce sector. According to industry experts and media agencies, online payment solution provider PayUMoney will roll out a multi-media advertising campaign in the next few weeks. They said the company is spending more than $10 million only on the campaign meant for television and that this figure is a fraction of its overall advertising and marketing budget for the year. PayUMoney has signed Leo Burnett as its creative agency and Mindshare as the media agency .Nitin Gupta, co-founder & CEO of PayU India, which owns PayUMoney , refused to disclose the budget for the ad campaign but said “Payment gateways and mobile wallets are where e-commerce was twoand-a-half years ago. All companies are expected to up their advertising and marketing spend to gain the consumers' trust“.

• Merc Pumps in Rs 150 cr to Add ` Assembly Line at Chakan Unit: Mercedes-Benz is investing ₹150 crore more at its facility in Chakan near Pune, to add an assembly line that will double capacity to 20,000 units a year to meet growing demand for its luxury cars and sport-utility vehicles in India. The Daimler AG unit is likely to add the CLA compact sedan to the list of models it puts together at the Chakan facility when the new line becomes operational over the next few months, people with knowledge of the plan said. The CLA will be launched on January 22 and the company has started taking booking for the vehicle. “We have received the environment clearances from the government and will soon begin production from this extended facility,“ said Mercedes-Benz India managing director Eberhard Kern. The current round of investment will take the total money the company has invested in the plant to ₹1,000 crore, he said.` Assembling vehicles locally will allow the company to significantly reduce prices because of the variation in import taxes. Kits from where the vehicles are assembled locally are taxed at 24-30% (if the engine is assembled locally) or 40% (if the engine isn't assembled here), compared with 167% for a vehicle imported as fully built. Mercedes-Benz India delivered 10,200 cars and SUVs in 2014, the highest ever and 13% more than the previous year. It is aiming for another strong year with double-digit growth in 2015, despite the local auto market remaining sluggish.

• HCL Perks Up Staff with a Foreign Trip: Around 130 of the top performers of HCL can either drive home a Mercedes or take their family and friends on an all-expenses-paid international or domestic holiday as a reward for their contribution to the company . “We realise their need to celebrate their impact on the growth of the company along with their friends and family,“ said Prithvi Shergill, chief human resources officer at HCL Technologies. HRD experts feel the novelty of being given a luxury car or an all-expenses-paid holiday as a token of appreciation strikes a deeper chord than increased remuneration. “The newness of a reward will have a larger appeal (than extra cash),“ said Anandorup Ghose, performance, rewards and talent practice leader at executive search firm Aon Hewitt India. P Thiruvengadam, senior director for human capital at Deloitte, expects perks to get more innovative in coming years. “Firms will watch the changes in market this year and the perks are bound to get innovative,“ he said. “Newer benefits, and training and study trips to top global colleges, could be adopted by companies amongst oth er options.“ Kris Laksh mikanth, CEO, at The Head Hun ters (India), his firm too plans to reperformers by ward the top performers by sending them on a domestic holiday and few to an international one for the first time. He expects many companies to hand out higher perks to top employees in 2015. “They are a motivating tool and nonpermanent in nature.“ 

• Online Players no Longer Count on Discounts: Indian e-tailers are moving beyond the discounts-led model that helped them attract customers online, with companies such as the market leader, Flipkart, and the largest fashion retailer, Myntra, reducing discounts considerably over the past six months and senior executives of some firms conceding that they have reached a level where they can afford to maintain prices even at the expense of a few new users. “We have been continuously working towards minimising discounts,“ said Ganesh Subramanian, chief operating officer of Myntra. “Coupon levels have significantly dropped in the last six months. Earlier, coupons would sometimes go up to 40%. In the last six months, it has been under 30%. By the second half of 2015, it should be around 20%.“ Subramanian conceded that this may have led to “up to 20% fewer newer customers transacting in the last six months“, but added that the company's focus on private brands will help improve profitability.

• Ola Asked to Close Delhi Ops; Uber Withdraws Petition: Taxi hailing app Ola is being asked to close its operations in the national capital, the result of a petition by rival Uber in the Delhi High Court which wanted permission to restart its business. Uber on Tuesday withdrew its petition but in the course of the hearing pointed out that Ola has been continuing its business, leading to the judge questioning the transport department about what it has been doing. The Delhi transport authorities, in turn, have said Ola has been operating illegally. A source in the department told ET that a police complaint is likely to be filed against Ola. “The Transport department is working on filing an FIR against Ola for illegal operations in Delhi,“ according to one government official.“We are also looking at TaxiForSure and other taxi companies. Notices will be given soon.“

• Xiaomi Looks to Set Up Startup Ecosystem Here: Xiaomi, which recently closed a $1-billion funding round, is keen to work with Indian startups in mobile technology, content aggregation and connected devices, a top company executive has told ET. For Xiaomi India, setting up its own startup ecosystem, like it has done in China, is one of its key priorities this year. “We may co-develop, invest or launch their products. We have discussed with a few startups so far,” said Manu Jain, Xiaomi’s India head, while declining to name the startups or the investment size. Xiaomi identifies itself not as a smartphone maker but as a mobile technology and e-commerce company, and has invested in Chinese startups in areas lie smart light bulbs, a video site and fitness band. “Startups would find it lucrative to work with Xiaomi versus other corporates, as it is agile and has been able to grow, coupling the scale brought forward by both the internet and mobile era,” said Jayant Kolla, partner at Convergence Catalyst. The Indian division of one of the most valuable startups in the world works out of a diminutive office in a Bengaluru tech park and has sold a million devices in India over the past five months. Xiaomi, which is currently valued at $45 billion, has big plans for India in 2015 — smartphones being the least of them.

• Lenskart raises ₹ 135 cr from TPG Growth, TR Capital: Lenskart, online retailer of prescription eye- wear, has raised ₹ 135 crore in fresh capital from new and existing investors in its largest funding till date. Lenskarts series- C of fund- raising was led by TPG Growth, with participation from Hong Kong- based TR Capital and existing investor, IDG Ventures, for a significant minority stake, the eye- wear retailer said. The company had raised ₹ 53 crore from Ronnie Screwvala- led Unilazer Ventures and existing investor IDG Ventures India in February 2013. Lenskart has raised almost ₹ 200 crore of capital across three rounds of fund- raising till date. “In TPG, we found strategic partners and advisors with proven capability to build a large consumer- centric enterprise. With this new investment, we will be hiring the best talent and give them a world- class environment to innovate and solve Indias eye- wear problems at a very large scale,” Lenskart founder and chief executive officer Peyush Bansal said.

• Spanish brand Custo Barcelona to set up shop in India: Custo Dalmau, an international designer famous for dressing celebrities like Julia Roberts, Jennifer Aniston, Beyonce Knowles, Shakira, Penelope Cruz and Taye Diggs, is bringing his brand to the Indian market with two stores. Dalmau's label is called Custo Barcelona. To begin with, one of its stores will be in Mumbai and another one in the capital. The Spanish brand is making its foray in India through a lifestyle exhibition titled 'The Reverie', which will go on for two days starting Jan 16, said a statement. Custo Barcelona's spring-summer collection will be showcased through a fashion show, and the line will be the same as exhibited at the New York Fashion Week two months ago.

• E-book sales yet to take off in India: Srishti Khanna is never without a book. A literature teacher in a Delhi college, the 27-year-old's room is overflowing with contemporary and classic novels, books on history , literary theory , and philosophy . And so is her ebook reader. However, in the year and a half that she has had the reader, which she keeps encased in a black, booklike cover, she has not bought a single e-book. “They're all available online for free. And anyway , if I have to buy a book, I might as well buy a hard copy ,“ she says. More and more Indians may be getting comfortable with online buying, but that has not translated into comfort with paying for e-books. Publisher Penguin Random House says that e-books constitute about 1% of their total book sales currently. Flipkart and Amazon did not share numbers regarding ebook sales, though Amazon, which produces and sells the Kindle e-book reader, said that the market for e-books in India was still “incipient“. Flipkart, meanwhile, cited industry reports to say that in the next three to four years, e-books could constitute about 25% of the total book sales in India. However, globally too, ebook sales have flattened out.According to the new report from the Bookstats Project, US publishers raked in $3 billion from e-book sales last year, which is nearly unchanged from 2012.

International:

• Rolls-Royce breaks sales record again in 2014: Rolls-Royce Motor Cars sold a record number of cars last year, breaking through the 4,000 mark for the first time in its 111-year history. The luxury car maker sold 4,063 cars, up 12% on last year, and marking the fifth consecutive year of record sales. Sales in the US increased by almost a third, by 40% in Europe and in the Middle East by 20%, the firm said. Its Wraith model and strong orders for its new Ghost Series II helped drive the strong performance. The firm said it sold more cars worth more than €200,000 (£157,000) than any of its rivals, with demand for bespoke customisation remaining high. "A record number of customers spent personal one-on-one time with Rolls-Royce's Bespoke design consultants commissioning their personalised vehicles," it said. Chief executive Torsten Muller-Otvos told the BBC's Today programme that about 80% of its buyers were entrepreneurs and business owners, with the remainder celebrities. He said the firm's strong performance was helped by its emphasis on ensuring a "balanced global sales picture", meaning overall demand remained strong. He also said the firm was "mulling" creating a four-wheel drive SUV vehicle.

• House of Fraser and Waitrose see strong festive sales: Upmarket supermarket chain Waitrose and department store chain House of Fraser have both reported strong sales over the key Christmas trading period. Waitrose said like-for-like sales rose 2.8% in the five weeks to 3 January, compared with last year. House of Fraser, which has 59 shops across the UK and Ireland, said like-for-like sales jumped 8% for the six weeks to 3 January, versus last year. Sales in the week before Christmas were the 165-year old firm's best ever. Both retailers' saw a sharp increase in online sales compared to last year, with Waitrose reporting a 26.3% rise in online grocery sales, and House of Fraser seeing a 31.2% jump. Waitrose, which has 334 shops, is owned by John Lewis, which reported strong festive trading figures on Monday. "As a business owned by the people who work here, we can take the long-term view and our Christmas results show the effectiveness of our strategy of investing in good value, in making our shops attractive destinations and in building our online business," said managing director Mark Price. 

• C. Wonder Shutters Stores: C. Wonder employees were blindsided by Monday’s news that all 100 staffers were being laid off and that the company is closing its remaining 11 stores. After getting the ax in a meeting at Burch Creative Capital’s Flatiron offices, employees exited the home office for good, one insider said. It is not yet known what will become of the floor that the C. Wonder managerial, design and merchandising team occupied there. New York-based sales associates, who requested anonymity, said the brand plans to shutter its eight other non-Manhattan stores within the next two weeks. Remaining merchandise is expected to be liquidated in C. Wonder’s stores in the Time Warner Center, in SoHo and on lower Fifth Avenue. Staffers in those stores were still in the dark Tuesday afternoon as to when their respective locations would close and if there would be any sort of severance packages for management. A few sources said they expected to have a three-week window before shuttering for good.

• NorthPark Center Unveils Art App: NorthPark Center in Dallas rang in 2015 by creating the new position of manager of art programs and an app that details its modern and contemporary artwork, in addition to promoting its 235 tenants. “It is our mission to expose world-class art to as many people as we possibly can,” explained Nancy Nasher Haemisegger, who owns and manages the mall with her husband, David. Haemisegger credits the inspiration to her late parents, Raymond and Patsy Nasher, who began exhibiting art at NorthPark in the Sixties and built the collection, now displayed downtown at the Nasher Sculpture Center. They introduced her personally to many of the artists whose work is displayed at the mall.

• American Apparel Bolsters Harassment Rules After Firing Charney: American Apparel Inc., which fired controversial founder Dov Charney as chief executive officer last month for alleged misconduct, strengthened rules to prevent sexual harassment among its employees. Managers and subordinates are now prohibited from having romantic relationships, including dating casually, according to the new ethics code on the Los Angeles-based company’s website. At about 6,200 words, the new code is more than four times as long as its predecessor. American Apparel is working to get a fresh start after officially firing Charney on Dec. 16, ending a six-month saga that began when the board suspended him in June for misconduct. In removing Charney, the directors said he violated the chain’s sexual-harassment policies and improperly bought travel for family members with company funds. Charney’s lawyer has called the allegations “baseless.” Even before the board moved to oust him, Charney had been sued multiple times for sexual harassment. The cases were either dismissed or sent to private arbitration with the results unknown. 

• Saban Brands Purchases Mambo: Saban Brands Lifestyle Group began 2015 with one thing in mind: It’s time to Mambo. Saban has acquired Australian fashion and lifestyle brand Mambo for an undisclosed amount. Mambo, which has a skate and surf following, is unique in that it also fosters wearable, and often irreverent, art featuring artist collaborations on its fashion merchandise. Daniel Castle, managing director of strategic business development at Saban Brands, said the acquisition helps further the firm’s goal of bringing unique fashion and lifestyle brands into key markets and expanding its global footprint. Established in 1984 by Dare Jennings, Mambo celebrated its 30th anniversary last year. The brand designed the Australian uniforms for the 2000 Sydney Olympic Games, and the National Gallery of Victoria, in Melbourne, is featuring artwork from Mambo’s archives from the past 30 years as part of its fashion and textiles exhibition.

Tech:

• Internet Users Still Unable to Access Cleared Websites: It has been nearly a week since the government said it lifted the ban imposed on some websites, but many users are still unable to access web-based services such as Github. India doesn't have a standard process to inform the website owners why their sites have been blocked. Because of this, website owners and Internet activists claim, they are unable to engage with the government to resolve the issues when their sites are blocked. “We have tried to reach out to the Indian government through several different channels, but it is still not clear to us what content caused them to put us on the list,“ said a Github spokesperson.Github, one of the 60 urls that were blocked mid-December, was still receiving complaints from users about not being able to access the site. Acting on a ruling by a Mumbai court, the government ordered to block more than 60 websites, including popular online tools like GitHub and SourceForge.The court's action was based on a complaint by the Mumbai Anti-terrorism Squad, which claimed that these sites were being used to spread pro-terror messages. After massive protests on the Internet, the government said it had unblocked four websites including web hosting service Weebly , video sites Vimeo and Dailymotion and gist.github.com.

• Samsung Unveils 4G-enabled Phone: Samsung Electronics is readying a pipeline of phones, capable of working on fourth-generation networks and costing up to ₹25,000, for launch in India as it expects operators to rollout 4G services this year. However, it believes customers will move to 3G first before adopting 4G, said Asim Warsi, vice president of mobile marketing. The company on Tuesday launched four phones in the mid-segment, costing ₹ 19,000-25,500. Two of the models had their global launch on Tuesday. One is 4G enabled. According to Warsi, the mid-segment ­ typically costing ₹ 19,000-25,000 ­ contributes 25% of Samsung's smartphone sales. The newly launched phones add to its existing five in that segment. The company will look at renewing each segment from feature phones to premium ones in the course of this year, he said. In 2015, Samsung is expected to launch at least a couple more 4G models. “We see 4G as an inevitability this year, that is how licenses have been given,“ Warsi said. Yet, he expects customers will first move to 3G from 2G, rather than skipping on level to 4G technology. India already has 3G services, but most subscriptions are still on 2G.

• Fuel3D's 3D Selfie Scanner is Next-Level Narcissism: 3D scanning, modeling and printing are all big topics here at CES 2015 – so much so that there is an entire section at the Sands Expo convention center dedicated to companies within the category. And while we’ve seen lots of people take selfies while roaming the show floors, none of the results can compare to Fuel3D‘s handheld 3D scanner Scanify. Unlike traditional 3D scanners which are large, mostly immovable and rely on lasers to capture image, the Scanify is portable and uses two camera lens and three flashes to snap the photo. The technology is akin to the human eyes, which combine images from your left and right eye to see a 3D image. The Scanify itself is shaped like a steering wheel, with the picture taker holding it to the model and pressing the left and right top buttons to begin “scanning.”

• Intel's Curie is the future of tiny wearable computers: A new device shown off during Intel’s CES keynote called Curie is a wearable computer the size of a button. Curie’s tiny module contains a Quark SoC, a Bluetooth Low-Energy radio and sensors for tracking fitness. It can be used with a watch battery or a rechargeable source. Curie will be available in Q2 2015 for partners to integrate in new products; Intel says Curie just came out of it’s lab so it has a little bit of work to do yet.

• Apple Watch Reportedly Set To Launch in March: A report today by 9to5Mac says that the Apple Watch is set to launch this March, following Apple’s President of Retail, Angela Ahrendts, previously telling employees it will launch in “Spring 2015.” According to the report, Apple is planning an “extensive testing program” for Apple Store employees with representatives from each store expected to be sent to Apple’s offices between February 9th to 16th for training and hands on with devices. This date could change due to delays in hardware or software testing, particularly since Apple’s yet to make a specific announcement about when the Watch will be available, but it’s nice to know when we can expect it.