Daily News Digest- 27th Jan'15

Thought of the Day:

Today in History:

Following made the Headlines:

India:

• Indians Now Buy Their Everyday Online: Everyday consumer products such as shampoo, deodorants, makeup and even toilet cleaners are slowly gaining traction in the country's booming ecommerce market currently dominated by electronics, books and fashion. While this growth is mostly powered by smaller FMCG companies with limited resources, big national brands too are increasing their presence in online shops not to miss out on the opportunity. An Amazon India spokesperson said categories such as skincare, baby nursing, make-up, deodorants and grooming products have grown by more than five times in the past year. This growth is mostly powered by companies without much distribution muscle, such as Khadi, Patanjali, Vini Cosmetics, Adjavis, Park Avenue and TTK. “Cus tomers are now looking for unique brands that are sulphate and paraben-free like Indulekha, Iba Halal Care, Vedantika Herbals, Prakriti Herbals, Vaadi Herbals, etc,“ the spokesperson said.

• Auto Sales to Vroom into High Gear in FY16, says Industry: After being in the slow lane for three long years, the Indian auto industry is looking at better sales numbers, encouraged by a positive forecast for the upcoming fiscal.The latest forecast of the automobile industry -drawn from all stakeholders and institutional players -shows all the segments posting growth in FY16, aided largely by falling fuel prices, softening interest rates as well as economy that's trying to shrug off its inertia. “The recent cut in interest rate, oil pricing coupled with waning cost of ownership are currently supporting the overall momentum. For 2015, we expect the light vehicle -passenger cars and light trucks -production to grow at 6%, while medium and heavy commercial vehicles are likely to bounce back at 12% this year,“ said Amit Kaushik principal analyst at IHS Automotive, one of the world's largest forecasting agency. “Post budgetary reforms will further support the overall momentum for the industry in the times ahead.“

• Snapdeal founders inspire budding entrepreneurs: Even as their venture Snapdeal is clocking rapid growth, Kunal Bahl and Rohit Bansal are mentoring young entrepreneurs, not only by investing in various start- ups but by helping them find solutions to several business- related challenges. While the duo isn’t involved in the day- to- day functioning of any start- up in which it has invested from personal wealth, it is actively in touch with these companies and guides these on issues like improving platforms, scaling businesses and hiring. The founders of most start- ups in which Bahl and Bansal have invested say the two are just a phone call away, despite their busy schedule. They add the most important lesson they have received from Bahl and Bansal is to “never be afraid”. “They ( Bahl and Bansal) are in active advisory roles at our company,” said Atit Jain, founder of Delhibased Gigstart. com, a marketplace for entertainers and party planners. The venture raised angel funding of $210,000 from various sources, including the Snapdeal founders. “ I go to them once in two to three weeks, or as and when I need their guidance. There’s much more than money they are helping me with. When we think of issues and plans around the internet and productising the e- commerce online users, we go to Kunal and Rohit.” In recent years, Bahl and Bansal, who founded Snapdeal in 2010, have invested in several early- stage startups. 

• InMobi may Dial for Big Funds: Mobile advertising network InMobi has entered into discussions with several marquee investors, including some of the world's biggest sovereign wealth funds and internet companies, to raise its next significant round of funding. Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority (QIA) are believed to be among the multiple, blue-chip state owned funds that have expressed a strong interest in investing in the Bengaluru-based company, according to at least two people with knowledge of developments. Singapore government-owned investment company Temasek and the state's sovereign wealth fund GIC, which manage assets of about $223 billion and $315 billion, respectively, have also held talks with the InMobi management, they said. Also in the mix are Chinese e-commerce behemoth Alibaba Group, social networking leader Tencent Holdings and search engine giant Baidu, said the sources cited above.

• How `Unboxed' Mobiles are Ringing in Huge Volume for E-tail Vendors: Online sale of refurbished and `unboxed' mobile phones is picking up in India, according to two e-marketplaces, as brand-conscious consumers hunt for good bargains. In India, 20-25 million electronic devices are returned to sellers every year--some of which are used or faulty--creating a large cache of products that can be refurbished and sold. Within this segment, purchase of mobile devices is seeing an uptrend. On Friday, Chinese smartphone maker Xiaomi received an overwhelming response to its first online sale of refurbished and `unboxed' Red Mi 1S devices in India. The term `unboxed' refers to products that have been taken out of a sealed box and returned to the seller unused. “The first sale was extremely successful as the smartphones sold out within minutes,“ said Alex Souter, co-founder of Overcart.com, the online marketplace that partnered Xiaomi in the flash sale. Talks for conducting such a flash sale were in the works for a few months, he said. Overcart sells mobile phones, games and accesso ries that are refurbished or `unboxed'. The company has witnessed a 50% increase in quarterly sales of refurbished and unboxed smartphones through the inventory model or regular sale.

• GH Ventures Brings Nasscom, Google's Rajan Anandan on Board as Partners: Gurgaon-based Green House Ventures Accelerator has brought on board Indian software industry association Nasscom as a collaborative partner and roped in Google's Rajan Anandan as a mentor to boost its year-long acceleration programme. Through Nasscom's 10,000 Startups Program, GHV will get access to a pool of startups. “Our partnership with GHV will accelerate startups with a comprehensive array of market re search services, go-to-market assistance, funding support and educationalnetworking opportunities, which is of utmost importance in post-incubation and early-stage companies,“ said Rajat Tandon, senior director, Nasscom, 10,000 startups. “This also gives our startups the opportunity to have a global footprint.“ Under the tie-up, GHV will participate in the startup selection process organised by Nasscom and review applications for selecting entrepreneurs into its acceleration programme. Google India managing director Anandan, who joins as an angel investor, said, “I'm excited by what they're doing with the startup ecosystem in India.“

• Apple ropes in distribution giant Brightstar for India: Electronics giant Apple, the maker of iPhones and iPad, has decided to rope in global retail major Brightstar to sell its devices in India. Apple is looking to increase sales from 1 million units achieved in the fiscal year ending September 30, 2014, to as many as 7 million units by 2018. The US-headquartered Brightstar, controlled by Japanese telecom and internet giant Softbank, distributes mobile phones and other devices to more than 200 carriers in over 50 countries and has revenues of around $11 billion. It had recently bought a 51% stake in (Bharti Enterprises chairman) Sunil Mittal's Beetle Teletech. "Brightstar will soon start distributing Apple devices in India and is expected to emerge as one of the most aggressive players in the market," top industry sources told TOI. The Cupertino-based Apple, which is the world's most valuable electronics maker, currently operates in India through two main distributors Redington and Ingram, who in turn supply the products to regional distributors, multi-product trade channels and Apple Premium Re-seller stores and Apple Authorized Reseller outlets. Redington is one of the biggest partners for Apple in India and is believed to account for nearly 70% of its sales. 

• Pizza chain Sbarro to add 20 outlets in India by 2016-end: US-based pizza chain Sbarro is planning to add 20 'New York style pizza' restaurants in north and east India in two years as part of expansion plans in the country. The chain, which has around 900 Sbarro outlets in more than 40 countries, operates in northern and eastern parts of India through its master franchise Jyoti International Foods. "We plan to open 20 new restaurants by end of 2016 and will be investing up to Rs 30 crore for this," Jyoti International Foods Pvt Ltd Chief Executive Officer Akhil Puri told PTI. In the first phase of expansion, the company is primarily looking at areas in Delhi and NCR, followed by outlets in Punjab and Gujarat. We currently have two restaurants, Puri added.

• Coca Cola to invest Rs 180 crore after it gets land in Bengal: Hindustan Coca-Cola Beverages, partner of Coca Cola, today said it will invest over Rs 180 crore for capacity expansion at its bottling plant at Jalpaiguri in north Bengal after it gets land from the state government. The company said it received land allotment letter from chief minister Mamata Banerjee at the north Bengal in investors meet. "With the allotment of land getting cleared, Hindustan Coca-Cola Beverages will carry out expansion at its Raninagar Bottling Plant in Jalpaiguri district. "The planned expansion will entail an investment of over Rs 180 crore to set up a new high speed PET Line. The new line is expected to start commercial production in 2015 itself," the company said in a statement.

International:

• Big brands face struggle to contain own label advance in Europe: An expensive fightback by top consumer goods brands is likely to provide only temporary relief as retailers improve the quality of their own products to attract thrifty European shoppers. Sales from supermarkets' own label ranges have surged in recent years. Cash-strapped shoppers seeking cheaper alternatives to branded favourites have also flocked to discount chains that keep prices low by stocking few top names. For household goods companies like Nestle and Unilever , the advance of private labels has eaten into market share and dented prices and margins. "Low prices are what matter most. People don't care so much about big names nowadays," said pensioner Lydia Schroeter after buying own brand yoghurt at a Lidl store in central Berlin. However, own label sales are showing the first signs of slowing down in Europe as established supermarkets slash prices on top brands to try to halt the rapid expansion of discounters like Germany's Aldi and Lidl.

• Mattel boss resigns on Barbie sales slide: Mattel has removed Bryan Stockton as chief executive and chairman following a 6% fall in sales in the crucial Christmas season. The Barbie doll and Fisher-Price toymaker said board member Christopher Sinclair would replace Mr Stockton as chairman and would act as interim chief executive while seeking a replacement. Full-year net profits for the world's biggest toy company slid more than $400m (£266m) to $498.9m. Mattel shares fell 11% in New York. Mr Sinclair thanked Mr Stockton for his three years of service but said it was the right time to "revitalise the business and to identify the right leadership for Mattel". The popularity of Barbie has faded in the past three years as girls opt for dolls based on characters from the Disney animated film Frozen, or gadgets such as tablet computers.

• Dalian Wanda to invest $1bn in Sydney property: Chinese property giant Dalian Wanda is set to invest $1bn (£667m) in a development near Sydney Harbour. The news came after US equity firm Blackstone said it was selling a Sydney office building to the group for A$415m ($327m; £218m). Gold Fields House is in the city's prime central business district and overlooks the Sydney Harbour. The firm said it plans to build a luxury hotel as well as residential and retail outlets in the area. "We look forward to creating a new Sydney landmark," said Dalian Wanda in a statement on Monday. Wanda group is backed by Chinese billionaire Wang Jianlin and is the country's largest property conglomerate.

• J.J. Martin Launches Online Vintage Site: J.J. Martin can add another title to her résumé — vintage fashion dealer. The Milan-based fashion journalist and California native has turned her passion — or self-professed obsession — for vintage clothing and jewelry into a serious online business, which debuted this week. A play on her name — J.J. aka Jennifer Jane — LaDoubleJ.com blends text and products to offer the combined experiences of a magazine, a blog and a retail shop. Developed and managed by Milan’s fashion-focused e-commerce provider The Level Group, LaDoubleJ.com allows users not only to shop a selection of vintage fashion and jewelry pieces, but also to discover the lives and work of a range of Italy-based women who are active in fashion, art, design, architecture and food. For the launch, Martin involved 15 women, ranging from fashion designer Marta Ferri to illustrator Liselotte Watkins. In keeping with Martin’s personal style, which mixes vintage and new, the women are featured in photos wearing not only pieces sold on LaDoubleJ.com, but also clothes and shoes from current fashion collections –links re-direct users to the Web sites of several other retailers that signed on with Martin.

• Uniqlo Enters Canadian Market: Uniqlo plans to open two stores in Toronto in fall 2016, marking its first foray into the Canadian market. The stores will be located in Yorkdale Shopping Centre, at 24,000 square feet, and Toronto Eaton Centre, at 28,000 square feet. Canada represents the retailer’s 18th market overall. Larry Meyer, chief executive officer of Uniqlo USA and Canada, said, "Entering the Canadian market is a milestone for the company and a signifant step in our growth strategy." Meyer noted that the next Canadian city it plans to enter is Vancouver.

• Sears Canada Names Boire as CEO: Sears Canada officially named Ronald Boire as its new chief executive officer. Boire had been acting president and ceo since October 2014. Before that he was executive vice president, chief merchandising officer and president of the Sears and Kmart formats at Sears Holdings Corp. William Crowley, chairman of Sears Canada Inc., said that Boire has been "assembling a team, developing an approach and instilling a culture that is necessary to improve the business."

Tech:

• Samsung to be iPhone's Main Chipmaker: Samsung Electronics will be the main supplier of processors powering Apple's next iPhone, Maeil Business Newspaper reported on January 26, citing unidentified sources in the semiconductor industry. Accordingly, Samsung will be responsible for around 75% of the chip production for the next iPhone, the South Korean newspaper said. Apple could not be immediately reached for comment.

• LG G3 Lollipop Update Soon: LG has been rolling out Android 5.0 Lollipop for the LG G3 slowly to different parts of the world but India has still not seen it.Now, the company has tweeted saying that the US versions of the phone will begin receiving the device this week. With the US receiving it, India may not be far behind and will hopefully receive the OTA in the next couple of weeks.

• Facebook Tests Translation Scores, Asks Admins Create Ads: Facebook appears to be trying out some new features, including a ratings system for translations and prompts for page administrators to create ads. Translations on social media are definitely useful for understanding the information your friends are sharing, but sometimes they can be hilariously bad. Facebook knows that, so the company is testing a rating system for translations. In related news, Adweek noted the company is asking some page administrators to create advertisements when they use certain key words. One of its readers noticed the prompt while creating a post using the word “sconto” (Italian for discount).

• The Tweet Activity Dashboard for iOS returns for international users: If you’re really serious about the analytics of your Twitter account, the Tweet Activity Dashboard is great. Unfortunately for international users, the iOS version was disabled on Christmas Eve. But now it’s back. The Activity Dashboard gives you quick access to analytics for your Twitter account, including the engagement of individual tweets and overall engagement performance on day to day basis via a month view.

• Uber Is Cancelling its UberEssentials Delivery Service: Uber has long been experimenting with ways to use its drivers to be more than a taxi company. UberEssentials, an on-demand delivery service, was one of the more intriguing ideas to come out of the company, but that service has been quietly shut down for now. It’s surprising to see UberEssentials close down just a month after the company extended the project. It began as a limited trial called Corner Store last summer, serving the Washington DC Area. It was expanded with longer hours in December. The company’s tweet suggests the shutdown is unlikely to be permanent, however.

• Google's Waze Is A 'Stalking App,' Claim US Police: Sheriffs have accused Google’s Waze traffic app of being a stalking app and called for alerts that indicate when police are nearby to be switched off, reports The Guardian. In 2013, Google acquired Waze, which combines GPS navigation with a social community, for $966 million. It offers free real-time traffic guidance and warnings about issues including congestion, car accidents, speed traps, traffic cameras, construction work, potholes and unsafe weather. The complaints against Waze were triggered by Sergio Kopelev, a reserve deputy sheriff in Southern California, who believes the user-submitted reports about officers’ locations make it a danger to police. Kopelev says he had not heard about Waze until late last year when his wife began using it. He then began thinking about how the app could be used to target officers. Another officer, Sheriff Mike Brown of Bedford County, Virginia, who is also chair of the National Sheriffs Association’s technology committee, told The Guardian, that the police-reporting feature, which he deems a “police stalker,” is dangerous. 

• Tesco Sells Blinkbox Music to Streaming Service Guvera: Tesco has sold Blinkbox Music to Australian music streaming service Guvera today for an undisclosed sum. Guvera will use the acquisition to expand into the UK and Western Europe. Blinkbox Music has 2.5 million registered users. Guvera, meanwhile, operates in 20 countries across Asia, Australasia and the Americas. Tesco sold Blinkbox’s video streaming service to TalkTalk earlier this month, along with its broadband and voice services. Tesco has also announced that it is closing its ebooks service, Blinkbox Books, at the end of February.