MxMIndia

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  • 100 days of MxM in the words of Contributing Editor Ranjona Banerji.

    Ranjona Banerji: After 100 days, I have fun dissecting what I see on TV

    By Ranjona Banerji

     

    Turning 100 is always auspicious and MxMIndia hits a well-deserved century today – the first of course, not yet the 100th 100th.

     

    In the beginning, I have to confess, I cursed MxMIndia for forcing me to watch TV news. Newspapers I can devour, but watching the hysteria which passes for debate every night on TV was trauma I could do without.

     

    After 100 days, I can’t really say I love it yet but I do have lots of fun dissecting what I see every morning. And I’ve gained a real appreciation for the tough lives of our TV anchors. Really. It’s not easy, sort of manufacturing sensation out of fairly ordinary news events. And yet, night after night they endeavour and yell away, full of outrage and nation-building or saving vigour.

     

    I thought working consecutive night shifts on a news desk was a tough job but this must be absolutely mind-numbingly exhausting. On the other hand, maybe that explains a lot – the shallowness, the lack of depth or understanding, the shrillness, the vacuous questions…

     

    Yet strangely, sometimes the hosts are completely overshadowed by their guests who scream, interrupt and insult each other with a total disregard for good manners or good sense. I’m guessing they watch a lot of the Jerry Springer shows in their spare time.

     

    Often to escape, I watch Hard Talk or Anderson Cooper to calm myself down a bit but then sometimes I catch Piers Morgan in passing and then I take 24 hours to recover. That’s when I’m a little kinder to Indian news anchors the next day.

     

    * * *

     

    The biggest thanks for the last 100 days must go to Anna Hazare and his Merry Men and One Woman. They managed to occupy all the news time available as they entangled us in their coils. It was fascinating to watch how TV was first all chuffed at saving the nation from corruption. And then, one by one, the questions started – CNNIBN, NDTV, NewsX, Headlines Today and the last to keep the flag flying, Times Now.

     

    By the time the circus reached Mumbai and tried set up tent at the MMRDA grounds at Bandra-Kurla, the party for Hazare & Co was over. And sadly so was it for TV-created hysteria.

     

    I’m waiting now to see what the next 100 days will bring. Any ideas?

     

  • 100 days of MxMIndia in the words of Editor-at-Large Anil Thakraney.

    Anil Thakraney: The hundred that beat Sachin

    By Anil Thakraney

     

    MxMIndia just completed 100 days. And while hard core cricket fans may not be very pleased to hear this, the hot new media and marketing portal beat Sachin Tendulkar to that Big 100. Congratulations!

     

    I must say it’s been a pleasure to be associated with the portal as Editor-at-Large. Which means that while I regularly contribute articles and interact with the chief editor now and then, I am essentially busy ‘making it large’ elsewhere. Usually at a pub. And this neat arrangement suits me perfectly. My mischievous work doesn’t come back to haunt me, it’s the chief editor who’s left facing the heat from aggrieved parties.

     

    Younger readers may not be aware of this… I used to edit an ad and media mag between 1996 and 2002. It’s been a long while since that brand shut down, but I have noticed that one thing hasn’t really changed in all these years: Many advertising, media and marketing professionals still do not like to hear criticism, and take offence pretty quickly. I suppose this is because of the ‘safe’ trade press, which has consistently spoilt the industry leaders by being all sugar and honey. And so when along comes a strong critique, it becomes difficult to digest.

     

    To all those reading in, I have just one thing to say on this issue: Puff pieces and PR re-prints are great for the ego, but for real impact, some bitter medicine is actually a good thing. Criticism makes us ponder after the anger has subsided. Appreciation quickly passes away over a peg of Scotch, it leads to no change. Therefore it’s important to take negative feedback on the chin, and treat it as valuable input. By the way, I often get trashed for my comments from readers, and I welcome that.

     

    Which then brings me to the founder/chief editor of MxMIndia, Pradyuman Maheshwari. I have known PM (as many of us address him) from a long way back as a colleague at Mid Day. But our association actually began when he signed up as Editor-in-Chief at exchange4media, and it has continued at this portal. And I must say I admire PM’s clear focus. For him, content and ethics unhesitatingly take precedence over commerce, and he runs an unbiased, truly professional ship. He’s that rare breed of editors in that sense, and a blessing for venom-spewing scorpions like yours truly. For the record, not even once have I been asked to plug for an advertiser. Not even once have I been asked to dilute a piece.

     

    All said, here’s wishing more power to MxMIndia. The industry deserves and badly needs a medium that doesn’t shy away from discussing tough issues. And one that always keeps the industry’s best interests in mind. Here’s to many more centuries. And hopefully, Sachin will score his 100 before MxMIndia’s next ton.

     

    So you enjoy this portal, while I am off to make it large. Cheers!

     

  • 100 days of MxMIndia in the words of Chief Sub-Editor Archita Wagle.

    Archita Wagle: A force to reckon with

    By Archita Wagle

     

    Before I joined MxM, I worked with a newspaper as a senior sub-editor for more than four years. I wanted a change, I wanted to write. MxM offered me a chance. Yes, it was a newly launched company, but when I was invited to be a part of the “founding team”, I decided to take a chance.

     

    For someone who has spent four years editing ‘journalistic’ copies ( that’s my term) and living with the journalistic timings (we ‘subs’ work in the evening and sleep in the morning) to adapt to the style and timings here (I report to work at 7.30 am most mornings) was intimidating. But I was always encouraged to learn and adapt, I was never yelled at for my mistakes, instead they were explained to me. And alongside my editing duties, I was given stories. My first story went as a BIG story. That was the day I was convinced that maybe I will not fail in this, after all.

     

    Ask any sub, we are the most under-appreciated lot. The people who read the newspaper always read the stories under the reporters’ byline. They never know the hard work that is put in by a sub to clean up a reporter’s copy, to make it an interesting read which will hold the reader’s attention – right from the headline to the last word in the copy.

     

    Therefore if I was asked to name one instance in these 100 days (I have been a part of MxM for less than 60 days till now) that I cherish the most, it would be the day I saw my name up on the website: Archita Wagle – Chief sub editor, acknowledging my contribution to the website.

     

    We are still growing… a lot of people aren’t aware of who or what we are. As we complete 100 days, I wish that soon we become a force to reckon with.

     

  • 100 days of MxMIndia in the words of Executive, Special Projects and Marcom, Insiyah Rangwala.

    Insiyah Rangwala: MxMIndia is here to stay and only to grow

    By Insiyah Rangwala

     

    I had always known that when I do start working I would like it to be for a start-up. Something new and exciting that is still figuring itself and its identity out. Being a part of that process was something I was sure I wanted to look for in my first job. After having graduated and looking forward to getting starting in the real world is when I heard about MxM India. It catered to a niche audience that interested me but I had barely any knowledge about.

     

    Finally after waiting for a while I had my first meeting with Mr. Pradyuman Maheshwari. I was nervous and excited to finally get started. It was a great conversation and I was immediately asked to start 3 days from then. When I got started at the office we were only 3 people. My first morning on my way to work I wasn’t sure what the atmosphere would be like as everyone was much older and experienced than me. I had questions running through my head such as what does one wear, what is okay to say what is not and how I should go about conducting myself.

     

    I was very pleasantly surprised by how relaxed everything was and how helpful Mr. Pradyuman and Mr. Alok were. They were extremely willing to share their knowledge and experiences which I believe was the best way for me to have gotten started. Not knowing anything about how this industry works they were kind enough to sit me down break all the information down and explain to me how things would progress. That is when I realized just how important the clients we service are. Our readers as well as our advertisers. I spent a large amount of time on creating a database with all our prospective readers and getting in touch with people that would be interested in the content we wanted to provide.

     

    Starting from there my job role expanded. We launched and it was a great experience being right at the heart of something that I believe is going to see a lot of success purely because of the innovation within the organization. Now we have expanded to a completely occupied office from where we were only 3 people on my first day. I can now say this with complete confidence that MxMIndia is here to stay and only to grow.

     

  • 100 days of MxM in the words of senior copy editor-cum-correspondent Akash Raha.

    Akash Raha: From Coming Soon to making it big

    By Akash Raha

     

    My journey in MxMIndia so far has been very entertaining and exciting. Starting off with a launch team and developing content from the beginning is always an exhilarating feeling. The feeling then is not of working ‘with’ a company, but rather that of building a company.

     

    I still remember the day when I got my first MxMIndia visiting card delivered, my name embossed on it in bold black. Behind the card, it read “MxMIndia– Coming Soon”. From ‘Coming Soon’ to making it big in the space of 100 days has been a short, yet fruitful journey.

     

    We have carved a special niche for ourselves in the media, marketing and advertising space amongst existing clutter. Completion of 100 days is a big and special milestone for the MxM family and yet there are ‘miles to go before we sleep’.

     

    Over the past few months, covering the print media and news broadcast beats, I was lucky to have been given the opportunity of interviewing and reporting on big developments.

     

    The journey began with two mega events – World Magazine Congress and AdAsia which our team covered comprehensively. Moreover, it gave the opportunity to interact with the big names in the industry.

     

    The print industry at the World Magazine Congress and INMA seem to be preparing for the coming digital revolution and seem to be appropriating the technology of the future. The times ahead seems to be exciting and adventurous for the print industry and for us, who report on all these developments.

  • There is something so touchingly innocent (kind word for daft/gormless) about some authority that bleeps out offensive words, but is totally oblivious to the risque, shall we say indelicate, nature of the entire script of some of the American serials we're watching, observes Gouri Dange.

    Gouri Dange: The monkey manning the bleep machine

    By Gouri Dange

     

    I wonder who is in charge of bleeping out words on Z Cafe and a few other channels. Didn’t have it before. Now it’s on. There is something so touchingly innocent (kind word for daft/gormless) about some authority that bleeps out offensive words, but is totally oblivious to the risque, shall we say indelicate, nature of the entire script of some of the American serials we’re watching. Which leaves you feeling like a 10 year-old-kid who incredulously and amusedly watches as his parents carefully spell out ‘s-w-i-n-e’ and ‘y-o-u-r-b-l-o-o-o-d-y m-o-t-h-e-r’ in the middle of a nasty fight with each other.

     

    I mean you can bleep out words all you want from Two and a Half Men or $#*! My Dad Says, and have a sentence going something like this: “Oh dableepmn, I thought she was nice and slubleeputy, but she didn’t want to fbleepk around, so what the hebleeepell, I’ll just have to use my iflatbleeepable dobleeepll.” But it is still clear that much of the humour is generated by constant and casual reference, to acts like sebleeeepx and masturbleeeeption, body parts like brbleeeepsts, bubleeeptts, penbleeepses, asbleeeepoles, and suchlike. Interestingly, one word that passes muster (probably because the bleepers don’t know what it means) is ‘kiester’, which means backbleeeepside. Kiester is used left right and centre, quite unmolested by the bleep. However, when anyone uses ‘ass’, it is cleaned up with the refined replacement ‘behind’.

     

    It’s intriguing how the subtitles are cleaned up too. Sometimes there is the use of the good old asterisk ***** and sometimes words are delicately replaced. So for some reason when the character is saying ‘pervert’, the subtitle primly uses ‘deviant’. Ba*ls becomes ‘guts’. Sl*t and bi**h becomes ‘witch’ (yes, I’m not making this up as I go along; I sat and noted them down). Homo is fully bleeped out, and in the subtitles it is replaced with the more politically correct ‘queer’.

     

    On Comedy Central, there is a smudge and the Cc logo pasted over ‘offensive’ images like someone smoking. Again, the story itself that day (That Seventies Show) may be all about two women desperately enjoying their smoke, and even my dogs understood that, but noooo, we’re not grown up enough to actually see them lighting up their ciggies. Ah comeon, really? I mean really? What crableepp.

     

    But let me not protest too loudly, in case someone decides that this is ALL inappropriate content for our innocent and pious country with its faiu-thousand year tradition peopled only ever by selfless heroes, brave women, and wide-eyed children and utterly functional families. I can’t even say that last phrase with a straight face, but hey, it’s a great delusion-illusion that we feed ourselves when we talk sweepingly about how ‘The West’ is soooo bad. (But of course we do our damndest to see that our children go to college there and then earn nothing but daallerrs for the rest of their lives.) But I digress.

     

    A serial like Nurse Jackie goes unbleeped, because the monkey with the bleep machine hears no gaali-galoch. And yet…and yet…take a look at the content; it would make all toes – pious as well as non-pious – curl. The woman works in a hospital, is addicted to drugs – uppers or downers or something. She buys her stash from some guy in a restaurant (who routinely meets her, they hug, he slips them into her pocket for everyone except for some reason any cop to be able to see); she hides them in her shoes, she hides them in the light fixture in the lift, she hides them in the cookie jar at home. Firstly, this serial needs to be bleeped for stupidity – why is she buying stuff from someone when she has a whole hospital full of it? Or am I missing something – is it cocaine in capsule form? We are never actually shown this Psychedelic Florence Nightingale taking the stuff or ever looking at least briefly a little happy. Secondly, for reasons never made clear to us, she is unfaithful to her husband who slaves away at home with the kids. Why this grim, sad-eyed chick has this back-story is not clear, however many episodes you watch. Whenever I catch her, she’s just loitering in hospital corridors or getting into some storeroom for a moment to herself and her demons, you’re supposed to understand.

     

    So while someone is really busy with the bleeper, really absurd as well as soul-destroying messages march right through. What dumbleepery.

     

    Naming no Names is the mid-week column where novelist, columnist and counsellor Gouri Dange presents her tongue-in-cheek view of our world.

     

  • "100 reasons why…"? Or, "100 reasons what…"? Damn! Where do I start? says Ajay Kakar

    The ‘Special’ Anchor: Ajay Kakar offers ‘100’ pointers MxM must remember in its journey ahead

    By Ajay Kakar

     

    How time flies!

     

    It seems like just ‘yesterday’, that I was invited by MxM to contribute to its first ‘issue’ to hit the net. I was asked to write on a potentially controversial subject; “8 indications when you know it’s time to bid adieu to your agency”.  While I clicked away on the computer late at night, I was afraid of the potential backlash that I could receive, from the industry that had given me an alternate career and an identity, two decades ago, and till as recently as 2005.

     

    But I was fortunate to receive very warm and encouraging feedback from friends and till-then unknown names, alike, from both the advertising and marketing fraternities. Phew! That was a relief.

     

    And today, once again, it’s late in the night/early in the morning. And I am clicking away on my computer for the 100th issue of MxM. While I feel honoured to have the opportunity to contribute to these two key milestones in the life of this ‘new entrant’, what frightens me this time is that I have an open mandate to write on whatever topic that I like. But with a request that the piece should cover a 100 points! “100 reasons why…”? Or, “100 reasons what…”? Damn! Where do I start?

     

    Having been at the client and agency end, I know the importance of a ‘client brief’.  So here goes…

     

    100 pointers (in no particular order) for MxM to remember, as it continues on its journey towards the next many centuries…

     

    1. The Indian advertising, media and marketing fraternity is a small family. It’s as if we know everybody and all that there is to know.

    The opportunity is to widen our horizons. Introduce a fresh perspective. And increase/improve our learnings by making us realise that there is still a whole new world out there, waiting to be tapped

     

    2. Advertising. Advertising. Advertising. Our world seems skewed towards the visible and glamorous world of advertising, and more specifically the 30 seconder

    The opportunity is to make us realise that there are many powerful weapons in the communication armoury that remain untapped or inadequately used

     

    3. The same few names. All the time.

    The opportunity is to also bring to light the news and views related to the     yet unsung heroes, be they brands, agencies or people, who are blazing new trails, but are still below the radar.

     

    4. India is now being recognised as a strong potential, in the world of brands.  And still, there are miles to go, before we can be acknowledged as an undisputed force to reckon with.

    The opportunity is to bring the best of thinkers and doers from around the world to our doorstep, so that we can speeden up our learning curve.

     

    5. The media always has a pov on our industry.

    The opportunity is to not only have a pov, but to also partner the industry, actively, rather than be a mere bystander and observer.  To become a platform for transformational thinking.

     

    ….As all the loyal visitors of MxM will say, in unison, what is the purpose of my Pointers! MxM not only believes in all the opportunities listed by me, but it has been practising the same for the last 100 issues.

     

    I am a repeat and regular visitor to the site. I know that the site already believes in and practices all the Pointers that I have highlighted, above. I know that the site is addictive. And I join the site’s loyal base of visitors to salute the efforts of team MxM to remain an independent voice of the industry.

     

    The purpose of my piece is not to ‘preach to the converted’ ie. MxM. But to remind them of the path they have chosen. And successfully stuck to, so far. My aim is to remind them of the opportunity. And the need to stay with this path for the many centuries ahead.

     

    So today, let’s celebrate the century gone by, while looking forward to their journey ahead.  For, if you have set off on a path to perfection, the journey never ends. As they say, the match has just begun.

     

    PS: What happened to the brief (100 points)? I have exercised my right as a “client”, to change the brief.

     

    The client (and columnist) is always right! Lol – Ed

    Ajay Kakar is Chief Marketing Officer – Financial Services, Aditya Birla Group

     

  • Yatra.com finalises McCann as its creative partner; estimated account size INR 15-20 cr

    Yatra.com to partner with McCann for their creative business

    By Shubhangi Mehta

     

    Travel company Yatra Online has gone ahead and announced the appointment of McCann as its creative agency. McCann takes over from TBWA who handled the account for the agency until recently. On the appointment of McCann, a senior official from Yatra Online Pvt Ltd said, “Yatra and TBWA have decided to part ways. Though they helped us present ourselves as a ticketing brand and position us rightly in the online travel space, we felt the need to engage the services of a bigger agency and hence we called in for a pitch.” The official confirmed that the agencies that took part included Ogilvy, Percept H, McCann and TBWA.

     

    Sources close to the development have confirmed to MxM India that there is also a media pitch happening for the online travel company.

     

    Before TBWA, Yatra.com had appointed Rediffusion Y&R as its creative agency in 2009; while Leo Burnett was the official agency in 2007.

     

    The online travel company entered the market in August 2006. It had initially appointed Everest Brand Solutions as its creative agency, and Mudra’s media agency, Optimum Media Solutions (which was re-christened Mudra Connext), handled its media duties.

     

    Yatra Online is a travel company providing information, pricing, availability and booking facility for air travel, hotels, buses and car rentals across 5,000 large cities and small rural areas around the globe. It acts as a complete tour planner for travellers and is a one-stop shop for every travel need.

     

  • It is Number one in TV news segment and the entire TV category and has climbed up 22 ranks from last year

    Aaj Tak, the most trusted TV channel says Brand Trust Report

    By A Correspondent

     

    Aaj Tak, part of the TV Today Network, has once again emerged as the most trusted news TV channel according to the Brand Trust Report released recently. Not just news segment, Aaj Tak also stands undisputed as the most trusted brand across the entire television category.

     

    The Brand Trust Report, India Study is a scientific study carried out by Brand Trust of based on a proprietary 61 primary components matrix, developed over three years of research.

     

    The report stated that Aaj Tak is the most trusted TV channel acrossIndia. It is Number one in TV news segment and the entire TV category and has climbed up 22 ranks from last year.

     

    Mr. Joy Chakraborthy, CEO TV Today Network said: “It’s a proud moment to see Aaj Tak continuing its journey to set new benchmarks. What’s the most heartening is that it’s not just numbers that make Aaj Tak the undisputed leader but also the unshakeable trust ofIndiabehind these numbers.”

     

    It’s interesting to note that Aaj Tak has been the most preferred news channel on almost all important news events this year. The viewership numbers slotted Aaj Tak on the top across Lok Pal Bill presentation in Lok Sabha, Anna Hazare’s protest, Baba Ramdev’s agitation at Ram Lila ground, Mumbai blasts,India’s win at the ICC World Cup, and Gadaffi’s killing. Also it was the leader on the counting day of the 5 key state elections.

  • I think The Hindu is on the right track. And the ads have quickly gone viral because the content is super fun. Great work.

    Debrief: Repositioning The Times

    By Anil Thakraney

     

    The action’s really hotting up in Chennai. Great stuff from The Hindu. Rival Times of India had run a hard-hitting campaign which showed people dozing off while reading their regular newspaper (read The Hindu). And The Hindu has hit back even harder, and in their campaign they reposition the challenger (read The Times) as a newspaper for the dimwits. For people who lack general knowledge but are totally clued in on Bollywood masala.

     

    ‘Stay ahead of the times’ is the tongue-in-cheek slogan. The commercials feature youngsters being asked questions on current affairs/general knowledge, and they fail miserably. But the moment a question is put to them on filmi issues, they get excited and answer correctly.

     

    [youtube width=”400″ height=”200″]http://www.youtube.com/watch?v=LXLsi_Vmtw4[/youtube]
    [youtube width=”400″ height=”200″]http://www.youtube.com/watch?v=Ckzsh9SpUAQ[/youtube]

    I think The Hindu is on the right track. For three reasons: One, they have played to their own core strength, which is the brand’s serious, no-nonsense image. This would make their current readers very happy. Two, the campaign attempts to reposition The Times as a newspaper for the floozies. And this hits the Times where it hurts, because the latter is renowned for its filmi coverage. Truth is that The Times also does serious journalism, but in an all-out ad war, these considerations don’t count. And three, The Hindu has been able to pull off a power campaign that must have cost peanuts to produce. And the ads have quickly gone viral because the content is super fun. Great work.

     

    The ball is now in The Times’s court. All eyes on Chennai!

     

    Rating: (On a scale of 1 to 5): 4. Powerful, funny and happening!

     

  • Future Group, Lifestyle and Woodland clock record sales as Republic Day discounts help retailers bounce back

    R-Day discounts see shoppers flock to malls

    By Sarah Jacob & Ratna Bhushan

     

    Indian shoppers are back in malls, buying everything from food and furnishings to crockery and winter wear to make the most of the Republic Day discounts and end-of-season sales, raising hopes among retailers that demand will pick up over the next six months.

     

    India’s largest retailer Future Group posted its highest weekly sales last week while others such as department store chain Lifestyle and footwear maker Woodland reported high sales growth as heavy discounts helped retailers bounce back after a sales slump in the past two months.

     

    “This has been the biggest week ever,” Future Group Chairman Mr Kishore Biyani said. “It has set the pace for the rest of the year and we are changing our outlook for the year to positive,” he added.

     

    Future Group reported national combined retail sales of Rs 650 crore between Monday and Sunday (January 23-29), 25-30% higher than last year, as its 210 Big Bazaar and Food Bazaar outlets ran the ‘Sabse Saste 5 Din’ promotion offer and apparel and home products chain Central offered a flat 50% discount on 100 brands. Mr Kabir Lumba, MD of Lifestyle International, which operates Lifestyle and Max department chains, said sales have grown both year-on-year and sequentially.

     

    “A large chunk of sales in the second half (of the financial year) has come from discounted merchandise because of the depressed trading conditions in November,” he said. Lifestyle increased discounts to 50% on the Republic Day weekend from 40% end-of-season sales.

     

    But analysts warn the jump in sales does not necessarily indicate a revival in consumer sentiment because it is driven by discounts. “The increase in sales is not yet an indicator of whether consumer sentiment is back. The right picture would emerge after the Budget and state elections,” Mr Purnendu Kumar, senior VP (retail) at management consultancy Technopak Advisors, said.

     

    He, however, added that retailers can continue to offer discounts as long as there is high demand. “Markdowns in margins are budgeted by retailers as they expect to balance it out with higher volumes,” Mr Kumar said. Retailers such as Future Group, Reliance Retail and Shoppers Stop have seen a slump of up to 30% in November and December.

     

    Retailers Ride on Discounts

     

    Slowing economic growth, high inflation of more than 9% until December and consistent increase in interest rates for almost two years have affected consumer sentiment.

     

    Republic Day sales are part of the end-of-season sales, and usually extend across four weekends starting from mid-January. This year, several retailers, including Lifestyle and Spencer’s Retail, advanced the sale to liquidate stocks.

     

    Food Bazaar and Big Bazaar stores contributed the largest chunk of 65% to the record sales of Future Group during the Republic Day week, whose clothing store Pantaloon and furniture and home furnishings chain Home Town too ran regular price-off schemes during the week. “Food sales exceeded our expectations; followed by sales of crockery, furnishings and luggage. Sales of durables were marginally lower than our expectations,” Mr Biyani said.

     

    He attributed the sales to aggressive prices and promotional offers by the retailer. While Big Bazaar and Food Bazaar did not extend the discount period compared to the previous years, Central, Home Town and Pantaloon have been running promotions for a week extra compared to last year. Footwear and adventure gear maker Woodland posted 22-25% growth in the end-of-season sales period.

     

    “Although winter started later, the cold got more severe this year, resulting in even high-value jackets and sweaters flying off shelves in the discount period,” Woodland VP (strategy & planning) Mr Amol Dhillon said. The company intends to derisk from seasonal changes next fiscal by breaking down its autumn winter range with lighter sweaters in November and heavy-duty jackets in January, he said. Organised retail accounts for close to 5% of the overall $450-billion market.

     

    Tough times

     

    Mr Thomas Varghese, MD and CEO of Aditya Birla Retail and chairman of the CII National Committee on Retail, last week told reporters that the retail sector was facing challenging times and the past two months had been very bad for the industry.

     

    He attributed the slowdown to inadequate funding, lack of sufficient space for expansion and talent crunch. The sector grew 25-30% last year. “If we are to look at the current trend, we are in a challenging situation and 2012-13 also does not look like a great period as of now. It is going to be a period of cautious optimism,” he had said. With the economy slowing down, several companies are expected to temper hiring and lower increment handouts, which could add to the caution.

     

    While sales of packaged consumer goods have not been hit, food and grocery retailers said sales had slowed around 5-10% since November. One such retailer, who did not wish to be named, said consumers had even started substituting pulses with vegetables, which have become cheaper. Also, several food and grocery chains broke off ties with meal coupon companies such as Sodexo, which hit sales as several companies offer their employees meal coupons as part of salaries.

     

    Better days ahead?

     

    The sector is banking on foreign investment in multi-brand retail and private equity funding to fuel growth. Ratings agency Fitch, meanwhile, has assigned a stable outlook to the retail sector for this year, riding on sales growth-driven expansion and efficient working capital management.

     

    “Retailers could be exposed to economic headwinds, leading to a decline in consumers’ discretionary spending because of higher inflation and interest rates… However, sales growth, stable margins, efficient working capital management and flexibility to defer or tone down expansion plans are expected to result in a stable credit profile for Fitchrated retail companies,” it said.

     

    Fitch said margin pressures created by extended discounting periods to push volumes growth could be mitigated by price hikes and lower prices of raw materials such as cotton.

     

    Source:The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • Starbucks in equal jv joint venture with Tata Global; to open cafe in India soon

    Soon you’ll be able to get your favourite Starbucks Espresso in India

    Starbucks Corp, the world’s largest coffee shop company, will open its first cafe in India in August through an equal joint venture with Tata Global Beverages, the two partners said on Monday.

     

    The venture, Tata Starbucks Ltd, will spend 400 crore initially and open 50 Starbucks cafe across the country by the end of the calendar year. The initial stores planned in Delhi and Mumbai in August. The move is part of the $10-billion-plus US firm’s strategy to focus on emerging markets such as India and China to drive future growth rates.

     

    “India is a unique market and we have gone through big transformation since the last four years,” said Mr John Culver, president at Starbucks China and Asia Pacific.

     

    While the core deal would be between Starbucks and Tata Global Beverages, it will work with other Tata Group firms such as Tata Coffee and Taj Catering. For instance, Tata plans to sell its mineral water brand Himalayan at Starbucks outlets in markets outside India. And the venture will leverage group firms’ properties for setting up Starbucks outlets.

    The deal comes a year after the Seattle-based firm signed an deal to buy green coffee beans from Tata Coffee’s Coorg facility and explore opening retail shops in the country. Starbucks manages over 17,000 stores in more than 57 countries and sells a wide variety of coffee and tea products along with food items, primarily through retail stores.

    The coffee cafe industry is on an expansion spree, led by market leader Cafe Coffee Day, to cash in on their increasing popularity among young consumers who have more disposable income than their previous generations.

     

    Source:The Economic Times

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