RETAIL MANAGEMENT

Springboard Research, in its research report detailing IT spending and market trends in the Indian retail industry, shows that IT revenue from the retail segment measured Rs 1079 crore in 2006 and is expected to grow to Rs 7146 crore, with a compound annual growth rate (CAGR) of 44%. Traditionally dominated by small, family-owned retail shops, the industry is moving to a more modern and organized retail industry structure.

India ’s consumer spending will quadruple by 2025, going ahead of Germany , as a youthful population earns more and saves less, according to McKinsey Global Institute study released this month. The country’s consumer market was forecast to expand at an average annual rate of 7.3 per cent. This surge would transform India from 12th to fifth-largest consumer market, behind the United States , Japan , China and Britain , displacing Germany . This might explain why Wal-Mart and Britain ’s Tesco are bullish to enter Rs 14,80,000 retail market. McKinsey also noted a change in Indian attitudes towards consumption and savings driven by optimism about the future, predicting that the household savings rate would fall, leaving more money available for consumer spending.

Benetton and Etam, the global lingerie brands have chalked out plans to hit the Rs 3,800 crore Indian market. Benetton would shortly launch its inner wear brand Undercolours in the country with the opening of its stores. Undercolours range would comprise of innerwear, nightwear and swimwear for women. Benetton has been in the country for over 16 years. The company also plans to start promotion campaign focused on visual merchandising and large format retail stores.

The Italian luxury brand Bottega Veneta has launched its store in Mumbai. The store has been set up in partnership with the Murjani Group at the Galleria, Hilton Towers and would showcase handbags, shoes, leather goods, belts, eyewear and luggage.

The quick service restaurant chain McDonald's India has tied up with HPCL to launch their fast-food outlets at HPCL owned petrol pumps. The joint venture has launched first outlet in Pune and plans to launch 10 more in western and southern India . HPCL has also tied up with Café Coffee Day.

The Koutons Retail India has decided to invest up to Rs 120 million to acquire 51 per cent or more stake in Touchwood International through its subsidiary DBG Retail Holdings. The company will finance the acquisition via a part of IPO proceeds meant for general corporate purposes or out of the internal accrual of the company. Touchwood International is the owner of 'upper class' brand, which has presence in the ladies and gents segment.