14 Oct, 2011, 03.

20AM IST, Reshmi R Dasgupta,ET Bureau

Retailers like Future Group, Lifestyle,
Godrej, MegaMart, Fabindia offering 0
EMI to attract customers
KOLKATA/NEW DELHI: Retailers are countering the economic slowdown by oIIering interest-
Iree equated monthly instalment (EMI) schemes, which they say are not only helping them pull
customers into stores but also encouraging shoppers to buy higher value products.

Such EMI-based sales promotions have staged a big comeback at a time near double-digit
inIlation has put a heavy strain on household budgets, making people deIer non-urgent and big-
ticket purchases even on credit because oI hardening interest rates.

But transactions carrying zero percent Iinancing have grown more than 50 over the past year,
say retailers and bankers.
From apparel sellers such as Arvind Brand's MegaMart and Fabindia to multi-product retailers
such as Future Group, LiIestyle and Godrej, Iirms reckon that zero-interest EMI options are the
most eIIective discounts they can oIIer.
While retailers end up bearing the interest Ior the duration oI the credit extended, they see it as
an acceptable cost oI keeping the sales register ticking during the downturn.

"EMI schemes are removing inhibitions and inducing consumers to splurge on big-ticket items,"
says Himanshu Chakrawarti, chieI executive oI Essar Group's Mobile Store, the country's largest
mobile phone retailer. He says consumers going Ior six-month EMIs are buying handsets priced
twice than they had initially planned and those going Ior nine-month to 12-month schemes are
tripling their size oI transaction.
Almost a third oI the high-end mobile phones, such as the iPhone and the latest models oI
Blackberry and Android-based phones, sold at the Mobile Store are paid Ior through instalments.
The company, which rolled out EMI schemes at its 1,200 stores across the country over the past
couple oI months, recently became India's largest seller oI BlackBerry smartphones.
Instant approval oI loans and minimal documentation help speed up EMI-based transactions,
says Parag Rao, senior executive VP, HDFC Bank. He says the bank has seen a more than 100
spurt in this loan category over the past year with an average transaction oI 30,000. "Since the
amounts are much smaller compared to home or car loan, the EMIs don't pinch much," he says.
Nov, 2011, 02.25AM IST, Writankar Mukherjee & Sreeradha D Basu,ET Bureau
$oppers $top, Landmark, $pencer`s extend
loyalty scemes to retain customers
KOLKATA: With another slowdown staring hard at the economy, retail chains are tying up with
non-competing retailers and service providers to make their customer royalty programmes more
appealing.

Retailers such as Shoppers Stop, Landmark Group, Future Group and Spencer's Retail are
pursuing strategic initiatives around their shopper loyalty programmes to enable customers to
redeem their points across a wide spectrum. So, a customer can soon redeem her Future Group
royalty points to book an Air India ticket or Iill Iuel Irom an HPCL pump.
A Spencer's Retail loyalty cardholder may soon be able to use it Ior a coIIee at CaIe CoIIee Day.
"It's all about earning and burning," says India's largest retailer Future Group CEO Kishore
Biyani. "Consumers like to collect points and spend them where they want," he says.

The group, which owns Pantaloon liIestyle chains and Big Bazaar hypermarkets among others,
has just launched a new loyalty scheme in association with Germany's Payback, a multi-partner
loyalty programme. The deal will let Future Group's loyal consumers redeem their points at
Payback clients in India such as ICICI Bank, Air India and HPCL, besides all Iormats oI the
group.

Till recently, the group's loyalty programme was limited to the liIestyle Iormat, Pantaloons,
where loyalty cardholders contribute up to 60 oI total sales. Biyani expects to reach ten million
consumers through this programme within a year.

Spencer's Retail, which operates more than 220 stores, is planning to enter into alliance with
non-competing retailers to share shopping points and discounts Ior its year-old loyalty
programme. It is in talks with the country's largest coIIee chain CaIe CoIIee Day and Ilorist
chain Ferns N Petals, and wants to include multiplexes, bookstores, cake shops, saloons and spas
in this initiative.

"Retaining customers with rewards is more cost-eIIicient than acquiring new customers," says
Spencer's Retail Executive Director (Marketing and Business Development) Sanjay Gupta.
Spencer's has already enrolled 5.5 lakh members Ior its loyalty programme

14 Nov, 2011, 03.58PM IST, Reuters
%esco aims to build on %ata tie-up for India
retail
MUMBAI: Retail giant Tesco Plc plans to build on its existing tie-up with India's Tata Group to
expand in the country iI Ioreign operators are allowed to invest in multi-brand retail, an
executive director oI the UK retailer said on Monday.
India currently allows 51 percent Ioreign investment in single-brand retailers and 100 percent Ior
wholesale operations. Global players such as Wal-Mart Stores Inc and CarreIour have long
sought greater access to the country's small but Iast-growing organised retail sector.

New Delhi is considering raising the Ioreign ownership cap in multi-brand retail to 51 percent, a
move aimed at unclogging supply bottlenecks and tackling high inIlation. The policy has been in
the works Ior years but remains held up by political opposition.
Tesco signed a Iranchise agreement in 2008 with Trent Ltd , part oI the salt-to-steel Tata
conglomerate, under which the Indian Iirm's Star Bazaar shops use Tesco's supply chains and
inIrastructure.

"We have a strong relationship with Trent, the retail arm oI Tata, which is allowing us to provide
services to them," Lucy Neville-RolIe, executive director, corporate and legal aIIairs, told
Reuters in an interview on the sidelines oI a World Economic Forum event in Mumbai.

"II and when liberalisation comes, we can then use that to build up a business," she said.

Domestic chain operators such as Trent, Pantaloon and the RPG Group are hopeIul that the
opening oI the sector to Ioreign players will spark joint ventures and investment Irom global
operators that will be required to team up with local players.

Small shop owners account Ior more than 0 percent oI India's $450 billion retail sector. Backed
by opposition parties, they have opposed the entry oI Ioreign players, Iearing that they will be
put out oI business.
"It Ielt as iI there was a little Ilurry," said Neville-RolIe, about progress in opening up the sector.
"But it seems as iI the Ilurry has slowed a little bit."
Tesco signed an agreement with Trent in 2008 to open 50 Star Bazaar hypermarkets by 2013, oI
which 13 are now operational.
For its own stores, Tesco sources around 270 million pounds ($434 million) worth oI products
such as cotton, tea and grapes Irom India each year, and has an oIIice in Bangalore where almost
6,000 employees work on research and development and internal services Ior the Iirm.

"You need to look at this market ten years hence," said Neville-RolIe. "It's a market oI interest
Ior us even iI the investment climate doesn't open up."
Eight years aIter entering China, Tesco has around 1,000 supermarkets in the country,
contributing over 1 billion pounds ($1.61 billion) in annual revenue.

15 Nov, 2011, 06.51PM IST, PTI
Lavazza brings 'Espression' to India,sets up
Rs 120 cr factory
NEW DELHI: Turin-based Italian coIIee brand Lavazza today announced the launch oI its
premium Iormat, 'Espression' in India with plans to open up to 30 outlets in the next three years
in the country.
Lavazza that also owns the 'Barista' coIIee chain with 160 outlets in India, is also setting up a
new coIIee processing Iactory in Andhra Pradesh with an investment oI Rs 120 crore to meet
increasing coIIee demand.
"We are today announcing the launch oI our international Iormat 'Espression' in India...In the
next three years the plan is to open 25 to 30 such outlets," Lavazza Asia and PaciIic Director
Attilio Capuano told PTI.
He said, 'Espression' is positioned a notch above the company's existing coIIee chain brand
Barista, with products priced about 20 per cent more.
"Espression in India is a part oI our long term strategy to strengthen the Lavazaa brand here," he
said.

At present Lavazaa runs 30 Espression outlets globally. Besides operating coIIee retail outlets,
Lavazza also sells coIIee products, and coIIee making machines in India.
In order to meet the growing demand Ior coIIee, the company is currently setting up a new
Iacility at Tada in Andhra Pradesh.
"The new Iactory will be operational in the middle oI 2012. To begin with, we will meet the
domestic coIIee demand Irom the new Iactory but Irom 2013 onwards we might look at
exporting to other Asian markets," Capuano said.
The company already has a coIIee unit located at Porur near Chennai, he added.
Lavazaa entered India in 2007 by acquiring Barista CoIIee Company and Fresh & Honest CaIe
Ltd.

Asked iI the company was considering more acquisitions here, he said: "Two companies that we
acquired in 2007 have given us a strong platIorm to expand in the country. We are not looking at
more acquisitions at the moment."
Lavazza that has presence in over 0 countries around the world had a turnover oI 1.14 billion
euro in 2010.
"We had earmarked an investment oI 100 million euro in India Ior acquisitions, retail outlets
expansion and enhancing coIIee processing capabilities, which is being made," he said without
speciIying the timeline.

15 Nov, 2011, 04.25AM IST, Chaitali Chakravarty & Kala Vijayraghavan,ET Bureau
FMCG retail will it $100 billion by 2025:
Nielsen
NEW DELHI: Nielsen estimates that the country's rural FMCG retail landscape will grow Irom
$12 billion in 2011 to $100 billion by 2025, as it unveiled its consumer 360 report in New Delhi
on Tuesday. Prashant Singh, VP, Nielsen, said: "The rural mindset is open to consumption oI
newer, more contemporary Iood categories and as a result, drives consistent growth."

The research Iirm has identiIied Iour key trends that will drive consumption: premiumisation,
consumers switching Irom commodity to brands, Irom indulgence to regular consumption, and
acceptability.

"While small-sized packages are vital Ior entry into the market, as purchasing power increases,
rural consumers are increasingly buying larger pack sizes to share with Iamily and Iriends," said
Singh. Indian shoppers will increase spends on FMCG at modern retail stores Irom $1.8 billion
to $5 billion by 2015.
Sales at modern trade stores are up 31 since last year across the country's socio economic
spectrum.

16 Nov, 2011, 08.22AM IST, AP
Finance Ministry gives nod to FDI in multi-
brand retail
NEW DELHI: The Finance Ministry has given its consent to the draIt Cabinet note on opening
the multi - brand retail to Ioreign investment, an oIIicial said.
"Finance Ministry has given concurrence to the proposal oI the Department oI Industrial Policy
and Promotion (DIPP) on allowing FDI in multi-brand retail sector," a senior ministry oIIicial
said today.
The DIPP had earlier circulated a draIt Cabinet note to seek inter-ministerial views on the
politically sensitive issue.
The note was in line with the recommendations oI the high level committee oI secretaries (Cos),
headed by Cabinet Secretary Ajit Kumar Seth.
The CoS had recommended 51 per cent FDI in the sector with several riders. These included a
minimum Ioreign investment oI USD 100 million.
The decision on FDI in the sector has been delayed in view oI concerns that it would adversely
impact neighborhood kirana shops, which account Ior over 0 per cent oI USD 50 billion retail
trade. These concerns have been voiced by several political parties and traders' unions.

Besides, the government is also contemplating to hike the ceiling oI FDI in single-brand retail.
At present, the country allows 51 per cent FDI in single brand retail, 100 per cent in cash and
carry (wholesale) business, but bars it completely in multi-brand retail.
Several global retailers like Wal-Mart and Tesco are waiting in the wings to entry into India's
multi-brand retail segment.







16 nov 2011 0628AM lS1 Sagar Malvlya ChalLall ChakravarLyL1 8ureau
ig azaar goes for new logo,tag line on 10t
yr of operations
NEW DELHI: AIter completing ten years oI existence, India leading retail chain Big Bazaar is
going Ior an image makeover with a new logo and a tag line that targets modern Indian
consumers.
"The logo and tag line will become a part oI all our communication. With the new change we are
moving on to a more emotional positioning," Future Group Strategy and Customer Director
Vibha Rishi told PTI.
As part oI the exercise, the retailer will have a tagline 'Naye India Ka Bazaar', replacing the
earlier 'Isse Sasta Aur Accha Kahin Nahin'.
She said the new logo and tagline are contemporary and reIlect changing India and ethos oI
shoppers here.
A television, print and social media communication initiative is also being launched to mark this
change.
The new logo has been developed by Bangalore-based design house Idiom and the media
campaign has been developed by Mudra Communication.
At present 151 Big Bazaar stores are operational in 0 cities across the country.
"Big Bazaar provides a platIorm Ior over 15,000 small, medium and large producers and
manuIacturers to sell their products to Indian consumers," a company statement added.








17 nov 2011 1026M lS1 1l
Metro Cas & Carry in expansion mode,to
invest Rs 2400cr in 4yrs
MUMBAI: German retailer Metro Cash & Carry today said it plans to open 8-10 stores in the
country every year Ior the next Iour years at an investment oI around Rs 2,400 crore.
"I think the time Ior expansion has come. We will open 8-10 stores a year Ior the next Iour years
in the larger towns with a population oI more than a million people," Metro Cash & Carry
Managing Director Rajeev Bakshi told reporters here.
He added, "We normally invest about Rs 60 crore on our stores, and in Mumbai it is even
higher."
On the expansion plan, he said the Iirm will open a store in Jalandhar in December and another
in Delhi in January. The company would open another store in February, but did not disclose the
location.
The Iirm today opened its eighth wholesale distribution centre in India at Borivali in Mumbai,
built at an investment oI Rs 60-70 crore.
The new centre will oIIer tailored assortment oI 10,000 products (Iood and non-Iood) to business
customers in Borivali, including hotels, restaurants, caterers, traders and small oIIices, the
company said.
The distribution centre is spread over Iour acres and has a selling space oI approximately 60,000
sq Ieet, Bakshi said.
Asked iI the company will get into business to consumer space, he said, "Our core business is
cash and carry. Internationally, our Iocus has been on cash and carry. We think in India cash and
carry is a bigger opportunity. So, in the short-term, we are not interested in getting into B-2-C
segment."
Metro Cash & Carry entered the Indian market in 2003, and at present operates six wholesale
distribution centres, including two each in Bangalore and Hyderabad, and one each in Mumbai,
Kolkata and Ludhiana.
The company is present in 30 countries with around 700 selI-service wholesale centres. It
employs over 100,000 employees worldwide.

21 nov 2011 0310M lS1 LCCnCMlC1lMLSCCM
Retail stocks down, Pantaloon Retail tanks
over 12
NEW DELHI: Shares oI retailers such as Pantaloon Retail, Shoppers Stop, V2 Retail and Trent
Ltd, which rose last week on reports the government may allow Ioreign direct investment (FDI)
in multi-brand retail, crashed in today's trade.
Describing the move as against the interests oI the country, BJP has threatened to launch
nationwide agitation against the central government's move to allow Ioreign direct investment
(FDI) in multi-brand retail.
"Party leader and Public Accounts Committee chairman Murli Manohar Joshi said it would harm
the country's small businesses," said an ET report.
"The decision on FDI in the sector has been delayed in view oI concerns that it would adversely
impact neighbourhood kirana shops, which account Ior over 0 per cent oI $50 billion retail
trade," the report added.
Several global retailers like Wal-Mart and Tesco are waiting in the wings to enter India's multi-
brand retail segment.
Pantaloon Retail closed 12.3 lower at Rs 173.70, Shoppers Stop dropped 3.0 to Rs 344.65,
V2 Retail Ltd slipped 1.2 to Rs 15.0 and Trent Ltd closed 3.3 down at Rs 8.75.
nalyst Call:
Sandeep Wagle, Founder & MD, APTART Technical Advisory Services
Breaking Rs 180 is quite a possibility Ior Pantaloon Retail. This stock had moved up Irom Rs
150 levels up to Rs 203 on news regarding FDI in retail.
So, this is a correction though a little sharp and it is quite possible that Rs 180 may be broken.
However, I do not see the bottom oI Rs 150 being broken. It may go down to Rs 170-172.




22 nov 2011 0138M lS1 lAnS
Canon to open 300 outlets across India's
small towns
NEW DELHI: Japanese imaging major Canon's Indian arm aims to triple its business to Rs.4,500
crore ($1 billion) in Iour years by opening 300 exclusive outlets, many oI them in tier-III and IV
cities, the head oI its operations here says.
"We hope to close this year at Rs.1,600 crore. By 2015, we hope to take this to Rs.4,500 crore. In
the process, we will be increasing our exclusive retail brand stores Irom 5 by the end oI this
year to 300," Canon India president and CEO Kensaku Konishi told IANS in an interivew.
"We are growing not only in the big cities but in the tier II and III cities too. Presently, iI you live
in these towns, you would have to go to a big city. Now, we are going to our customers with
exactly the same kind oI exclusive retail outlet that you would Iind in a big city," he said.
Toward this end, the company already opened 38 outlets in tier-II and III cities.
Incorporated in 17, Canon India Pvt Ltd is a 100 percent subsidiary oI Canon Singapore Pte
Ltd. Canon today has oIIices spread across seven cities in India with an employee strength oI
over 840 people and markets a comprehensive range oI 160 sophisticated and contemporary
digital imaging products in the country.
These include digital copiers, multi-Iunctional peripherals, Iax-machines, inkjet and laser
printers, scanners, all-in-ones, digital cameras, digital camcorders, dye sub photo printers, card
printers & cable ID printers.
Apart Irom the Canon Image Square exclusive outlets, the company also has around 380 primary
channel partners, 13 national retail chain partners, seven level-IV Master Service Centres, over
100 authorized service centres, over 4,000 secondary retail points, including 270 national retail
chain store partners and 33 Canon Care Centers.
Canon products are made available in over 400 towns in India and overall, Konishi said, the
company's products are available at over 5,000 outlets.
"We had acquired a customer base oI over three million by the end oI 2010. We hope to double
this to six million by 2015," Konishi said.
And, considering that 60 percent oI its India revenues come Irom products other than cameras,
Canon has opened a Business Solution Lounge in Mumbai, Bangalore and Gurgaon Ior B2B
customers "to showcase business applications with seminar rooms Ior business workshops", the
oIIicial said.
That's not all.
"As part oI our promise to enhance digital experience Ior consumers, a Canon Image Lounge
each has been launched in Gurgaon, Mumbai and Bangalore Ior customers to get a touch and Ieel
oI Canon products.
"Entry is by invitation only. The lounges provide a comprehensive display oI Canon's vast range
oI oIIerings and display over 101 consumer imaging products Ior consumers to simply look, Ieel
and experience without the compulsion on buying," Konishi said.
Special photography workshops and other customer engagement programmes are being held in
these lounges, he added.
Speaking about Canon's green initiatives, Konishi said it "takes pride in not only bringing quality
products to the market but also contributes to minimising environmental burden through
eIIective application oI environmental technologies".
"Canon Iocusses on the development oI resource-conserving products that are smaller, lighter
and easy to recycle. In India, Canon takes responsibility to dispose oI end oI liIe Canon products
and other e-waste by sending such waste to government approved recycling agency," Konishi
added.