The Marketer Group B4 Source Business standard 2/1/13

IKEA may enter India with cut-down product range, but not without cafes     23rdDec,2012

IKEA, the world’s largest furniture retail chain, may settle for fewer product categories in the Indian market than it had proposed in its application to the Foreign Investment Promotion Board ( FIPB), but it is unlikely to compromise on the “concept” the Scandinavian company represents across countries, according to sources in the know. So, the fight is for the signature café, restaurant and the Swedish meat ball IKEA is known for, besides its furniture stores. When FIPB cleared IKEA’s Euro 1.5-billion investment proposal last month, it decided to strike off cafés and restaurants, besides 18 other product categories from a list of 30 the chain wanted to bring to India. IKEA, which has over 300 stores across 40 countries, does not operate outlets without cafés and Asked whether the group had told the government it could not enter India if it was not allowed to set up cafés and sell the range of items it had proposed, an IKEA spokesperson told Business Standard: “We have sought clarification and approval on the mandatory categories of products we can sell in India that make the IKEA concept possible.” The company did not reply to the question on whether IKEA had got any assurance from the government on this. But, it said, “IKEA respects the Indian government’s efforts in this process.”

What the online consumer wants                                                                         24thDec,2012

A Nielsen study, which decodes the investment attitude of those who buy on the Net, has some important lessons for marketers

A deep dive into the investment strategies and financial habits of the online Indian consumer has revealed some interesting facts. A study by Nielsen shows the online Indian consumer is a smarter and more independent investor in comparison to the average Indian consumer, as they have a higher level of financial awareness.The study also pointed out the affinity of the online Indian consumer towards precious metals, which not only serve as an excellent investment option but also have cultural significance attached to it.

Investment Decisions

The Online Indian consumer is significantly self dependent when it comes to taking investment related decisions, with over two out of five (41 per cent) respondents saying they decide on their own. Around 16 per cent said that they depended on their friends and relatives for advice on investment. Influence of external media on this investor category is not much.

Banking habits

The Survey found that almost four out of five (77 per cent) consumers preferred conducting their transactions at the bank branches. Mobile banking is also picking up pace, with 42 per cent using their mobile devices for banking needs. Going beyond online banking, marketers need to look at optimising the user experience on the mobile phone as a means for consumers to conduct business while on the go.

Investment approach
Among The investment products owned, mutual funds/unit trusts were found to be the most preferred form of investment. Coming a close second were precious metals.

Attitude towards risk
The Survey also revealed that the online Indian consumer is still a conservative investor. Around 29 per cent of the respondents admitted that they were conservative but can accept minor fluctuations in their portfolio’s value. Around 28 per cent said that they would be very concerned about any kind of volatility in their portfolio.

Payment preferences
The Study therefore shows that cash is still seen as a mode of immediate payment by Indian consumers, as most retail outlets across the country are not equipped with the necessary infrastructure to accept debit or credit cards.

Repayment Behaviour

Among The respondents who used credit cards in the last three months, 70 per cent said that they repaid all their credit card dues in full each month. Around 16 per cent of the consumers said that they repaid some of the dues in full each month, while nine per cent admitted to repaying only the minimum amount due each month. The investment habits of the online Indian consumer provide a window into the future of retail in the country’s financial sector. It also highlights the growing popularity of the online medium for financial transaction and at the same time points out certain unique traits of Indian investors, which can help marketers understand the Indian market better.

Local manufacturing does not necessarily bring down

 prices: Tomas Ernberg                                                                                          

                                                                                                                         Dated: 28/12/2012

An interview with MD, Volvo Auto India

Tomas says we sold 820 cars in India against a target of 800. This is up by 150% from last year's 320 cars. Next year we are looking at growing by 50% and a long term target of selling 20,000 cars by 2020.

While talking about building a local assembly he said, we did a small survey and found prices actually increase as there is investment in the land, factory and other overhead costs. There should be a specific business plan before making any significant investment in plant locally. With Sweden and Belgium plants combined we have enough capacity to cater to demand worldwide. We are in the process of setting up 2 factories in China but that would dedicated for only china. Also we have an assembly unit in Kuala Lumpur since the 1970s; it caters to the Malaysian market.

When asked about market share in luxury car segment in India in coming years he said, By 2020, we expect the luxury car market in the country to be around 150,000 cars. We are eyeing a market share of over 15 per cent in the segment.

The luxury car market in India is around one per cent of overall industry volume. Around four to five years earlier, it was around 0.1 per cent. Worldwide, the share of luxury cars in the overall market is around 10 per cent. By 2020, we estimate the luxury car segment to be around three per cent of the overall passenger car market in the country. So, there is huge opportunity for growth. India is going to be one of the biggest markets for us, worldwide.

Thomas Cook India eyes M&As, to hit refresh button                                Dated 29/12/2012

Thomas Cook, India is going to explore opportunities beyond travel and foreign exchange services through acquisitions said Madhavan Menon, MD, Thomas Cook India.

In May, Fairbridge Capital, a fully-owned subsidiary of Toronto-based Fairfax Financial Holdings, picked up a 77.1 per cent stake in Thomas Cook India for Rs 810 crore.

The company can use the brand name till 2025, while the company's strategy is to milk the brand as much as it can, in the meantime, it may also look at an early transition. The company has the option of renegotiation an extension. Besides it is planning to expand its franchise distribution network from 129 to 142 next year. Also it is increasing its web presence. Also it is devising an advertisement strategy after it came up with its string of ad on the lines of, 'don't just book it, Thomas Cook it'

The company is trying to tap the opportunities in the leisure travel business. Currently, nearly 60 per cent of its business comes from foreign exchange.

“Forex is a mature business. Leisure travel will grow more aggressively from a smaller base,” Menon added.

The key to brand success

They have built some of the most successful apparel brands

This article speaks about apparel getting retail. There are various success stories about these brands and how each one of them has innovated in their own segment.

Indus League, set up in 1999 by eight ex-Madura Garments executives with just two brands, have grown its portfolio to nine, including Indigo Nation, John Millers and Scullers. They have positioned themselves has the Gen Y brand with the various innovations. To name a few is the inside out shirt, three various types of jeans, anti spill shirt etc.

Suresh J, the managing director and CEO of Arvind Lifestyle Brands and Arvind Retail, a unit of Arvind, says the company did not have any Rs 100 crore-plus brand five years ago.

Today, there are four such brands—Rs 550 crore value brand Megamart, Rs 400 crore plus formalwear brand Arrow, and casual wear brands USPA and Flying Machine are over Rs 250 crore and Rs 100 crore brands, respectively.

Suresh’s 18-year stint at Hindustan Unilever where he handled a number of iconic brands like Brooke Bond, Lipton and Red Labelmust have helped him to build varied brands such as Megamart to Gant. While Megamart sells shirts at Rs 400, Gant sells them for Rs 5000.

“We have been able to create a portfolio of power brands by creating strongly differentiated marketing communications based on top consumer insights,”