Category — Market Entry

Lush to enter India with Delhi Store

The beauty brand Lush, which runs 900 stores globally, wants to open a store in Delhi by the end of 2014. “Our investment will initially be limited to setting up and running a single shop in Delhi…. If the market responds well, we plan to develop this into a much larger  investment as we expand our presence through brick and mortar stores and, if the government allows it, online” said Rose Byfleet, Lush India project manager.

Foreign retailers and brands have entered the Indian market under single brand retailing in a big way in the last couple of years. The government has cleared single-brand retail proposals worth nearly $2 billion in the past year. Since 2006, the government has cleared 60-70 proposals of single-brand retail after the segment was opened to foreign investors.

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April 1, 2014   No Comments

Tesco Enters India’s Retail Market

Retailer Tesco plans to become the first global chain to enter India since the government allowed foreign companies to invest in multi-brand retail more than a year ago.

Tesco proposed to invest about $110 million to gain a 50 percent stake in partner Trent Hypermarket Ltd (THL), a unit of Tata Group that runs Star Bazaar supermarkets, according to a statement from India’s commerce ministry. The application was submitted yesterday and they plan to open between three and five new stores each fiscal year, it said. On completion of the transaction THL will operate 12 stores retailing a range of merchandise including food and grocery, personal and home care products, home and kitchen, fashion and accessories. The stores are operated under the ‘Star Bazaar’ and ‘Star Daily’ banners, and spread across the southern and western regions of India.

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March 31, 2014   No Comments

Capri-Sun Enters India market with Fruit Juice for Children

Capri-Sun has entered the India market in partnership with Hyderabad-based company SDU Beverages.

“With the second largest population in the world, India’s beverage market opens up great potential for us. To establish Capri-Sun in India is a big challenge we know that …but we also are sure it offers unlimited potential,” Capri-Sun CEO Carsten Kaisig according to Business Line 

“We have total annual retail sales volume $2 billion.  The all-natural fruit drink for kids in available in four flavors, and in the first phase it will be available in top nine cities across the country. SDU Beverages MD Kishore Agarwal said: “We will be able to produce 2 million cases in our plant in Hyderabad which is expandable to 6 million.” We have made an investment $10 million in the first phase in this facility and are looking $20 to $40 million in annual sales in the coming years.”

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March 31, 2014   No Comments

Arun Kumar confirmed by the Senate to lead Commercial Service

The U.S. Senate has confirmed yet another Indian American nominee of President Barack Obama to lead the trade promotion arm of the U.S. Commerce Department charged with helping U.S. companies succeed in markets around the world.

Kerala University physics graduate Arun M. Kumarwas confirmed to be assistant secretary of commerce and director general of the U.S. and Foreign Commercial Service by a voice vote March 12. A resident of Los Altos, California, Kumar holds an MBA from MIT’s Sloan School of Management and led KPMG/s India practice from his Silicon Valley base until his retirement last year. In this new role, Kumar is responsible for promoting American exports all over the world and manages a staff of Commercial Officers spread across America and the globe.

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March 31, 2014   No Comments

Canada’s Mobiado Enters Premium Handset Market in India

Canadian luxury mobile handset maker Mobiado has allied with premium multi-brand electronic retailer Mihaus to enter the Indian market. Mobiado handsets are priced anywhere between $500 and $20,000.

Mobiado was founded in 2004 in Vancouver by  Peter Bonac. It has a full keyboard, encrusted with sapphire crystal buttons and sells under 100,000 units annually. Mihaus, founded by Naveen Rao, Managing Director of Navshiv Retail, will retail and service the brand in India. Charu Makin, National Head, Sales & Marketing, Mihaus, said Mobiado has entered into a 10-year exclusive partnership with the company. “One of the biggest glitches with high-end brands was that there were no adequate post-sale services. We will address the service aspect also besides the distribution”.

“The new generation is willing to spend money on high-end devices that are not just aesthetically good but also don’t compromise on the functionality,” she said, adding the target market for the brand is in the 21-45 year age bracket. Mobiado will compete with brands such as Nokia’s Vertu, Tag Heuer Meridiist, Lamborghini, Armani and Dior handsets.

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March 29, 2014   No Comments