Category — Market Entry
Restaurant News Source reports that Scottsdale, Arizona-based Cold Stone Creamery launched its first franchise location in India at the Lulu Mall in Kochi, in the western state of Kerala. Kahala Brands, the parent company of the Cold Stone Creamery brand has joined forces with Tablez Food Company, part of Lulu Group International, LLC, to bring the Ultimate Ice Cream Experience to India and neighboring Sri Lanka.
The opening event saw a crowd of 4000 people in attendance, with one family driving 150 miles from the capital city of Kerala to be one of the first to taste the premium ice cream brand. “Over the next five years, Tablez Food Company plans to invest around $11-13 million in the Cold Stone Creamery business across India and Sri Lanka,” said Shafeena Yussuf Ali, chairperson at Tablez Food Company. The company aims to open a total of 40 locations in India and five in Sri Lanka over the next five years.
July 15, 2016 No Comments
The International Air Transport Association‘s industry performance statistics for 2015 reveal that India has the fastest domestic passenger growth, while airlines in the Asia-Pacific once again carried the largest number of passengers.
Aviation Week reports that the 60th edition of the World Air Transport Statistics yearbook showed:
|Country||Annual Growth||Domestic Passenger Market|
|Geographic Area||Market Share of Passenger Traffic|
|Asia Pacific||34% (1.2 billion)|
“Last year airlines safely carried 3.6 billion passengers – the equivalent of 48 per cent of the Earth’s population—and transported 52.2 million tons of cargo worth around $6 trillion. In doing so, we supported some $2.7 trillion in economic activity and 63 million jobs,” said Tony Tyler, IATA’s director general and CEO.
July 11, 2016 No Comments
Winning a World Trade Organization dispute which the United States brought against India, American companies can now export poultry and pork products to India.
In 2007, India banned U.S. poultry, chicken eggs, and other agricultural products ostensibly to prevent avian influenza outbreaks. India just lost the appeal at a World Trade Organization appellate body when the United States argued that it had not had an outbreak of high pathogenic avian flu since 2004, while India had 90 such outbreaks between 2004 and 2014, reports Forbes.
July 11, 2016 No Comments
Pizza Marketplace reports that according to Coupon Hippo‘s research, Domino‘s in India dominates the pizza quick service restaurant category with 70% market share. The company quotes seven reasons for Domino’s success in India:
- Domino’s India currently has 1000+ outlets and is the second biggest market outside the U.S. It is on track to add 150 new stores every year throgh 2020.
- The company has localized recipes for the Indian palate (where 56% of the population is vegetarian), with pizzas such as Peppy Paneer, Farmhouse, and Margherita that cater to the vegetarians.
- A Domino’s pizza in India is the lowest priced compared to other countries: in U.K. it’s $8.62; in U.S.A. $5.99; Australia $5.04 and in India the pizza is available for $1.47.
- On social media Domino’s has five times the engagement as compared to its closest competitor.
- Pizza fits in with the Indian culture of eating with one’s hands and sharing one’s food.
- Domino’s has a super fast delivery guarantee in India: if the pizza isn’t delivered in 30 minutes, it’s free.
- Since most Indians only use a mobile phone to access the Internet, the focus for the company is taking orders via a mobile phone. By 2021 it is estimated that India will have 810 million smartphone users.
June 29, 2016 No Comments
On June 20, India announced a number of measures to ease foreign investment in defense, civil aviation, pharmaceuticals, retail, food trade and broadcasting. The Federal Government has liberalized the FDI regime with the objective of providing a major impetus to employment and job creation in India.The government’s action opens up more than a half-dozen sectors to 100 percent foreign investment. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi. This is the second reform after the last radical changes announced in November 2015.
India’s commerce and industry minister, Nirmala Sitharaman, told reporters that “definitions will have to be simplified, and clarity will emerge.” The Washington Post quotes Amber Dubey, partner and head of aerospace and defense in India at the business consulting firm KPMG, who said that “easy terms like ‘modern technology’ will allow most leading defense companies to come in unhindered.”
The government relaxed local sourcing norms for up to three years for single-brand retail trading of products that have “cutting-edge” technology. This will likely benefit Apple which had applied for exemption from the government’s rule of the 30 percent local-sourcing norm. The company will now be able to open a chain of branded stores in India. Ikea will also benefit from these relaxed norms.
100% foreign investment in civil aviation and foreign pharmaceutical companies being allowed to invest 74 percent automatically in existing brownfield projects without government approval, are two other positive policy reforms.
“The opening up of food trading holds the most promise and is likely to generate real investment,” said Richard M. Rossow, an expert in U.S.-India policy studies at the Center for Strategic and International Studies in Washington.
June 23, 2016 No Comments