Brand Factory now open in Mysore!

Ikea plans to tweak designs for Indian market

The company will stick to the large-size store formats in India, says a senior company official 

Swedish furniture retailer Ikea will tweak its range, design and some styles to suit local tastes for its proposed Indian retail venture, a senior company official said on Wednesday at the India Retail Forum in Mumbai.

“We don’t know yet what our plan is. At this point, there are many questions to be solved,” said Juvencio Maeztu, Ikea’s recently appointed India head, who has spent the past few months visiting several homes in the country.

The company has a lot of “learning and understanding” to do in India, he said.

Ikea was among the earliest international retailers to announce plans for India after the government in January allowed 100% foreign direct investment (FDI) in single-brand retail. It plans to invest Rs.10,600 crore in India.

The retailer completed the submission of documents to the government recently after the resolution of concerns over mandatory sourcing requirements with the government easing conditions related to that.

Maeztu said the company in India will stick to the large-size store formats that it has overseas and look at taking a holistic approach for long-term partnership development in the country.

A typical Ikea store is of 30,000 to 1 million sq. ft. and does business of about Rs.700 crore a year on average, according to Abheek Singhi, head, retail and consumer sector, at Boston Consulting Group.

“Ikea will be a game-changer as they open stores away from the city and will attract consumers to come and spend the day there,” said Singhi.

Such large stores, he said, can’t come up in the main city area and probable locations would be the Mumbai-Pune expressway, the National Capital Region belt and the Bangalore-Mysore belt.

“We like big stores as we don’t sell products, but solutions. So we want everything under one roof,” Maeztu said.

Ikea’s top agenda for India is to make its products affordable, he said. “We are obsessed with low prices.”

Mcdonald's now @ JLB road

Garuda Mall Mysore all set for launch

Brigade Vantage @ Hunsur Road

30% of proposed retail malls in India deferred

The retail real estate market recorded a deferment of more than 30% of retail mall space against projected supply for the first half of the year, says Cushman & Wakefield in a recent report.

Around 2.27 million sft mall spaces was added to the existing stock in the first half of 2012, while approximately one million sft of expected mall space was deferred to second half of the year or next year. The overall vacancy rate for the major cities as of H1 2012 stood at 19.6% marginally higher than the previous quarter, mentioned the report.

"This slowdown in mall construction need not be viewed as a negative growth indicator for the retail real estate segment. With high vacancy levels as well as cautious expansion plans of retailers, the deferment of supply is a necessary measure to bring stability in the retail market," says Jaideep Wahi, director-retail agency, Cushman & Wakefield India.

However, despite deferment in retail space, rental across most malls in cities like Delhi-NCR, Chennai, Bangalore, Mumbai and Kolkata remained largely stable, while some micro markets have seen a growth over the previous quarter in the range of 2-13%.

"Given the current uncertain economic conditions, the retail markets are showing a largely stable scenario. Retailers of foreign brands still remain committed to the Indian markets with the recent announcements by multinational retailers indicating the strength of the economy," says Wahi.

The highest appreciation in rental value was recorded at Camac Street and Elgin Road in Kolkata at 12.4% and 25% respectively due to renewals of existing tenants at a higher value. Other cities like Gurgaon, Pune and Bangalore saw increase in high street rents by 7-9%.

However prominent high streets in Hyderabad (Banjara Hills, Jubilee Hills, Ameerpeet and A.S. Rao Nagar) saw a rental fall of 4-7% compared to the previous quarter due to significant amount of new construction becoming available in these markets.

Reliance Mart launches its first hypermart in the royal city of Mysore

Reliance Mart today announced the launch of its first hypermart in the royal city of Mysore at the KSRTC bus terminal. This is the fourth Reliance Mart in the state of Karnataka. Spread across an area of over 70,000 sq. ft, the hypermart stocks a range of over 30,000 products catering to the entire family. The expansive spread of the store makes it one of the largest hypermarts in Mysore and presents a complete family shopping destination for household needs.







Centrally located within the premises of Mysore's busy KSRTC bus terminal, this hyper market will present a never before shopping experience to the residents of Mysore. Shoppers have the option to choose from a wide array of products in every category ranging from food & fresh produce to grocery, consumer electronics to stationery & toys, from personal care products like fragrances & cosmetics to auto accessories, from apparel to furniture & furnishings, from homeware & kitchenware to luggage and travel accessories etc.

The speciality of the store is the fresh fruits and vegetables section which brings in the best produce from the farms to the consumers basket. A live bakery counter section provides shoppers with the unique option of buying freshly baked breads and cakes, a welcome change from the traditional pre-baked and packed products. A distinct shop-in-shop for non-vegetarian products and the extensive grocery range adds to the experience of shopping for daily needs. 'Reliance Mart' also boasts of a host of Reliance's private label brands in select categories which offer superior quality products at affordable prices.

In addition to shopping for their daily needs, consumers can also shop from a wide range of fashion products as well as home & kitchenware. Also available is an auto accessory specialty corner, Reliance Autozone, which offers product and service solutions for the automobile needs of the consumers. Shoppers can give their vehicles a fresh look, add a new audio system or get the tyres checked & replaced at this section while they shop for their other household needs.

Adding to shopper's delight is a quick service food court that offers ready to eat, ready to heat and ready to cook meals to the customers. Members of the family can enjoy a range of delicacies from Continental & Indian cuisines while the lady of the house shops. Customers also have the option to take-away semi-cooked or fully-cooked foods for a delightful meal at home.

The store layout and ambience has been designed specifically to provide customers comfort and ease of shopping. The hypermart is equipped with highly skilled and trained customer sales representatives, wide aisles that display products as per category and several checkout counters aimed at reducing the customer shopping and waiting time.

Speaking on the occasion, Mr. Rob Cissell CEO Reliance Value Formats, said, "Mysore is fast emerging as an IT destination and has an evolving consumer segment who will appreciate the unique retail experience that Reliance Mart offers in terms of the range of products and services. This further comes with the Reliance promise of guaranteed quality at unmatched prices in a great ambience."

In addition, RelianceMart provides its customers with "RelianceOne," a membership loyalty program, designed to deliver customized benefits to frequent shoppers. Under this scheme, customers can earn RelianceOne Points on all shopping in the store which can be redeemed after accumulation. The scheme already has a membership base of more than 9mn customers.