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.

Indian retailers retrench as reform hopes dashed

India's largest supermarket operator, Future Group, is having a clearance sale: its financial service business and flagship clothing brand are gone, and more deals are in the pipeline.

Six months after the government backtracked on plans to allow foreign retail giants such as Wal-Mart Stores and Carrefour to form joint ventures, cash-starved domestic chains are selling assets, shutting stores, and scaling back expansion plans.

It seems improbable that retailers could be in such trouble in India. They have the world's second-largest population, increasingly affluent consumers, and limited competition.

But things are tough for supermarkets, a relatively new business sector in India, with every major chain losing money. The economy has lost momentum, compounding problems of high food inflation and low retail prices, and expensive real estate.

Foreign partners would bring experience, expertise and funds, but many in the industry do not expect a decision on foreign investment in supermarkets before elections in 2014.

"These companies have realised there is no point standing still and bleeding more, waiting for the government to act," said Debashish Mukherjee, partner and vice-president with consultancy AT Kearney.

Alternative Funding
With foreign investment ruled out, many supermarkets, which account for 70% of organised retail in India, are looking to private equity investors or hitting up their billionaire owners for more capital as they continue to bleed.

"Foreign private equity firms are in talks with smaller businesses which are less capital intensive. So this option is ruled out for the big boys," said an investment banker who did not wish to be identified.

Last November, after years of delay, the prospect of a foreign partner appeared tantalisingly close for the domestic chains. India said foreign supermarket operators would be able to own up to 51% of a joint venture.

Industry euphoria proved short-lived. Under pressure from ruling coalition allies, the government backtracked in an embarrassing reversal that has come to symbolise the inability of Prime Minister Manmohan Singh's administration to enact reforms.

Indian traders and middlemen vehemently oppose allowing foreign chains into a USD 450 billion retail industry where 90% of sales are made by informal "kirana" stores, which are generally family run.

Proponents argue the infrastructure and investment that can be brought by the likes of Wal-Mart would go far to ease crippling food inflation and a high rate of food spoilage.

"We are going cautious with our expansion plans," said Mark Ashman, chief executive of Hypercity, the hypermarket arm of Shoppers Stop , which, like many of its rivals, hopes to join forces with an overseas retailer once the rules change.

"If foreign direct investment was allowed, the appetite for expansion for us would certainly be higher," he said.

A smaller future

Future Group, controlled by Kishore Biyani, known as the father of Indian retail, recently sold control of its financial services arm Future Capital to private equity firm Warburg Pincus.

Future , which sells groceries under the Big Bazaar and Food Bazaar brands, announced the deal days after it sold a controlling stake in its flagship clothing brand Pantaloon. The two deals will wipe about USD 1 billion in debt from its books.

"Our intention is to exit from non-core businesses and focus on core retail business," a company spokesman said, adding Future Group aims to be debt-free by the end of the fiscal year in March 2013.

"Two recent deals are not the last ones from us."

Future is now in talks to sell a stake in its food processing and manufacturing business to Japan's Lawson Inc, Japan's No.2 convenience store chain, a source with direct knowledge said, adding a deal would be finalised soon.

Lawson spokesman Shin Ichikawa said the company was in talks with several potential partners about entering India, but declined to name them and said nothing had been decided.

Future Group also plans to exit its insurance joint venture with Italy's Generali, although a possible deal is further off, said the source with direct knowledge who declined to be identified.

Scaling down

As well as selling assets, Future Group, which operates more than 1,300 grocery stores covering 16.5 million square feet (1.5 million square metres) across its different formats, is also scaling down growth plans.

The source said the group will only open 2 million square feet of retail space this fiscal year, instead of a previously announced 2.5 million square feet (230,000 square metres).

Future is not alone. Aditya Birla Retail has shut 50 of its More supermarkets and is closing loss-making outlets in Mumbai, Delhi and Pune to focus on hypermarkets, a company source said.

The company, part of the Birla conglomerate, has also sought another 3 billion to 4 billion rupees from controlling shareholder Kumar Mangalam Birla, the source said.

Even mighty Reliance Industries , the conglomerate controlled by Mukesh Ambani, India's richest man, has been unable to make money in retail after six years in the business and 1,300 stores.

Still, it has no plans for a foreign partner and is pushing ahead with expansion of its supermarket chains.

"Food and grocery retailers have been suffering in most of the major markets," said Devangshu Dutta, consultant with Third Eyesight.

"Many believed India to be insulated, but that's not the case."

SATYAM CINEPLEXES OPENS ITS 4-SCREEN MULTIPLEX

Caption: 1) Entry to Satyam Cineplexes and a view of the ticket counter. 2) Stadium type seating arrangements for no obstruction viewing.

Satyam Cineplexes Ltd., a pioneer in the multiplex industry which has been in the cinema business for over three decades, as its first endeavor in Karnataka, recently opened its 4-screen multiplex at Mall of Mysore in city.

Speaking to Star of Mysore, Munish Sharma, General Manager-Sales and Marketing, said that besides Mysore, Satyam Cineplexes successfully operated multiplexes in Delhi (12 screens), Indore (5 screens), Jodhpur (3 screens), Aurangabad (5 screens) and Rohtak (3 screens).

Munish said that Mysore Satyam Cineplexes has features like full stadium seating for no obstruction viewing, digital projectors of Qube and Dolby Digital sound system for quality viewing and listening.

Sunil Chugh, Manager (Operations) said that Mysore Satyam Cineplexes has 4 auditorium with auditorium 1 and 2 having a capacity of 278 seats, auditorium 3 having 239 seats and auditorium 4 having 214 seats. He added that the cafeteria provides hygienic veg and non veg eatables supplied by Aroma Bakery & Sweets and the best popcorn from Act II prepared in Gold Medal machine from USA.

He said that ticket prices on weekdays for Kannada movies will be Rs. 80 (before 1 pm) and Rs. 100 (after 1 pm). For non Kannada movies it will be Rs. 100 (before 1 pm) and Rs. 140 (after 1 pm), while the weekend prices would be for Kannada movies Rs. 100 (before 1 pm) and Rs. 120 (after 1 pm) while for non Kannada movies it will be Rs. 120 (before 1 pm) and Rs. 160 (after 1 pm). Children above the age of three would be charged full.

Sunil further said that the shows would commence from 10 am onwards and the last show would begin before 10 pm.

He said that there would be a promotional offer by SBI on Thursdays known as SBI Terrific Thursday for customers where they would be offered a complimentary ticket with the purchase of one ticket through SBI credit cards. The shows commenced from Apr. 16 and movies will change every Friday.

Zuari Shopping Mall @ KRS Road

A Recreational Hub with

Multiplex Food Court A Shopping Complex Fine Dining Restaurants

  

Is commercial space in Mysore costlier than in Bangalore?

Are commercial spaces in Bangalore cheaper when compared to Mysore? If one analyses the rents being commanded by commercial spaces in TTMCs of Bangalore Metropolitan Transport Corporation (BMTC) in Bangalore and Karnataka State Road Transport Corporation (KSRTC) in Mysore, it appears so.

While the maximum rent for commercial space at the most happening place in Bangalore (Jayanagar 4 Block TTMC) is a meagre Rs. 25 per sq ft, commercial space at the KSRTC suburban bus terminal in Mysore has been leased out at Rs. 38 per sq ft.

The corporation created this commercial space under JNNURM funding and constructed a three-storeyed structure with parking facility at the basement.

Attractive

Ramesh Babu, a realtor in Mysore, said that the rates KSRTC received has been the most attractive in terms of bulk leasing of commercial spaces even though small commercial spaces in central Mysore recently started to command rents ranging from Rs. 60 to Rs. 100 per sq ft.

A senior KSRTC official with the project told  that about one lakh sq ft commercial space at the TTMC has been leased out to an asset management company. The corporation gets Rs. 4.56 crore lease rental per year from this lease.

Design modification

The asset management company has been given some portions in the ground floor, the entire first and second floors of the TTMC. The company, in turn, has sub-leased them to a prominent retail chain, the official said.

To attract more contenders, the KSRTC introduced suitable changes in the design so as to suit a retail space, the official said. Provisions for escalators have been made in the TTMC structure thereby enhancing its lease potential.

Independent of this mega lease, KSRTC has given eight shops on the ground floor on small leases at rents ranging from Rs. 300 to Rs. 400 per sq ft.

These shops face the main road and attract more customers. While the cost of construction is about Rs. 28 crore, the corporation is hopeful of achieving the break-even in about six years.

Meanwhile, another four TTMCs under construction in Mysore have been designed to accommodate retail chains so that KSRTC does not lose money.

The TTMCs are coming up at Satagalli, Ilavala, R.S. Naidu Nagar and Chamundi Hills.

Mysore's changing profile in retail space

The FDI in retail may have been put on hold for now, but that has now slowed down the retail space activity in a Tier II city like Mysore which for long has been promoted as preferred choice for investors after Bangalore.

While emergence of multi-brand retail showrooms may have been slow in city giving an impression of lack of potential, the fact remains that the market penetration was low and latent potential for such retail has not been tapped and the investors have begun to perceive an opportunity in the present scenario.

Commercially vibrant

Over the years, Mysore has undergone a shift in its personality and has been rated high for its potential to emerge as a commercially vibrant city.

The slow but steady influx of a few large industries has contributed to it while improved connectivity to Bangalore and change in people's aspirations too have helped.

The city has seen the opening of two multi-brand malls in recent months and three more are in the offing. This is apart from the chain of mini-retail brands dealing with day-to-day consumables including grocery that have proliferated in the residential areas.

Not withstanding the slow down in investment coming to Mysore in the last two or three years, the investors in retail space are taking a long term view of the city and this is evident in the emergence of chain stores like Aditya Birla group's More, Reliance Digital and Reliance Fresh, Westside of the Tata group, Loyal World, Big Bazaar etc to name a few. The Easy Day Market of Bharati Retail at B.M.Habitat Mall, Jayalakshmipuram, is over 36,000 sq.ft while the complex housing it is fast gearing up for adding more premium brand stores.The four multiplex screens are already functioning. Likewise, the Mall of Mysore at the Raddison Hotel complex on the M.G.Road near the Race Course is another. Promoted by the Delhi-based DM South India Hospitality Group, the five-star hotel and the mall have a built area of nearly 1.50 lakh sq.ft and 2.4 lakh sq.ft respectively.

Reckoned to be biggest mall as of now in Mysore, it has been designed by Mumbai-based P.G.Patki Architects.

Manchester United cafes to open outlet in Mysore?

The craze for the game is growing in India and marketers whet appetites in a variety of ways.

There's just one thing in the world which leads Gautham Srinivas, a prim and proper corporate lawyer, to “misbehave within the realms of acceptability”: Manchester United.

FOOD FUELS INTEREST

Thematic cafés and restaurants are also springing up across the country.

Says Avinandan Banerjee, Operating Partner of Sports Connoisseurs, a franchise partner for Manchester United's diner-cum-bar in Bangalore: “The thematic restaurant, replete with a dug-out area, sky box and a players' tunnel, was set up by Man U to offer a direct touch-point for consumers to relate to the club.”

The 12,000 sq. ft. restaurant in Bangalore is the world's largest Manchester United restaurant. Apart from serving finger food, pasta, pizza and drinks, the restaurant also dishes out various memorabilia and merchandise.

“We usually have 200-300 visitors each day. On Man U match days, it goes up to 400-500,” says Banerjee. New Year's Eve saw the place brim with over 750 people.

Manchester United is considered the most popular premier league club in the world. In India alone, it has an estimated fan base of 20 million. Interestingly, the club's fan base does not have a male skew, says Banerjee, who has hired a woman to head the restaurant's marketing. “Her passion for the game and the club was phenomenal. We just had to hire her.”

Manchester United cafes are also present in Mumbai, Delhi and Goa in association with the Mumbai-based Mirah group. The football club is eyeing Kolkata, Mysore, Manipal, Chennai, Chandigarh and Kochi.

The Liverpool club is also planning to set up cafés and lounges across the country.

Flash Mob @ Mall of Mysore

Mall of Mysore

Expansion of Garuda Mall - Phase II

The heritage Onduvare Aane Galli, linking Sayyaji Rao Road to Olympia Theatre, which housed petty shops and street hawkers selling garments, plastic goods and other paraphernalia, is now history.

The MCC authorities today demolished petty shops on the old lane along Makkaji Chowk, adjacent to K.R. Circle, to facilitate construction of the massive Garuda Mall undertaken by Bangalore-based Maverick Holdings & Investments Pvt. Ltd.

The demolition process that commenced at 7 am, razed about 20 shops.

As per a contract signed with Maverick Co., MCC is to give a total of 4.19 acres of land for the mall, which is under construction. Out of this, the MCC is yet to give 1.5 acres. A decision to give the remaining land to Maverick was taken up at the last Council meeting of MCC during which it was decided to clear the encroached area around the Makkaji Chowk.

MCC Zone 6 AC Thimmappa told SOM that the lane had 117 shops which will be evicted in three phases.

Way back in 1963, this land was acquired for the construction of a commercial complex following which notices were served to the shop owners after they were assured of compensation. Later in 2007, final notices for eviction were served to traders as the last part of land acquisition process.

In this backdrop, about 80 traders evicted from the acquired land were rehabilitated in shopping complexes newly constructed by the MCC.

Today’s demolition operation was carried out under the supervision of MCC Zone-6 Assistant Commissioner E. Thimmappa in which two excavators, few trucks and 60 gang men were employed. Devaraja Police Inspector Shanthamallappa and staff provided tight security.

11/2 Aane Galli

This lane came into existence along with the Sayyaji Rao Road in 1820 during which the sale, purchase and barter of used articles was facilitated on the lane. Weekly shandies also used to be held on this lane before the construction of Devaraja Market.

Lotus Mall @ Mysore (Proposed)

Joyalukkas, now in Mysore!

The Heritage town of Mysore has already started to experience the World's favourite jeweller- Joyalukkas. The international jewellery chain has opened a large format jewellery showroom on B.N Road., Mysore. The showroom a grand 15,000 sq.ft features world-renowned jewellery brands offered exclusively by Joyalukkas and also offers a wide range of traditional and ethno-contemporary Indian designs. The Joyalukkas Mysore showroom is inaugurated by Smt. Pushpalatha.T.B.Chikkanna, Mayor of Mysore Municipal Corporation on Saturday 17th December 2011 at 10.30 am. Popular Kannada actress Aindrita Ray graced the occasion with her presence. The Auspicious lamp is lit by Sri.Sankaralinga Gowda, M.L.A & Smt. Pushpalatha Jaganath, Corporator of Mysore Municipal Corporation. Mr. Joy Alukkas, Chairman, Joyalukkas Group, local VIP's & dignitaries and the senior Joyalukkas management team were also present for the grand opening.

The Joyalukkas Mysore showroom interiors, is well designed based on the international guidelines of Joyalukkas and arranged an ample parking facility to customers.  The showroom showcases the latest international trends in jewellery and traditional and ethno- contemporary designs to meet all the needs of jewellery lovers in Mysore. A wide array of jewellery options is also available in Gold, Diamonds, Platinum, Precious Stones, Pearl and Silver in this large format Joyalukkas jewellery showroom.

Joyalukkas strictly adheres to the policy of ensuring global and local standards in quality across all the products and services offered at its showrooms. All Joyalukkas jewellery are 100% BIS hallmarked for gold, 100% IGI certified for diamond and 100% PGI certified for platinum jewellery.

“Mysore is a bustling town where the consumers are looking for the latest and the best in products and services. I am sure they are ready and looking forward to the presence of a jeweller with International stature like Joyalukkas in their midst. We feel Mysore needs a large format showroom to meet the needs of people. And here we are. Me and my team are much pleased to serve the populace of Mysore with a refreshingly new experience in jewellery shopping.” said Mr. Joy Alukkas, Chairman, Joyalukkas Group.

Joyalukkas opened a large format showroom in Hubli, Karnataka last week on 10th December 2011 on Station Road.