www.indiaretailing.com INDIA’S BEST SELLING APRIL 2013 • VOL. 12 NO. 4 MAGAZINE `50 US$10 ON MODERN RETAIL The Big-Box Format Evolution of Hypermarkets in India ENTREPRENEUR RETAIL EXCELLENCE Prakash Babani Punit Agarwal Director CEO Satguru’s Arts & Crafts Promart The Way of Art High Fashion at Value Pricing 01-COVER-Final.indd 2 3/25/2013 6:03:11 PM www. indiaretailing. com APRIL 2013 • PAGES 98 • VOL. 12 NO. 4 Editor in Chief Amitabh Taneja Beginning last issue, we started a series on retail formats in Editorial Director R S Roy India. In this issue, we are taking a step further and presenting Publisher S P Taneja a detailed coverage of the evolution of the largest retail format Editorial “hypermarket” and how it has become a signifi cant growth Chief of Bureau (Mumbai) Nivedita J Pawar (Sr. Assoc. Editor) Chief of Bureau (Bangalore) Rajeev Kumar (Assoc. Editor) driver for organised retailers. Copy Editor Shipra Sehgal As the leading players in this format are consolidating their Sr. Correspondent (Delhi) Payal Gulati position, they have undertaken the most tried and tested Sr. Correspondent (Mumbai) Shanti Padukone Correspondent (Kolkata) Shubhra Saini route for success – innovation and rationalisation to improve Correspondent (Bangalore) Roshna Chandran profi tability. Creatives Yet lack of large retail space at reasonable pricing has been a Art Director Pawan Kumar Verma big deterrent to the rapid expansion of this concept in metros. Dy. Art Director Deepak Verma Sr. Layout Designer Prakash Jha As the government opened the FDI fl ood gates in multi-brand Layout Designer Rakesh Kumar retail, many foreign retail companies are expected to enter Sr. Photographer Vipin Kardam India. And the major advantage of the entry of these companies Circulation & Support is the enhanced fl ow of investments in overall infrastructure Assoc. VP - Consumer Connect Anil Nagar and the establishment of new supply chains. This will in turn General Manager – Administration Hemant Wadhawan Sr. Manager – Circulation R P Singh boost the expansion of hypermarkets, which are already gaining Dy. Manager – Operations Rajesh Kumar momentum after a period of lull. Sr. Executive – Subscriptions Kiran Rawat India is poised to become a competitive market that will have Production some of the best retail players providing products and services General Manager Manish Kadam Sr. Executive Ramesh Gupta on a par with global retail standards. ADVERTISING So, stay innovative, keep experimenting and think out of the box to keep the customer satisfi ed. After all, the customer is the Waseem Ahmad, KOLKATA: assoc. vice president (real estate & technology) Piyali Oberoi, assoc. vice president one who can either make or break you. [email protected] [email protected] On the same notes, India Fashion Forum 2013, held on 20-22 Mob.: +91 9833628852 Mob.: +91 9831171388 March in Mumbai, has witnessed the congregation of fashion Mansi Chawla, Rohan Narayan, business leaders and CEOs under one roof to discuss about sr. exec. (real estate / retail support & tech.) senior general manager (retail support) creating opportunities by increasing fashion consumption and [email protected] [email protected] Mob.: +91 9899900399 Mob.: +91 9830961388 market size. Along with two concurrent events - India Shoes & DELHI: BANGALORE: Accessories Forum and InFashion, the event turnout far exceeded Suvir Jaggi, assoc. vice president Sachin Khanna, asst. manager (real estate) the expectations. [email protected] [email protected] Mob.: +91 9611127470 Mob.: +91 9818818142 Ashraf Alom, asst. manager (tech.) Mohd. Iqbal, asst. manager (tech.) Amitabh Taneja [email protected] [email protected] Mob.: +91 9871249479 Mob.: +91 9980965890 AHMEDABAD: Naveen Chauhan, dy. manager (retail supp.) All material printed in this publication is the sole property of Images Multimedia Pankaj Vyas, manager [email protected] [email protected] Pvt. Ltd. All printed matter contained in the magazine is based on the information provided Mob.: +91 9891390763 Mob.: +91 9909977088 by the writers/authors. The views, ideas, comments and opinions expressed are solely of the writers/authors or those featured in the articles and the Editor and Printer & Publisher MUMBAI: LUDHIANA: do not necessarily subscribe to the same. Nayan Shetty, manager ( retail support) Hemant Gupta, associate Printed & published by S P Taneja on behalf of Images Multimedia Pvt. Ltd. Printed at [email protected] [email protected] Modest Print Pack (P) Ltd. C-52, D.D.A. Shed Okhla Industrial Area Phase -1, Mob.: +91 9892769533 Mob.: +91 9814019745 New Delhi - 110020 and published by S P Taneja from S - 21 Okhla Industrial Area Chandan Singh, CHENNAI: Phase – 2, New Delhi.110020 Editor: Amitabh Taneja sr. exec.- sales (real estate) S. Venkataraaman, associate In relation to any advertisements appearing in this publication, readers are recommended [email protected] [email protected] to make appropriate enquiries before entering into any commitments. Images Multimedia Mob.: +91 9769653976 Mob.: +91 9444021128 Pvt. Ltd. does not vouch for any claims made by the advertisers of products and services. Images Multimedia Pvt. Ltd. The Printer, Publisher and Editor-in-Chief of the publication shall not be held for any consequences in the event of such claims not being honored by the advertisers. Delhi: S 21, Okhla Industrial Area, Phase II, New Delhi 110020 Ph: +91-11-40525000, Fax: +91-11-40525001 Copyright Images Multimedia Pvt. Ltd. All rights reserved. Reproduction in any manner is prohibited. All disputes are subject to the jurisdiction of competent courts and forums in Mumbai: 1st Floor, Bharat Tin Works, Opp. Borosil Glass Works, Off. Military Road, Delhi/New Delhi only. Images Retail does not accept responsibility for returning unsolicited Marol Maroshi, Andheri(E), Mumbai 400 059 manuscripts and photographs. Ph: +91-22-42567000, 29200043/46, Fax: +91-22-42567022 Bangalore: 523, 7th Cross, 10th Main, (Jeevanbhima Nagar Main Road), HAL 3rd Stage, Bangalore 560 075 Ph: +91-80-41255172/41750595/96, Fax: +91-80-41255182 For subscription related queries, email to: [email protected] Kolkata: 30-B, Anil Roy Road, Ground Floor, Kolkata 700 029 For feedback/editorial queries, email to: [email protected] Ph: + 91-33-40080480, Fax: +91-33-40080440 visit us at www.imagesgroup.in 02-Editorial-RETAIL.indd 6 3/29/2013 6:33:34 PM CONTENTS APRIL 2013 IN THIS ISSUE Retail Launch ...............................................38 Spotlight ........................................................70 Future Is Gourmet Ready Gobol: Opportunity in Electronic Surplus Market Future Group has opened its fi rst premium lifestyle food chain Gobol supports sales of surplus and refurbished CDIT goods. “Foodhall” in 2011 in Mumbai. In less than two years, the group is all set to expand the chain in major metros and tier I cities. Column .........................................................74 More Stores or Sales: Which Way Retailers Should Go? Entrepreneur ................................................40 Retailers should not just keep on opening stores, rather fi rst focus on The Way of Art increasing the footfall, thereby generating more same-store sales. Prakash Babani of Satguru’s Arts and Crafts shares his success story. Leader Speak ................................................76 Retail Excellence .........................................44 Retail CEO: The Business Man, Pied Piper or Juggler – III An astute CEO requires to have a long-term vision with an eye on High Fashion at Value Pricing short-term deliverables. Promart opened its fi rst store at Ahmedabad in November 2011, and in less than 2 years, the multi-brand retail chain has Events ...........................................................80 expanded its presence to more than 40 cities. INDIA FASHION FORUM 2013 – FASHION YOUR FUTURE Franchise Excellence ...................................60 The India Fashion Forum witnessed the congregation of fashion “We are in the business of selling franchises” business leaders and CEOs under one roof to discuss about creating Manpreet Gulri of Subway talks about the brand’s experience in India. opportunities by increasing fashion consumption and market size. It also recognised and honoured the industry titans across various Profi le ...........................................................62 categories for their signifi cant contribution towards the fashion Eye for Retail industry’s growth. Sarat Binani of Himalaya Optical shares his vision about the future of his brand. Concept .........................................................66 R EGULARS “Paucity of recreational facilities for children in India has triggered the seed of SCM” 12 ...............................International Round Up Anjana Menon of Stellar Children’s Museum talks about the rationale behind creating the museum in India and future plans. 18 .........................................National Updates Interview .......................................................68 34 ...............................................New Openings “We plan to achieve 60 percent of addressable market share” 94 ..............................Personality of the Month Zubair Alam and Amit Bhatia of NEC India discuss the relevance of technology in retail and the company’s solution to enhance customer. 96 .............................................................Index Cover Story 52 IN INDIA, HYPERMARKET