Retail Focus Online
Volume 2 - 2013
The 8th Annual In-Store Asia conference runs today through February 23rd at the Bombay Exhibition Center. With the retail growth in India, coupled with the FDI (foreign direct investment) and the wave of investments and opportunities likely to usher in, this show offers networking opportunities, new ideas, cutting edge solutions, and much more. The Expo, Convention and Awards, enables meaningful interaction and engagement. JGA and our collaborative partner, FRDC (Future Research Design Company), will be exhibiting at the Expo, in the Design Pavilion, booth #7 & 8. Stop by and say hello to JGA Chairman, Ken Nisch and FRDC Managing Director, Sanjay Agarwal. And as one of the VM&RD design competition judges, Ken will also take part in the Award Ceremony on Friday, February 22nd. For more information, visit the In-Store Asia website here.
Now Open in Kuwait:
Fantasy World

Just opened on Valentine's Day is the Al-Rai showroom in Kuwait City, the fourth location of Fantasy World Toys. Targeting Kuwaiti families who typically shop together, the lively environment is typically a crowded and busy space, so the store was created as a fun place for all ages. The bold new exterior features the retailer's iconic character, Freddy, flanked by color-changing piers. To find out more, read here.
Now Open in Indianapolis:
The Cellular Connection

Just opened is the new JGA-designed prototype for The Cellular Connection, the largest Verizon Premium Wireless Retailer in the U.S., with more than 750 locations. Sleek lines and a streamlined design make for a consumer-centric concept that allows customers to focus on how to fully integrate technology into their daily lives. Sampling stations, a Kid-Zone and lifestyle stations make TCC the place for technology. More here.
Project Showcase:

Tacori recently opened its first in-store boutique at Steve Padis Jewelry in San Francisco. Establishing a consistent look and feel for the brand, the new JGA-designed boutique provides a more contemporary vision for the Tacori brand, with a hint of traditionalism in a neo-Baroque style. Key finishes include high gloss lacquer, crystal, and cobalt blue lacquer walls highlighted with architectural and graphic elements. The finishes add to brands' sense of luxury and tradition, while expressing its artisanal and spirited character.
Project Showcase:
McCormick Goes
Interactive at NRF

In this techno-focused exhibit, Intel's exhibit booth at National Retail Federation's BIG Show saluted the new McCormick World of Flavors in Baltimore. With a demo station similar to the units in place at the new store, exhibit guests could sample the unique interactive experiences available in store. Click here for more on McCormick World of Flavors, winner of the Retail Design Institute Merit Award.

Chain Store Age: Ken Nisch on 13 Hot Trends for 2013
Blog Da FAL (Brazil): McCormick World of Flavors (Portuguese)
Images India Shop: Sleep Number -- Sleep Better
Gifts & Decorative Accessories: Ken Nisch on Technology Trends

Awakening of the Elephant, by Surender Gnanaolivu
Part Two: Last month, Surender's editorial began by
describing the growing middle class of India and its
"New Age Indian Consumer." If you missed Part One,
be sure to check it out here. We continue with how
real estate and the newly established FDI are creating
expanded retail growth opportunities.


The Race for Space
It is no surprise that the demand for real estate is expected to reach 56 million square feet by 2013. Though 57% of this comes from Tier-1 cities, the growth is fueled in major retail developments in Tier-II and Tier-III cities. All this amounts to a retail spread in about 280 malls and 500 high streets across the country. The approach of retailers to select the right location (with optimal visibility and propensity for right footfalls), the right store size and the right occupation cost has narrowed down the availability of affordable quality space, thus impacting real estate rentals. High streets, with limited quality space, have seen an upward trend.

In comparison, mall spaces have a flatter trend in rentals to ensure stable demand-to-supply ratio. Viability in both cases has been easier for only sustainably profitable retailers. This has been an important factor in the transformation of high streets dominated with traditional retailers into branded shopping destinations. Malls however, with tenant-mix management, are dominated with brands. This dominance of organized brands clearly testifies to the growth trend by the demand for space in the organized retail sector.

Meanwhile in the virtual space, online retailing is steadily growing at an annual rate of 35% with 80 million active urban Internet users expected to push the market size to US $1.5 billion by 2015. Many of the established retailers and brands are strategically integrating "bricks and clicks" to increase customer retention and reach markets where it is not viable to set up stores.
The Liberalization
The government's decision to liberalize FDI (Foreign Direct Investment) in retail opens a wide door for globalization in the Indian retail market. 51% ownership in Multi-brand (49% by a local JV partner), and 100% in Single-brand is indeed timed right to fulfill consumers' growing demand for quality retail experiences. Given the conditions of mandatory local sourcing and diverse complexities of starting a business in India, there is the likelihood of a lag in new international retailers commencing operations here.

Meanwhile Indian organized retail players like Future Group, K. Raheja Group, Tata Group, Reliance Group, RPG Group, Aditya Birla Group, Landmark Group, Mahindra Group, and others are working diligently to consolidate their brand equity and competitiveness in delivering value through quality of product, service and store experience. With the understanding of economic, cultural psychographic diversity of the India, these retailers have created and are nurturing markets for international brands to enter into.

The combination of the three key growth indicators - Consumer, Space, and Market Liberalization - is indeed transforming the Indian market from mere functional home-grown concepts to international, innovative, engaging and differentiated retail environments. Without doubt, the Indian Retail sector is inching its way towards the tipping point in becoming the next boom industry.


Surender Gnanaolivu is Executive VP - Store Development & Presentation for Mahindra Retail, India. Surender has 17+years experience in the Indian Retail Industry in Brand Activation, Strategic Retail Planning, Store Planning, Store Design, Visual Merchandising, Store Roll-Out Management, Writing, Training and Teaching. He also serves as Advisory Board Editor, VM&RD Magazine. Surender may be reached at: GNANAOLIVU.SURENDER@mahindra-retail.com.

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