Dream Believe And Achieve

If U Know Why, How Doesn`t Matter.

Excellence Is Not An Skill, Its An Attitude

If U Know Why, How Doesn`t Matter.

Never...Never...Never...Never...Give Up

If U Know Why, How Doesn`t Matter.

Be the Change, U want to see in others

If U Know Why, How Doesn`t Matter.

Sunday, 7 September 2014

Digital Dividend: Internet Penetration In India & Its Impact on GDP

DIGITAL DIVIDEND





Hamlets that already boast online connectivity offer glimpses of the transformation that Modi's plan to internet-enable 2.5 lakh villages by 2019 can achieve 

Mark Zuckerberg would be very glad if he visited the sole internet centre in Chandauli, a dusty village in Rajasthan's Alwar district, about 170 km northeast of Jaipur. A third of the 20odd kids glued to their laptop screens are visibly excited by the world wide web, and all of them, without exception, are on Facebook.Thirteen-year-old Vishal Kumar rapidly scrolls down his timeline and stops at a photo posted by a friend.Asked if his Facebook friends are all from his school, he says, “No, no, I have other friends, too.“ He can type in English but does not understand much of it, but that is no impediment as he quickly shows us how Google Translate comes to his aid. He answers all our questions but never once takes his eyes off the screen. A few feet away, his friend Nasrat Sapwan says he is quite conversant with Facebook and has now got himself a Twitter account, though he is still learning the ba sics of the micro-blogging site.“We check our results online,“ says Sapwan.
About 10 km away, in Vijayamandir, Sonu Yadav, a final-year graduate student of political science and Hindi literature, is making a poster on Microsoft Paint. It is going to take him a few more weeks to be as comfortable with Facebook as Kumar and Sapwan though he is seven years older than them, but it is a welcome start.Yadav hopes to help his father in his real estate business with his computer and internet knowledge, according to his instructor.

Grand Plans
These boys would not have been able to enjoy what is taken for granted among their counterparts in the cities had it not been for the efforts of the Digital Empowerment Foundation (DEF), a 12-year-old non-governmental organization whose objective is to provide last-mile connectivity in In dia's hinterland. It operates 50 community information resource centres (CIRCs) across 20 states that train people in the basics of the computer for free or for as low as `200 for a twomonth course. The CIRC in Chandauli is wirelessly connected to the CIRC in Vijayamandir, which relies on a BSNL broadband connection.
The United Progressive Alliance (UPA) government showed some intent on digitally connecting India's villages when it announced the National Optical Fibre Network (NOFN) in 2011. But it may not have been a top priority for a government besieged by a multitude of troubles and is now three years behind schedule. Howev er, the current Narendra Modi-led dispensation has made it one of its focus areas, with the cabinet approving the ambitious `Digital India' programme last week. As part of the plan, the government has set a target of providing broadband connectivity to 2.5 lakh villages (India has about 6.41 lakh villages, according to the 2011 Census) and making as many schools Wi-fi-enabled by 2019.Digital India will be the umbrella programme for the government's initiatives in the area and will entail an expenditure of `1.13 lakh crore in existing and new plans.

Not Enough Connections
About a third of India's 252 million internet users, and a fourth of mobile internet users, are in rural areas. But internet penetration in villages, at 8.6% compared to 37.4% in cities, has a long way to go, and this is the statistic Digital India hopes to change.Broadband in India is currently defined as a connection with a minimum download speed of 512 kilo bytes per second (kbps), and India's broadband penetration is a lowly 2%.As per a World Bank report, a 10% increase in a country's broadband connections leads to a 1.38% rise in its gross domestic product.
The government would do well to ride on the work already done by the private sector and civil society. Ganesh Natarajan, chair, Nasscom Foundation, which started the National Digital Literacy Mission in 2012 with Intel, Microsoft and other IT companies, says the initiative will now be aligned with the government's efforts.The target of the mission is to make 10 lakh people digitally literate by end-2015. There have also been other private sector initiatives like ITC's e-Choupal which links farmers to the web.
Internet access in hitherto-unconnected areas does not only empower the local population but also makes them a lucrative market for businesses like financial services and e-commerce in the long run. “The target [of connecting 2.5 lakh villages by 2019] is very achievable if the corporate sector also spends on it. Everybody's business is reliant on last-mile connectivity,“ says Osama Manzar, founder-director of DEF.Rekha Jain, a professor at the Indian Institute of Management, Ahmedabad, says while the investment may not fetch corporates a high return initially, it will eventually.
Multiple Benefits
Business potential aside, digital connectivity impacts rural folk in more ways than one. Kids currently are taught to use the computer not with a computer but with a book. “They are taught theory but they never get to use the computer,“ says Mohammad Ameer, the Alwar coordinator of DEF. Nearly 1,400 school students in Chandauli have been trained to use computers since February. “Without computers there is no education, and everything is online these days,“ says Liaqat Ali, a resident of the village.Ameer says even some women in Chandauli have started using the centre, despite initial resistance: “They come to the centre wanting to know when the next train leaves from Alwar to Delhi.“ Delhi is 160 km from Alwar.
Another focus area in the Digital India programme is e-governance. Besides making government services available on internet and mobile platforms, the key challenge will be to Take the 2.5 lakh panchayats in the country online.The government in 2007 launched the `e-Panchayat Mission Mode Programme' with 11 software applications which help in digitizing a panchayat's documents. DEF also has its initiative, called `Digital Panchayat', which aims to make every panchayat member digitally literate.“There are three lakh panchayat members in the country and a third of them are women, and by educating them, you are also empowering the women,“ says Manzar.
Moreover, thanks to the internet, people in far-flung areas have access to better healthcare; and communities dependent on the arts and crafts, which were losing their way, are also getting a leg up in preserving and enhancing their local culture and traditions, which sometimes has economic benefits, too. For instance, Chanderi in central Madhya Pradesh, known for its handwoven sarees, has come a long way in the past four years, thanks to DEF's efforts, with over two-thirds of its youth digitally literate having access to Wi-fi and, earlier this year, the launch of a website to sell its wares. Similarly, in Mungaska near Alwar, folk musician Umar Farooq is relying on the internet to ensure his Mewati community's rich musical heritage is not lost. “We have recorded our traditional songs and will soon put them up on a website,“ says Farooq, who got an invitation to play in Dubai next month on Facebook.

Carping Critics
Despite the obvious benefits of Digital India, it has its fair share of detractors. Rahul Khullar, chairman of the Telecom Regulatory Authority of India, in a recent interview to ET, said the plan was short on specifics. “Is it possible to get a birth or a death certificate online in Delhi? If not, what sort of applications are we really talking about? A lot more thinking and resources must be devoted to flesh out these applications instead of simply calling them e-health or e-education,“ he observed. A noted academic with one of the country's top educational institutions, requesting anonymity, says the current bandwidth of 100 mbps per panchayat is not sufficient. “It should be at least 1 gbps given that it serves three villages of around 10,000 people and videos are in HD [high definition] now. You can't keep laying new fibre and the current architecture does not allow for the bandwidth to be revised. This is for the next 25 years. They should have thought this through,“ he adds.
Jain says the government should allow private players to do the last-mile connectivity. Subho Ray, president of the Internet and Mobile Association of India, says the involvement of private operators is key to the success of Digital India.“The government should look at the PPP model to ensure robust last-mile connectivity. For private players, price point has been an area of discontent, wherein they are questioning economic viability for sustenance,“ he adds. But experts believe it is only a question of time before internet service providers find value in their rural clientele. But first it is up to the government to flesh out its plans and bring millions of India's rural folk onto the information superhighway.

Ref: An ET Article

Something About Flying Machines: Drones

Flying Machine : Drones





Drones are small flying machines that can reach inaccessible areas at low cost. They are without a human pilot, with controls on the ground. In India, they are used for wildlife surveys, shooting movies, disaster management and site surveys by builders 

Symbiotic Ecosystem & The Affiliated Marketing......E-Commerce Players Are Innovating Synergies for Co-Existence & Super Growth!!

Online Friendships




In the battle for supremacy, internet companies in India are turning to the most unlikeliest of allies -each other -as they look to become leaders in one of the most competitive consumer markets globally.Flipkart, Uber, redBus and OLX are just some of the top internet companies that have joined hands to assist each other to leverage their strengths and attract more consumers to their platforms.

Last month, Flipkart, India's largest e-commerce company, and OLX India, an online and mobile marketplace for used goods, announced a marketing partnership that allows potential customers to sell their used products on the latter while buying new ones on Flipkart.
“With this partnership with OLX, we will be able to provide an end-to-end solution to customers, especially in the Electronics categories where selling old products is an integral part of the buying process,“ said Ravi Vora, senior vice-president ­ marketing at Flipkart.
Industry experts believe that such tie-ups will be par for the course going forward for the internet companies in India. “These are the new barter marketing tactics. They are constantly looking to come up with ways to grow disproportionately in a very short period of time. In other words, growth hacking,“ said Alok Goel, chief executive of Sequoia Capital-backed online recharge and coupling venture Freecharge, which has a similar partnership with e-commerce players Amazon and Snapdeal.
For OLX, a portfolio company of South African diversified media conglomerate Naspers Group, such a tie-up could give it a significant advantage over its peers, given that it now has access to Flipkart's 25 million users. Naspers is also an investor in Flipkart.
Successful conversions can be tracked through special tracking codes, according to industry experts.
“They could also issue coupons which can be redeemed on the affiliated website,“ pointed out Nitin Chhabra, founder of e-commerce consultancy Ace Turtle. There is, however, no clarity whether there is a revenue sharing agreement between Flipkart and OLX.
Online bus ticketing venture redBus and on-demand taxi transportation app Uber also announced a partnership in August that allows customers, after making a booking through redBus' mobile app, to avail two free rides in an Uber cab, valued at Rs 300 each, in six cities -Mumbai, Pune, Bangalore, Hyderabad, Delhi and Chennai.
For Uber, which launched its services in India last year, a strategic partnership with redBus makes sense, given that the latter sells more than a million bus tickets every month, and has over 2 million registered users.
“This goes to the limits of traditional marketing, using our marketing strategy to get users to experience Uber for the first time,“ said Akshay BD, communications manager for Uber in Bangalore.
While Uber refused to disclose the exact number of users that have availed of the offer, company executives said the tie-up had seen a `significant' rise in number of users.
According to Ashish Kashyap, head of the Goibibo Group, which acquired redBus from its founders for about Rs 800 crore in 2013, the initiative had been a runaway success for Uber, with the company reaching out to about 150,000 users transacting through redBus mobile app users.
“The partnership becomes highly symbiotic.redBus is enabled to deliver value to its online bookers and Uber is enabled to cross-sell to a targeted set of consumers who already have a need to avail such a service and is a mobile transacting user,“ Kashyap said, adding that there is no revenue sharing agreement between the two ventures.
Others, such as real estate venture CommonFloor, have tied up with taxi services providers like Olacabs and TaxiForSure.
“We have tie-ups with them to arrange site visits for our customers. The service is free for our customers, since we take money from our builder contractors. At the same time, we get discounted rates from these aggregators since we use them very often,“ said Sumit Jain, cofounder of CommonFloor.
The barter marketing tactics are further examples of internet companies in India looking to get a stronger grip on the consumer's wallet, in a hyper-competitive market, which is currently estimated at $2 billion (Rs 12,000 crore) but which could touch $38 billion (Rs 2.3 lakh crore) by the end of the decade, according to retail consultancy Technopak.
“This is almost unique to India. You don't really see this in the more developed markets such as the US, Europe or Japan,“ said Goel, who, before taking over at Freecharge in 2013, was the chief operating officer at redBus.
With an internet user base that is expected to cross 400 million in the next five years, driven by mobile, the stakes for companies such as Flipkart are high, given that they continue grapple with wafer-thin margins, high customer acquisition costs and fickle consumers.
Partnerships with traditional or offline companies are increasingly in vogue as well.
While Uber has partnered with multinational financial services behemoth American Express in India, Goibibo has tied up with insurance company Bajaj Allianz as well as a number of restaurant chains, such as Papa John's and Subway.
“This strategy works for us,“ said Uber's Akshay. “We look to partner with companies people identify with, and where we can offer an end-to-end consumer experience.“

Ref: An ET Article

Thursday, 7 August 2014

E-Commerce : The Flavour Of The Month....Still Its Scratching The Surface...Big Industrial Houses Joining The Race...


E-retail: you ain't seen nothin' yet

While Flipkart and Amazon go on a fund-raising spree, the real battle will begin once big industrial houses such as the Tatas, Reliance and the Aditya Birla group join the race



E-Commerce is the flavour of the month. First, homegrown Flipkart raised $1 billion from private equity funds, which valued the e-retailer at over $7 billion. The very next day, Jeff Bezos, the founder and CEO of Amazon, announced an additional investment of $2 billion in India. This sparked off speculation that another prominent Indian e-retailer, Snapdeal, could be planning something similar. Though Snapdeal co-founder & CEO Kunal Bahl has maintained he does not believe in the herd mentality, news reports suggest that his company may attract funds from Ratan Tata, the former chairman of Tata Sons.
Talk to experts and they will tell you the battle has hardly begun. "There's no war yet in e-retail," says Arvind Singhal, chairman of Technopak Advisors, a leading consultancy in the retail sector. According to him, the stakes in the sector will increase manifold when big industrial houses such as the Tata, Mukesh Ambani and Aditya Birla groups join the bandwagon. He also expects global powerhouses like China's Alibaba and Japan's Rakuten to enter the Indian e-retail market.
The big Indian groups could get going soon. Tata Sons, Reliance Industries and Aditya Birla already have well-established retail brands and are capable of pumping in large sums of money into the promising sector. The Tata group, the $138-billion car-to-salt conglomerate, wants to invest $35 billion in the next three years for expansion in sectors such as retail and defence. E-retail is expected to be a significant recipient of this investment, and the group is busy finalising the details. Reliance Industries, with revenues at around $66 billion, already has a profit-making retail business; it has ambitious plans to expand it and make e-retail integral to its businesses. In fact, the Mukesh Ambani-run company has announced that it will enter e-retail by the end of the year. The $40-billion Aditya Birla group, which runs the More and Pantaloon chain of stores, too, is expected to make a big splash in e-retail, say analysts.
What could help the three Indian groups in e-retail is their presence in telecom services. The millions of mobile phone subscribers they have (Reliance Jio's service is yet to be launched) are potential e-shoppers on their portals as well. The country has over 900 million mobile phone subscribers currently and estimates suggest that 40 to 50 per cent of all online shopping in the country is done through mobile phones.

Apart from these, there are international majors such as America's Walmart, which has already begun its cash and carry (wholesale) e-commerce in India. Walmart is likely to get into mainstream e-retail in the country once the government allows foreign investment in the sector, or it may enter it through the marketplace route as Amazon and eBay have done.

Shopping on the go

The Indian e-retail (excluding travel-related transactions) market is pegged at around $3 billion at present, and is expected to grow to around $22 billion (about Rs 1,34,420 crore) in five years, according to a CLSA report. This is a sliver of the $500-600 billion retail market in India. So the upside is huge. India's e-retail is expanding at a compounded annual growth rate of about 34 per cent, according to a report by Digital Commerce. The tipping point is about two years away, when the real growth story and e-retail wars will unfold in India, point out industry stakeholders. Even today, the conversion from offline to online retail is happening at a fast clip. After bookstores, electronic stores have begun to face the heat. Mobile handset makers Motorola and Xiaomi have chosen to launch products for the mass market only online. Food stores all of a sudden find themselves short of delivery boys because they have all been poached by e-retailers as couriers.

Going by the recent deals, funds do not appear to be a constraint for the e-retailers. Private equity funds are more than ready to loosen their purse strings, even though profits are nowhere in sight, because they see in it the future of retail. E-retail is more efficient than offline retail, but, because it's a new sector, not many have been able to find a foolproof mantra for success. Cutthroat discounts have made profits hard to come by. Globally too, the scenario is challenging. Even Amazon reported a loss of $126 million in the quarter ended June 30. Only Alibaba, which is in the market to raise funds through an initial public offer, is profitable. Its net income almost tripled to 23 billion yuan in the year-ended March 31, 2014, compared with 8.4 billion yuan a year ago. While Flipkart's promoters, Sachin Bansal and Binny Bansal, have maintained that profitability is a long-term target, Amazon India's head, Amit Agarwal, says: "We have a very long term outlook in India and are not looking at immediate profitability." Even Bahl of Snapdeal, which has raised around $350 million since 2010, in a recent interview said profitability was not something he was looking at currently.

While the big retailers, Indian as well as foreign, chalk out their plans, Indian e-retail start-ups are going all out readying for the coming battle: from raising funds to investing in hiring the best talent from Silicon Valley and premier B schools, scouting for real estate to multiply their warehouses and fulfillment centres for a solid back-end and foolproof one-day delivery in as many cities as possible. Most of them are even preparing for mergers and acquisitions and have hired specialists in this field. While they are planning acquisitions of other e-retailers and expect technology players to grow, there's the possibility of some of the big players getting swallowed in the process, according to an industry expert who does not want to be named.

As of now, the industry leaders are gung-ho. It is their time to celebrate, perhaps. Sachin Bansal, co-founder and chief executive of Flipkart, said last week the next big goal was to take the company's valuation to $100 billion. "India is set to have many hundred-billion-dollar companies and Flipkart could be one of them. We are ready to do what it takes," is how Sachin described the aspiration of Flipkart, an online bookstore that he had co-founded along with Binny (the two Bansals are not related) seven years ago. The company has now diversified into multiple categories including fashion, accessories, electronics, lifestyle and the latest being adult well-being. Automobile is perhaps the only area that it won't enter.

Funds no bar

Flipkart has raised $1.76 billion in the seven years since its launch in 2007 and is currently valued at $7 billion, way below Amazon's $148 billion. In its first announcement on any financial matter so far, Amazon, which set up shop in India in June 2013, made public its $2-billion investment last week. It's the largest investment so far by any e-commerce company in India. "We see a huge potential in the Indian economy and for the growth of e-retail in India. With this additional investment of $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India," Bezos said in a statement. At current scale and growth rates, India is on track to be Amazon's fastest country ever to reach a billion dollar in gross sales, he added. The company has not given any target date for touching the $1 billion gross sales target in India, a benchmark that Flipkart achieved earlier this year.

India is one of the last potential e-retail markets Amazon is testing out. Amazon did not divulge its total investment in India. But information available with the Registrar of Companies suggests that Amazon invested around Rs 1,500 crore in India till December 2013.

Snapdeal, which was a marketplace player from the early days, likes to compare itself with Alibaba. Sachin Bansal of Flipkart, which turned a marketplace player from being an inventory-led company initially, also referred to Alibaba recently when questioned about the Bansals' diluting stake in the company as it raises more and more funds:, "Alibaba's Jack Ma or Apple's Steve Jobs too had single-digit stakes in their companies". Besides the leaning towards the Alibaba model, the current lot of e-retailers is also shying away from listing the companies on stock exchange. But only when the real war unfolds in e-retail once the big business houses come in will we know the potential of the current newsmakers.

Ref: An Article In Business Standard

Tuesday, 17 June 2014

There Is “BLOOD" All Around And The World Leaders Are Just Watching!!



There Is “BLOOD" All Around And The World Leaders Are Just Watching ……..............





I still remember that “Heavy Weight” infamous speech of  Colin Powell, who assured the United Nations that the American government has enough evidence of WMD (weapons of mass destruction) in Iraq and that of Tony Blair who supported the war to save humanity from danger. Iraq was invaded to end the threat of WMD but is there any such war which ends all wars . Of course not   and we all are witnessing the consequences of such unwise  and absurd decisons.



The militants of ISIS are unleashing their assault , killing scores of Iraqi security forces, capturing territories north of Baghdad and each assault comes with greater brutality and severity. This is  one part of the current crisis. The other is being reflected by the restrain shown by World Powers , especially United States of America and Britain , who were expected to help the Iraqi government to face the crisis in an effective way. However, this act of restraining is in contrast to their stand when it was most needed – at the time of invasion of Iraq in 2003.
The crisis has brought several questions that world leaders or the opinion makers of the respective governments should think over – Why this current crisis occurred in the first place ?  Who supported the militia ? Is this the fallout of the Syrian Crisis ?  Will the chaos engulf the whole region ? OR is this a result of the absurd invasion of Iraq.


The Rise of Sunni Militia

The ISIS , an Al-Qaeda Off shoot which now operates with the brutal support of al-nusra fighters,  known for their inhuman war crimes in Syria, that even forced USA to call them a terrorist organization. The group has benefitted from the Syrian civil war in terms of getting a major chunk of arms that were poured in for rebels in Syria and also from the Syrian rebels who joined ranks in ISIS . The insurgency had gained momentum after US withdrawal from Iraq but now is in full vigour  with sectarianism as its main character and aims at ruthlessly overthrowing the Shite government of Prime Minister Nouri-al-Maliki and establishing the Sunni led rule in Iraq. There is not an iota of  doubt that tens of thousands of lives are going to be lost.

The reasons for rise of ISIS could be many , right from the ‘divide and rule’ policy employed in the early years of Iraq invasion to give fire to the communal tensions , the transfer of power to a Shite led party , alienation of Sunni people from official ranks , to the step motherly treatment towards the Sunni community. But, nothing can justify the ISIS approach and no wrong can become right by following the policy of ‘blood’ and the time has come to take a collective call either to start a dialogue with the rebels or to stop this killing spree with force.



Threat to Regions Stability

The Israel – Palestine question, Iran – Saudi Arabia issue,  Iran nuclear issue, Turkey – Syrian conflict , the Syrian Crisis and the Al-Qaeda in Yemen has rendered the entire Middle East in an unstable and highly volatile situation The pace and intensity of the assault unleashed by ISIS threatens the security apparatus of not only Iraq but also of the neighboring countries. The petroleum prices are bound to look up , if the situation deteriorates further and this will have major adverse effects on world economy in general and on the fuel guzzling developing countries in particular.

America’s and Britain’s Responsibility

It’s an undeniable fact that the Iraq invasion was unwise and a call to war was not prudent . The policy followed by the then power holders has led to such chaos and it must be them who should take the charge now to atleast bring a halt to this situation.

First, US and Britain should use their resources to amplify the Iraqi defence and to put an end to this horrific streak of violence. Second, the western nations should stop funding Syrian rebels and bring Bashar Al Assad to table with help from Iran and Russia, else “SYRIA WILL BE NEXT IRAQ”. Third, to accept the Iran’s call for building trust , so that the new trust would be used to smoothen the rough relationship of Iran-Saudi Arabia ( probably, the main cause of many conflicts in Middle East). Fourth, to reduce tensions with Russia and to act as partners to bring Iran , Syria , Saudia Arabia , Kuwait , UAE and Iraq towards a mutual understanding and remove rivalries mostly based on the notion of religion.

Hypocrisy of World Leaders and United Nations


League of Nations (LON) perished because it could not provide “Peace to the World”.  Leaders learnt something  out of it and as a result United Nations has worked efficiently to avoid a 3 WW, but it has to ensure that it will act fairly to reduce threats to human life , to have legitimacy among all the countries and to protect itself from getting irrelevant( or perished as the case was with LON ).

Why it is ‘ Fight For Democracy’ in Syria , when it is not for the People of ‘Donetsk & Lugansk’ , for ‘Palestine’ , for the people of ‘Kuwait and Saudia Arabia’. Why there is no voice on ‘Rise of Tehreek – e – Taliban ‘ ,  from any corner of the world , even after knowing the consequences if they get access to Nukes.  Why no collective action against Boko Haram in Nigeria. Why there is no voice on the mass conviction of civilians in Egypt .

World Institutions and Leaders have to come above their vested interests and start by following same set of rules  for every one .  If world leaders stay quiet and do nothing , the crsis may take a wider profile and bring many Nations in the vortex of war. The BRICS ,  EU , United Nations, CELAC, African Union, the ASEAN and all other regional associations have to come to a single platform, shedding the vested interests, to bring peace and restore Humanity. 

There should be space for Humanity with a Multi-polar world but not for Violence and political hegemony of any country or block. ...   



Written By : Shobhit Anand


 

Thursday, 12 June 2014

Retail Is Moving from B2C to C2B....Shopping Anytime...Anywhere.....

Customer Is Dictating Terms To Business.....Its No More A Retailer`s bastion


We are a shopkeeper Nation.Highest Density Of Retailers. Still No Scale ---Reason---Diversity.
Consumption---Not seen in totality.The changing consumption neighbourhood---India---Home.
E-Retail is Bridging the gap of fragmented Supply & Demand.Retail is moving from Unorganized to Organized to Personalized.
Retail Business -- 1% Strategy & 99% execution

There are two India Now:-

One India > 37 Years of Age -- Not conversant with E-Retail, feel like an outsider.
And Second India < 37 Years of Age -----Emerging-----Are we ready to address it??

Business is moving from B2C to C2B----(<37 Age Group)---The New Perspective
The customer is dictating terms to business now, it is no more a Retailer`s Bastion now. They want shopping anytime & anywhere. So no matter how big a company you are and how much you keep boasting of your greatness, what all matters is how can you make a unique selling proposition to this customer on his device of choice which is going to be his handphone in coming times. New mantra for businesses should be Mobile First now.

Retail will be merging with E-Retail so it has to be in your plans whether short-term or long-term but its not affordable to avoid it now. E-Retail is just a channel to reach the final customer. At the end it all boils down to -- what you are going to do for your customer?? We can postpone a Business Strategy but can we postpone the customer??
 
The is one more perspective to it that all these channels are going to co-exist in India because of its diversity and fragmented state.Even Modern Retail is a new concept in India, only 8% of total retail pie of $500Bn.And we have observed in last 8-10 years that these Brick n Mortar Retail Model has not taken over our Mom n Pop stores yet. They have not only survived but groomed as well alongwith the infrastructure. The fear  is not going to subside but its a difficult reality in coming future in a Nation like India.Attractions like Cash On Delivery is a KIRANA idea only ----> Core is customer service and that is going to be the primary motive for every Business.





Sunday, 8 June 2014

Why Do They Want To Change The Drink In The Cup!! We love our Chai Ki Piali......

First It Was Coke & Pepsi, Now Its Coffee.......Are Indian Customers So Gullible....Shouldn`t we proud of our Garam Chai Ki Piali!!

Can we force them to change their Cup Ingredients as they have customized their Menu Pallates when it comes to Indian offerings!!


Starbucks, the world's largest coffee retailer and Café Coffee Day, India's No. 1 chain, square off even as rival chains struggle to keep up
It is 5 pm on a weekday evening and the line at Starbucks in Indiabulls Finance Centre, a swish business complex in south Mumbai, is teeming with executives looking for their caffeine fix. With ties loosened and jackets casually slung over their arms, these men and women from the financial services, consumer goods and media firms housed in the towers of the complex are an ideal target audience for a range of beverages and snacks sold by Starbucks, the world's largest coffee retailer; in 20 months of its inception in India -via a 50-50 joint venture with Tata Global Beverages -Starbucks has set up 46 such stores nationwide and has plans for dozens more. Cut to Ulundurpet, far removed from the urbane chatter at Indiabulls. This town of some 400,000 people in southern Tamil Nadu is best known for being halfway between Chennai and Tiruchirappalli, an industrial and temple town some 320 km to the south. If Starbucks has embarked on its fastest-ever expansion globally in India, the homegrown leader Café Coffee Day (CCD) isn't easily intimidated. India's largest coffee retailer has launched some 150 stores in the past 12 months and plans a similar number in the next year. What's more, it isn't sticking to one format. In a bid to firm up its position, CCD has launched formats for malls, highways, an upscale offering called Lounge and a single-origin coffee destination called Square. The world's largest chain and India's No. 1 retailer are squaring up for control of the country's coffee retailing market. 
 
 
VG Siddhartha, the reticent founder of CCD, is all beans when he speaks to ET Magazine. “Our dream is to be among the top three retail coffee brands in the world,“ he says. Already, CCD is present in some 200 towns across the country (it is often the first and only coffee retailer in many locations) and is aggressively expanding its footprint. “We hope to grow our retail business at about 20% in 2014-15 [and] we hope to do a revenue of `1,200 crore from retail sales and another `350 crore from the wholesale and export business this year.“ Siddhartha is firmly stepping on the gas with CCD. “We want to have around 2,500 Café and Express outlets in three years...we will set them up wherever there are opportunities, including at educational institutions, hospitals, expressways and high streets.“ Bean There, Done That Siddhartha, who pioneered the bean-to-cup concept in the coffee industry -his Amalgamated Bean Coffee owns the plantations where coffee is grown and processed and later served at CCD outlets -is now set to take his next big step. According to reports, CCD has initiated plans for an initial public offering, which may value the chain at $1 billion and provide PE investors such as KKR an exit. CCD and its investors declined comment on the possibility of such an IPO. A war chest from such an IPO will help Siddhartha finance what is quickly evolving into a two-horse race for India's coffee café mart. India's No. 1 chain, which has spent the past two decades building up its business -and has been predominately unchallenged -will face up to its strongest challenge yet. The $15-billion Starbucks is preparing to raid its citadel, digging its heels in for a long, bruising brawl. Coffee, Anyone? India is predominately a nation of tea drinkers, with most chains struggling to keep business afloat. Siddhartha opened the first CCD in 1996 on Bangalore's Brigade Road, initially to serve pricey cups of coffee and let customers experience internet, then a novelty. While he opened the first store based on visiting a similar store in Singapore, the internet novelty wore off and CCD gradually became a beverage and food retailer. Over the past two decades, CCD and other chains have been trying to persuade more people to visit their outlets and drink coffee. For all the coffee drinking claims, India remains a relative lightweight. Scandinavians throw back, by far, the most amounts of coffee and, across the world, several other countries such as the US and China swill vastly more coffee than India (see A Tea Country Still). Since inception, CCD (and several other chains) have scaled up the coffee drinking experience from crowded non-airconditioned cafes to far more luxurious outlets, offering clean cutlery, a refined ambience and, increasingly, a growing assortment of food. Indians have willingly signed up, with industry estimates pegging this segment's growth at about 20% annually. The advent of CCD and later a plethora of chains targeting this free-spending consumer catalyz e d c o f f e e sales. “Domestic consumption of coffee, which was almost stagnant in the 1980s and 1990s, picked up an impressive pace in the past 7-8 years,“ says Jawaid Akhtar, chairman, Coffee Board. “We estimate the domestic consumption at about 115,000 metric tonnes a year now which is growing at about 5% a year...driven largely by consumption through branded coffee chains.“ CCD and Starbucks are both wrestling for a share of this fast-growing market -and elbowing out the strugglers in their slugfest. Risky Business CCD's Siddhartha will be the first to admit that running a café chain can be a bruising business. For starters, real estate costs have hobbled and humbled many of CCD's rivals, who've struggled to make costly stores in central districts viable. According to industry estimates, rentals can account for 15-25% of the cost of running a café chain. Then, there's the investment in making a store appealing to customers with its interiors, finding people to run them and building a food and beverage menu that's hip enough to keep 18-24-year-olds -the target market for coffee chains -coming back for more. CCD has tried to find a way around this problem by enter ing into a revenue-sharing deal, paying 10-20% of a unit's proceeds as a fee. “Store location is a prime factor to con sider for these chains,“ says Re teesh Shukla, associ ate director, food and agriculture, with Technopak, a busi ness consultancy. “Re tail space is becoming very expensive, but you need to balance the ever-in creasing costs of this prime real estate by being in [relatively less expensive] areas frequented by the youth.“ CCD has been successful in India because of its beanto-cup business strategy, which gives it control over bean production and processing and greater efficiency from its back-end set up. While Starbucks does have similar strengths thanks to its Tata tie-up, industry watchers say its relative lack of size in India means it's at a disadvantage in squeezing out similar economies of scale. Opening a new store isn't just about finding a good location and dressing it up for a brand-conscious audience. In stead coffee chains need to figure out a tricky supply chain -how to get food and beverage to these outlets quickly, while keeping quality high. The others, who don't have this backward linkage, have predictably struggled. While the opportunity may be tempting, food and beverage outlets are dealing with a soft market, where consumers are cutting down on how often they eat out and reducing how much they order when they do. For cafes such as CCD or Starbucks, this is a blessing in disguise -consumers are reducing their spend on full-scale restaurant meals and instead scaling it down to a coffee and a snack. Starbucks' Advent Since he started his coffee chain, Siddhartha is facing up to perhaps his biggest challenge. Starbucks, which opened its first store in 1971 in Seattle's Pike Market, today operates 20,519 stores globally. In the US, the chain has become a byword for a quick, upscale cuppa (not just coffee, but increasingly tea too, with Teavana Oprah Chai launched with talk show host Oprah Winfrey), with Alist celebs and executives all having their personal favourites. Starbucks has attracted thousands of loyal customers to its My Starbucks loyalty programme and has even worked with tech start-up Square to pilot cashless transactions at its stores. While Starbucks has till recently focused on its home market, it has changed tack in the past few years. For ex ample, it announced am bitious plans to scale up its presence in China it will open 700-odd stores this year -even as it looked to man age tough economic headwinds. In October 2012, the firm announced a JV with the Tata Group to launch some 50 stores in India. While Starbucks thought of initially going it alone in India (foreign direct investments in single brand retailing are ko sher) it decided to lean on Tata Global Beverages' ex perience in the coffee in dustry supply chain to give it additional leverage here. Expanding faster in China and then India is financially prudent for Starbucks. Starbucks' operating margin for the second quarter of finan cial year 2014 (ended March) was 32.8% for the China Asia-Pacific segment, 21.6% for the Americas and 5.7% for Europe, the Middle East and Africa. While CCD had to build its brand from scratch in India, Starbucks hopes to leverage a globally familiar label with its target audience. 
 
 
When its first store opened in each city, winding queues were formed well before opening time. Familiar with its offerings in tall, grande and venti sizes, thanks to consumers who'd travelled overseas, either in real life or virtually, Starbucks' India business got off to a rousing start. Chinese Inspiration Starbucks has shown some gumption going after opportunities overseas. For example, it has made a splash in the Chinese market, says Elizabeth Friend, an analyst with Euromonitor, a research and analysis firm. “Starbucks has done very well in a number of emerging markets...much of this has had to do with the brand's very strong global reputation, which helped it to gain more immediate traction than other lesser-known chains,“ she says. “They've also done a really great job tailoring their brand -through store design, menu innovation and even learning how local stores are operated -to best suit each individual market.“ In China, this has included leaning toward larger store footprints that offer space to relax with coffee in the afternoon. The addition of beverages such as the red-bean frapuccino and a broader tea-based menu have helped Starbucks make strong inroads into the Chinese market, says Friend. Starbucks' rise in China may provide many lessons for its India business. In a large country Starbucks has had to localize its menu to keep customers coming in -something it has done quickly in India too, with dishes such as chicken tikka panini. Starbucks had cornered over two-thirds of the coffee café market in China until 2010, estimates Euromonitor, even if aggressive domestic rivals have more recently cut its market share to 60%. Friend of Euromonitor says Starbucks has been able to replicate some of this success in India, too. “Some of India's new outlet launches have been among Starbucks' most successful in its history,“ she claims. “Starbucks has been steadily gaining on local leader Café Coffee Day, though the chain will continue to pose a significant threat.“ Slow Brew Starting with its first store in Elphinstone Building in south Mumbai -the Tata's iconic Bombay House headquarters is just a stone's throw away -Starbucks has built its business steadily in India. In fact, the chain is behind its initial target of 50 stores -it has 46 operational currently -but has expanded to the National Capital Region, Bangalore and Pune as it seeks to take on CCD. According to analysts, Starbucks has firmed up its presence as a premium coffee retailer, with some malls even using it as a carrot to attract free-spending consumers to its premises. “Having a Starbucks outlet is a guarantee to attract upscale customers to a mall and this in turn helps convince international labels to rent space there,“ says Anand Sundaram, CEO of PPZ, a mall management firm which operates malls nationwide; RCity in Mumbai's Ghatkopar suburb, for instance, houses a Starbucks store. A 34-year-old Tata Administrative Services graduate is piloting Starbucks' business in India. Avani Davda went from being an executive assistant to Tata Group veteran Krishna Kumar to helming the joint venture with Starbucks for India. Having tasted her first Starbucks Coffee in Seattle in 2011 (she counts Sumatra and India Estate Blends as her favourites), Davda thinks the chain has plenty of scope for growth. “India is one of the most exciting markets in the world...we believe we have a unique opportunity to deliver an unparalleled coffeehouse experience to Indian consumers,“ she says. “We firmly believe in our ability to build and grow the Starbucks brand in India and are confident in the opportunities that the Indian market offers for it to become one of the top five markets for Starbucks globally.“ Heady Growth India provides a fertile market opportunity for CCD and Starbucks. According to company executives and analysts, there is plenty of opportunity for growth. 
 
 
 
Euromonitor says the Indian coffee café market will grow from `1,683 crore in 2012 to `2,276 core in 2017. “Growth of cafes in India is driven by many factors, including favourable demographics, rising income levels, graduation from mid-sized towns [to large metros] and the advent of global chains,“ says Sunitha Barlota, a research analyst at Euromonitor International. “Cafes in India are considered a perfect place to socialize among college goers and working professionals.“ Others such as Asitava Sen, head of the food, agriculture research and advisory team at Rabobank Group in India, believe there is plenty of headroom for growth in this space, with cafes just starting out on a sharp growth curve. Sen estimates that there are around 2,000 coffee cafes across India and there is room for 5,000 or more nationwide. “The Indian market is very different from the West ... here a visit to a café is more a social occasion and less a quick visit...the opportunity for café owners is to try and get a greater share of wallet from these consumers,“ he adds. Starbucks has discovered over the past few months how different it is doing business in India. According to Manmeet Vohra, the Indian operation's marketing and category chief, they discovered that peak hours in India were 2 pm to 6 pm (compared to 5 am to 11 am in the US, for example) and takeout orders accounted for barely a fifth of their business in India (compared to 80% in the US). What's more, as customers spend time in the cafes, they needed to design them differently. So the cookie cutter design gave way to customized spaces in each city -for example its store in Pune uses copper elements, in a nod to the heritage of the city. “After office and home, we want to be the firm favourite as a third place to hang out,“ Vohra adds. According to brand consultant Harish Bijoor, consumers have made their preferences clear -Starbucks is the more upscale hangout, while CCD is a budget option. “Both these brands have strongly defined identities and consumers identify with them,“ says Bijoor, who worked for eight years at Tata Coffee (a subsidiary of Tata Global) between 1993 and 2001. By his estimates there are currently 2,350 cafes, while the potential is for as many as 6,440 such outlets. Success Potion According to analysts such as Euromonitor's Barlota, there are three or four key ingredients that determine the success of a coffee café. Other than location -CCD's success to date is determined by being located close to colleges, business complexes, high streets and malls -pricing can be a make or break factor. This is particularly crucial at the lower end of the market where budget-conscious buyers are wary of shifting from cheap restaurants (sometimes called Darshinis) to a CCD or Starbucks. Those that do make the shift and pay the premium can be demanding on quality of service and product. As consumers make their choices known, there seem to be strong indications that India's coffee café market is going to consolidate. According to analysts, while CCD may be the mass market leader, Starbucks has occupied a strong position in the premium space, with plans to slowly but surely expand its presence. This means others in the market, including Costa Coffee, Baritsa and Gloria Jean's, will struggle to attract and retain loyal custo mers. As the market gets polarized, CCD and Starbucks are expected to soon dominate the coffee café sweepstakes. Some of these signs of strife are already visible. For example, Barista, the second organized retail chain in India after CCD, is on the market for a third time. While Ravi Deol, the chain's first CEO, was tipped as a leading takeover candidate, his interest has faded in the past few weeks. Deol couldn't be reached for comment. Italian owner Lavazza also declined comment. Then, Costa Coffee, brought into India by Devyani International, is the subject of much wrangling between partners. Devyani, which runs the India business for the likes of KFC and Pizza Hut, has struggled for years with the Costa Coffee business. Virag Joshi, the CEO of Devyani, wasn't available on the phone and didn't respond to an email seeking comment. Costa Coffee, however, doesn't seem to have given up on India. “Costa is the world's second largest coffee shop brand and is growing rapidly in its domestic UK market and globally adding over 300 stores a year,“ says Kate Manning, a spokesperson for the chain. “We are very much committed to growing our presence in India.“ While Costa has some 120 stores in India, she declined to enumerate the firm's future plans. Costa's India head, Santhosh Unni, has recently quit. Third, Gloria Jean's is also dealing with its own dose of bitter beans, with its joint venture with The Landmark Group on the rocks. Both sides didn't respond to emails seeking comments, but real estate analysts said the chain was scaling back its presence in costly high-street locations to salvage the business. However, CCD's Siddhartha isn't getting distracted by the woes of the competition. “All foreign coffee brands are looking at the top 5% of the Indian market -i.e. high in come group consumers,“ he says. “But we are focusing on the dynamic youth population. Roughly 70% of Indians today are below 35, and our goal is to reach out to them.“ Focus Matters Experts argue that as a scale player, CCD has been able to escape much of the tumult in the sector because it has focused on its core proposition of affordable coffee, with comfortable surroundings, and steered clear of trying to tinker too much with a winning formula. This is not to say that it has stood still in an evolving market. CCD, for example, gets around 35% of its business from food -an area it only focused on in the past 12-18 months. “What stands out about Siddhartha and CCD is their ability to make strategic changes in response to customer demand and competition -expanding the food offerings or rationalizing store count to sustain growth and profitability are great examples,“ says Sanjay Nayar, MD and CEO of KKR India. “There is a great opportunity for CCD to leverage its large network to drive growth in a new direction,“ he adds. In March 2010, KKR invested $210 million in Coffee Day Resorts, the holding firm which includes the coffee retailing business. Venu Madhav, who has been with CCD since day one and got promoted as chief executive over a month ago, says the coffee retailer is streets ahead of the competition in understanding the Indian consumers' needs. “Cafes are social hubs, where coffee and conversation play a key role in the success of an outlet,“ he says. “India is a value-conscious market and we see ourselves in the affordable luxury category of coffee retail.“ Madhav is keen to expand the reasons consumers stroll into a CCD -not just for a relaxed cuppa but for breakfast, lunch and dinner, too. It's no surprise that CCDs on many highways are popular rest stops and the chain is focused on expanding its presence in the space. Brand Battles CCD is acutely aware that it takes little for consumers to switch loyalties -however good the coffee may be. To try to keep pace, CCD's interiors are periodically updated to prevent its ambience from looking dated and jaded. “The look of our stores changes completely every couple of years,“ avers Madhav. While CCD continues on its rapid expansion path, Starbucks isn't rushing to keep pace. According to industry sources, Starbucks could add a dozen or more outlets in the next year in India and is looking to expand its presence in the cities it is present in and consider going to second-tier metros, too. “Each market comes with its own set of opportunities and challenges and our guiding principle across all markets continues to remain the same: to inspire and nurture the human spirit -one person, one cup and one neighbourhood at a time,“ says Davda. And in the process she'd be hoping Starbucks coffee becomes most Indians' cup of tea. 2015* 2,046.58 2016* 2,166.95 2017* 2,276.34 Source: Euromonitor *Projections 
 
Ref: AN ET ARTICLE By Rahul Sachitanand & KR Balasubramanyam