India is at the top for our global expansion plan: Dominik de Daniel, COO, Spaces

NEW DELHI: IWG, a global workplace provider recently launched its ‘Space’ brand in India. The company previously known as Regus has six brands under its umbrella, two of which are now present in India. In an exclusive interview with ET Realty, Dominik de Daniel, COO & CFO, Spaces and Harsh Lambah, Country Manager, talks about their plans for expanding in India.

How do you see the co-working space market in India?

The co-working market is growing at a quick pace in India, thanks to the growing number of entrepreneurs and start-ups. Central government's pro-startup policies have also helped our sector. Apart from this, now the traditional companies too are showing interests in working from the co-working spaces, which has opened up a whole new audience for us.

India has one of the highest ‘young’ workforces in the world which makes it a significant market for companies like us. This along with the GDP growth that the country is expected to witness, it is on the top of our list for expanding globally.

There are different types of business-model present in the shared-space industry, what is the business-model for Spaces? And who is your target audience?

We will be considering all kind of business models. Currently for the co-working space we have launched in Gurgaon, we have tied-up with DLF. We are looking to tie-up with developers and landlords in other cities as well. These associations can work in many ways where the landlord provides us the space or also invest in setting up the infrastructure, etc.

What kind of retention you are expecting?

Considering the conversion we have seen in Regus brand and the demand we are witnessing for Spaces, we expect a 60% retention rate in coming time.

With the price point that you have, how do you plan to attract start-ups and entrepreneurs to your facility?

We agree that the price we offer is not the lowest in any market but all the global network that we offer along with the high-quality promise is already attracting people to our facilities. There are few who are even moving from Regus to Spaces. As of now, there is enough demand for every price bracket in the co-working market.

Do you plan to focus more on open spaces or the private spaces/business centers?

We will have a mix of both in our centres. In the Gurgaon centre for instance, we have 30% of the open spaces while rest 70% is for private spaces. Though the recent centre does not have flexible spaces, we plan to install them in our upcoming co-working spaces, which then can be re-moulded depending on the clients need.

Which are the cities you will be targeting at? And by when will you plan to open co-working space in these cities?

We are targeting all the metro cities i.e. Bengaluru, Mumbai, Hyderabad, NCR and Pune. We are opening up a centre in Chennai soon having 400-500 seats capacity. It will be spread in 35,000-40,000 sq ft.

With all five brands present in the same industry, don’t you think it eats-up each other market?

We agree that all brands exist in the same segment but if you look at it from the price segment, each one of them is targeting a completely different segment. As for India, Regus targets mostly the higher segment while Spaces will target the mid and high-segment.

How do you see the existing competition in India?

We believe that as of now there is enough space for co-working companies to exist simultaneously. In a way competition helps in creating awareness about the product which benefits us as well.

Resource: http://realty.economictimes.indiatimes.com

Resource: http://grandiose.org.in/

This American designer brand just made a grand entry in India

American designer brand Kate Spade marked its entry in India with a gala party hosted by leading fashion and style magazine, Harper's Bazaar. The launch event was held in the Capital at DLF Emporio mall recently, with the latest range of apparel, accessories and bags on display. The season's inspiration is Morocco, with the camel motif recurring through the collection. As a fitting tribute to it, a 7 feet high camel installation with marigold flowers stood above the guests, who were seen dancing to the beats of DJ's-duo Nina-Malika.

Resource: http://indiatoday.intoday.in

Resource: http://grandiose.org.in/

Coca-Cola India head Venkatesh Kini quits, Krishnakumar to replace him

NEW DELHI: Coca-Cola made sweeping changes to its top India management on Friday, replacing Venkatesh Kini with T Krishnakumar at the helm as it looks to revive growth after a run of sluggish quarters. The timing of the change, in the middle of the critical peak season for cola companies, was a surprise. The summer months of the April-June quarter contribute over 40 per cent to annual soft drink sales.

Krishnakumar will take over from Kini as Coca-Cola India president. He’s currently chief executive of Hindustan Coca-Cola Beverages (HCCB), the bottling arm. Christina Ruggiero will succeed Krishnakumar at HCCB, becoming the unit’s first woman CEO. She’s currently CEO for bottlers’ sales and services at Coca-Cola System (North America). The changes are effective May 1. "This is a very important period in our company's transition globally," James Murphy, president, Asia Pacific Group, told a group of reporters on Friday. Kini has been India president for three years.

The company has seen at least six quarters of low single-digit growth in what it regards as a key market. Murphy said he expected Coca-Cola to return to double-digit growth over a threeyear period, adding that non-cola beverages would contribute "significantly" to expansion.

"We believe India is one of the few markets in the world that can materially change our systems," he said.

"Our focus is to come up with more consumer-oriented businesses and a stronger total beverages portfolio, spread in multiple categories, particularly in the developing markets."

He was accompanied by Bottling Investment Group (BIG) president Irial Finan. The two executives arrived in India on Thursday to make the surprise announcement. BIG, a global Coca-Cola entity, operates the company’s bottling operations.

"The Indian market has tremendous growth potential and we believe revitalising the system leadership structure will enable us to continue consolidating India as one of the most important growth engines for the company globally," Finan said. The company’s top priority is to "create and deliver growth," Murphy said. "As outlined by our president and COO James Quincey a few weeks ago, The Coca-Cola Company is designing a new operating model to support the next stage of transformation into a growth-oriented, consumer-centred, total beverage company," he said.

The changes at the beverage firm’s sixth-largest market by volume coincide with Quincey taking over the top job from outgoing chief Muhtar Kent starting May 1, as the company looks to shore up profitability and improve its balance sheet in critical markets such as India. Murphy described slowing consumption across markets as "short-term headwinds."

SUGAR TAX

On speculation that the Indian government could levy a sugar tax on cola makers, Muphy said: "We will wait and see how the final recommendations come through (on taxation). It's no secret that we have made representations to the government and made our point of view known to the importance of having a fair approach when it comes to taxation. We are one of the largest tax payers in India in the category. We appreciate and understand very well the overall objectives of the government. But we would like to see taxation being rolled out in a fair manner so that we are not singled out."

While India is a critical market for the Atlanta-based beverage giant, consumers here have been moving away from fizzy drinks consumption to healthier beverages and scaling back discretionary expenditure. Coca-Cola has posted negative volume sales for at least four of the past nine quarters. While the company has been expanding its portfolio to include non-fizzy drinks, each of the new brands remain small.

Kini has been associated with the beverage maker for 19 years, of which the past five have been in India. He said he was returning to the US for "personal reasons" and that he is pursuing opportunities outside the company.

Vamsi Mohan, currently BIG’s regional director for Vietnam, Myanmar and Cambodia, has been named southwest Asia regional director for HCCB.

Resource: http://retail.economictimes.indiatimes.com

Resource: http://grandiose.org.in/

Heritage Foods to start 5 more milk processing plants in the next 5 years

South India's one of the leading dairy companies, Heritage Foods has entered the northern region with the launch of its milk and milk products.

To achieve its mission of reaching Rs.6000 crore revenues by end of 2022, Heritage is going to start 5 more milk processing plants in the next 5 years, the company said.

To achieve this, Heritage said, they will ramp up its current volume of 14 lakhs litres of milk per day to 28 lakh litres. 

This growth is aided by recent acquisition of Reliance Dairy’s brands, Dairy Life and Dairy Pure in North India.

By entering the northern market the brand said the milk supplied in Delhi will be collected from farmers located just 5 hours away; thereby ensuring freshness and a consistent flow of good quality milk.

Brahmani Nara, Executive Director, Heritage Foods, said, "We are very happy to foray into Delhi and other states in the North and we would like to repeat the same success we have had in other markets where Heritage is a trusted brand. 

While we have aggressive expansion plans of being a Rs.6000 cr. company by 2022, we would like to stick to our core philosophy of our own procurement of milk from farmers 5 hours away from Delhi to ensure the freshest milk to the consumer, everyday."

Resource: https://news.franchiseindia.com

Resource: http://grandiose.org.in/

In India, skincare is a work in progress, says André Joseph Hoffmann

New Delhi: André Joseph Hoffmann, executive director and vice-chairman of global luxury spa and natural skincare brand L’Occitane en Provence, is bullish about the Indian market. Hoffmann, who is also L’Occitane (Far East) Ltd’s managing director for Asia-Pacific, was in India recently to look at stores and potential new shopping centres, besides meeting executives from some of the leading e-commerce firms in the course of a four-day visit. “The opportunity here is in digital,” he says. L’Occitane currently has 10 stores in India and also sells its products through three multi-brand Shoppers Stop outlets. Globally, the company operates 3,264 stores in 90 countries.

Excited as Hoffmann is about his India plans, he believes the country will not make it to L’Occitane’s top 10 markets anytime soon. In an interview, he outlines his expectations from the Indian market, expansion plans and how it’s not just women who prefer whiter skin. Edited excerpts:

How big is your business globally and where does India stand?

We operate 90 spas around the world, mostly in five-star luxury hotels. In India, we have six spas—some big independent spas in Mumbai and Delhi, and some in hotels. We work with luxury hotels around the world to supply L’Occitane products. We have about 10 stores in India in cities like Mumbai, Delhi, Chennai, Bengaluru, Chandigarh, Pune and Kolkata.

We will finish this year (2016-17) in excess of €1.2 billion. Globally, our L’Occitane branded stores contribute 75% to our revenue, e-commerce through L’Occitane.com contributes 11-12% and the rest comes from travel retail.

The plan for India is to dramatically expand footprint and increase business by multiples of 100%. The opportunity is that big. We have to put in place the structure we need to go ahead but looking at the size of the market today, we are very bullish on the opportunity.

What are your current India revenues?

Very low. But there is a need to be patient with India. It is a very challenging market. Certainly, a market with 1.4 billion people cannot be ignored but there are a lot of barriers for imported brands to do business here. There are very high duties and taxes, very complicated tax structure between the states and bureaucracy in India.

We believe that India can be a solid 3-4% of global revenue in a few years but it is extremely expensive to create a retail footprint here. Over the next three years, we can easily envision another five stores but we need the right location and commercial terms for that.

The opportunity here is in digital. A lot of people can’t buy our products because there is no store nearby. Digital will give multiple touchpoints and accessibility to hundreds of millions of potential consumers.

How big is your e-commerce business globally?

E-commerce is about 11-12% of our global business. In India, it is less than 5% of our business but the potential to multiply that is high. We have been laying the foundation by meeting a lot of digital partners and preparing an outlay. We have our own online marketplace (L’Occitane.com) and we will also be working with third-party sellers like Nykaa, Myntra among others. There is a tremendous opportunity with the explosion of online sales in India. However, we don’t want to be in the discounts game on digital.

Is it tough to sell luxury online?

It is a question of trust. Once the consumer has experimented and bought something from a certain website and he/she is satisfied, the barrier disappears. The need is to create the same experience online as you do offline. We can make sure that the products are delivered on time and the consumers have a frictionless experience in case of returns. All these things give seamless experience. That is why a lot of luxury brands are pursuing this omni-channel strategy online. Also, it is easier when it’s your own website. You can control the journey of the customer.

How has the Indian consumer evolved over the years?

All women want to be beautiful whether it is for their own self-respect, pride or to keep their man happy. If a woman feels that a skincare product will help her avoid having wrinkles or sunspots, she will use the product. It is the brand’s responsibility to make the product accessible and affordable.

India has traditional mass beauty brands and they are extremely big. As imported brands, we have to educate the consumer that instead of spending Rs500 for a jar of anti-aging cream, she should consider spending Rs5,000 for a global brand. In fact, our best-selling skincare product in India is Divine anti-ageing cream which is priced at Rs8,000 for 50 grams, while its premium variant Divine Harmony is priced at Rs12,000. Of course, there is a very small percentage of the population that is going to spend this much money. But there is an incredible amount of wealth in this country. It’s a question of consumers changing their habits and buying these types of products.

Which are your best markets?

Our largest market in the world is Japan, which contributes 18-19% to our global revenue. It is followed by US (11-12%) and China (close to 11%). We expect China to overtake US in one-two years owing to its strong growth. Skincare is 70% of the beauty industry in China.

If you look at the penetration of premium skincare in India, it is insignificant. Indian market is driven by colour cosmetics and fragrance. Skincare is still a work in progress. It is the smallest of the three legs of the stool but it is also the one that will have the biggest opportunity to grow because of the concern about the impact of pollution on the skin.

How has your men’s grooming range performed in India and globally?

Exceptionally well. India has one of the highest penetrations in Asia when it comes to men’s products, which include shaving creams, shaving oils, moisturizers and shampoos. Not just Asian women, even men like to have lighter skin because of which our whitening range tends to do well here.

Primarily, the men’s range of products do well in Europe and North America. In fact, many of our products are perceived as unisex and are equally good for men and women like our shea butter hand cream.

What are your personal favourite L’Occitane products?

I personally use the Divine Harmony serum. It was clearly intended to be the ultimate anti-ageing product for women because women’s needs are different. But I love it because the texture penetrates the skin and leaves a really nice glow. I also use the hand cream especially in winters if I go to the mountains or for skiing. The lips can get chapped very easily in the snow. I use the shea butter lip balm. I love the almond shower oil. It’s one of our best formulae. I have never ever met a woman or a man who tried it and didn’t appreciate it.

Resource: http://www.livemint.com

Resource: http://grandiose.org.in/

Bread manufacturer Modern Food eyes 25% growth in FY17

NEW DELHI: Leading bread manufacturer, Modern Foods on Friday announced that it is set to expand its business verticals, especially into the health and wellness, and packaged foods segments.

Speaking after the launch of its revamped brand identity, Modern Foods’ chief executive officer and Board Member, Aseem Soni said that the company was looking to grow its revenues four-fold by 2021, riding on the expansion of its portfolio.

“We are looking at a 25 per cent increase in revenue by FY17-18. We would like to quadruple it (the revenue by 2021),” said Soni, adding that the figure would hit Rs 1,000 crore by that year.

The company, acquired by Singapore-based Everstone Capital, registered Rs 270 crore in revenue in 2016-17. The company and its promoters, however, say they are going to be aggressive in expanding its reach, primarily through diversification.

The main focus will be on the health and wellness segment and value added products. It is also looking at branching our into other packaged foods like biscuits, noodles etc. The company is also considering collaborating or acquiring good local brands as part of the expansion.

“We will venture into new categories and markets, either alone or with collaborations. We are looking at entering the packaged foods market,” pointed out Everstone Capital Asia, managing director Rajev Shukla.

Resource: http://www.newindianexpress.com

Resource: http://grandiose.org.in/

Grofers launches offline stores, ties up with Oyo Rooms to set up tuck shops

In a shift from its core strategy, online grocery firm Grofers has set up around 15 offline outlets across Delhi-NCR, according to people privy to the development.

The company has launched two types of offline outlets -- tuck shops and franchise stores. It has tied-up with start-ups across Delhi NCR such as Oyo Rooms to place tuck shops in their office premises which will serve low ticket items like snacks and soft drinks.

The franchise stores have been set up near multiple residential areas in Gurgaon. These stores will offer fresh produce and dairy products to meet the everyday needs of the residents.

According to the people quoted above, as the shops are under a franchise model, the capital requirement to open such stores will be low.

However, there isn't any clarity if Grofers plans to expand this segment in a large manner to emerge as a potential competitor to the likes of BigBazaar and Spencer's.

"It is just in a pilot stage. These are just for brand reinforcement," said one of the officials quoted above.

"Instant gratification of employees could be satisfied through these stores. Thus, the tuck shops are also a value add for corporates and their employees," he added.

Recently, there were reports of merger talks between Grofers and rival Big Basket. But, in an interaction with Moneycontrol last month, BigBasket's founder Hari Menon categorically denied that the company had no plans to merge with Grofers.

This is not Grofers' first encounter with the offline segment.

The company that produces its private label products under the brand Freshbury and Best Value also sells them through multiple retail outlets.

Grofers currently claims to be getting 11000-12000 orders from the online segment on a daily basis with an average ticket size of Rs 1,000.

Last year, the company suspended operations in nine cities. It has now relaunched those cities and plans to expand to 70 cities.

The company had given pink slips to many staffers last year and was rumoured to be on the brink of a closure. But, it has managed bounced back and expanded to about 25 cities.

Resource: http://www.moneycontrol.com

Resource: http://grandiose.org.in/