Raymond Emerging Stronger after the Storm

Raymond Enhances Retail ExperienceRaymond Ltd has some of the strongest brands in the apparel retail segment like Raymond, Made-to-Measure, Park Avenue, Parx, and ColorPlus. The company’s tagline, “The Complete Man. From Raymond” has been among the most influential brand campaigns and supported it well in maintaining brand equity and recall. The management’s strategy of focusing on each brand and creating a separate identity for each brand should lead to better inventory management.

As per industry estimates, the (more…)

Shoppers Stop India’s Largest Departmental Store Chain Reports Modest Growth

Hypercity Retail GrowthShoppers Stop Same store sales growth recovered to 4% in Q4 led by improved growth in March. Growth was strong in the apparels segment; from the geographic perspective, South and East witnessed stronger growth. The management expects same store sales growth to pick up further from the next quarter. Average sales per sqft was flat at Rs2176 in spite of a 2% increase in transaction size and 6% increase in average selling price. LTL volume decline was at 1.7%. Customer entry was down 4.4% on an LTL basis; this was the sixth consecutive quarter of LTL customer entry decline.

No new store was added in the (more…)

Nike / Adidas Group’s – Direct to Consumer

Nike Direct to ConsumersAlthough all 3 brands – Nike, Adidas Group & Universal Armour (UA) will likely benefit from a growing global category over the next several years, we name Nike the winner of our Head to Head report versus adidas and UA given strong sales growth and global market share leadership, its strong digital presence, the potential for gross margin expansion opportunity driven by pricing power and innovation in the supply chain, its ability to leverage costs.

Our topic of Research is the Direct to Consumer Initiative from all the 3 Big Brands. Direct To Consumer (DTC) remains a profitable focus for all three players. DTC includes outlets, full price stores and e-commerce. Nike’s DTC is ~24% of the total company vs. adidas’ 26% and UA’s 30%. Each player is expecting to grow the division through (more…)

TTK Prestige Under Pressure from eCommerce

TTK-Prestige-eCommerceTTK Prestige is well positioned to leverage the revival in the Indian kitchen appliances industry, through new product launches, distribution expansion and ecommerce tie-ups.

How eCommerce Gained Significance in India ?
India is an extremely Price Sensitive Market. Even 5% Discount is enough to attract a potential consumer. In this backdrop, eCommerce companies decided to sacrifice Big Fat Margins as they had very little establishment costs compared to Street Retailer. Thus began (more…)

How big can Online Retail / e-Commerce get?

eCommerce Value CreationThe total value impact of the long-term growth story for e-Commerce should not be underestimated, in our view. One of the key reasons for this relates to current annual online spending per buyer. Across the developing world, eMarketer estimates that buyers spend c.US$600 per year. This compares with an average of US$1,500 for most developed countries and very high levels of more than US$3,500 for buyers in the UK and Australia. Estimates from eMarketer indicate that the total value for the online retail market in the key emerging and largest developed countries may reach US$2trn by 2018. This would represent an annual average increase of 19% from 2013 levels.

Scenario analysis for the e-Commerce globally
Retail We calculate total retail spending for the key regions by forecasting nominal GDP by year for the next 10 years and assuming (more…)