How COVID-19 Impacts Indian Retail Chains ?

The once in a decade event “Viral Infection – COVID-19” is going to have an unprecedented impact on the organized retail traders in India. With lockdown impacting business completely in April & May and gradual recovery in June across the length and breadth of the country.

Titan’s revenues to be hit nearly ~65% in Q1FY21, along with significant hit to the margins. We anticipate the watches division to be impacted the most (~92% dip YoY), followed by eyewear (~85% dip) and jewelry (~70% dip; for the remainder of the year, we expect a gradual bounce back in jewelry demand to be spurred by festive buying, wedding / occasion-based purchases, which in our view will take time to manifest in revenues, additionally we would watch for commentary on (more…)

Improved access for Indian SMEs by eCommerce

msme-driving-indian-ecommerce-salesAccording to the Economic Survey for 2016, “With 3.6 crore [36mn] units spread across the country, that employ 8.05 crore [80.5mn] people, Micro, Small and Medium Enterprises (MSME) have a contribution of 37.5% to the country’s GDP”. However, MSMEs’ share in manufacturing has been declining (even as the total share of manufacturing in India’s GDP remains stagnant) mainly because MSMEs in India must contend with the challenge of poor access to end-markets. The ministry of MSME, in its annual report for FY15, has noted that “MSMEs in India face constraints such as high cost of credit, low access to new technology and lack of access to national and international markets”.

The advent of e-commerce in India from CY10 has meant that the improvement in access to end-markets for SMEs in (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…)

Shoppers Stop Online & Offline = Omni Channel Retailing in India

Omni Channel Retailing IndiaWith the rise of Flipkart, Jabong and other Online Retailers in India, established retailers such as Shoppers Stop, Pantaloon have been forced to adopt Online & Offline strategy. Omni Channel was a response to the threat posed by low-cost online retailers. Omni channel is a multi-channel touch point. It combines brick and mortar with virtual channels – be it the website or mobile. Both formats, i.e., brick and mortar and virtual, are seamlessly synchronised in omni-channel retailing. If the customer doesn’t get a particular product in the store, he or she can browse for it on a kiosk or on the website / app and complete the (more…)

How eCommerce is Innovating & Leading Growth of Retail Business Globally ?

eCommerce Versus Store RetailingOur analysts keep perusing through dozens of reports and in an e-mail thread have harnessed interesting insights about eCommerce Vs Old brick & Motor Retailers Globally. We’d like to present those snippets for our ever enthusiastic readers.

In the USA, e-commerce still accounts for only 6% of retail sales. However, Amazon and e-bay had US$222 bn of sales in 2014 (up from US$73 bn in 2004) while Walmart moved to US$244 bn from US$229 bn in the same period. Look at the Growth e-Retailers had (more…)