Retailing giants now stock up on moms-n-pops

KOLKATA: In a bid to increase their presence across the retail spectrum, industry biggies are increasingly looking at tapping the unorganised segment, which accounts for nearly 96% of the sector. Retailers like Metro, Reliance, Bharti-Wal-Mart as well as the Future Group are either floating business-to-business ventures (cash & carry) or roping kiranawalas in as franchisee partners to get the first mover advantage.

e4m by exchange4media Staff
Published: May 21, 2007 9:37 AM  | 3 min read
Retailing giants now stock up on moms-n-pops

KOLKATA: In a bid to increase their presence across the retail spectrum, industry biggies are increasingly looking at tapping the unorganised segment, which accounts for nearly 96% of the sector. Retailers like Metro, Reliance, Bharti-Wal-Mart as well as the Future Group are either floating business-to-business ventures (cash & carry) or roping kiranawalas in as franchisee partners to get the first mover advantage.

The idea is to open new revenue streams in the unorganised segment and become more competitive. The move will also help the retailers build their image at a time when organised retail is being widely criticised for displacing the mom-and-pop stores, industry sources claim.

Retail analysts attribute the partnering of kiranawalas and big retailers to attractive prices being offered by these cash & carry venture for its merchandise. “Since the demand of these kirana stores is small, their bargaining power becomes limited. But if they source from cash-and-carry outlets, they manage to save an extra 3-5% on their sourcing cost,” said Mr Arvind Singhal, chairman, Technopak Advisors, a retail consultancy.

While players like the Future Group and Bharti-Wal-Mart are in the process of rolling out their cash-and-carry outlets, Reliance Retail is busy drawing up such plans as the business also tends to generate much higher turnover. “We are also exploring the franchisee model to partner with the smaller stores in segments like food & beverages, farm products, FMCG, pharmaceuticals, lifestyle, apparels and footwear,” said a top Reliance Retail official.

German major Metro Cash & Carry is currently the biggest player in this segment. The business potential can be gauged by Metro's 80,000-member strong client base in Kolkata alone where it intends to open its maiden outlet by December 2007.

These cash & carry ventures improve supply chain of the mom-and-pop stores through their modern trade infrastructure and systems. “This not only makes the small retailers competitive in the range of offering and price but also lowers their transaction costs,” Metro Cash & Carry India's deputy MD Gerardo Monzillo said.

Metro, industry sources claim, often provides its merchandise to small retailers at unbelievable discounts to ensure their loyalty. “They do some crazy promotions. For example, if a kiranawala is able to source goods from distributors by keeping a margin of 5%, a cash & carry outlet may provide higher discounts of say even 25%,” said R Subramaniam, MD at Subhiskha.

Future Group CEO (innovation & incubation), Damodar Mall, said: “The categories that we plan to keep will be significantly localised and the pricing will be such that even the mofussil retailers will find it profitable to buy from us.”

“While yielding lower margins as a percentage of sale, B2B is an interesting business because of significantly higher volume throughput it can generate. Hence, it makes an interesting business for the group to be in,” he said. Incidentally, the group's first B2B venture christened 'KB's Wholesale Market' is coming up in West Bengal.

On the benefits of entering into franchisee arrangements with small kiranawalas, a senior industry official said, “The move will help the retail bigwigs to expand their brand footprint besides improving the earning potential of the smaller stores.” The quest for partnership with smaller stores doesn't end here. Metro has plans to launch training academies for the kiranawalas replicating their model in Turkey. These academies will train kirana owners on the latest practices in accounting, merchandising and store operations.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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