Monday, November 30, 2009


ChicKing Franchise signs pact with Asiawide Franchise Consultants


25 Nov 2009
ChicKing Fried Chicken, a rapidly growing fast-food chain promoted by Non Resident Indian businessman, has announced the signing of the franchise pact with the Asia’s leading franchising consulting company Asiawide Franchise based in Malaysia.

This strategic move will help ChicKing to expand more than 25 outlets in the countries such as Indonesia, Malaysia, the Philippines, Thailand, Brunei, Vietnam, Singapore and other South East Asian countries. The expansion will be completed in three years. 


Pizza Corner Franchise announces the 'Pizza Corner - Tell a Story Competition', a consumer promotion for its stores

The competition is divided into 3 age groups - 5 to 8, 9 to 12 & 13 to 15 years; The last date to submit entries is 29th November 2009; The stories to be judged on the parameters of originality, narrative style and creativity





Once upon a time, there was a beautiful princess who lived in a large castle by the river. One day while strolling on the river bank, she ventured deep into the jungle and lost her way back home. It started getting dark and she could hear all sorts of wild animals calling...


If you or your child have got a story to tell and are aged between 5 to 15 years then head to Pizza Corner Franchise this week to participate in the 'Pizza Corner - Tell a Story' competition. All you need to do is to place an order for Rs. 250/- at Pizza Corner Franchise and ask the Pizza Corner customer relations executive for an entry form. You can fill in the entry form with your story which should not exceed 250 - 300 words. The last date to submit entries is 29th November 2009.


The Health Sanctuary Franchise launches new line of Advanced Weight Management Products


Health Sanctuary Franchise Personal Care launched a new line of Advanced Weight Management products encased in attractive Packaging nationwide. The Range of products include Items like the INSTA TRIM and the HS TRIM products that offer advanced solutions for day to day Weight Management needs of individuals relating to Obesity and associated consequential problems that people keep facing on a regular basis.


The range of products are an addition to the existing Services that Health Sanctuary Franchiseis famous for providing in the Health Care and Body Shaping domain. Some of these Services being Weight Loss, Slimming, Dermatology, Skin Care, Cosmetic Surgery, Laser Treatments and Permanent Laser Hair Reduction, Ayurveda, Nutritional and Medical Consultation etc etc.


 Health Sanctuary Franchise's Weight Management products are based on the age old wisdom of Herbs and Ayurveda, combined through Modern Scientific techniques and hence come under the umbrella of Health Sanctuary Franchise's Personal Care division.


Commenting on the new launch Ms Shubi Husain, Managing Director, Health Sanctuary Franchise Pvt. Ltd. said “The new Products have been developed after years of hard work and R & D. Helping us in our endeavour was T & S of France, in whose collaboration Health Sanctuary Franchisecould come up with the Revolutionary Herbal Formulation that helps reduce weight Silently, thus letting one live light naturally. One of our Products "Insta TRIM", the Anti Cellulite Gel was developed in keeping with the growing needs of our target consumers – the Urban Indian Men and Women.  Our target clientele is an individual who is confident, educated, demands natural, safe yet effective solutions that give visible results and who do not compromise on quality. With these new products we have successfully provided answers to all the Weight Management needs of our reverred Clients,”


The Pune edition of Times Franchise Expo draws the crowds






PUNE: The Times Franchise Expo, being held at Hotel Sun N Sand on Bund Garden road, witnessed a huge crowd of potential investors on its inaugural day on Sunday.

The expo has leading national and international companies offering proven business prospects through commercially successful franchise models. The exhibition, open between 10.30 am and 7 pm, is expected to attract more people on its concluding day on Monday.





The exhibition provides a platform for entrepreneurs to get a complete insight into all aspects of franchising. Entrepreneurs can interact with top brands to explore mutually beneficial partnerships. Among the exhibitors are companies dealing with pre-schooling, travel, diamond and jewellery, fruit, beverages, food items and consumer durables.





Manish Agarwal, director of Orion Calltech, a call centre training institute said, "I have participated in Times Franchise expos in other cities but this is the first time I have come to Pune. Compared to other cities, the respondents from Pune are young and ready to invest. Many of the queries we get are from start-ups and entrepreneurs and this is an encouraging indicator. Many people have started their own businesses and are ready to invest in franchise models."





Commenting on the response, Rajeev Agrawal, national franchise manager of Gitanjali Jewellery Retail Pvt Ltd said, "The jewellery business model is about high value, not quantity. Though there are a couple of outlets in Pune, the company would like to open more outlets in other locations. Potential investors are also aware of the huge investment needed in opting for a jewellery franchise and we received a number of queries. The response has been encouraging."



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NZ origin Crest Commercial Cleaning franchise expands business in India

New Zealand cleaning franchise Crest Commercial Cleaning is expanding its services in India after striking a deal that will see it employ 3,000 people in around a dozen cities. The company, which has until now employed 300 people in India, will carry out its expansion over the next two years. Crest co-owner Grant McLauchlan says that as the Indian economy becomes more sophisticated, clients, particularly international companies, are demanding better hygiene standards.


"Many people tell us that one of the big barriers to doing business in India is hygiene and so we are seeing savvy companies starting to make that a priority," he says. The cleaning sector in India is worth around $150 billion each year but McLauchlin says it is currently serviced by untrained, poorly resourced contracting companies. He says Crest is doing well because its training in India is based on New Zealand standards. Crest cleaning staff in New Zealand are required to undertake an NZQA recognised qualification that leads to a National Certificate in Cleaning and Caretaking before being hired.


Sunday, November 29, 2009

Minor Food Group finalises Master Franchise, plans India foray, to bring 3 Franchise Brands

Thailand-based Minor Food Group will enter the Indian market next year and plans to bring three of its major brands of ice-cream, pizza and cafe.The company, which owns the 'Swensen's' brand of ice- cream chain along with fast food brand 'The Pizza Company' and coffee chain 'The Coffee Club', plans to set up operations in India by mid 2010 through the franchise route.

"We have appointed a master franchisee for Swensen's in India and the first restaurant will be opened in Bangalore by the middle of next year. We plan to open one new Swensen's (outlet) every month in the country," Minor Food Group General Manager (Franchising) Gary Moore told PTI.


RE/MAX Franchise upbeat on Asia










RE/MAX, the international real estate brokerage franchise network, has expanded into eight States with 28 offices since April when it started operations in India. It is present in Delhi, Punjab, Chandigarh, Gujarat, Karnataka, Kerala, Maharashtra, Tamil Nadu and Andhra Pradesh.


According to a press release, RE/MAX International Vice-President, Mr. Larry Oberly, who addressed the first RE/MAX Winter Conference at Jim Corbett recently, said “the Asian markets are going to lead the next global boom in realty sector.” The event was the first meeting of about hundred RE/MAX associates from across the country to discuss the plans of the organisation under the mentorship of Mr Oberly and Mr Sam Chopra, Director, RE/MAX India.






Franchising seems to be immune from the global financial crisis, with some firms expanding even during the economic turmoil, officials of the Philippine Franchise Association (PFA) told The Manila Times in an exclusive roundtable interview on Monday. They added that during the economic crunch, most budding entrepreneurs adopted tried-and-tested operations and strategies of well-known franchises. “During these hard times, investors look for something that is viable. If you have they money, you would rather invest it in a sure thing, such as a franchise,” Elizabeth Pardo-Orbeta, President, Philippine Franchise Association explained.

Ma. Alegria Limjoco, association chairman, cited a study which noted that franchised businesses in the country have an about 90-percent success rate, while only 22 percent of businesses that start from scratch do flourish. “Entrepreneurs that open franchises follow a system, so there’s no hit or miss. If they follow the operations manual, they are going to be successful,” she added.

Better way to begin
Pardo-Orbeta said, “Unless a budding entrepreneur has a very different, unique, novel product, and money to back it up, there’s no better way to begin a business than to franchise.” She added that franchisors grant marketing and operations support to budding franchisees, and her association conducts seminars and trainings for franchisees.
It also helps that a financial institution like the Small Business Corp. assists those who are interested to become franchisees. “Small Business Corp. lends to businessmen who want to franchise, as well as matches them with PFA members,” Limjoco said. 

She added that one could start a franchise business with an investment of only P100,000, enough for a food cart or kiosk. Limjoco said the Philippine franchising sector has been growing about 20 percent annually, and this country was currently the most robust in Southeast Asia. She added that franchises account for about 25 percent of the $26 billion sales of the domestic retail sector, or about P300 billion. At present, the industry was composed of about 1,000 local and foreign concepts, Limjoco said.

Services grow the fastest
Limjoco added that franchises that offer services, such as Internet cafés, beauty salons and spas, have been growing the fastest—although food franchises were still dominant in the country. Plus, many of homegrown franchises are also creating buzz abroad, the association officials told The Times. Pardo-Orbeta cited the overseas expansion of Filipino food brands, such as Chowking, Goldilocks, Jollibee, Max’s, Potato Corner, Red Ribbon, Tokyo Tokyo and Waffle Time; in fashion and clothing lines Bench, Island Souvenirs and Kamiseta; and service-oriented concepts like Reyes Haircutters salon and Netopia Internet shops.

She said that the Philippines was now exporting local brands, thanks to Filipinos’ ingenuity. For instance, Pardo-Orbeta cited the concept of Potato Corner, a stall fully devoted to flavored French fries. “There had been no similar concept in the US,” she said. Its uniqueness has helped Potato Corner seal a deal for 10 outlets in the US, of which one is already operational and another is set to open by yearend, Pardo-Orbeta said. Reyes Haircutters franchise, meanwhile, reportedly was drawing in customers in London, as it offers more affordable rates than other salons there, Limjoco said.

Many Filipino franchises are now present in Guam, the Middle East, the US and our Southeast Asian neighbors, where they use the presence of Filipino communities as a beachhead for their business, Pardo-Orbeta said. “But Filipino companies later on also adjust to the needs of their consumers abroad, they diversify,” Limjoco said, adding that they later target mainstream markets, adjusting their formula to suit the tastes of customers in the expansion market.

Dubious franchises
Limjoco noted that franchising was defined as “replicating a successful business.” But the franchising association officials said there were some dubious companies capitalizing on the popularity of franchises.

Pardo-Orbeta said interested franchisees must first take a closer look at the brand they want to franchise. She added that entrepreneurs should be wary of those who ask for money right away. Franchisors tend to be careful to whom they sell a franchise, because they want to protect the reputation of the company, she explained. Also, Pardo-Orbeta advised entrepreneurs to ask for assistance from Philippine Franchise Association in choosing a good franchise to invest in, as the association screens prospective members to ensure that neither fly-by-night nor pseudo firms are accepted.
Way2Franchise’s Tribute to 26/11 Brave Hearts

This tribute is Dedicated to the men, women and children who lost their lives; those brave people who sacrificed their lives And the Heroes that responded to the emergency.  

26th November, 2008 was a horrible day, but it was also a day in which innumerable heroes showed unparalleled courage and love. Shaikh Toufik Mohammed, the brave tea stall owner at CST responded to the attacks, warned others of the attacks and took the injured to the nearby hospital.
The Police Officers and the NSG team that courageously went inside the Taj, Oberoi (Hilton) when others were going out. These heroes knew they were in a very dangerous situation, but they did not hesitate.


Mumbai's fire fighters , who battled not only fire but gunfire too during the 26/11 attacks to save hundreds of livesAnd that is what heroes do…they act in spite of great danger. They help others. They risk their lives for us. 39 firefighters and 27 police officers died in the line of duty on that day. They performed their duty at the highest level possible. They are paragons. We will never forget them. And 328 precious people lost their lives on November 26, 2008. And every one of them is a hero. We were in a war that day. And these heroes were thrust to the front lines. They were courageous heroes. Every single one.


Many people were injured in the attack; but they faced the day with great courage and love. They are all heroes. The emergency medical personnel performed their duties with tremendous efficiency, professionalism, and courage, despite the tremendous stress that they were put under. They are all heroes. And most importantly, numerous people lost loved ones on 26-11; and these 26-11 survivors have dealt with unimaginable pain, yet they have persevered. Their spirits are the strongest that you will find. And they are among our greatest heroes. They are very, very special people...heroes every one.


26-11 was a tragedy. But it was also a day of heroes. And we were all reminded about how great the people of this country are – for never has courage, compassion, and heroism been manifested in the way it did on that day…ever, anywhere.
We are a nation of heroes. May our nation win over terrorism. Let us take a moment to pay a tribute to those that sacrificed their lives to protect Mumbai. Here is an email that I received recently:

===

Meeting with H N Srinivas – Senior Executive Vice President, Taj Group of Hotels

Few weeks ago (October 10, 2009), I had a dinner meeting with HNS in Goa (I was there for a National Institute of Personnel Management conference – as a speaker). He narrated the 26th November 2008 terror attack on Taj Mumbai and there were some important points.
A.   Terrorist entry
     1.        They entered from the Leopold Colaba hotel entrance and also from the northern entrance – spraying indiscriminate bullets on the Taj security personnel and guests in general.
    2.        Though Taj had a reasonable security – they were surely not equipped to deal with terrorists who were spraying 6 bullets per trigger.
    3.        The strategy of the terrorists was to throw chunks of RDX in an open area that will explode and burn – creating chaos so that the guests and staff run helter skelter so that the terrorists could kill them. The idea was to create maximum casualties.
    4.        There were several critical gatherings and functions happening in the hotel on that day – a Bohra wedding, global meet of Unilever CEOs and Board members and 2 other corporate meetings were being held in the hotel – besides the usual crowd.
    5.        The firing and chaos began at about 8.30 p.m. and the staff including employees on casual and contract basis displayed exemplary presence of mind, courage and sacrifice to protect the guests who were in various halls and conference rooms.
B.   Stories of Staff Heroics
    1.        A young lady guest relation executive with the HLL gathering stopped any of the members going out and volunteered 3 times to go out and get stuff such as ice cubes for whiskey of the guests when the situation outside the hall was very explosives and she could have been easily the target of the bullets
    2.        Thomas George a captain escorted 54 guests from a backdoor staircase and when he was going down last he was shot by the terrorists
    3.        There were 500 emails from various guests narrating heroics of the staff and thanking them for saving their lives
    4.        In a subsequent function, Ratan Tata broke down in full public view and sobbed saying – “the company belongs to these people”. The wife of Thomas George who laid his life saving others said, she and the kids were proud of the man and that she did not know that for 25 years she lived with a man who was so courageous and brave
    5.        The episode happened on 26th November, a significant part of the hotel was burnt down and destroyed – the hotel was re-opened on 21st December and all the employees of the hotel were paraded in front of the guests
    6.        It was clearly a saga of extra-ordinary heroics by ordinary people for their organisation and in a way for their country. The sense of duty and service was unprecedented
    7.        The young lady who protected and looked after the HLL guests was a management trainee and we often speak of juniority and seniority in the organisation. She had no instructions from any supervisor to do what she did
a.    She took just 3 minutes to rescue the entire team through the kitchen
b.    Cars were organised outside the hotel as per seniority of the members
c.     In the peak of the crisis, she stepped out and got the right wine glass for the guest
    8.        People who exhibited courage included janitors, waiters, directors, artisans and captains – all level of people

C.   The Tata Gesture

    1.        All category of employees including those who had completed even 1 day as casuals were treated on duty during the time the hotel was closed
    2.        Relief and assistance to all those who were injured and killed
    3.        The relief and assistance was extended to all those who died at the railway station, surroundings including the “Pav-Bhaji” vendor and the pan shop owners
    4.        During the time the hotel was closed, the salaries were sent my money order
    5.        A psychiatric cell was established in collaboration with Tata Institute of Social Sciences to counsel those who needed such help
    6.        The thoughts and anxieties going on people’s mind was constantly tracked and where needed psychological help provided
    7.        Employee outreach centers were opened where all help, food, water, sanitation, first aid and counseling was provided. 1600 employees were covered by this facility
    8.        Every employee was assigned to one mentor and it was that person’s responsibility to act as a “single window” clearance for any help that the person required
    9.        Ratan Tata personally visited the families of all the 80 employees who in some manner – either through injury or getting killed – were affected.
  10.        The dependents of the employees were flown from outside Mumbai to Mumbai and taken care off in terms of ensuring mental assurance and peace. They were all accommodated in Hotel President for 3 weeks
  11.        Ratan Tata himself asked the families and dependents – as to what they wanted him to do.
  12.        In a record time of 20 days, a new trust was created by the Tatas for the purpose of relief of employees.
  13.        What is unique is that even the other people, the railway employees, the police staff, the pedestrians who had nothing to do with Tatas were covered by compensation. Each one of them was provided subsistence allowance of Rs. 10K per month for all these people for 6 months.
  14.        A 4 year old granddaughter of a vendor got 4 bullets in her and only one was removed in the Government hospital. She was taken to Bombay hospital and several lacs were spent by the Tatas on her to fully recover her
  15.        New hand carts were provided to several vendors who lost their carts
  16.        Tata will take responsibility of life education of 46 children of the victims of the terror
  17.        This was the most trying period in the life of the organisation. Senior managers including Ratan Tata were visiting funeral to funeral over the 3 days that were most horrible
  18.        The settlement for every deceased member ranged from Rs. 36 to 85 lacs in addition to the following benefits:
a.    Full last salary for life for the family and dependents
b.    Complete responsibility of education of children and dependents – anywhere in the world
c.     Full Medical facility for the whole family and dependents for rest of their life
d.    All loans and advances were waived off – irrespective of the amount
e.    Counselor for life for each person
D.   Epilogue
    1.        How was such passion created among the employees? How and why did they behave the way they did?
    2.        The organisation is clear that it is not something that someone can take credit for. It is not some training and development that created such behaviour. If someone suggests that – everyone laughs
    3.        It has to do with the DNA of the organisation, with the way Tata culture exists and above all with the situation that prevailed that time. The organisation has always been telling that customers and guests are #1 priority
    4.        The hotel business was started by Jamshedji Tata when he was insulted in one of the British hotels and not allowed to stay there.
    5.        He created several institutions which later became icons of progress, culture and modernity. IISc is one such institute. He was told by the rulers that time that he can acquire land for IISc to the extent he could fence the same. He could afford fencing only 400 acres.
    6.        When the HR function hesitatingly made a very rich proposal to Ratan – he said – do you think we are doing enough?
    7.        The whole approach was that the organisation would spend several hundred crore in re-building the property – why not spend equally on the employees who gave their life?


(Source: Deepak Salaskar)  


Friday, November 27, 2009

Signing up for a Franchise, Its NOW or NEVER
All throughout, I have come across several, its NOW or NEVER opportunities, have never succumbed to it. I remember one of them was a personal self-improvement program, another was an appreciation referral network, I am sure the most common ones would be the time share programs, they get you all charged up and make you sign up with their holiday programs, only later to find out that this is not something that you were seeking, but it is probably too late.
Recently visited the Franchise India 2009 franchise exhibition in Delhi, came across several franchise opportunities, several of them were offering instant discounts for entrepreneurs that wish to sign up the same day for their business opportunities.
To avoid such situations, franchising activity is regulated in several countries, particularly in the US. To protect franchisee’s the law-makers have introduced something called the cool-off period. The cool off period is simply a period after signing the franchise agreement during which the franchisee has the right to back-off from the conditions of the franchise agreement without penalty.

Tuesday, November 24, 2009


PARIS -- When he bought Italian fashion house Gucci NV a decade ago, French billionaire François Pinault steered his family's lumber and distribution business into the high-profile, high-profit world of luxury goods.


Now Mr. Pinault's son is taking an equally transformative step: stripping the company of its once-core French retail business in order to focus entirely on global consumer and luxury brands, such as its high-end Yves Saint Laurent and mass-market Puma labels.


[Pinault]
PPR chief François-Henri Pinault, with wife actress Salma Hayek       






















































François-Henri Pinault, chief executive of PPR SA, is embarking upon a new plan to sell the company's European retail divisions, including the popular electronics retailer Fnac and the Conforama discount furniture stores. In an interview with The Wall Street Journal at PPR's headquarters near the Arc de Triomphe, Mr. Pinault detailed, for the first time, his plans to remake his family's company.


"The sooner, the better," said the lanky, sandy-haired 47-year-old, although he said he hadn't given himself a deadline for the planned divestments. "We have a major weakness -- retail. It is a business that cannot develop quickly abroad," because it takes consumers a long time to warm up to an unfamiliar name, Mr. Pinault said.


Wednesday, November 18, 2009


Jewellery Retail Firms franchise in USD 9.6 Billion Rural India


Design and style innovators and jewellery brands thought their target markets were confined to urban pockets in largely rural India. It turns out they were wrong! The rural Indian market is huge, as wealthy in parts as its urban counterpart and most importantly just as design and style conscious. A number of jewellery brands now actively target this huge and still largely untapped market. 


Urban India has been the engine that has driven the growth of consumption in the country. Brands and premium goods have all first been embraced by the city-dwelling Indian before they – or toned-down versions – percolated into the countryside. Not any more. The great Indian urban-rural divide is gradually narrowing – at least among the top and middle segments of the rural and semi urban areas. The rural rich are now displaying buying behaviour akin to the most downtown of city Indians.

Thanks to the rapid growth of rural income – in some segments at least – the Indian consumer goods marketer has a huge and exciting new target to aim at. A look at the figures reveals the scope of this new growth. Urban consumers constitute 40 per cent of the total Indian population – who are still the primary sales and growth drivers – but it is the other significant 60 per cent of the population – some 750 million in all – living in 160 million households in semi-urban and rural areas who today account for more than half of India’s consumption.

Rural India is no longer dependant on agricultural income. Thirty-five per cent or 60 million of India’s middle class live in villages, drawing incomes of between Rs.200,000 ($4,573) and Rs.1,000,000 ($22,800) per annum. The number of middle income households, defined as those earning between Rs.45,000 and Rs.215,000 ($1,027 and $4,900) per annum, in rural India is around 27 million, while the number in urban India is just a shade more at 29 million. Moreover, rural per capita income has grown at exactly the same rate as in urban India for the past 10 years. The percentage of people living below poverty line has reduced from 36 per cent in 2003-04 to 22 per cent in 2006-07. Every year, the gap between the urban and rural market is narrowing. In 1973, rural India spent 72.9 per cent of their earnings on food, and only 27.1 per cent on non food items. In 2005, they spent 55 per cent on food and 45 per cent on non food items.

Thanks to the government initiatives, literacy levels are improving. Other factors like increasing incomes from non-agricultural avenues like hotels and tourism and the IT industry, media penetration through satellite television, the influence of Hindi films, declining poverty and last, but not least, increased loan facilities have led to higher aspirations and an increase in rural consumption.

To quote from Rama Bijapurkar’s book We Are Like That Only, “Rural India is not poor nor is it totally agriculturally dependent. Rural India represents 50 per cent of India’s GDP (but 70 per cent of its people) and 50 per cent of rural GDP is non-agricultural: it comes from the self employed in all kinds of services. Indian consumers are very value conscious. Even ascetics are connected today. They may be poor but they are not backward. They’re not overwhelmed by western brands... Consumer India is large, it is mostly poor, and it is getting richer and less poor …”

Rural India and Jewellery
Given this situation, the Indian jewellery industry is beginning to shift its hitherto urban focus to make the most of rural India’s market potential. The World Gold Council (WGC) estimates that the Indian jewellery market is worth around Rs.70,000 crore ($16 billion). The urban jewellery market is valued at Rs. 28,000 crore ($6.4 billion), while the rural and semi-urban market is valued Rs.42,000 crore ($9.6 billion). Dissecting the rural figures further, the family and regional players here corner a Rs.14,200 crore ($3.24 billion) portion of the market, the share of branded jewellery is a minuscule Rs.3,000 crore ($686 million), while the small and fragmented players corner a whopping Rs.30,800 crore ($7 billion). The jewellery industry has realised that clearly, the last segment is large and significant in terms of generating a high volume market, and if properly catered to, the industry can upgrade this buyer, which in turn, can change the complexion of the Indian jewellery industry.
 

“In five years’ time, the rural jewellery market could grow to Rs.50,000 crore ($11.4 billion) at today’s gold prices,” estimates L. Natarajan, vice president of GoldPlus, a jewellery division of Titan. GoldPlus sells gold jewellery only in semi-urban and rural areas, unlike its sister concern Tanishq, which has an urban focus. Barring the small presence of the branded jewellery segment, which is organized, the majority of the rural and semi-urban jewellery market is unorganized, fragmented, and dominated by individual and family jewellers. Poor shopping experience, a lack of transparency and a lack of designs, are some factors that have hampered the growth of jewellery industry.

Of late, there has been a raft of organised players pushing into the rural market. Along with GoldPlus, Gitanjali, Adora, Ciemme, Kisna to name a few, have all launched rural marketing initiatives. Big players though they are, their entry into rural India has been characterised by an unsure, testing-the-waters approach, mainly because initially, none was sure there really was money to be made in this market. Some offered 18-karat hallmarked diamond jewellery to a market that was traditionally oriented towards high-purity gold jewellery. Some tried branded gold jewellery. All of them together brought about an explosion in the range of designs and price points for the rural consumer along with assured buybacks and other incentive schemes.

“For us, targeting these new consumers was a revelation as we only had published research to rely on,” remarks Natarajan. “We did some market research of our own, trying to understand the type of jewellery the rural consumer wanted.” The study was an eye opener according to Natarajan. “We found that customers had plenty of expectations. They wanted high gold purity, and longed for firms that could deliver quality products, discounts, affordability, an excellent shopping experience, certification, and variety in designs.”

Mothercare Franchise announces dividends, Targets Wholesale Business

Mother and baby products retailer Mothercare said it saw a significant opportunity to develop a global wholesale business as a fourth channel to market as it posted an 11 percent increase in first-half profit. The firm, which trades from 389 UK stores, 694, mainly franchised, international stores, and has an on-line business, also hiked its interim dividend by 19.6 percent on Wednesday and said it was confident about prospects for the second half.



"While this (wholesale) is a relatively small business within the group, with annual sales of about 10 million pounds, we believe it has the potential to be a significant growth stream for the future, particularly in countries where we don't have a store presence," Chief Executive Ben Gordon told reporters. He declined to say how big a business he thought global sales to third-party retailers could become.

Shares in Mothercare have more than doubled over the last year, outperforming the UK general retail index by 12 percent. The stock was up 1.4 percent at 634 pence at 10:14 a.m., valuing the business at 559 million pounds. "Given the very strong performance year to date, there may well be some profit taking ahead of Christmas," said analysts at joint house broker Cazenove. Britain's retailers have been struggling in the recession and although there have been signs recently that a recovery is underway many remain cautious about prospects for 2010.Mothercare has coped better than most, helped by selling essential products to parents, strong growth in emerging markets, home shopping and the Internet, and the integration of the Early Learning Centre (ELC) brand it bought in 2007.

The firm plans to open a further 33 of its largest format out-of-town parenting centres in the UK by the end of 2011, creating 400 new jobs, and sees scope for 120. The retailer has also identified a further 12 in-town sites where it plans to open new stores.At the same time it wants to rationalise over 90 lower-profit high street stores which have lease expiries over the next three years. These stores will be re-sited, have their rents renegotiated, or closed.

Mothercare forecast its property strategy would deliver 10 million pounds of annual savings by 2012.International franchising remains the major growth engine for the group. It plans to open 115 new stores in the year to end-March 2010, with major expansion planned for India and China and an entry into Australia and South Africa. "We are well placed as we enter the important second half," said Gordon. Mothercare made an underlying pretax profit of 10 million pounds in the 28 weeks to October 10, up from 9 million pounds in the same period last year.


Tuesday, November 03, 2009


BSNL targets 30,000 new rural broadband franchise kiosks by 2011 


BSNL to set up 30,000 broadband kiosks in the coming two years, should be one big news from the rural internet penetration perspective. And it is, since franchisees would be doing this job for BSNL in some of the most remote areas of India which will not only enhance internet connectivity but also help the people from the hinterland to avail useful services at affordable prices.


Picture4


Farmers being aware of all the facilities available over the internet like weather forecasts and agricultural advices, cannot make use of them due to the lack of accessibility. The kiosks that BSNL promises to assemble should be of great help. The PTI report included, a senior official from BSNL saying, “The aim is to build a network of around 30,000 broadband kiosks across India within a period of two years. We will set up the kiosks through franchisee in rural areas.”