HIGH STREET DESTINATIONS

In last couple of months Indian retail industry is in news. Sometimes for innovative moves of Biyanis, political turbulence in northern India or for opportunities too. This time Indian retail and real estate sector both are in news due to the surge in cost of retail location and market .

Today India as the 16th most expensive retail 'high street destination' in the world as per the report of Leading real estate consultants Cushman and Wakefield. New Delhi’s Khan Market has been rated as the most expensive retail destination in the country with rentals of Rs 950 per square feet per month in the second quarter of the current year.

The shopping complex saw an annual growth of 35.7 per cent over the same period last year said the report titled 'Main Streets Across the World (MSATW) 2007.KHAN MARKET DELHI

“Khan Market is the biggest riser in the ranking of the world's most expensive shopping locations in terms of retail rents, moving up eight places from last year’s 24th position," the report said.

"Retail is going through a revolution in India, although a part of the increase in rents is due to lack of high-quality space in the right location," Cushman & Wakefield India national head (retail) Rajneesh Mahajan said.

According to JLL report, Indian retail & real estate industry will surpassed the growth rate of IT industry by march 2008.
The report said India also figured among the world's top 10 locations that witnessed highest rental increase in local currency terms.

• Connaught Place in Delhi is the highest gainer in Asia and second only to Chicago's East Oak Street across the world, with an annual growth of 87.5 per cent.

• Kemp's Corner in Mumbai also saw high rental growth of 78.2 per cent, making it the fourth highest riser of rental growth.

The world's most expensive shopping streets
(rank 2007 (rank 2006), location, rent €/m²/year)

1 (1) Fifth Avenue, New York (US): 11,983
2 (2) Causeway Bay, Hong Kong (Hong Kong): 9,688
3 (3) Avenue des Champs Elysées, Paris (France): 7,364
4 (4) New Bond Street, London (UK): 6,498
5 (5) Ginza, Tokyo (Japan): 5,459
6 (6) Grafton Street, Dublin (Ireland): 5,340
7 (7) Bahnhofstrasse, Zurich (Switzerland): 3,926
8 (8) Pitt Street Mall, Sydney (Australia): 3,905
9 (10) Ermou, Athens (Greece): 3,600
10 (9) Gangnam Station, Seoul (South Korea): 3,441
11 (=10) Kaufingerstraße, Munich (Germany): 3,120
12 (=14) Via Montenapoleone, Milan / Via Condotti, Rome (Italy): 3,000
13 (12) Preciados, Madrid (Spain): 2,880
14 (13) Orchard Road, Singapore (Singapore): 2,597
15 (17) Kärntnerstraße, Vienna (Austria): 2,400
16 (24) Khan Market, New Delhi (India): 2,236
17 (16) Strøget, Copenhagen (Denmark): 2,227
18 (15) Tverskaya, Moscow (Russia): 2,226
19 (20) Wanfujing, Beijing (China): 2,137
20 (18) Na Prikope/Wenceslas Square, Prague (Czech Republic): 2,040
=21 (21) Kalverstraat, Amsterdam (Netherlands): 2,000
=21 (19) Karl Johan Gate, Oslo (Norway): 2,000
23 (27) Suria KLCC, Kuala Lumpur (Malaysia): 1,663
24 (26) Iguatemi Shopping, São Paulo (Brazil): 1,596
25 (22) Bloor Street, Toronto / Robson Street, Vancouver (Canada): 1,584
26 (23) Rue Neuve, Brussels (Belgium): 1,580
27 (25) City center, Helsinki (Finland): 1,500
28 (=28) Váci utca, Budapest (Hungary): 1,440
29 (32) Lambton Quay, Wellington (New Zealand): 1,430
30 (30) Bulevardul Magheru, Bucharest (Romania): 1,380

The rate of real estate is increasing like BSE sensex of our country. I believe that best investment for your money is real estate because its only investment which can give you 200% return in a year. I personally saw a live example in banaglore- An individual who was residing in Whitefield, Bangalore (location famous for IT companies offices and highly expensive too). That individual was willing to sold his property in 50 lacs approximately, but due to some problems he was unable to sold his property. In 6 months, same property value increased by 80% and finally he sold the property in 82 lacs.

Do you have smaller amount don't get depressed you can buy flats, shops etc because rental are also increasing on the same pace as sensex and land prices.

World’s Top ten locations for % rent rises in local currency June 2006-June 2007

1 East Oak Street, Chicago: 100.0%
2= Ansal Plaza, New Delhi: 87.5%
2= Connaught Place, New Delhi: 87.5%
4 Nevsky Prospekt, St Petersburg: 81.8%
5 Kemps Corner, South Mumbai, Mumbai: 78.2%
6 Rodeo Drive (Beverly Hills), Los Angeles: 71.4%
7 Greater Kailash I, New Delhi: 57.1%
8 Fort/Fountain, South Mumbai, Mumbai: 55.2%
9 Direita/Itapetininga, São Paulo: 54.0%
10 Visconde de Pirajá (Ipanema), Rio de Janeiro: 53.8%

SUGGESTION: check out the best place, location and buy some land surely prices of land will increase. Otherwise you will murmur this proverb---" Ab pactave kya hott jab chiriya chuk gayi kheth" means Dont think about what happened in past because the time is gone buddy..

Source: www.holland-re.com
www.indiaretailing.com

RELATED POSTS:

Brand Rush
Retailing Scenario
Food &Groceries (F&G) Retailing
Indian Retail: A snap shot

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PASSIONATE MANAGER

INNOVATION VALUE CHAIN MODEL

INNOVATION INNOVATION INNOVATION INNOVATION……

Innovation is a very first word come into marketers or management grads mind when we try to suggest someone or give recommendations. Have you ever think of this word in depth?

Innovation means the conversion of knowledge and ideas into a benefit, which may be for commercial use or for the public good; the benefit may be new or improved products, processes or services.

If I ask you about innovative companies, products or ideas, huge numbers of examples will in your mind. There is concise list of companies as per 2006 data:

Most Innovative companies of world

According to strategy,marketing gurus and Worldwide studies innovation is the key driver to the competitiveness of businesses and of nations.

If its so important for competitiveness and existence why one company’s best innovation become worst nightmare of other companies?

In Indian context we have an example of Deccan airlines tried to implement the best strategies of South West Airlines but failed badly, become highly unsuccessful and incurred huge loss.

In marketing we heard of flank defense and flank attack, its very true and right strategy to protect yourself and hit your competitor respectively . Flank Defense strategy is mainly opt by market leader to protect its weakest link from challenger company while flank attack is opt by market challengers to hit the weakest link of market leader.

Normally companies do extensive research on external environment but forget about their internal analysis, so one weak link affected the complete innovation efforts, so focus on pinpointing and strengthening your deficiencies.

A very new concept introduced by Hansen and Birkinshaw to look-over the failures in introducing innovative ideas, strategies, products etc. That is “INNOVATION VALUE CHAIN”. Innovation value chain comprising three phases: idea generation, conversion, and diffusion. Six linking tasks are performed across those phases: internal, external, and cross-unit collaboration; idea selection and development; and spread of developed ideas.

According to innovation value chain model market leader/challenger/follower before going for innovation always look into its internal structure as per IVC, evaluate the weak link and work on it before get into the innovation.

Due to some problem, actual model picture is not uploaded so to look at the detailed description of IVC model click on the picture above.

Its very true that a strong and well developed innovation system and culture will underpin economic growth and social well-being for Queensland.

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PASSIONATE MANAGER

FESTIVE MARKETING: OPPORTUNITY OR MYTH

Festive season in India is started from October/ dusehhra to diwali. In this period of time companies launch number of product offers with various schemes and entertainment industry i.e bollywood also wait for this point of time every year and launch various various mega budget movies with the expectation of huge returns.

According to various experts, it’s a right to lift shopping spirits of customers with various creative offerings. Companies i.e. FMCG, auto, liquor, apparel and even services - are rolling out the strategies that they have been planning for months in advance, to get a share of the consumers wallet.

These days with emerging mall concept anytime we can see discount offers in almost every product or service offerings either its garments, mobiles, movies (malls-weekdays offers). Consumers are lapping up the smells and sounds of the festivities and willing to pay for shopping due to customs, trend etc , companies have already gone into overdrive with their marketing blitzkrieg.

According to one analysis, Till a couple of years back almost 40% of the annual sales of many companies used to come from the festive season. But not anymore. Today the festive season contributes only 20-25% of the total sales of most companies.

Today we Indians are start celebrating number of festivals like mother’s day, father’s day, friendship day, valentine day etc and we Indian customers now concentrating more on western festival than our typical festivals like”EID”, “DIWALI”, “DURGA PUJA”, ”CHRISTMAS” etc, so companies are now concentrating on proportionate sales throughout year.

Trend of buying behavior of individuals is changing with the purchasing power and nuclearism. Initially few years back we were mainly concentrating on our traditional festivals and went for shopping for whole family but now everyday is shopping.

Trends:

• Various festive offers i.e. mother’s day, father’s day, friendship day, valentine day and with these our traditional festivals i.e. ”EID”, “DIWALI”, “DURGA PUJA”,”CHRISTMAS”.
• New offerings and assured gifts instead of banking on the concept of giving discounts on their products or holding lucky draws during this particular season.
• Personal gifting.

Marketing Director at Diageo India, Santosh Kanekar, attributes it to changing gifting patterns of the consumer. He says, “True to the elegance of brands such as Johnnie Walker and Smirnoff we have pushed the scope of gifting a few notches higher. For instance, we have introduced the Johnnie Walker Red Label Vodafone F1 festive pack, the Black Label comes with a vintage wooden twin pack, and brands such as Smirnoff Black and Captain Morgan are coming with shakers and chocolates respectively.”

Trend is changing even though some marketing managers believe that traditional festive time is very good for companies to launch its new products and increase its market penetration.

Motorola Inc, Whirlpool, Lenovo, Hyundai Electronics, Maharaja Whiteline and Sony India are going ahead with their festive plans. Hyundai Electronics has earmarked a budget of Rs 5 cr; Sony has set aside $10m for the season, Maharaja Whiteline would be spending 60% of its promotional budget during this period. Sukhpreet Singh, General Manager, brand marketing, Whirlpool Of India sums it up aptly. Mr Singh says, “Though we have sales coming in throughout the year, the festival season spike is very much a reality.”

Automobile companies like Maruti Udyog, Hyundai Motors India and Honda Siel Cars India are also running marketing campaigns that offer discounts, loyalty bonuses and gift cheques.

Even retailers also believe that it’s a right time to promote and push your product and brand. Subhiksha a big brand name spending huge on marketing and advertising. Company have special offers on crackers, fruits and new range of mobile phones.

various web portals and Internet services offered diwali bonanza offers on chatting, voice chat etc.

I personally believe that its good that we are following new trends and culture but still we markerters believe that these festive season really matters in sales and revenue of companies.

To check out various offers from different companies click on below links:

VIDEOCON offer in Hyderabad

LG offer for Internal customers i.e. channel partners

Offers from CAR manufacturers

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PASSIONATE MANAGER