TED BAKER- INDIA

Ted Baker is targeting India as it continues to expand into new markets.

Over the past 12 months Ted Baker has made its debut in Australia, where it has two stores, and opened another two in the US, bringing its US total to nine, and remains on the overseas expansion trail. Another four US shops will open this year.

Ted Baker is expected to open stores in India by 2012 although plans are not yet finalised.

“We can’t do everything at once,” said Ted Baker founder and chief executive Ray Kelvin. “But [we’ll try to open in India] in the next couple of years and we will probably start with a partner.”

Retail Knowledge Bank senior partner Robert Clark said a move into India made sense for Ted Baker. “India is an obvious place to go for many an aspiring global retailer. Ted Baker would go down well. It has the British heritage and a quirky approach to retail that the Indians might identify with,” he said.

The retailer reported that trading conditions in the US in the 52 weeks to January 30 “continued to be difficult” and sales were down 16.3% to $15.9m (£10.5m).

However, Kelvin said: “The economy was struggling and that became our opportunity to get the right locations and that is why we are pushing ahead.”

Last week Ted Baker posted full-year profits up 3.6% to £20.3m while total sales rose 7.2% to £163.6m.

No details were given on current trading but Kelvin said: “We have been encouraged by trading since the start of the year and the positive reaction from our customers to our spring/summer collections. While we believe that 2010 will be a difficult trading year, we remain well placed to deal with the challenges.”

Kelvin acknowledged the impending general election created uncertainty about prospects. He said: “It might be a bit more difficult.”

Over the period retail sales in the UK and European division were up 17.3% to £126.4m. While the UK was ahead of expectations, Ted Baker said European stores had faced “challenging” conditions.

Update: The following rankings are based on consensus done in 2001, and have been correctly pointed out to us by one of our readers D7Y. We will be judicious to provide readers with latest data going forward.}

Any Guesses?

I hear most of you saying it is undoubtedly the financial Capital of India – Mumbai.

But you are wrong, that is not the right answer. I was also quite surprised when I read it, but immediately sense prevailed

Chandigarh is actually the wealthiest City in India

(source)

 

Dont be surprised, that is actually true. Although Mumbai has the largest quantum of money, it is also the most populace city with majority of them living below poverty line. Mumbai may probably have as many beggars compared to rest of India put together (this is just a guess I am making without any factual backing up of information)

Wealth of a city can actually be calculated based on wealth per capita (total wealth divided by total number of people). A more standard term for comparing wealth between countries is PPP (Purchasing Power Parity)

So from that perspective, Chandigarh seems to more average wealth per person than any other city.

I hope that puts to rest the question of why Mumbai is NOT the wealthiest cities.

Here are the Top 10 Wealthiest Cities in India

1. Chandigarh
2. Panaji
3. Delhi
4. Valparai
5. Greater Mumbai
6. Pune
7. Ludhiana
8. Chennai
9. Shimla
10. Jalandhar

Surprisingly, no Bangalore or Hyderabad feature in the list, while it is dominated by “B” cities like Chandigarh, Valparai, Ludhiana, Shimla and Jalandhar.



DELHI

Fashion for me took a shape of its own the day I entered the North Campus of Delhi University. There was a dress code and it spelt ‘attitude’. In the hot, dry summers, a bright Fabindia kurta, blue jeans, a sling jhola, beads around the neck, kohl-laden eyes and silver danglers seemed to say we take ourselves seriously, but we are going to look attractive while we do it. In the bitter winters, high neck sweaters in bright hues, denims, floaters and colourful stoles from Janpath completed the look. It was about creating an identity, even though we were all doing it. It made me realise that I could make a statement with my clothes. And even though there were millions who looked like me in Delhi in those years, to fit in and embrace a trend that was so Delhi made me leave behind my shorts and tee wearing days of school. I had grown up.

And that’s where I think Delhi first scores over Mumbai. I have spent hours staring at college kids across Mumbai in trains, malls and coffee shops. Denims, T-shirts, sneakers, backpacks—it’s as if school’s not over. “Mumbai actually doesn’t have a style per se,” says stylist Shweta Sharma, “It’s so laidback that it almost doesn’t care.”

It’s been six years since I left my dignified Delhi and shifted to manic Mumbai, but even today, when I tell people I am from Delhi, they hem and haw, and then inevitably blurt out, “Yes, you look very Delhi.” And though I take it as a big compliment—since I still like being seen as a Delhiite however maligned the city is—I have often marvelled at the fact that it’s so easy to distinguish a Delhi girl from a Mumbai girl just by looking at the way they wear their denims. Cutoff denim shorts and a comfy tee paired with flip-flops is the way the Mumbai girl would go, and carefully ironed coloured branded denims with a cute-yet-sexy singlet and ballerinas is the Delhi way. Could it be more easy?

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Once out of college, I was hooked. Fashion knew my address now. High-street brand Mango had just opened its first branch in Delhi, and I was there every pay day. It was the first time I noticed how a good fit flattered my body, and how elegant tailoring could make heads turn. And if you were low on cash, Sarojini Nagar (the Mecca for anyone looking for export rejects of international brands) and Janpath were always ready to embrace you. It was literally as if the city was trying to make you fashionable. It was also a city that challenged you—you couldn’t just wear anything and everything (no deep necks and no short skirts that would invite uninvited attention on the streets of Delhi), and so you improvised. A scarf here, some cool pants there, and a trendy jacket on top—I was set.

Sukanya Deepak, a 19-year-old fashion student, is pretty fussy about what she wears. And just like me, she knows how to improvise. She also loves Delhi’s obsession with being impeccably turned out all the time. “I wear pants all the time, but I know how to make them look casual and dressy as well. So if I am going to posh Khan Market, I wear a sheer top paired with well-fitting pants. You have to look good when you go to Khan Market. Everyone is so well dressed there.”
Shopping in Mumbai has never been as exciting as looking for finds in Delhi. I have tried to take the Fashion Street route in Mumbai, but have always returned home empty handed, with no finds to steal. And spotting good ethnic wear is close to impossible in Mumbai. Barring a few really well-turned-out fashion bloggers, stylists and fashion magazine staffers, I have got used to looking at the skinny jeans, tee and flip-flop wearing crowd. And so when somebody calls me a ‘Zara clone’ behind my back, I am often tempted to retort, “But where else do you shop in this city?” Thank God for the high street, I say.

Bombay girl and individualistic blogger Anushka Hajela of Bombay Bubblesays, “I hate to say it but Delhi is the better dressed city. Bombay is like Los Angeles, completely laidback, and Delhi is like New York, where people take their brands seriously—it’s only about the Guccis and Fendis. Maybe Mumbaikars just don’t bother because of the heat. In Delhi, it’s all about appearances and there is a lot of pressure to dress up. In Mumbai, we don’t judge you by the car you drive. We care about relationships, not appearances.”

That is the stock complaint against Delhi—its brand consciousness. But who is to say that’s a bad thing? India’s top designers are based there, even as new, experimental, innovative ones keep emerging from the capital like nobody’s business. Designers attribute their settling down in the capital to the easy
access to local karigars in and around the city, as well as the low-cost availability of traditional fabrics in the North. Or, as I said before, it could be because Delhiites start their fascination with fashion young. All the international designer brands now have huge outlets in Delhi’s humongous malls, a phenomenon that cramped Mumbai can never match. Delhiites have the luxury of space, and it assures them luxuries of other kinds.

As I walked around Emporio the last time I was in Delhi, I was shocked by the fashion that surrounded me. It could have just been the way everyone around me had bags that screamed logos—starting from Zara and Forever 21 to the more luxurious Dior and Versace.

Gayatri Ahuja, a 23-year-old interior designer, is a pucca Delhi girl. She flaunts her designer labels (she says she likes to experiment with clothes), idolises Anne Hathaway and Audrey Hepburn, won’t leave her home without her Louis Vuitton or Gucci bag, and though she loves flats, will wear heels when the ambience demands it. “All my clothes are custom made,” she says, “I like to be different and ahead of the curve.”

+++

Delhi is India’s only city that could someday match the fashion consciousness of cities like New York, London, Milan or Berlin. Spend some time in Delhi, and you know that globalisation is well and truly upon us. And while fashionistas across the globe gush over the latest Chanel collection and covet that Marc Jacobs bag, why should it be pretentious for Delhiites to flaunt a Gucci?

It is the fashion capital of the country. If not for Delhi, I would have been wearing denim skirts, collared shirts and Moccasins for as long as I lived. And though I am surely not the most fashionable person around, Delhi helped me find a sartorial identity of my own. It made me realise and live what Coco Chanel once said: “I don’t do fashion. I am fashion.

International Brands: India Entry Strategies

May 9th, 2009 by admin

By Devangshu Dutta, Tarang Gautam Saxena

While the Indian consumers have aspired to own international fashion brands, India’s large population base in turn has been an aspirational market for the international companies.

To remote observers, the Indian market may appear to be a virgin territory as far as international apparel and footwear brands are concerned. But India has seen the presence of international brands for almost a century, including mass brands such as Bata and luxury brands such as Louis Vuitton. However, as the colonial government systematically repressed local textile production, the local resistance to foreign products grew as well. Therefore, until the 1980s, the presence of international fashion brands was negligible.

In the early 1990s, as the Indian economy opened up again, a few international fashion brands entered the Indian market. The pioneering companies during this stage were Benetton, Coats Viyella and VF Corporation.

At this time the Indian apparel market was still fragmented, with multiple local and regional labels and very few national brands. Ready-to-wear apparel was prevalent primarily for the menswear segment which was thus a target for many international fashion brands (such as Louis Philippe, Arrow, Allen Solly, Lacoste, Adidas and Nike).

In the midst of this the media industry was also witnessing a high growth which aided the international brands in gaining visibility and establishing brand equity in the Indian market.

The late-1990s marked a significant milestone in the growth of modern retail in India. Higher disposable incomes and the availability of credit significantly enhanced the consumers’ buying power. A growing supply of good-quality retail real estate in the form of shopping centers and large format department stores also allowed companies to create a more complete brand experience through exclusive brand stores and shops-in-shop.

The number of international brands continued to grow each year at a steady pace until the early 2000s, and took off exponentially thereafter. By 2005 the number of international fashion brands present in India was over three times compared to that in the mid 1990s. The last few years (since 2005) have continued the significant growth of international fashion brands, including luxury brands such as LVMH, Aigner, Tommy Hilfiger and Chanel.

The Popular Entry Strategies

Many of the international companies entering India in the late 1980s and 1990s chose licensing as the entry route to India to gain a quick access to the Indian market at a minimal investment.

A few companies such as Levi Strauss set up wholly owned subsidiaries while others such as Adidas and Reebok entered into majority-owned joint ventures. This helped them to gain a greater control over their Indian operations, sourcing and supply chain, and brand.

In the subsequent years import duties for fashion products successively came down making imports a less expensive sourcing option and the realty boom brought investors in retail real estate that were ideal franchisees for the international brands. By 2003, franchising became the preferred launch vehicle for an increasing number of international companies, while only a few chose to enter through licensing.

In 2006 the Government of India reopened retail to foreign investment (allowing up to 51 per cent foreign direct investment in “Single Brand” retail). Using this route, many brands have entered India by setting up majority owned joint ventures, or transitioned their existing franchise arrangements into a joint venture structure.

The Entry Structure for Some International Brands

Entry Strategy	Time Period
	1980s or Earlier	1990s	Post-1999
Licensed	Louis Philippe, United Colors of Benetton and 012, Wrangler	Allen Solly, Arrow, Jockey, Lacoste, Lee, Nike, Van Heusen, Vanity Fair	Puma
Wholly Owned Subsidiary	Bata, Pepe Jeans	Levi’s®	Hanes, Triumph
Joint Venture (Majority)		Adidas, Reebok	Diesel, Nautica, Sixty Group
Franchise or Distribution			Aldo, Burberry, Canali, Versace, Debenhams, Esprit, Gucci, Guess, Hugo Boss, Mango, Marks & Spencer, Mothercare, Tommy Hilfiger
Joint Venture (incl. Minority Stake)			Celio, Etam, Giordano

Source: “Global Fashion Brands: Tryst with India” (A Report by Third Eyesight) © Third Eyesight, 2009
Note: The above table shows the structure used during entry, and not the structure that exists currently.

The seasons have been very favourable to the global luxury brands to embark on Indian markets, which has been on the high tide. The first signal of opportunity was raised by the CII-AT Kearney report which predicted that the booming Indian luxury market was growing at 20 per cent a year and would become $14.7 billion by 2015, from $5.8 billion now.
It was followed by the government decision to allow 100 per cent FDI in single-brand retail. Though it had only a lukewarm reception initially, a host of luxury international brands have suddenly woken up. Fashion media reports suggest that they are gearing up to venture into India.
With the number of high net worth individuals increasing and aspiration levels of the young consumer rising, the potential is big. And Indian brands and fashion conscious consumers, who could buy their favorite brands only on their trips abroad, are all perked up.
Considering other big names like Zara, Canali and Louis Vuitton are already in India others such as Tiffany & Co, Christian Louboutin, Abercrombie, Arcadia, Hennes and Mauritz, Prada and GAP are planning to launch their stores in the country.
Other global retailers such as Swedish furniture major Ikea, the UK’s Arcadia group and American coffee brand Starbucks are reported to be firming up their India plans.
India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS. Though Indian consumer is looking forward to the luxury brand line-up, the question is, whether these brands are really ready for the Indian market.
According to experts, for foreign brands to succeed in this market, they must first understand Indian taste and create merchandise suitable for Indian audiences instead of stocking old stocks at higher prices.