After an unprecedented year for retailers, lifestyle retailer Shoppers Stop has developed aggressive expansion plans as part of its core business. By focusing on the growth of its omnichannel, private label, beauty and private buyer segments; the company’s chief executive and CEO Venu Nair told CNBC-TV18 in an exclusive interview that the retailer plans to double its business in three or four years.
This aggressive expansion plan will see the company open 10-12 department stores and 5-10 beauty stores by March 31, 2022, while growing its digital and omnichannel businesses by 15-20% over the next three years, see more.
Private labels and beauty businesses will be the other two growth drivers. Shoppers Stop aims to launch new private labels that would meet emerging lifestyle needs and more than double the private label industry over the next 12 months. On the beauty side, it will launch 50 new brands in the next 12 months, while doubling its online beauty activity.
Shoppers Stop confidence could also stem from the faster-than-expected recovery the retail sector has seen from the lows of Wave 2, with some regions almost recovering to pre-COVID levels of 2019. And with the Resumption of Immunization in India, Stop Shoppers, and the Industry Says it is Seeing Increased Confidence in Consumers Not Only for Visiting Stores, but also for Time Spent Browsing and Shopping Easily in Stores .
A similar display of confidence also came from CMD Gautam Singhania of the Raymond Group who told CNBC-TV18 at the launch of his new shirtwear collection ‘Vibez’ that all of his activities are recovering and are currently in the 90-110 range. % of pre-Covid levels. .
Brewers penalized for cartelization
India’s antitrust watchdog has penalized brewing companies for colluding in the sale and supply of beer in various states and UTs across the country in various ways, including through the All India Brewers’ Association (AIBA) from 2009 to October 10, 2018, with membership of Carlsberg India from 2012 and AIBA serving as a platform to facilitate such cartelization since 2013.
What were the brewers doing?
According to the CCI order, United Breweries Limited (UBL), SABMiller India Limited (now renamed Anheuser Busch InBev India Ltd (after the acquisition of AB InBev) and Carlsberg India Private Limited (CIPL) have entered into the coordination prices in Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, Delhi and Pondicherry.
These companies also restricted the supply of beer in Maharashtra, Odisha and West Bengal in violation of the provisions of section 3 (3) (b) of the law, among other violations found.
Carlsberg and UBL, who were fined Rs 120 crore and Rs 750 crore, respectively, told CNBC-TV18 they were reviewing and revising the order after the two companies received a reduction penalty under the provisions of section 46 of the law – 40 percent to UBL and 20 percent to CIPL.
Meanwhile, AB InBev has benefited from a 100 percent reduction, which means that no penalties will be imposed on Ab InBev by the regulator.
“The ICC decided that we were the only company identified as not receiving any sanctions and noted that we had ‘initiated definitive internal corrective administrative and HR actions’ as well as ‘launched widespread compliance programs for its employees.’ We are delighted with these comments as we take compliance and ethics very seriously, ”said a spokesperson for AB InBev India.
Junk Food Warning Labels Coming Soon?
India’s food safety regulator could introduce long-standing front-end labeling (FOPL) for packaged foods to reduce junk food consumption. Food Safety and Standards Authority of India (FSSAI) CEO Arun Singhal said earlier this week that there is a need for packaged foods to display simpler information about the impact of their consumption so that consumers can make an informed choice.
The regulator has been pushing for this for almost two years now, and last year it proposed the same in the draft labeling and signage regulation, but discussions with industry had failed. successful.
The regulator wants packaged foods to be color coded red on front-of-package labels on packaged food products that contain high levels of fat, sugar and salt.
According to industry sources, several concerns have been raised by a few in the industry, including the fear that an initial warning could deter consumers from purchasing the products, which in turn would impact the sales of retailers. consumer food companies.
Some also say that there is a difference of opinion in the nature of the labeling as to which ingredient or substance should be displayed in the OFPL. Singhal of the FSSAI also said that there had been consensus on most of the technical aspects, the nature of the labeling has yet to be decided with the industry. For now, the FSSAI has hired IIM-Ahmedabad to investigate the matter, and on the basis of which, Singhal said, regulations will be drafted.
New Entrant in FMCG Personal Care
RP-Sanjiv Goenka Group announced on Thursday that it has entered the personal care segment with the launch of skin and hair care products through its FMCG company Guilt Free Industries and is targeting Rs 400- 500 crore of income in four to five years.
Taking advantage of the growing trend towards natural products, the group launched shampoos, conditioners, facial cleansers and face creams made from natural ingredients under a brand called Naturali.