Author
It’s not just Narendra Modi who has his eyes set on Delhi.The Gujarat Co-operative Milk Marketing Federation, which owns India’s largest food brand Amul, is keen to take over the Delhi Milk Scheme.Vipul Chaudhary, the new chairman of GCMMF, said he was going to approach the ministry of agriculture with a proposal to acquire DMS. “We are going to request them that this business be handed over to us,” he said.He was speaking at a press conference in Delhi on 12 September to announce the launch of Amul Moti, the brand’s new UHT (ultra high temperature) milk to be retailed in aseptic polypacks. DMS owns barely five per cent market share in Delhi. “It does not have the volume, but it has outlets in strategic places,” said R. S. Sodhi, GCMMF managing director. DMS has the capacity to produce about five lakh litres of milk, but is only churning out three lakh litres currently. There have been various reports that DMS has sought government intervention to help it raise production.According to Sodhi, Delhi is the biggest market for Amul for its milk products. And Amul, he claimed, was the largest seller of milk in pouches in Delhi, retailing 40 lakh pouches a day in the Capital.Sodhi said Amul’s focus is increasingly going to be on fresh products. “2010 to 2020 will be all about fresh products. We are increasingly going to source milk outside of Gujarat as well and hope to be handling 200 lakh litres per day by 2020,” he said.Currently Amul handles 125 lakh litres per day. The no-refrigeration needed Amul Moti, which has a shelf life of 90 days, will be initially launched in Jammu and Kashmir, Chhatisgarh and Madhya Pradesh. It is meant for milk deficient areas as well as places where consumers have no means to refrigerate milk, said Mr Sodhi. Priced at Rs 20 per 500 ml pouch and Rs 9 for a 200 ml pouch, it is more affordable than its tetra pak offering Amul Taaza.Chaudhary dedicated Amul Moti to GCMMF founder Verghese Kurien, who passed away on 9 September.
Read More
It started as a trickle, but the traffic is ceasless now. Foreign hospitality players are queueing up to either announce expansion plans or launch brands in India. This week, Preferred Hotel Group’s top honchos were in town to talk about their growing pipeline of hotel partnerships in India. Before that, Wyndham Hotel’s Asia-Pacific head was here to open the Ramada spa and resort in Udaipur and announce the debut of the group’s Howard Johnson brand. In recent months, Dubai-based Jumeirah, Hyatt’s Andaz and Mandarin Oriental have all announced their intention to launch here. By 2016, when Starwood opens W and St Regis here, it would have eight of its nine brands in the country. India’s booming growth is no doubt drawing the foreign brands, but another crucial reason why they are checking in is because of the soaring outbound tourist volumes. Currently about 12 million Indian tourists travel abroad every year, and it is increasing by leaps and bounds annually. “Percentage wise, India is the fastest-growing source destination for the outbound. We are looking to source more business from here,” says Ananya Narayan, executive vice-president, Asia-Pacific, Middle East and Africa, Preferred Hotel Group, which has 650 hotels across the world in its portfolio. The Chicago-based group is a global provider of sales, marketing and distribution services to independent hotels, and has tie-ups with 29 Indian hotels, including all the Leela properties. It is now looking to ramp up its presence and focus on “secondary cities”. According to an estimate by Lonely Planet, about 50 million Indian tourists are expected to travel overseas annually by 2020. For foreign hospitality players, building awareness for their brands here is necessary if they want more Indians to check into their properties overseas. Jumeirah has made no bones about the strategic significance of India as a source market, and why it is dropping its calling card here. Ditto Wyndham hotels, which has over 7,170 hotels worldwide and brands such as Days Inn, Super 8, Tryp and Hawthorne. It is currently building the Ramada and Howard Johnson brands (the latter in partnership with Ahmedabad-based Unique Global Group, which is building the hotels). “What attracted us to Unique Group was the element of wholesale or bulk business that they could bring in,” says Frank Trampert, managing director, Asia-Pacific, Wyndham Hotel Group. Unique Global has about 300,000 members in its holiday time-share business, Unique Super Stay Plans. “By building our own hotels, we are reverse integrating — we will already have 30 per cent assured occupancy through our timeshare members,” says Raj Kumar Rai, chairman and managing director, Unique Group. Wyndham’s calculation is that this partnership could result in some of the timeshare guests staying at its foreign properties too. “Securing wholesale business is problematic,” confesses Trampert, and this was one of the pull factors in the tie-up with Unique. Hoteliers entering India, however, do say that despite the pricing pressures due to a sudden supply glut and rupee devaluation against the dollar, the operating profits in India are higher. “The gross operating profit in the Asia-Pacific region has been on a decline and averages 30 per cent now. But in India, many cities still yield as high as 40 per cent GOP,” says Narayan.(This story was published in Businessworld Issue Dated 29-10-2012)
Read More
Visit Delhi’s DLF Emporio at grazing hour, and there is scarcely any room to sit at Auma, the fine dining restaurant. It’s the same story at the coffee shop where you can see many a luxe shopper taking a quiet break after tough decisions such as whether to go for a Gucci or a Bottega Venetta. Did anyone say slowdown? And what was all that noise we heard about challenges of luxury marketing in India? Well, all the gripes — high tariff barriers, dearth of luxury retail infrastructure, forbidding FDI regulations, value-conscious mindsets, the country’s size and diversity — remain. What’s different today, however, is that luxury marketers appear to have made peace with the Indian reality and found innovative ways to circumvent these challenges. Many are reporting growth figures of 30 per cent per annum. Here’s how they have jumped over the obstacles: Tiding over FDI norms: Kanchan Lall, associate vice-president at Technova Consulting, which helps companies with their India entry strategies, says FDI norms continue to be the foremost challenge. Now, a further clarification that only companies that are brand owners themselves (this means global master franchises are not eligible) can get 100 per cent FDI, has made it even more difficult. But rather than sit it out, many big luxe brands have opted to come in through the two routes possible — joining hands with an Indian partner or appointing a master franchise. Says Lall: “If one model didn’t work, they switch to another. It is at the trial and error stage, and the brands are accepting that.” Sizing it up: When German luxury kitchen appliances maker Miele entered India three years ago, its biggest challenge, says India MD Dhan-anjay Chaturvedi, was the vastness of the country. How could it reach a potential customer hidden away in a place such as Kozhikode or Raipur? Miele decided to set up an experiential store (the single brand regulations don’t allow it to sell directly; it can only retail through dealers) in Delhi, where it invites potential customers. Here it lays out a relaxed fine-dining Miele experience — a curated menu crafted by master chefs, on Miele appliances, of course. This never fails to create an impulse to buy. Miele has also piggybacked on other luxury brands. As Chaturvedi points out, an Audi or Bang & Olufssen buyer is likely to be a Miele consumer too, so it hosts joint events with them. For instance, it hosted a soiree for the Harley Owners Group along with Remy Cointreau. Other brands have chosen to travel country-wide. Trunk sales held at five-star hotels in cities such as Hyderabad and Ludhiana have paid off for luxe labels such as Yves Saint Laurent, Chloe, Givenchy and Burberry. Dinaz Madhukar, vice-president, DLF EmporioA pricey bargain: Exorbitant rentals and 30 per cent-plus import duties have all made coveted A-list products costlier in India. Why then would the high net worth Indian who anyway travels overseas frequently buy here? Dinaz Madhukar, vice-president of DLF Emporio, says one way to entice shoppers to the luxury mall is to offer a superior service experience here — she points to the concierge service, personal shoppers, experiential zones, and so on at the mall. The missing elements at Emporio — a salon and a spa — will be added soon. The brands, on their part, have come up with India special collections that are only available here. Sanjay Kapoor of Genesis Luxury points out how Canali and Jimmy Choo have come up with exquisite India-inspired collections.Also, brands are drawing up select lists of invitees and offering them previews of their new lines. Recently, AmEx card holders got pre-event access to Vogue Fashion’s Night Out at the Emporio. Madhukar also describes how innovations such as the online gift and wedding registry Emporio has set up, keep the goods moving. Skilled staff: With trained staff who know the nuances of catering to the luxe set difficult to come by, marketers have had to work extra hard on this aspect. Miele has taken a leaf out of its Singapore operations and poached from the airline and hospitality sectors. Others have sent staff overseas for training. Manav Gangwani, director of marketing and communications at Infinite Luxury Brands, which has brought Roberto Cavalli to India, describes how they sent their staff on factory visits to Florence to see how each print was made, and attend training sessions at boutiques in Europe. Mindset challenge: ‘Have money, but why should I splurge’ has been the Indian mindset for certain luxury purchases. But that’s changing. Xavier Hay, CEO of Eurocopter India, says close to one-third of the helicopters sold have been to VIP customers, a segment growing at 12 per cent a year. Most Luxury Marketers, However, Feel That India is still at the first stage of luxury shopping — consuming visible luxury (apparel, watches, cars). It is when they graduate to the invisibles that real growth will come. Often, this can be done by influencing the influencers, says Chaturvedi, describing how Miele organises events with architects and real estate barons who are developing condominiums. Similarly, many high fashion brands have arrangements with socialites to host private preview parties.So, where there is a will there is a luxury way.chitra(dot)narayanan(at)abp(dot)inThis story was published in Businessworld Issue Dated 24-09-2012)
Read More
The swish set may not quite approve of this move. Tag Heuer, the watch brand from LVMH , which cheekily entered the luxe phone category, flashing rather pricey smartphones (we are talking Rs 6 lakh-plus toys) that were built like armoured cars, though encased in gold and leather trimmings, has suddenly done an about-turn. The brand has climbed down the luxury phone ladder with its recent offering — the Tag Heuer Racer priced at a piffling Rs 2 lakh. But don’t worry, the gold and titanium bling is there, and it continues to be built in motor racing mode, chassis at the back, et al. Let’s just say — there is more rubber now than alligator skin. “We are democratising our phone offering and bringing it closer to our watch positioning, which is in the affordable luxury category,” explains Serge Simon, general manager at Atelier Haute Communication, experts in tailor-made mobile phones. On balance, it might be a smart move by the Swiss watchmaker. For affordable luxury — the bridge category between pure luxury and premium, where Tag Heuer operates — is where all the action is today. CARS: (lead Image) DRIVING UP: From the BMW X1 (extreme left) through the BMW 5-Series, right up to the 7-Series, the German auto major has successfully driven into India with a car in every segment WATCHES: TICK MARK:Boundaries may blur between premium (Tissot 1853 Automatic PRC 200) and affordable luxury (Tag Heuer Formula 1), but a Chopard is pure luxe all the way This paradigm-breaking category has changed the way luxury is marketed, and helped grow the size of the luxe pie. If the projections (CII-AT Kearney luxury report) turn out to be right and India’s luxury market does triple from its current size of $5.8 billion to $14.72 billion by 2015, then a large factor could be the way the luxe category has widened. No longer is luxe the exclusive preserve of the champagne and caviar class. A growing breed of luxury marketers is now increasingly aiming at aspirational buyers, value-conscious wealthy, and even the middle-class consumer who occasionally goes on an indulgent splurging spree. APPAREL: TREND-SETTER: Lacoste (left) may like to reposition itself in the niche affordable luxury segment where Hugo Boss (centre) is, but consumers perceive it as premium.Gucci is haute couture(Photographs: From Companies) It’s All About PositioningDuring the recession years of 2008-10, many uber luxury brands managed to grow their businesses in tough markets by reorganising and repositioning their collections to make them more accessible. Think Poppy, the sister line that Coach launched; or Prada’s Miu Miu, a brand extension that caters to an aspirational younger set. Or Jimmy Choo and Versace’s capsule collections for high-street retailer H&M. Closer home, BMW, Mercedes and Audi scored in India with competitively-priced entry-level models under Rs 30 lakh that were positioned between premium cars such as a Honda Accord or a Toyota Prius, and their own higher-end offerings. But for every pure luxury brand that has laddered down, there are also premium brands that are going up the value chain. Take home-grown leather label Hidesign, which has recently tied up with Milanese designer Alberto Ciaschini to foray into the luxury segment with an eye on the bridge segment. Indeed, affordable luxury is a bit of a positioning and perception game. So much so that what is seen as premium in one country might be perceived as affordable luxury in another. A Miele appliance, for instance, which is regarded as premium in Germany, is positioned as luxury in India and elsewhere. break-page-break According to Kanchan Lall, associate vice-president at business consultancy Tecnova, the definition of affordable luxury also varies from category to category. In some categories, what was once considered pure luxury has now become a necessity, and hence migrated down the value chain as it has lost its uniqueness. For instance, staying at a five-star hotel, or flying first class. Once the exclusive preserve of the ultra rich, now such things are accessible to a far wider crowd. As Prasanjeet Dutta Baruah, vice-president of marketing at the Oberoi Group, explains, business executives who get used to the 5-star experience during their work travel are unwilling to settle for less anymore and so choose the same for family holidays. So, the consideration set is growing. In apparel, as Rajesh Jain, director and CEO, Lacoste India, explains, “Premium as a perception comes with a certain assurance of style. Premium consumers are those who closely observe trends in fashion and make an effort to sport the same at a price. Luxury wear, on the other hand, is supremely priced but is accompanied by a legacy that assures high quality, attention to detail, impeccable craftsmanship and finer design sensibilities.” Between these two parallels, he says, lies the niche affordable luxury space, where Lacoste would like to be. Unfortunately, it lost its higher positioning in the 1990s because of an over-expanded distribution channel. THE DEFINITION OF AFFORDABLE LUXURY VARIES FROM CATEGORY TO CATEGORYKanchan Lall, associate vicepresident, Tecnova Atelier Haute’s Simon says pure luxury products have a timeless appeal while affordable luxury can have shorter time cycles. Have Money, Will SplurgeIn India, says Tecnova’s Lall, the growth of affordable luxury is being fuelled by a new breed of aspirational young consumers, aged between 20 and 30, who know about international trends but do not have the means to spend on real luxe goods. However, they do have the budget and the desire to spend on luxury for life-altering events such as marriage, or even when a performance bonus comes their way. Lacoste’s Jain says affordable luxury consumers are those who enjoy fine dining, are increasingly travelling abroad, have a taste for fast cars and tech gadgets and visit niche music and lifestyle events. He says, at times preferences are inherited as children grow up observing their parents patronising certain brands. On other occasions, it is an acquired taste thanks to increased exposure. Jain has no doubt about the buoyancy of this segment — he points out how in 2010, western wear in India clocked sales of Rs 860 crore. Of this just Rs 50 crore came from luxury and the affordable luxury market. Exclusivity Versus CommodificationSo, here comes the conundrum for pure luxury brands. While it is tempting to grow the consideration set, won’t the lustre of the brand get dimmed if it is too democratised? Isn’t there a danger of getting commoditised, and alienating the luxe connoisseur who cherishes a brand for its exclusivity and uniqueness? Shweta Jain, assistant general manager of marketing at Pernod Ricard India, makers of premium wines and spirits, admits that with income levels rising, a wider base is consuming a brand such as Chivas Regal. “But this is where laddering comes in,” she says. “We create limited editions, collector’s specials, and work extra hard to keep the myth about the brand alive.” Oberoi’s Baruah gives the example of how hotel groups democratise and yet preserve exclusivity by segmenting their offerings with, say, presidential suites for the super elite, and so on. Several hospitality brands have also uptraded in other ways, creating more luxurious boutique hotels or seven-star properties. A store such as William Penn, which stocks premium, affordable luxury as well as pure luxury pens, takes the same laddered approach — but through service. Anita Paily, the company’s brand manager, says their 17-brand portfolio includes premium offerings such as Sheaffer or Waterman priced at an affordable Rs 2,000-8,000, moving up to affordable luxury brands such as Omas and Sailor (Rs 10,000-plus range) and then the ultra luxe brands of Mont Blanc, Caran D’ache and Visconti (some models can cost more than a lakh). To keep their high net worth clients happy, the store even organises private screenings at their homes, sending trained staff who are well-versed in the intricate details of every product. WHO IS THE LUXURY SHOPPER?The Indian luxury buyer is as diverse as the country. Here’s a pen sketch of some of our luxe customers(From The Left) RICHIE RUSTIC: This one is the oddball who defies stereotyping and has the luxury brands utterly confused.Operates out of all known paradigms and could pick up the most baffling purchases, for no apparent rhyme or reason. Very difficult to pigeonhole.VIVACIOUS VIVANT:This is the class — mostly self-made entrepreneurs or professional business executives — that has the money to enjoy the good things in life, and does so without guilt. The motto is work hard, and play harder, and celebrate success with irreverence and fun.POLITICAL PROWLER: Acquisitive to the core, has a childlike mentality of coveting whatever he sees new. Luxury brands talk in hushed tones about this consuming class, the origins of whose wealth are shrouded in mystery, but who is perhaps the biggest contributor to the bottom lines of the high end brands.AFFLUENT ASCETIC: Very rich, but as comfortable in a Kolhapuri chappal as in a pair of Jimmy Choo pumps. A value seeker, will not buy luxury unless it fulfils a need. Years of socialist idealism and guilt of conspicuous consumption has ingrained a frugalism. Now, finally yielding to the temptation of enjoying the fruits of labour.CLASSY CONNOISSEUR: Hails from the ultra-high net worth segment and consumes luxury for intrinsic satisfaction.Luxury is no novelty but part and parcel of everyday living. Discerning with a discreet style, everything has to be just so for this consumer.FLASHY FLAUNTER: Is the new rich status seeker who chases after visible luxury. So will be seen sporting fancy watches, driving high-end cars, wearing designer clothes but will not invest in the invisibles — designer lingerie or top notch kitchen and bathroom fittings.(Illustration By Dinesh S. Banduni) The Address MattersAnother tool in the kit is store positioning. It makes a lot of difference in attracting the right target segment, says William Penn’s Paily. Since the writing instruments company caters to all three spectrums — from premium to luxe — its stores are present at Delhi’s Select Citywalk mall, which attracts a wide range of consumers, rather than at a DLF Emporio mall (Delhi), which mostly houses high-end brands. Paily, however, says that if a William Penn store was present in Emporio, it would exhibit only niche products. Emporio’s vice-president Dinaz Madhukar agrees that address matters, adding that a lot of thought has gone into zoning at the mall. The prime atrium space is reserved for top-end luxe brands such as Cartier and Louis Vuitton, while the first floor houses next level luxe brands such as Burberry and Canali. The affordable luxury bridge brands are next door at DLF Promenade. By creating affordable luxury products for the aspirational consumer, high-end brands are investing in the future, says Madhukar. Dhananjay Chaturvedi, managing director of appliance maker Miele India, sums it up thus: today’s aspirational consumer is tomorrow’s pure luxe shopper. chitra(dot)narayanan(at)abp(dot)in (This story was published in Businessworld Issue Dated 24-09-2012)
Read More
The assignation place: an ancient banyan tree at the Okhla Bird Sanctuary in Noida. The time: 6 am, Sunday. A motley bunch of birding enthusiasts is huddled, with flasks of steaming coffee in hand, planning the route, occasionally exclaiming at the fat green pigeons nesting in the tree. As the sun rises, pan your gaze to the Nicholson cemetery on the northern fringes of Delhi. The time: 7.45 am. History buffs are gathered around a young PhD scholar, Kanika Singh, who is animatedly telling them about the 1857 mutiny and the role played by Brig. Gen. John Nicholson. Elsewhere, an ebullient designer Himanshu Verma is leading a disparate group of expats and locals on a ‘food and faffing’ walk. It’s a thoroughly satiating tour of Old Delhi, sampling kulfis, sherbets, parathas and jalebis. (Left to right) Kanika Singh delves into the history of Delhi; and a bazaar trail in ChennaiLazy weekends are out. Come Saturday, and groups of all kinds — bird lovers, history addicts, butterfly chasers, foodies, heritage preservers — are banding together, putting on their shoes and setting out on glorious rambles. Walking mania is not just hitting the capital city. Wing your way to Mumbai, and here 20-something Viraat Kasliwal and his team of young raconteurs lead people on walks (through the week; not just weekends) that go out of guidebook territory and into fascinating parts of the city. From heritage to bazaars, they spin a mighty good yarn as they take you through a stroll down the old Fort area. The young start-up is now planning to expand to a cricket walk, an art and architectural walk, a Gandhi walk and a food walk. Unlike other walking groups, Raconteurs doesn’t really need a quorum for the walks — and is willing to take even one person. Now move to Chennai, and you will find zany new trails opening up, courtesy Storytrails.in. The promise is creative outings that give you a glimpse of local lives. Imagine setting out on a trek that leads you into craftsmen’s workshops to watch the hand-made jewellery take shape. Or a dancer’s trail. Or a bazaar trail. From October, Storytrails will also be starting walking tours in Madurai. The trails are open throughout the year, and the operative word is ‘storytelling’. What’s so special about all these walking tours is that their leaders are experts and passionate about their subjects, bringing alive local monuments, streets and even trees that you might never have given a second look. For instance, in Delhi, Pradeep Kishen, author of Trees of Delhi, occasionally takes people through Lodhi Gardens, pointing out native species. Or take the Delhi Heritage Walks, created by history lovers. Every weekend they take people around old monuments and heritage sites, but they structure it around themes — and their narrative is no boring history textbook, but drawn from William Dalrymple’s stories (and this sometimes leads to heated, but entertaining, debates amidst the walkers who pooh-pooh the Briton’s view of our history). The prices of the walks range from a mere Rs 250 to Rs 1,500. Some of the walks are hobby groups banding together, while many others are full-time ventures. Some such as the bird and butterfly walks are free, as are the activist or cause-led walks. Often, organisations such as the Aga Khan Trust for Culture use walks to create awareness for their pet projects. The themes behind the walking tours are mind-boggling. From Gandhi walks that take you around spots associated with the Father of the Nation (and this is a theme common to Chennai, Mumbai and Delhi), to slum tours that immerse you in the Dharavi experience, to biodiversity walks to create awareness on saving the Yamuna, the strolls are diverse. Arshiya Sethi of Kri Foundation, who has curated a number of walks in the Capital, describes a cactus walk, a saree walk, among some of her more offbeat strolls. So, put on your walking shoes and get set to discover your cities anew — on foot. chitra(dot)narayanan(at)abp(dot)in(This story was published in Businessworld Issue Dated 08-10-2012)
Read More
The crowded FMCG space, where big brands — national and international — are jostling with a growing bunch of private labels and feisty regional players, has now got one more challenger.On August 15, real estate to financial conglomerate Sahara jumped into the FMCG fray in characteristic grandiose fashion in an attempt to take a juicy bite of the Rs 130,000-crore sector.Chairman Subroto Roy said the group is investing Rs 3,000 crore in its FMCG retail foray, branded Sahara Q Shop. The UP headquarted Sahara has launched 73 branded products in categories ranging from packaged foods to personal and home care. It will begin its foray in 60 towns and cities in Uttar Paradesh, Uttarakhand, Rajashtan , Bihar and Jharkhand.A large part of the sales would be based on “direct to home delivery” model for which Roy said they would be employing a lakh plus people. Roy also talked about setting up neighbourhood Sahara Q Shop outlets to support these sales. Initially 800 such outlets will be opened but the scope was to take it up to 60,000 outlets through the franchise route. According to Divyaroop Bhatnagar. Managing Director, YFactor, a marketing consultancy , “Sahara's entry is good for the consumer, as the consumer can get better prices and availability. The advantage of Sahara is its vast network of own agents and distribution strength in rural areas,” he said. But to offset this, he also pointed out that Sahara had no track record in marketing consumer goods, which was a fairly challenging sector. And the direct to home model Sahara was talking about was an untried one. “It will not be an easy entry,” warns Bhatnagar. While at the moment, the big FMCG brands are viewing Sahara’s entry with more amusement than worry, the action for them is undeniably getting more competitive in India. Despite the sector growing at a CAGR of 12-15 per cent annually, and a projected market size of Rs 230,000 crore by 2015, no longer can big brands afford to sit pretty. For one thing, there is the growth of private labels. Although current penetration of private labels are fairly low still in India – it's 11 per cent of organised retail sales as opposed to 46 per cent in Switzerland and 40 per cent in UK, according to a report by CII-Y-Factor – they are a growing force. Private labels have particularly done well in categories that are low involvement – such as home cleaning products, pulses and spices - where consumers are not particularly brand conscious. Going forward, FMCG manufacturers could face another challenge, warns retail consultant Harsh Bahadur, former GM, TESCO (wholesale India), as Modern Trade gets more muscle. Currently in India, the supply chain is controlled by the FMCG manufacturers and they dictate terms to the retail trade. At the recent CII FMCG summit in Delhi, Bahadur mentioned how even a biggie such as HUL was able to only deliver 77 per cent of the Modern Trade's orders, putting them in a quandary. However, he said, as modern trade grows, control of the supply chain will be wrested by the retailers, as has happened in the US. “I foresee that an adversorial position will be taken by retailers against FMCG manufacturers here with bargaining over margins and shelf placements,” says Bahadur. So what is the lesson in this for FMCG players? Bhatnagar feels they will need to invest in making their brands stronger and exploit their brand power to the hilt, as well as develop better relationships with their retail partners.
Read More
Being an expat employee was once a ticket to lux living with all the perks laid on. Be it membership to the poshest clubs, temporary accommodation in a five-star hotel till such time as the manager's house was ready (and this could run into months) and so on. No longer. Even as global transfers are on the rise – especially to emerging markets - companies are getting pretty brutal in cutting benefits, finds a new survey on global relocations.According to the 2012 Trends in Global Relocation study done by Cartus, a global relocations solutions company, 57 per cent of companies surveyed expected to transfer more employees in the next two years. However, of 41 ‘policy components' or benefits given to employees posted overseas on a long-term stint, 35 are now offered less frequently, four are equal, and two have increased, compared to 2010. Club membership, for example, is now offered in only 5 per cent of long-term assignments.Even short-term assignments have seen an erosion in benefits, notes the survey. Click For Larger Image Significantly, there's been an increase in repayment agreement usage. Repayment agreements are "contracts" between an employer and employee wherein the employee has to refurbish the cost of relocation in case he or she decides to leave the company within a specified time period. Its inclusion in long-term assignments increased from 49 per cent to 61 per cent and in short-term assignments from 36 per cent to 43 per cent.The Cartus study is based on a survey of 122 multinationalfirms based in the Americas, Europe Middle East and Africa, and the APAC region, and representing all major industries."Our global trends survey uncovered two key issues behind the anticipated increase in corporate relocation activity: a need for companies to support their planned expansion into emerging markets, and a need to fill the void in available local talent in those markets," explains Matt Spinolo, executive vice president of Cartus.According to Cartus, a surprising finding is that although the relocation volume is going up, there has been a change in the way companies deploy employees. Apart from trimming benefits, firms are moving away from traditional, long-term assignments into more alternative, temporary forms, or reducing assignment durations.(This story was published in Businessworld Issue Dated 16-07-2012)
Read More
The fabulous Falaknuma in Hyderabad, the traditional yet modern ITC Grand Chola in Chennai, the Leela Palace in Delhi, the glorious Suryagarh Fort in Jaisalmer — the last couple of years have seen luxury being redefined by hospitality players in the country. The good news for those seeking that indefinable extra edge in pampering and sumptuous comfort is that there are many more enticing luxe launches around the corner. Here’s a glimpse of the most awaited openings ahead.A Ritzy AffairThere are hotel brands and there are hotel brands but the name Ritz Carlton evokes a certain magic in the hospitality business. The ‘king of hoteliers and hoteliers to kings’ is all set to throw open its doors in Bangalore soon. The 277-room hotel, located in the upscale Residency Road area, promises a varied gastronomical outing with six F&B outlets. Roof top bar Bang ,from where you get a panoramic view of the city, has the makings of an exciting watering hole. Chinese dim sum house Lantern, specialised restaurant The Market and Indian cuisine restaurant Riwaaz add to the variety. A 15,000 sq. ft spa operated by ESPA and a salon run by Italian hairstylist Rossano Ferretti are other attractions. Owned and developed by Nitesh Estates, a real estate firm that makes its debut in hospitality, it remains to be seen if the Ritz brand (a Marriott subsidiary) manages to deliver its legendary service here.A Taste of ThaiWith its water bodies, a profusion of flowering trees, and gorgeous purple, rust and mustard-toned architecture, the first glimpse of Dusit Devarana is an absolute delight. Positioned as an urban retreat, the 50-room resort set amid eight acres of lovely gardens manages to be perfectly secluded despite being located along the busy Delhi-Gurgaon highway. Its international staff — a mix of Thai, Indian and European — promise service that takes care of every cultural nuance of guests. The first taste at the world cuisine restaurant promises an exciting dining experience. Some delightful surprises are a family temple, a yoga pavilion and rooms that open onto water bodies. There’s much going for this place that’s an interesting blend of the best of Thai and Indian hospitality.No Rush, All Frills If ITC gave the chatterati a lot to natter about with its Grand Chola, then its upcoming launch at Manesar — the Green Bharat Golf Resort and Royal Spa has quite a few talking points too. With a hundred luxury suites (it claims to be the first all-suite luxury hotel in the country) and four presidential villas built around a signature golf course, ITC promises to push the concept of ‘slow tourism’ — lingering holidays playing golf, enjoying a farm-to-fork experience (the resort will grow its own herbs, vegetables and grains besides boasting of a seven-acre citrus plantation), cultural shows and a head to toe wellness regimen. There will be wellbeing kitchens that create low-calorie gourmet experiences, high-tech services (e-butlers in the shape of iPads) and quite a few other path-breaking service initiatives. Looks like a good place to tee off.Island GetawayIt’s been getting a lot of buzz, both internationally and in domestic circles. Asian hospitality biggie Banyan Tree’s first launch in India — the 59-villa resort on a private island in Kerala surrounded by backwaters — scores both on location and tasteful architecture. Guests can literally sail into the lobby and the all-pool villas promise water babies a swimmingly good time. Laidback houseboat trips and Kerala-style Ayurvedic therapy complete the idyllic picture. There is only one blip in this paradise — the question mark over the launch as environmental agitations over building on an island have time and again delayed the opening and the issue is far from resolved.(This story was published in BW | Businessworld Issue Dated 07-10-2013)
Read More
