For Jean-Christophe Babin, India is not a new territory. He has been touring the country for decades, since his first visit as a backpacker. In spite of the challenging economic conditions, his company, TAG Heuer, the Swiss maker of watches, chronographs and fashion accessories, expects to do better than last year. A part of the luxury goods group LVMH, TAG Heuer has over 90 outlets in India, selling watches starting from Rs 1.5 lakh. On a recent visit, the 53-year-old Frenchman had an extensive chat BW’s Venkatesha Babu. Edited excerpts: Poor economic conditions usually have the least impact on two segments — those catering to the necessities and the luxury. Can the luxury market survive the slowdown? We are aware that several countries including the US and parts of Europe are facing challenges. But in 2011, we had our highest sales ever, with a double-digit growth. I expect this year to be better. Even in a so-called mature market like the US, the luxury watch segment is under-penetrated. There are many more people today who can afford a TAG, and our mission is to innovate in terms of products and reach out to them. Given the investments we’ve made in manufacturing and our aggressiveness in retailing, we will have a record year. It is not easy, but if we stick to our DNA, our fundamentals, we will do well. How has the luxury market in India evolved over the last decade. How does it compare with China’s?India is an attractive market to be in. It is still not the biggest, but among the top 20 markets. Goldman Sachs, in a recent report, pointed out that there are 3-4 million Indians who can afford luxury. That is a lot. France, for instance, has just 3 million. China has about 5 million. But there are differences. In terms of those who can afford luxury products in India and China, the ratio might be a mere 1:2. But in terms of China’s actual market today, the ratio is more like 1:10. That means the Chinese market is 10 times larger than that of India. All the taxes on luxury watches in India are to protect the local players. It is wrong. We don’t compete with a Titan. Swiss luxury watches does not compete with domestic players. We are complementary to the Indian brands as we play in a different segment of the market. There is also the issue of retail footprint. On the policy front, can we have our own boutiques and retail experiences? Luxury is driven by direct retail. There aren’t enough luxury malls in India. In China, there are more such spaces. 'THE 100 PER CENT OWNERSHIP IN SINGLE BRAND RETAIL WORKS WELL FOR GROCERY, NOT FOR LUXURY'The segment we target is highly mobile, very aware, and because of the high taxes, sales in India are lower than what it can be. People buy a lot from abroad — from Dubai, Paris and New York. It is in the interest of the government to ensure more sales happen here; it will create jobs locally. For us, it does not matter where we sell because a TAG buyer will be a TAG buyer. So are luxury products in India more expensive than elsewhere?Cannot speak for others, but TAG has taken a conscious strategy to sell at the same price as we do elsewhere, even it means absorbing huge costs and not being able to make much profits. But that is a choice we have made to grow in India and a signal of our long-term commitment to the consumers. Sooner or later, many of our hurdles will vanish. But government already allows 100 per cent ownership in single brand retailAgreed. But, there is a complement to allowing 100 per cent ownership, that you have to source 30 per cent locally. That can work well for grocery, not for luxury. We are 100 per cent Swiss-made. Like all watchmakers, we do source some components, but most of the cost is Swiss. Unlike that of some fast-moving consumer goods, the luxury business is different. What is TAG's India strategy?We continue to make high investments. In retailing, we work with the best multi-brand partners. We have the best brand ambassador in Shah Rukh Khan. The Carrera Monaco Grand Prix Chronograph was globally launched from India. We are committed to India and are here for the long run. Amongst your portfolio, how do you pick and choose on what to launch? Don’t country-specific tastes vary?We don’t make products keeping a single country in mind. Yes, tastes vary sometimes. In some countries, such as Germany and China, the demand for mechanical watches is higher than quartz ones. Again, for instance, India is big on gold watches. When we have limited quantities, we examine key markets, decide where we have high potential and launch there before rolling out elsewhere. Would you be launching eyewear or top-end mobiles in India? We are primarily in the watches business and that is where our attention will be. However, we will explore other categories that have consistency with our technology and design philosophy. We are selective. We won’t venture into 50 categories, but will be choosy on where we want to be in each market. Say at Rs 1.5 lakh for a watch, if someone cannot enter the brand, they may look at a Rs 30,000 eyewear. So we are aware that there may be some segments we want to address. The Indian luxury market is resilient and growing by the year. TAG’s goal is to be the No. 1 here. (This story was published in Businessworld Issue Dated 24-09-2012)
Read More
The world’s thirsty are headed for Munich to guzzle beer by the gallon and sample Bavarian cuisine and culture.Graphic Sajeev KumarapuramClick here to download infographic(This story was published in Businessworld Issue Dated 08-10-2012)
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
Fujitsu launched two upgraded Ultrabooks — Lifebook U772 & UH572 in India on 28 August. Specially designed for business professionals, the Ultrabooks possess enterprise-standard features such as Intel vPro technology along with a fingerprint sensor and FDE (full disk encryption) SSD drives for advanced manageability and security.“Fujitsu’s Ultrabooks add a new offering to our broad LIFEBOOK family and prove that you can have all your critical features innovated in a compelling, ultra-slim mobile computing device,” Says Alok Sharma, country manager, Workplace Systems, Fujitsu India. Built For BusinessThe 14-inch Lifebook U772 began with the sub-1 kg Q Series in 2006. Less than 16 mm thin and 1.4 kg in weight, the Lifebook U772 allows business users the optional port replicator, which provides easy docking and connection to the corporate network and peripherals, and is secured by advanced theft protection technology with Intel® Anti-Theft and Absolute Computrace® features, making it possible to remotely locate a lost or stolen device, and to copy or delete data remotely. It also offers optional built-in 3G/UMTS or 4G/LTE support to guarantee mobile connectivity even when outside the range of Wi-Fi hotspots. Charging via USB ports is possible even when the notebook is switched off or in standby mode. The prices startfrom Rs 75,900.Value For MoneyFujitsu also introduced the Lifebook UH572, a 13.3-inch model with a strong aluminium shell in red or silver that is easy to carry around, only 1.6 kg in weight and is 18mm thin. Standard features include an anti-glare display for ergonomic working, optional 3G/UMTS support, advanced theft protection with long battery time, HD camera & Bluetooth for anywhere connectivity. The prices start from Rs 65,000.With the upgradations, the existing Lifebook series now comprises of E782, S752, P772, P702,AH552/SL, UH572, NH532, A532, LH532 and LIFEBOOK UH572 & U772. Fujitsu (based in Gurgaon, India) is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Fujitsu reported consolidated revenues of 4.5 trillion yen ($54 billion) for the fiscal year ended March 31, 2012. It plans to expand regionally in Russia, India as well as Middle East in near future.
Read More
Through the years Google has wished just about everyone who matters a happy birthday with its endearing doodles. On 27 September, Google happened to be marking its own 14th birthday with a simple cake-turned-logo version. And to coincide with this is the 25th billion app download from the Google Play store, which is now just 25,000 short of reaching Apple’s count of 700,000. It wouldn’t be at all out of place to look at a few interesting Google Play apps apart from its own native ones — 14 of them, in fact. 1. SwiftKey 3SwiftKey, which combines with Swype, is a great way to speed up text input on Android. Whether you are typing or tracing from one alphabet to the next, SwyiftKey excels at predicting your words as you begin inputting. The best part is that its predictive algorithm learns from continued use. It also handles spaces and punctuations smartly. It also begins to learn local terms, contacts and more. Users find it indispensible. 2. Pulse NewsThis news app with its square tiles came early to Android, though it first appeared on iOS. You can pick your favourite sources of news and once you have populated the app’s pages with them, you will get rows of tiles with images representing stories for you to read. Pulse will update the way you tell it to and because the headlines are just under each tile, makes for a great way to quickly go through the news that interests you. 3. Avast Mobile SecurityAndroid has been known for the way malware can more easily get to unaware users because of the entire ecosystem being less tightly regulated and monitored — though Google barges into clean up every now and then. Some anti malware solutions such as Avast, which is free, and Lookout, are now considered essential and a minimum defensive against those seeking to exploit. 4. ChromeChrome is Google’s own browser for PCs and mobile devices and it’s one that is becoming increasingly popular. Dolphin and Opera Mini have been popular as well, but Chrome has the advantage of working smoothly to synchronise across devices so that you can take up where you left off as you move say, from PC to mobile. It’s also full of interesting add-ons (on the PC) that add to its functionality. 5. Beautiful WidgetsWidgets or little add-on customisations are what make Android truly special. You can change the whole look of your device and get it to give you information and udates just the way that suits you. There are many collections of widgets, not just individual ones, and Beautiful Widgets is one of them. You can personalise your phone with different looks for all the top-level information such as time, weather, battery status, etc. 6. TaskerTasker is an app for advanced customisation. It lets you set certain actions based on your preferences based on context such as time, location, or event. So it’s when x context takes place, perform x action. For example, at a specific time, you can lock up certain applications so that co-workers or children don’t tamper with them. Read out a status when battery is low is another example. Or, more prettily, change wallpapers when in certain locations. 7. JuicedefenderAndroid devices battery life is legendary — in a not good way, that is. Juicedefender is a widely used app that disables whatever saps the juice out of your device. You can set the rules. 8. Launcher ProThis one is for Android pro’s and lets a user define what the home screens will look like, laying them out for quick access to what is most wanted. 9. ZomatoThis Indian app is a favourite with foodies many of whom don’t leave home without it. The app hooks into your location and recommends eating places or home delivery joints and gives you information, reviews and ratings on them. You can also dial straight out from the app. 10. HDFC Bank Mobile BankingHDFC account holders should check out this one (after duly installing a mobile security app) to add to their bouquet of useful apps. You can do all the regular stuff of daily banking. 11. FlipkartFlipkart and not have an app? Not possible. You can do all your buying on the go making it easier to act on recommendations or something you happen to see during the course of the day. 12. MakeMyTripThe essential travel booking and organising app is on the Android marketplace for those who make it out of town frequently and with short notice. 13. EvernoteJust as much, if not more, an iOS app, Evernote actually looks beautiful on Android and works well to capture all your information from notes and scans to contacts and photos, all in one place. Another app in the same category but with a different nuance is Springpad and this too shines on Android. 14. DropboxThis cloud storage app is a must not just for Android but everywhere else. On Android, its camera upload function (now also on iOS) gave early users some free space. Your photos automatically upload to the camera uploads folder on Dropbox. But otherwise a must for storing work and media files you want to access on the go. mala(at)pobox(dot)com, (at)malabhargava on Twitter
Read More
Research in Motion offered investors a ray of hope on 25 September, announcing an unexpected increase in subscriber numbers that sent its shares up 5 per cent as the company worked hard to drum up enthusiasm for its crucial Blackberry due 2013. Waterloo, Ontario-based RIM, a pioneer in the smartphone arena, has in past years lost market share in North America to Apple Inc and Samsung, whose more versatile and user-friendly devices took off. RIM is trying to reinvent itself through a line of jazzed-up smartphones that will run on the BlackBerry 10 or BB10 operating system on which the company has staked its future. In an attempt to create a buzz around the new devices, Chief Executive Thorsten Heins gave a preview of the smartphone and its features to its developers at a gathering on 25 September in San Jose, California. Dressed in an outfit few Silicon Valley executives sport — a grey pinstriped suit — Heins said the company was fighting for its future. "There is new energy and a new fighting spirit in this company," he said as he listed new features from Internet browsing to multitasking between applications. Heins said BlackBerry's subscriber base had risen to 80 million in the quarter ended September 1 from the 78 million it reported earlier this year. The addition of subscribers surprised many on Wall Street and sparked a bounce in the company's share price. Most analysts had expected RIM to begin losing subscribers in the recently ended quarter, for the first time in its history. In a presentation that lacked the customary pizzazz of major Silicon Valley events, executives showed off some of the key features of the new phone like the browser, and 'flow' and 'peek' features that let users access important features without leaving an open application. RIM has completely focused on the launch of its new line of revamped devices in recent months, while its aging line-up of smartphones in the market have struggled to compete against the recently launched iPhone 5 and a slew of new Android devices. It badly needs a hit. The launch of BB10 has been delayed to next year from the final quarter of this year, a decision that had not gone down well with RIM shareholders. "BlackBerry 10 is our most important launch ever," he said. Wallowing At Its LowsRIM's stock is hovering around 9-year lows on both the Nasdaq and Toronto Stock Exchange. At its peak in 2008, RIM stock changed hands at around $140 a share. On Tuesday, the company's Nasdaq-listed shares closed 5 per cent higher at $6.60. Its Toronto-listed shares rose 5.2 per cent to C$6.50. Even as it ceded ground in the crucial North American market, RIM has been able to attract buyers with its lower-end devices in emerging markets, where consumers are much more price conscious and where the much-admired BlackBerry messaging platform gives it an edge. Growth from last quarter's base of roughly 78 million users, however, may come at a price, with gains skewed toward lower-end devices. This could hurt the closely watched average selling price for BlackBerry devices. RIM is due to announce results for its fiscal second-quarter on 27 September. Heins said the company was also getting positive feedback on its new BlackBerry 10 devices from the telecoms c arriers that have had a peek at the new smartphones. "We are making believers out of our partners. We are making believers out of those who had previously written BlackBerry off," Heins said. The BB10 devices, due to be launched in early 2013, will run on a new operating system that RIM has said will offer a faster and smoother user interface, and a better platform for apps that are critical to a smartphone's success. Paras Wadehra, an independent mobile apps developer, said the BB10 was a definite improvement. "They have brought the older BlackBerry into the modern world," he said, but he added that the delay of the launch has been frustrating. "They are taking a step in the right direction, but they are walking slowly." Wadehra, who has played with a model of the device for the past couple of months, liked the usability of the browser and the multitasking. The company, which is doing all it can to attract developers onto its platform, showed off apps during the presentation from Facebook to FourSquare. The company said the BB10 would have all the popular social networking apps on it. And it played a music video with RIM's head of developer relations, Alec Saunders, crooning a parody of REO Speedwagon's "Keep on Loving You." The conference attracted app makers from emerging markets in Asia, a region where BlackBerry phones are popular and growing. Many carried multiple phones from iPhones to BlackBerries to an assortment of Android devices. Vietnam-based developer Louis Tang decided to develop for BlackBerry as it was free to do so and easy. "BlackBerry is a very hungry platform," he said. "There is more competition on Android, and you earn less money." Another developer from Malaysia, Shukri Saad, said his free prayer app on BlackBerry generates $1,500 a month on average through ads. He said that would not have been possible on other platforms. Bellevue, Washington-based developer Neeraj Chawla said he was impressed with some of the user interface concepts such as "flow" and "peek," and the easy movement between apps in the new BB10. CCS Insight mobile analyst John Jackson, who was also at the event, said he thinks RIM's new BB10 operating system is gaining traction with developers, and he believes it will offer users a unique experience. "The question now is whether the devices will be sufficiently competitive and that is in no small way a function of RIM's ability to spend massive marketing dollars to cut through the competitive noise," said Jackson. (Reuters)
Read More
Apple Inc sold over 5 million iPhone 5 smartphones in the three days since it hit stores, but shares sagged as the company struggled to meet demand. While sales were solid, the company said on Monday it had run out of its initial supply and many pre-orders were scheduled to go out in October. Apple Chief Executive Tim Cook said the company is "working hard to build enough iPhone 5s for everyone."Expectations for new Apple products were so high — some analysts forecast Apple selling as many as 10 million phone over the weekend — that Wall Street was not wowed by the latest numbers. The stock was down 1.7 per cent at $688.64 in afternoon trade.Given the demand, Apple, the world's most valuable company, is being closely watched for any supplier problems that may slow down the smartphone production. "We believe that sales could have potentially been much higher if not for supply constraints," William Power, an analyst with Baird Equity Research, wrote in a note.Supply limitations are likely to weigh on Apple as the iPhone 5 is launched in another 22 countries on Friday. To complicate matters, Apple's largest contract manufacturer Foxconn Technology closed a factory in the northern Chinese city of Taiyuan after a riot broke out among 2,000 employees.Foxconn did not confirm which plants supply Apple, but an employee told Reuters the Taiyuan plant is among those that assemble and make parts for Apple's iPhone 5. Apple referred questions on the factory to Foxconn. The California company also assembles its devices at factories run by Pegatron Corp.On the parts side, Apple's key supplier for screens, Sharp Corp, has been struggling with high costs and scrambling to raise funds to pay debt. Sources had told Reuters the company's output of new iPhone displays had fallen behind schedule.Strong DemandThe early total for the iPhone 5 topped sales of the iPhone 4S, which sold more than 4 million units in its first weekend after Apple introduced it in October 2011. The numbers do not include units that have yet to be shipped or delivered to customers as Apple books sales only when online customers sign for the purchase."We are not overly concerned with this 'disappointing' number as we believe this is a classic case of near-term expectations getting out of touch with reality," Sterne Agee analyst Shaw Wu said. He added that he expects Apple to sell a total of 27 million iPhones in the September quarter and 46.5 million units in the December quarter.The iPhone 5 has been one of Apple's most aggressive international rollouts to date. The phone will be available 31 countries on September 28 and in more than 100 countries by the end of the year. "Expectations for Apple are always white hot," said Colin Gillis, a research analyst with BGC. "It's not just enough for them to break records but to smash them."The iPhone is Apple's highest-margin product and accounts for half of its annual revenues.Apple is facing stiff competition from smartphones that run on Google's Android software, which has become the most-used mobile operating system in the world. Apple's key supplier as well as rival, Samsung Electronics, has taken the lead in smartphone sales.Apple signaled last week that pre-orders outstripped initial supply and that many phones would not be available until October.(Reuters)
Read More
“Come and find your land of dreams” blared in the background as we congregated at Le Meridien on a sunny afternoon. Brand USA, the two-year-old tourism marketing entity, was promoting US as a tourism destination for travel enthusiasts . A delegation of 50 participants were visiting New Delhi on 14 September’ 2012 representing 35 destinations in USA. Tour operators, travel agents, airlines, hotel chains etc were all part of this sixth travel trade mission. Deals were to be signed to fetch basic funds and that was to be matched by contributions from the US government. “India is an important market for the US. With President Obama recognising tourism as an important sector, in the coming months we plan to open our offices in several locations,” said Jay Gray, VP, partnership development, Brand USA. He also added that “the requirement of an entity to promote US tourism originated due to the fact that the market share of the US was stagnant, even when international tourism was growing internationally". The Indian market is growing 12 per cent each year compared to other international markets which are expanding 1-2 per cent annually. This makes the Indian market very important for the US. Brand US also plans to increase investment, ranging from $1.5 million to $3 million, per market (depending on the nature of market). “We are here to educate Indian travellers about the main highlights of the USA as a whole and then promote Madame Tussauds, New York as a self destination.” Says Yaniv Didi, trade sales manager, Madame Tussauds New York. Brand USA invested approximately $12.3 million and was initiated across Canada, Japan and UK for three months. It was established by the Travel Promotion Act in 2010 to communicate US entry/exit policies and procedures. Formed as the Corporation for Travel Promotion, the public-private entity began operations in May 2011. Through its call-to-action—DiscoverAmerica.com—Brand USA plans to implement more campaigns in China and Brazil, apart from India. Brand USA is aiming to attract approx. 13 lakh travellers from India by 2016 and further extend it to 1.5-2 crore by the end of 2020.
Read More
