Category — India Market Expansion
With its business growing rapidly in India, Unnat Varma, managing director, Pizza Hut, India said it was time to consolidate. “In the long-term, India is one of our most important markets. In the medium term, we plan to double the number of stores. We currently have 360 restaurants across 100 cities. We will double that to over 700 in the next five years,” said Varma.
Consumer sentiments continue to evolve. “Five to six years ago, the western food format stood third in preferences after Indian and Chinese, and within that pizza was the highest. Recent studies show pizza is the biggest category, and has become the most accepted food across all consumer categories,” he added.
Pizza Hut, India is also focused on growing its online sales, which has seen a rise since demonetization in November, reports india.com
February 13, 2017 No Comments
Valuing India’s Paytm E-Commerce Private Limited at about $1 billion, China’s Alibaba Group Holding Limited, will invest $180-200 million in the online retailer, taking the stake of Alibaba and its affiliate Ant Financial to more than 50 percent.
Paytm e-Commerce is an entity created by Noida-based One97 Communications Ltd., which was valued at $5 billion last year, and e-commerce constitutes 20 percent of its business. Paytm will continue to be the vehicle for Alibaba’s e-commerce play in India, and is expected to spin off the e-commerce business into a new mobile application and a separate website in February, named PaytmMall—inspired by Alibaba’s T-mall in China, reports Mint.
Paytm, which started operations as a mobile payments and mobile recharge business, created a web of payment solutions in the offline and online channels where consumers can transact via the Paytm wallet. Founder Vijay Shekhar Sharma has India’s Central Bank’s approval to launch a payments bank by the end of February.
February 12, 2017 No Comments
Michigan-based Amway’s subsidiary Amway India launched its premium cookware ‘Amway Queen’ brand, in India, targeting $16 million in revenues from this new category of sales. The premium cookware segment in India is about $37 million and grows 35% annually.
Amway India CEO, Anshu Budhraja, quoted research that indicated a latent demand for premium cookware which enables low oil, low water cooking while ensuring taste, reports the Times of India.
“We look upon Amway Queen as a key growth driver as it fits well with our direct selling model where the sale happens through the power of demonstration. Our target is to ensure that durables, as a category, contribute more than 10% of our turnover in the next three years,” added Budhraja.
February 10, 2017 No Comments
The G-20 forum has asked member countries to report on their readiness to engage in digital trade; it also seeks suggestions from them on how the WTO can promote e-commerce and measure the digital economy.
G-20 noted that the adoption of e-commerce is uneven (India does not allow foreign investment in business to consumer e-commerce retail), and it urged SMEs in developing countries and less developed economies to participate in online trade. India has reservations about e-commerce getting included in the WTO’s agenda. However, the Economic Times feels that the way forward for India is to have proactive norms in place, as also investor-friendly policy guidelines so that potential investors can actualize their e-commerce strategy
February 9, 2017 No Comments
Forbes reports that according to a joint research report by Google and Accel Partners, by 2025, companies in India are likely to command 8% share of the global SaaS market which could be worth $10 billion annualy. Tracxn, a startup intelligence and market research platform, says that since 2010 India’s SaaS companies have witnessed more than $1.4 billion invested in the industry.
Indus Khaitan of Sirion Labs, (a SaaS company in India), says, “Gaining cost advantage by lowering the price is short lived. We don’t do that. But there’s an inherent advantage we have in terms of quality of entrepreneurs and people in this particular field. And all this is available at probably one third the price of that in the U.S.,” He also added that in order to be low cost, a company requires complete re-engineering of how to build a product.
January 24, 2017 No Comments