The man who calls the shots... Of course, figuratively

IIPM Programme :- SUPERIOR COURSE CONTENTS

He doesn’t believe in blinking and shooting at the same time; near-misses were never in his lexicon! With no love lost or time wasted, CEO Sudip, live...

4Ps B&M: In a short span of time, Reliance Money has emerged as a force to reckon with; could you elaborate upon the strategies that have been the driving forces towards the company’s success?
SB: Reliance Money has ensured that its services are cost effective, secure and convenient. Multiple innovations have resulted in our services being available to the customers at the best possible cost and in the most efficient manner. Our unique fixed fee model in lieu of the traditional brokerage, coupled with outstanding security token and convenience (amongst others, trading through ATM like kiosk), real-time online chat for retail customers, advance charting facilities, etc. have made our products great successes.

4Ps B&M: What has been your strategy for international markets?
SB: Our strategy in the International market is to work with local established players for catering to the needs of NRIs, PIOs and Institutional Investors willing to invest in India. This is an extremely low cost model and focused on serving international markets for Indian investments. The strategy in India is to have a complete basket of financial products and services. Whereas in international markets, the strategy is restricted to only facilitating investments into India.

4Ps B&M: Reliance Money has already established its presence in the entire Gulf. Why are you betting so heavily on these markets? What are your other focus markets?
SB: Middle-East is a market with significant potential. There is also a huge NRI & PIO population in the Middle-East who are very keen on investing in India. Apart from this, local institutions in the middle-east are also keen to invest in India due to geopolitical reasons. Apart from that, we are also looking at the African and South-East Asian markets. Offices have been established in Lagos (Nigeria) and Hong Kong. We have also established our presence in Ireland (Dublin).

4Ps B&M: How much investment are you making in these markets? What new products and services are you planning to introduce?
SB: As explained earlier, the investments in the international markets are not significant at this stage. However, a separate strategy is being followed for Saudi Arabia. In Saudi, we have floated a local company and this company (Riyada Reliance Money) is obtaining the requisite approvals from the local regulators for taking license to operate in the Saudi Stock market.

4Ps B&M: In the current volatility of stock markets, how do you make sure that risk averse investors are maintained? What according to you are the emerging trends in the sector?
SB: Yes, the investors are risk averse and rightly so. We are devising appropriate strategies and products to meet the requirements of these investors. Investors are also deploying funds in FMPs of mutual funds, liquid funds and other secured avenues.

4Ps B&M: Reliance Money has an offshore investment platform... Why?
SB: Reliance Money, amongst others, facilitates investments by domestic Indian retail investors in the international markets under the RBI approved window of up to $200,000 per year. We have international partners like OptionsXpress (3rd largest retail broker in US), Goldride Securities (Hong Kong), Mubhasher (Gulf), CMC Plc (UK), etc. who facilitate the transaction in the international markets.

4Ps B&M: What are the challenges you face while expanding in the international markets?
SB: The regulations are different in each country and the approval processes are cumbersome. Our working with local partners facilitates the navigation.

4Ps B&M: Your vision for Reliance Money for next five years?
SB:Reliance Money would become the largest broking and distribution company in Asia and amongst the top such companies in the world, within the period of next 5 years.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Rewrite rules but retain values!

IIPM Programme :- SUPERIOR COURSE CONTENTS

Retailing is all about understanding the consumer. The more you are able to connect yourself with the consumer the chances of success are higher...

They have not only built a successful business from scratch but have also redefined the way the common Indian consumer shops. They wanted to deliver everywhere, every time to every Indian consumer in the most profitable manner and they have done it successfully so far. In fact, with some of their leading retail formats which include Big Bazaar, Pantaloons, Food Bazaar, Central, Planet Sports, eZone, Collection i, Brand Factory and Home Town, the duo seems to be present almost everywhere. Certainly their strategy has paid off in the past and they plan to continue with the same in future too. Future Group’s Kishore Biyani (Founder & CEO, Future Group) and Rakesh Biyani (CEO, Future Retail) share their future strategies with 4Ps B&M Angshuman Paul...

In this fiercely growing retail rodeo, where do you think Future Group stands?
Kishore Biyani (KB): Retailing is all about understanding the consumer. The more you are able to connect yourself with the consumer the chances of your success are higher and that’s what we have been doing in Future Group.

Do you think national players understand Indian consumers in a better way as compared to foreign players?
KB: To some extent yes and I feel there’s no need of foreign direct investment (FDI) in retail. I always encourage domestic competition like from Reliance and Subhiksha, et al.

What are the key challenges for Indian retail industry?
Rakesh Biyani (RB): Infrastructure and real estate, particularly in big cities, are some of the key challenges. The real estate cost in India is not in sync with the productivity. Even the energy cost in India is higher than any other country in the world. Apart for these there’s lack of skilled manpower. Certainly these are some of the challenges that all retail players in India have to face.

Your growth model has always revolved around private labels. Why so and any intention to change such strategy in the near future?
KB: We believe in giving consumers what they want at an affordable price without compromising with the quality. That’s the reason we create brands. So if the demand and the need of the consumers are taken care of, then the brand can become the favourite brand to the consumers. We are also eyeing for 50% stand-alone stores for all our brands in near future.

RB: In the near future our focus would also be on private labels. In fact we are planning to launch about 35 to 40 stores every year and by June 2009, approximately 140 stores will come up. We are also looking forward to experiment with new formats in terms of sizes. However, our formats would be on the basis of need and demand for the consumers, which our team is finding out through intensive research.

As a pioneer and veteran in this industry what changes do you see in today’s retail industry?
KB: I think one should look at expansion in terms of the number of stores to reach more and more people and not in terms of the formats. We in Future Group are looking at opening more and more stores in the near future under any format, depending upon the need of the market. Retailers, of late, have been too much into rolling out new formats but what’s the point in opening such formats if there’s no demand in the market. That’s the reason we believe in doing research before opening a store and if our team finds out there’s a good demand in rural India, then we would definitely go there as well.

Can you elaborate on how you conduct this type of research?
KB: We conduct extended market research and the core focus of our research is to understand the Indian consumers and markets. For the past one year we have done research with McKinsey Group. However, we are now focusing on conducting research on a more innovative way.

Tell us about your future investment plans?
RB: We don’t believe in announcing investment figures, wherever and whenever required we have invested. Our IPOs have been very successful. We know we will have to invest more on the potential areas of retail. We have big plans with hyper-marts and we would be investing there. We even have big plans for fashion retailing, as fashion retailing is comparatively easier than food and grocery retailing.

Why do you say so?
RB: Because in fashion retailing you don’t require a cold store, which you definitely need in food and grocery retailing. Moreover, in fashion retailing you can always be in direct touch with the brand manufacturer, which is not always possible in case of food retailing. Anyway that doesn’t mean fashion retailing doesn’t have any challenges, it has its own bottlenecks particularly in apparel and fashion retailing you definitely have to be more creative.

Over the last decade, how do you think Indian retail industry has changed and what are the more changes we can one expect?
KB: Definitely, the Indian retail industry has been growing much faster in the last three years as compared to the earlier seven years. Retail is becoming more organised with its arm spread across all the corners of the country. In fact there has been a phenomenal change in consumer awareness, today’s consumer are much more educated about brands. Regarding the future, by next year all most all the malls in the country would be operational.

RB: On that even I agree too, you can’t take consumers for granted. There’s certain rise in consumerism in India, it’s good and this will give birth to more and more organised retail. I think we would be able to address all the challenges that we have today for the retail growth by the coming years.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

AN AMERICAN DREAM... AN INDIAN REALITY!

IIPM Programme :- SUPERIOR COURSE CONTENTS

Can American Express take advantage of the ‘Great India Opportunity’? And how is it different from the slew of plastics available? The Country Head speaks...

4Ps B&M: What do you feel about market potential for plastic money business in India?

RH: In India, the credit card market is witnessing amazing and rapid growth at a healthy rate of 30-35% per annum. The total card market today in terms of billings is growing at over 30-35% per annum and is estimated to touch over the $20 billion mark this year. Having said that, the Indian card market is still relatively untapped and offers a huge potential. The current India context presents unprecedented opportunities to American Express to further its strategy to own and serve the premium segment. American Express’ strategy to own the premium segment fits in extremely well in the present Indian environment...

4Ps B&M: Do you cater differently to Indian consumers as compared to your competitors?

RH: The edges that American Express enjoys over the other cards are several. American Express is a company, which provides seamless service to customers travelling in India and overseas and offers a host of global benefits such as special offers and savings opportunities. For instance, we have the unique American Express Selects platform. This platform allows us to create significant value for our merchants and our card members. Through this ongoing, consistent and value-added approach, we deliver competitive advantage to our customers. In addition, being a leading travel agency we provide Membership Travel Services through our travel network. The strategy enables us to provide card members with a range of services such as tele-ticketing, special discounts on international fares, free airport transfers, et al, again something which no other card company can offer. We offer the best Protection Package that includes limited loss liability for a Card member.

4Ps B&M: What are your strategies to increase your consumer base in the Indian sub-continent?

RH: Our strategy will revolve around gaining leadership position and owning greater base amongst the rapidly growing affluent customers in India. The key elements of our strategy include our laser-like focus in providing premium value to all our customer segments and we continue to innovate to meet our card members’ changing financial and lifestyle needs. Over the last two years, we have expanded our product set to including innovative Platinum Club and Kingfisher cards.

4Ps B&M: How do you plan to retain consumers, given new buying patterns and shifting loyalties?

RH: In India, the opportunity is pretty large and we are focused on gaining industry leadership, and are making significant investments to this end. A leader in product innovation to raise the bar in the industry, American Express plans to continue to invest in advertising and marketing its products across the country. We will also continue to work with key partners to develop innovative product offerings to match customers’ needs and wants in the premium space.

4Ps B&M: Your take on the growing competition in the India?

RH: American Express is a key player in the cards business in India and offers unparalleled and comprehensive portfolio. There is space for everyone, but we like to differentiate ourselves. Unlike other cards, the Amex Card member is liable only up to a maximum of Rs.1,000 before report of loss of card and zero after report of loss. This feature is well recognised and appreciated by card members.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

If iPhone has enigma and reach, Nokia N96 is dialling the marketing number.

IIPM Programme :- SUPERIOR COURSE CONTENTS

If iPhone has enigma and reach, Nokia N96 is dialling the marketing number. But then, Nokia cannot afford to lose out to Apple’s iPhone. By pawan chabra

Imagine the delight that would have lit up author J.K. Rowling’s face when she heard that people have been actually queuing up since midnight to get their hands on Harry Potter and the Deathly Hallows, the last book in the series. Well, Apple’s Steve Jobs must have been anticipating something similar, with all the hype surrounding the iPhone’s launch in India. But instead of delight, his facial muscles ended up being concentrated in a frown. Why? Well, big brother Nokia had managed to steal the thunder. Fearing that the iPhone may snatch its lead in the Indian market, Nokia, in a surprise move, announced the India-launch of its N96 – a feature-rich smart phone from its N series stable, scheduled for launch much later in the country.

The industry is already hailing the N96 as the ‘iPhone killer’ and clearly these marketers have a war on hand. Already, most consumers who had been impatiently waiting to buy the iPhone as soon as it hit the stores have shelved their plans to wait for the N96 (to be launched on 16th September), compare the two handsets, and only then make a studied decision. Highlighting the imminent power of this newest model, Devinder Kishore, Director-Marketing, Nokia India says, “If the N series belonged to someone else other than Nokia, that player could alone become the second largest handset manufacturer in the country.”

To be fair, Apple iPhone’s global success story is almost legendary and the legacy has travelled to India, giving Apple’s smart phone the aspirational edge in Indian consumer-scope. In fact, to deal with criticism over its premium pricing, both Airtel & Vodafone (exclusive partners for iPhone in India) belatedly launched EMI schemes to lure in more buyers. Sanjay Gupta, CMO (Mobile services), Bharti Airtel, believes that the tie-up with Visa for finance options will “provide a new opportunity for consumers who aspire to own the 3G iPhone” and widen the market for the product in India. Incidentally, AT&T is able to sell the iPhone for $199 onwards globally, as the subsidy can easily be recovered because of higher ARPUs in developed nations. But Airtel and Vodafone do not have that luxury as lower ARPUs in India will not allow them to recover subsidy costs anytime soon.

Nokia too will pull all stops to stop iPhone’s success in India (like the surprise launch of N96) – largely because it cannot afford to let Apple win the Smart Phone battle in India. Nokia commands over 70% share of Indian handset market, with about 6-7% total share of smart phones. With the maturing of the handset mart, more users are expected to shift to smart phones, and Nokia does not want to stumble on this growth trajectory. Other smart phone players are also gearing up to cash in. Ajay Sharma, Country Manager, HTC India says that he’s ready for the battle ahead. “If we just limit it to smart phones, we can give Nokia a run for their money any day.” On the iPhone, Sharma says that till the time 3G is not available in the country, “people buying 3G phones are wasting their money unnecessarily,” but is confident of HTC’s ability to flood the market with 3G phones when the technology will get the green signal.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...