Retail Chronicles 12th

in The City:
New
Wellington
Daniel
day
Valentine's
Retailers
for
in banking
NPA
industry
Biopic: Sachin Bansal
News at a
Retail
Glance!
J Somaiya Institute Of Management Studies & Research,Mumbai
K
9158256641 | 9769886091
Contact:
RETAIL
CHRONICLES
Fortnightly Newsletter | Volume-2 Issue-12 | 16-28 FEBRUARY 2018
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Retail Lab SIMSR
retaillab.simsr@somaiya.edu

"If you love what you do
and are willing to do
what it takes, it's within
your reach"
Steve Wozniak
Co-founder of Apple

02
New in the City
By Aditi Barde
Swedish Watch Brand Daniel
Swedish watch brand Daniel Wellington has opened
its maiden store in the Fort area here in Mumbai. As
India is an emerging and vibrant market with huge
potential. The company believes that increased
presence will enable them to accelerate their global
expansion and it will further reinforce their
commitment to grow the business in the region. The
first store is spread across 1,000 sq.ft. and will house
the brand’s accessories for men and women which
primarily include company’s most popular series
such as the Dapper, Classic and Classic petite
collection ranging between Rs. 10,000 to Rs. 14,000.
Daniel Wellington (stylised with a reverse capital D)
is a Swedish watch company, headquartered in the
north of Stockholm in Sweden. It was founded in
2011 by Filip Tysander and as different networks in
over 25 countries. The watches are manufactured in
China, designed in Sweden and use a quartz
movement made by Miyota, a Japanese company.
The manufacturer has known success through a
special digital strategy and an important presence on
social networks like Instagram which have over three
million followers as of 2017. Last year, Daniel
Wellington was named the fastest growing company
in Europe. The million dollar company has reported a
three-year growth of 4.69%
Wellington forays into India

VALENTINE'S DAY
LOVE OF RETAILERS
Seasonality is so important in the retail
world. Whether it’s Valentine’s Day or
Back to School, retailers have to follow
the seasons as well as significant
national events. For retailers across the
country, Valentine’s Day is more than
just a little holiday to celebrate love.
Consumer spending on Valentine’s Day
gifts results in major retail sales.
Valentine’s Day is a chance to tell people
how much you love them and hopefully
make them smile and this also bring
smile for retailers.
RETAILERS WHO DO BEST
DURING VALENTINE’S
SALES INCLUDE CANDY
SELLERS, JEWELLERS, &
RESTAURANTS
It is clear that the promotion of this ‘day’
happened since early 1990’s. As per the
Associated Chambers of Commerce and
Industry of India (Assocham),
“Valentine’s Day is a heavy buying
festival with a significant jump over the
past 4- 5 years”. Many retail businesses
such as Hallmark, really depend on retail
sales from Valentine’s Day gifts. Retail
By Raveena Gupta
Sales of Valentine’s Day Cards is Big
Business for them. The size of the market
is this large since V-Day is not a singleday
fete but is celebrated throughout the
week. It starts with Rose Day (Feb 7),
followed by Proposal Day, Chocolate Day,
Teddy Day, Promise Day, Kiss Day, Hug
Day and then Valentine’s Day (Feb 14).
Retailers observed that the young adult in
the age group of 20 to 30, spend the
most on Valentine’s Day gifts. In fact,
men spend twice as much as women. The
survey has revealed that big salary youths
especially from the MNCs, BPOs, IT and
big corporate spend massively on gifts
from Rs 1,000 to Rs 50,000 compared to
students who spend about Rs 500 -
10,000 on valentine day. As per the
findings, the rural spending during the V-
day has also increased by over 25% than
previous year.
More people shop for less expensive gifts
as people believe in the thought spend on
the gift rather than the money. The
businesses which get sales boost in this
season are Candy shop, Greeting cards,
Restaurant, Florist and Jewellers.
Valentine’s sales depends on the country
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04
economic status like any other business
but it also depend depending on what day
of the week Valentine’s falls on. For
florist, flowers and typically roses are his
biggest selling Valentine’s Day gifts.
There are various V-Day special tour
packages on promotional offer priced
between Rs.5,000 - 50,000 to Kerala,
Goa, Nainital, Mount Abu, Dehradun,
Musoorie, Shimla and even to foreign
land such as Singapore.
Why is seasonality important
- Retailers love a theme as it allows them
to regularly update the look and feel of
their shops.
- It provides a connection with customers
as it reflects the topical things they are
thinking about.
- Retailers can adapt their products or
services to reflect the season or theme.
There’s usually a way to tie products in to
a particular theme, if it’s relevant to their
customers.
- Seasonal lines are a great way to refresh
a brand’s offering or even launch a new
product.
- Personalisation is a great way for bricks
and mortar stores to compete with e-
commerce and seasonality can be used to
offer a more personal and tangible
experience to customers.
Where customers Shop
Department and discount stores do most
business in this season with more
shoppers visiting department stores (35
%) than discount stores (31 %). Online
has also captured shoppers, with 29 %
using Amazon, flipkart, etc. But 19 % still
go to specialty stores, and 17 % stop by
the florist's shop.

NPA ticking time-bomb
for banking industry
By Vikas Khetan
by Vikas Khetan
ndia’s largest bank, the State Bank of India has reported
ts first quarterly loss in 17 years last Friday which was
hocking for analysts who were busy predicting a over Rs
,000 crores, profits.
orse, Smartkarma Insight Provider Hemindra Hazari
lso reported that the bank misreported its FY17 accounts;
ts net profits should have been lower by 36% and its NPA
igher by 21%.
BI, accounts for a fifth of India's banking assets. The big
ank also admitted that after an audit of its books for the
ast financial year (2016-17), by RBI led to the addition of
s 23,000 crores in its bad loans. This has made SBI join
ther private bank like yes bank etc on its financial
rregularities.
ndian banks by law have to disclose such discrepancies
nd irregularities if the difference between its number
nd those of apex bank number exceeds 15%.Though
nlike the private banks, the reported number was
howing less divergence. This can act as consolation for
he bank which has started its 2018 on such a wrong
ooting. Yes Bank for example last year, had undereported
Rs 6,355 crores.
Eyebrows were raised last year, when HDFC Bank which
is one of the world's most expensive banks on P-T-B basis
and also the first Indian bank to cross the Rs 5-lakh crore
market capitalization-had divergence of 35% in three
accounts amounting to Rs 2,051 crore as on March 2017.
As bad loans have nearly doubled in the past four years
and as economic slowdown has reduced the ability of
companies to repay debt the whole scenario has become a
cycle sort of situation not just reducing the bank ability to
lend more but also India’s bad banking situation. Also, the
bulk of India's Rs 9.46 lakh crore in bad loans were held by
21 state banks questioning the whole lending process in
state unit which is not transparent and clean.
Divergence though is not a new thing, but the changed
thing is that of the mandatory disclosure of the gaps which
were not followed by the bank properly. Also as a part of
tighter asset classification norms, regulators also want to
reclassify loans for all the lenders involved if it was
considered non-performing on the books of one of them.
This is one of the reason for the recent spike in disparity
figures.
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06
Some of the issue which the analysts seem to be not
focusing at is the possibility that the future NPAs can
come from retail loans, which banking industry is
aggressively trying to outrun their corporate NPAs.
The India’s prolonged economic stagnation and the
twin blows of demonetization and GST has impacted
the banking sector. Also in addition to this, due to
automation and artificial intelligence, the labor
market has disrupted a lot. In such time retail loan can
also become NPA which will harm sector for long run.
transparency in public sector unit. The laws and intent
regarding that seems not functional at all. This all event
are leading to lack of trust in Indian financial institution.
Even RBI seems to suffer from this and questions its
governable status. The next decade or so will be highly
problematic for the industry. Government need to take
strict action and should make it clear that the misuse of
public money in the bank will not be taken lightly. Not just
by law but preventive measure should be such that these
things never happen again.
Now it seems that banking sector will be distress in
foreseeable future. The cycle of NPA seems to be an
area of problem for the banking industry. To solve
NPA crises government need to approach strongly or
it is going to be bigger mess. In any event the
reputation and the intent of Indian banking have been
degraded beyond proportion. Not just NPA, the
ongoing Punjab National bank fraud case seems to
suggest the lack of quality quality control over the
fraud and use of power in banking industry. The
whole setup seems quite closed, especially the lack of

By Kapil Gupta
Biopic : Sachin Bansal
If we talk about shopping online in India, Flipkart is
one of the hottest destinations of every online
shopaholic. The man behind setting up India’s first e-
commerce website before anyone could even think
of such an idea is none other than Sachin Bansal.
An IIT graduate turned businessman who created
history in his own manner by laying the important
stone in Indian Internet shopping revolution.
Childhood
Born in Chandigarh, he went to the St. Anne’s
convent school and was a grade A student right from
his schooling days. His father was in business and
his mother a homemaker. After graduating from
Indian Institute of Technology, Delhi with Computer
Science Engineering, just like other geeks, he
started is a career in software industry.
Education
An IIT graduate with computer science engineering
degree would have a sparkling bright future,
especially in the era when software was on a rise.
Soon after Sachin completed graduation, he bagged a
job in Techspan and later, Amazon, one of the biggest
e-commerce websites of the world. Before all of that,
he has a wish of becoming a professional gamer.
Career •
Pretty soon, working with Amazon, Sachin realized
that this is not he wanted to do his entire life. That was
when he and his friend Binny Bansal decided that it
was time to start India’s own e-commerce website.
Both the friends, unaware about the upcoming
revolution started the online book sellingFlipkart name
actually came from the books only. In the early days
the two friends delivered books to the customers
themselves on their scooters. platform.
07

However, they dared to start it off just because they
thought that the internet shopping scene in India
deserved to be better. They worked hard, even gave
away pamphlets of their company outside
bookstores when Flipkart was only selling books at
the beginning. Post many difficulties in the initial
stages of getting the book vendors to tie up and
permissions for the credit card payment gateway,
Flipkart later expanded and began selling other
things like electronic goods and lifestyle products.
Later in 2014, Sachin and Binny bought Myntra.com,
another web shopping company for a deal of INR
2000 crore. For the ambitious Sachin Bansal, this
success isn’t enough. He hopes to see Flipkart as a
$100 billion company very soon owing to Indian
youngsters’ growing obsession with living life on the
internet. The biggest challenge that Sachin Bansal is
working on at the moment is to get internet shopping
work even in the smallest of towns and villages.
Awards and Achievements
journey has a lot of advice to give to his followers and
young entrepreneurs of the country, which he often
does on his personal blog.
Looking at challenges as opportunities is what he
thinks is the biggest asset any businessman could
possess; a quality that he says had helped him with his
humongous success.
Family and Personal Life
Sachin is married to Priya, who is a dentist and
together they have a child who is about four years old.
Sachin, who had also won the Entrepreneur Of The
Year award for the year 2012-2013 for his victorious
08

09
Sebi launches probe into trading, disclosure
RETAIL NEWS AT A GLANCE
issues at PNB, Gitanjali Gems
Sales rose 4.6 percent in the most recent
quarter at established Burger King
restaurants
In an interview with ET Now, Adi Godrej,
Chairman, Godrej Group, says Patanjali
competes with the Godrej group only in
toilet soaps and ever since they came into
the market, Godrej market share in toilet
soaps has increased. India has huge
opportunities in FMCG growth because
except for three categories which is toilet
soap, detergents and matchsticks, no
packaged branded product is fully
penetrated.
Lactalis, one of the world's largest dairy
groups, recalled 12 million tins in France
and around the world after babies
Chinese handset maker Comio said it is in
talks with large format retail chains (LFRs)
to expand
OnePlus, the country’s second-largest
premium smartphone maker, will be
expanding its offline presence in top eight
cities of the country

Our Team
Content Head
Neeti Gupta
Content Team
Retail Chronicles is a bi-monthly newsletter of
Retail Lab, the Retail committee of KJ
Somaiya Institute of Management Studies
& Research, Mumbai. Images used in Retail
Chronicles are subject to copyright.
Aditi Barde
Vikas Khetan
Ravina Gupta
Kapil Gupta
Design Team
Sujay Ambure
Nivya Shah
Devesh Shukla
Debashish Sarmah
/retaillabsimsr
@Retail_LAB
retail_lab
K J Somaiya Institute Of
Management Studies & Research,
Mumbai
retaillab.simsr@somaiya.edu
+91 9766122888
+91 8547527273