The founder of JD.com addressed the concerns raised by the staff, acknowledging that the e-commerce giant had become excessively large and inefficient. In response to the staff’s complaints about platform issues amid heightened competition, he pledged to implement changes.
Richard Liu shared these remarks during an internal staff forum in response to a post made by an employee, as reported by local media. A source familiar with the situation confirmed the accuracy of his comments to Reuters on Tuesday.
Over the weekend, an anonymous staff member published a thousand-word article criticizing JD for its excessively complex promotion mechanism and the haphazard implementation of its low-price strategy. In response, Liu acknowledged the identified problems and attributed them to his “poor management.”
“The current organisation is huge, bloated and inefficient, and it does take time to change it,” Liu said in his comment, urging staff to join him in changing the company together.
“This is a routine exchange, and it demonstrates our management’s confidence, as well as the entire team’s collaboration, in addressing problems and overcoming challenges,” a JD spokesperson said on Tuesday.
His post surfaces just two weeks after Alibaba co-founder Jack Ma responded in a similar fashion to an employee’s post on Alibaba’s intranet, urging the company to “reform for tomorrow and the day after tomorrow” in light of escalating competition, as confirmed by a source acquainted with the situation.
Alibaba did not respond to an inquiry seeking comments regarding Jack Ma’s post.
JD.com and its competitor Alibaba have traditionally held the top positions among China’s e-commerce firms. However, this year, they have faced growing competition from lower-priced contenders such as PDD Holding’s Pinduoduo and ByteDance’s Douyin. The heightened competition arises as cautious consumers, confronted with macroeconomic challenges in China, become more frugal and cautious with their spending.
JD.com, which has unveiled a strategy centered around providing low prices to attract customers, has witnessed a 50% decline in its share price this year. In contrast, PDD Holdings has experienced a 75% increase in its shares during the same period.
Alibaba Group, currently undergoing its most significant restructuring in its 24-year history, has witnessed a 70% decrease in the value of its shares since the commencement of a regulatory crackdown in late 2020.
Motisons Jewellers has set a price band of INR 52-55 for its IPO, with the subscription period opening on December 18 and closing on December 20.
At the higher limit of the price band, the company aims to generate INR 151 crore. Investors have the option to bid for a minimum of 250 shares in one lot, with the opportunity to bid in multiples thereafter.
The IPO constitutes an entirely new equity offering of 2.71 crore shares.
Approximately 50% of the allocation is earmarked for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.
The funds generated from the offering will be allocated as follows: INR 58 crore for debt repayment, INR 71 crore for meeting the company’s working capital needs, and a portion will also be earmarked for general corporate purposes.
In October of this year, the retail jeweller based in Jaipur secured INR 33 crore in its pre-IPO funding round.
Motisons Jewellers operates as a hyperlocal jewellery retail chain in Jaipur, boasting four showrooms, including a flagship location. The company predominantly acquires finished jewellery from various third-party suppliers throughout India, specializing in the sale of gold, diamond, kundan, and other types of jewellery.
The product lineup encompasses more than 300,000 jewellery designs, featuring a diverse selection of gold, diamond, and various other jewellery products available at different price points.
In the quarter concluding in June, the company recorded a revenue of INR 86.7 crore and a profit of INR 5.47 crore. For the fiscal year 2023, its revenue from operations witnessed a 16% year-on-year (YoY) increase, reaching INR 366 crore, with profits surging by 51% to INR 22.19 crore.
The palace is situated just an hour away from Surat Airport and a convenient 20-minute drive from Navsari Railway Station.
“Combining palace-style architecture and modern amenities, the hotel features 100 comfortable and spacious rooms that are adorned with French windows with jharoka-style frames, offering city and garden views, and an abundance of natural daylight,” said the Radisson Individuals.
According to Radisson, guests have the option to choose from various categories, such as standard rooms, superior rooms, junior suites, and executive suites.
“Uday Palace Navsari has always been envisioned as a beacon of opulence, sophistication, and unparalleled hospitality. We are thrilled to collaborate with Radisson Hotel Group and become a part of Radisson Individuals brand, a partnership that aligns perfectly with our commitment to delivering extraordinary experiences,” said Rajesh Shantilal Shah, Managing Director, Belly Welly Resort.
“This opening marks an exciting step forward in bringing one-of-a- kind, experience-focused brands to Gujarat. The hotel is near heritage sites, and historic landmarks and to the city’s developing landscape, a veritable hub where culture and community meet,” said Vikram Singh Chauhan, CEO and founder, NILE Hospitality.
“The location enhances the appeal of our offering, creating an inviting space for locals and visitors to experience the Southern part of Gujarat like never before,” he added.
During the festive season, Myntra, an online fashion retailer under the Walmart umbrella, achieved an all-time high with 60 million monthly active users. Fueled by an expanding customer base, specialized offerings for Generation Z, and a strong collection of international fashion and beauty brands, the platform strengthened its presence in both premium and mass premium segments, outpacing market growth.
Empowered by a technology-driven interface and an extensive selection of 2,300,000 styles, the platform welcomed 75 million new app users in 2023, while its dedicated customer base experienced a remarkable 100 percent year-over-year growth over the past 18 months. The Gen Z fashion category observed an impressive 2.25 times year-over-year increase in demand on the platform, with a substantial 175 percent year-over-year growth in customer numbers within the Gen Z segment.
“We’ve added the highest number of new users and new customers this year, whilst doubling our loyal customer base,” said Sunder Balasubramanian, CMO, Myntra.
Over the past three years, the company’s beauty portfolio has expanded by more than four times, featuring a collection of over 1,500 brands and 90,000 SKUs (stock-keeping units). In the latest quarter, Myntra achieved a substantial 70 percent year-over-year growth in the Direct-to-Consumer (D2C) category.
The platform relies significantly on technology to enhance and customize the shopping experience for users in the realms of fashion and beauty. Myntra Minis, a short-form video content feature modeled after the reels format, has garnered 1 million daily views, underscoring its growing popularity. Additionally, Myntra utilizes AI and other cutting-edge technologies to address challenges related to product discovery on the platform.
E-retail in India is poised for remarkable growth, as indicated by a recent report from Bain & Company in collaboration with Flipkart. The forecast suggests that by 2028, the e-retail market is anticipated to surge beyond the USD 160 billion (over INR 13 lakh crore) mark. In the intermediate term, specifically in 2023, the e-retail sector is projected to range between USD 57 billion and USD 60 billion (INR 4.75 lakh crore to 5 lakh crore). This growth is underpinned by a substantial annual shopper base of around 240 million, showcasing an annual addition of USD 8-12 billion since the year 2020.
“Long-term fundamentals of India’s e-retail industry, including affordable data, improved logistics and fintech infrastructure and strong digital consumer ecosystems remain intact,” Bain’s Innovation & Design Capability Area, Partner and Global Leader, Arpan Sheth said in a statement.
“The market is expected to rebound to 23-25 per cent growth levels, surging beyond USD 160 billion by 2028,” the statement said.
The e-retail market is set for expansion in the upcoming years. Presently, online spending constitutes only 5-6 percent of the total retail spending in India, in stark contrast to the United States, where it accounts for 23-24 percent, and China, where it stands at 35 percent. This stark difference indicates significant potential for growth in the Indian e-retail sector.
As outlined in the report, the predominant share of India’s retail expenditure, ranging from 94 to 95 percent, remains offline. Within this context, general trade constitutes a substantial 87 percent of the overall retail spending.
“As GDP per capita continues to increase, especially beyond USD 4,000, it is expected to drive a sharp rise in online spending, as spend per shopper on discretionary products increases,” the report said.
Currently, the per capita income in the country stands at approximately USD 2,600.
The report estimates that over 60 per cent internet users are not shopping online. “The seller ecosystem in India is also expanding rapidly, with twice as many sellers added in 2022 compared to the previous year. Around two-thirds of these new sellers came from Tier 2 and smaller cities,” the report said.
The report indicated that over 50% of the entire seller base originates from seven cities, namely Delhi-NCR, Surat, Jaipur, Mumbai, Bengaluru, Hyderabad, and Kolkata.
In India, the e-retail sector is experiencing the rise of novel business models aimed at addressing consumer needs. These encompass quick-commerce (Q-commerce) platforms, hyper-value commerce, inspiration-led commerce (live commerce), and fast fashion.
“Over the past year, Q-commerce orders have doubled, accounting for 40-50 per cent of India’s e-grocery spend,” Bain & Company, Partner and leading member of the Consumer Products & Retail practice, Shyam Unnikrishnan said.
The hyper-value sector’s share of overall e-retail grew five times between 2020 and 2022 in India, the report said.
Nestle SA CEO Mark Schneider downplayed the impact of GLP-1 weight-loss drugs on the world’s largest food company, emphasizing the company’s focus on expanding its range of products with reduced calorie content.
In a Bloomberg TV interview, Nestle CEO Mark Schneider revealed that currently, 50% of the company’s revenue comes from coffee, pet care, and vitamins, compared to 30% seven years ago. These sectors are anticipated to demonstrate greater resilience, especially as individuals using weight-loss drugs curtail snacking and decrease meal sizes.
“It’s not so much a threat,” he said. “It’s a full-blown vindication of the strategy that we’ve been pursuing very patiently over the years.”
The producer of Lean Cuisine meals has been divesting from less lucrative ventures while acquiring those with higher growth potential. Schneider mentioned engaging in deals totaling “50 billion” and opting out of an additional 50 billion, without specifying the currency. He anticipates the company’s vitamins, minerals, and supplements business to experience growth in the mid- to high-single digits.
On Wednesday, the Supreme Court instructed ITC Ltd and Britannia Industries to engage in a collaborative discussion and mutually address the dispute regarding their packaging, which has been deemed deceptively similar.
ITC contested the Madras High Court’s November ruling, which prohibited the use of Sunfeast MOM’s Magic Butter Cookies packaging, citing infringement of Britannia’s Good Day Butter Cookies packaging. The court order restricted ITC based on the asserted similarity between the blue packaging of Sunfeast MOM’s Magic and its competitor Britannia Good Day Butter Cookies. The High Court asserted that the use of the color blue implied “dishonest adoption” by ITC, intending to pass off its products and unjustly benefit itself.
Noting that both companies produce premium products catering to a broad consumer base, a panel headed by Justice Sanjiv Khanna expressed that a resolution through direct dialogue between the companies would be preferable. The bench has also scheduled the matter for additional proceedings in January.
Representatives Mukul Rohatgi and AM Singhvi, senior counsel for ITC, informed the Supreme Court that it is acknowledged that the colors blue and yellow are generic in the context of butter biscuits/cookies, with yellow typically symbolizing the presence of butter.
In a previous legal dispute involving zero sugar digestive biscuits between the two parties, Britannia had unequivocally asserted that the blue color is common and generic to the trade. Consequently, Britannia maintained that no entity can claim exclusivity in using these generic colors, and there should be no imputation of malafide intent when employing such colors for biscuits adhering to industry practices, as per ITC’s statement.
“Therefore, the question of Britannia claiming any distinctiveness and proprietary right to the exclusion of other members of trade does not arise and the impugned judgment is fundamentally wrong on this ground alone. Britannia cannot be allowed to approbate and reprobate, as per its convenience, in the manner it has done,” the ITC appeal filed through counsel Mohit Ram stated.
The High Court issued the order following Britannia’s allegation that ITC was marketing analogous products under the Sunfeast brand, utilizing the ‘Mom’s Magic’ trademark with the intention of capitalizing on Britannia’s goodwill.
Pernod Ricard, the renowned French spirits producer, anticipates a triple increase in its sales within the Indian market over the next decade. This growth is projected to be driven by favorable macroeconomic trends, a positive demographic dividend, and the increasing preference for premiumization in Indian-made foreign liquor (IMFL) and imported brands.a Jean Touboul, Managing Director of Pernod Ricard India, envisions that the Indian market, presently positioned as the second-largest globally, holds the potential to ascend to a leadership position in the next 10-15 years, potentially surpassing the US market for the company.
“We are growing faster with the tailwinds in macroeconomics, in demographic and well India being the most populous country on earth, I am personally convinced that yes, we will be the market number one in Pernod Ricard at some point,” said Touboul.
However, he also added, “I just cannot tell you if it will be in 10 years, 15 years, that is not easy to predict but my conviction is that yes, one day India will be the market number one for Pernod Ricard.”
According to him, Pernod Ricard is experiencing double-digit growth for both Indian-made foreign liquor (IMFL) and robust double-digit growth for imported products in this market.
“As far as the net sales are concerned, it is obviously a key market in the current state of play and even more important for the growth and future results of the group because there is no doubt that India is a market that is extremely favourable,” he said.
Touboul also highlighted the intricacies of Indian regulations related to the alcohol trade, describing them as “complex.” He emphasized the necessity for simplifying these regulations to facilitate smoother business operations in the country.
“We are on the trajectory where we want to be able to triple our net sales in the next decade. That is our ambition. And to do that, we will go to more innovation,” he said.
Pernod Ricard boasts a global portfolio featuring more than 200 premium brands, including notable names like 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club, and Jacob’s Creek. In addition to these, the company owns Indian-made foreign liquor (IMFL) brands such as Blenders Pride, Imperial Blue, and Royal Stag.
At present, Pernod Ricard’s Indian-made foreign liquor (IMFL) brand accounts for nearly 95 percent of its volumes and over 80 percent of its net sales.
“Today, the vast majority of our business in the Indian alcohol market is in the IMFL. That is also where we are particularly strong with our three main brands- Imperial Blue, Royal Stag and Blenders Pride.
“And we are enjoying historically double-digit growth with these brands as they are delivering quite well for us and for the Pernod Ricard group,” Touboul said.
As per Touboul, there is a growing demand among Indians for higher-quality beverages, and Pernod Ricard is committed to providing them with an expanded range of premium-quality products.
“There is premiumisation because the revenue per capita is increasing and it is a natural evolution for consumers when they have more revenue to push their consumption towards a better product with higher price point increases as well,” he said.
“We are here to go with this trend and as much as possible accelerate by proposing an ever more product of great quality and that helps consumers to trade up,” he said.
As part of the premiumisation drive Pernod Ricard will continue to innovate on the core brands – Imperial Blue, Blender’s Pride and Royal Stag.
“We will regularly come with line extensions for these products to again propose within this Seagram quality type of product, some diversified experience with diversified taste, diversified finish, whatever twist we put on the product to be able to provide the various experiences to our consumers,” he added.
It would have a process of continuous innovation and investment behind brands and look at other initiatives for expanding its portfolio, as it is launching a new Indian single malt Longitude 77.
“There is space to develop more and more premium products, which are also made in India. Our Indian single malt is a great example of that. We are at a price point which is parity with an international single malt of 12 years old, like Glenlivet 12 in our case because we know we are producing a very qualitative product in India,” he said.
Pernod Ricard is the owner of Chivas Brothers, a prominent Scotch whisky maker renowned for its popular single malt and blended Scotch whisky brands such as Chivas Regal, Ballantine’s, Royal Salute, and The Glenlivet. The company anticipates that a potential Free Trade Agreement (FTA) between the UK and India could be mutually beneficial for both nations.
It will help “develop the possibility in particular to import more qualitative product to India at a more reasonable price” and would be more accessible for a bigger part of the Indian population.
Moreover, if duty is waived on bulk imports of Scotch, it will help IMFL also.
“The IMFL that we do, we use Indian grain spirits and we mix that with Scotch malt that we import from Scotland obviously. So that is something that where we could have a benefit if there are lower custom duties on that part of the business,” he said.
Following its successful launch in Telangana, American Brew Crafts has expanded its presence into the Kerala market by introducing the Flying Monkey Ultra Strong beer.
The anticipated monthly beer sales in Kerala stand at 10 lakh cases, and the company aims to secure a 5-7 percent market share by 2024. According to Sri Nagendra Tayi, Director and CEO of American Brew Crafts, the newly introduced variant is crafted exclusively for Kerala, providing consumers with a unique flavor and character.
The younger generation in India is increasingly favoring beer over hard liquors, a trend attributed to the growing popularity of social drinking culture. Predictions indicate a Compound Annual Growth Rate (CAGR) of 12 percent in beer sales in India over the next five years. According to the statement, Telangana and Andhra Pradesh currently lead in beer consumption, with Maharashtra, Uttar Pradesh, and other states following suit.
Recognizing the potential in the market, Satya Siva Athi, another director, stated that the company has outlined expansion strategies for both domestic and international markets. This includes plans for Odisha, Karnataka, the North East, emerging markets in Africa, the United States, West Asia, and Europe. Additionally, the company is set to introduce a variety of new products, such as wheat beer, low-calorie beers, spice mixes, and seasonal fruit brews, into the market.
Founded in 2017, American Brew Crafts acquired breweries from Lilasons Brewery in Telangana and Arthos Brewery in Andhra Pradesh, enhancing infrastructure with the installation of German machinery and a packing zone. The company’s flagship brand is BlockBuster beer, and the latest addition to its portfolio is Flying Monkey.
In an effort to bolster its expansion in the Indian market, Pernod Ricard‘s India arm has introduced its first Indian single malt, Longitude77, targeting the premium segment.
Longitude77, a made-in-India whisky, has been meticulously crafted for enthusiasts of authentic contemporary Indian luxury. With the goal of redefining India’s global prominence, the company highlights that the product is currently available in Mumbai, Goa, Delhi Duty Free at IGI Airport, priced at INR 4,000.
The whisky is being produced locally by the company in small batches at a distillery located in Dindori, Nashik (Maharashtra), utilizing locally-sourced ingredients.
“The Indian single malt whiskey market is still nascent, but is very promising. We want to play in this segment at a premium-level, by bringing a qualitative product made in India for Indians,” said Jean Touboul, CEO of Pernod Ricard India.
Longitude77 draws inspiration from the meridian that traverses the entirety of India at 77° east, signifying India’s geographical location on the global map. Pernod Ricard envisions exporting this Indian whisky to international markets in the near future, with Dubai being a potential starting point.
Longitude77 draws inspiration from the meridian that traverses the entirety of India at 77° east, signifying India’s geographical position on the global map. Pernod Ricard has future plans to export this Indian whisky to international markets, with the possibility of initiating the venture in Dubai.
Over the recent period, numerous spirit companies have ventured significantly into the Indian single malt category. Key players, including Diageo India, Radico Khaitan, John Distilleries, and DeVANS, are experiencing notable growth in this category.
Addressing the competition in the market, Touboul said, “Multiple players actively investing to expand this category, makes for more of an opportunity than a challenge. The combined effort of the industry is beneficial to broaden the category, as it is still a small segment.”
In the case of Pernod Ricard India, the “vast majority” of sales volume is attributed to whisky, making it the company’s stronghold and the most pertinent category. The majority of sales predominantly occur within the local market. According to Touboul, over 90 percent of the volume and more than 80 percent of sales in terms of value are comprised of local products.
The company is also striving to stimulate growth in other spirit categories, including Vodka and Gin. Presently, it features offerings such as Absolut in the vodka category and various gins sourced from Japan and Germany.
Touboul said, “We are sizing all the possibilities at the same time because they are all relevant in the country where the expansion of the consumption pool, the expansion of the economy is giving us so many opportunities.”
Pernod Ricard India is actively delving into opportunities within the wine category, driven by positive growth and increasing interest, particularly among female consumers and a growing fascination with wine among Indian consumers. Additionally, the company is closely monitoring the global success of tequila, particularly in the US and Mexico, and is exploring its potential within Asian markets.
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