The retailerErnst & Young’s publication in consumer products and retail sector

January-March 2013

ForewordDear reader,

It gives us great pleasure to present to you the January–March 2013 edition of The retailer, our quarterly publication covering the consumer products and retail sector.

In this edition, we feature an article on the relevance of forensic data analysis for modern businesses and highlight the top 10 global opportunities and risks in the sector.

Forensic data analysis is pertinent in the current economic scenario, although business leaders are aware of fraud risks, they need to have a more comprehensive and integrated approach to fraud risk management.

Our executive summary presents details of the opportunities and risks in the industry on the basis of a survey conducted by Ernst & Young by interviewing more than 140 retail executives in 15 countries.

In our interview feature, Mr. Shrikant Zaveri, Chairman & Managing Director, TBZ Original provides his input on customer-led trends in the Indian jewelry market.

Finally, in our “Retail innovation board” section, we present you snapshots of recent innovations in the Indian and global retail industry.

We hope you enjoy reading this issue of The retailer. We look forward to your valuable comments and feedback on it.

Pinakiranjan Mishra

Partner and National Leader, Retail and Consumer Products Ernst & Young, India

Contents

Involve yourself:

We look forward to hearing your feedback and suggestions.To contribute to editorial content, please contact Ashish KakwaniT: +91 22 6192 0423 E: ashish.kakwani@in.ey.com

Increasing relevance of forensic data analytics 04

Turning risks and opportunities into results 08

In conversation with Mr.Shrikant Zaveri, Chairman and Managing Director, TBZ Original 12

Special feature: Innovation board 14

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Increasing relevance of forensic data analytics1

Need of forensic data analytics

The growth of the retail segment is of great importance, since it accounts for 22% of the country’s gross domestic product (GDP) and contributes around 8% of its total employment numbers. (Source: http://www.ibef.org/industry/retail-india.aspx). Moreover, the Government liberalizing its foreign policy has resulted in several international retail giants foraying into the Indian retail market. This adds to the importance of effective fraud-detection and robust fraud risk management plans being put in place and implemented in the industry with efficient use of forensic data analytics.

India’s retail segment witnesses a high volume of transactions on an everyday basis. Back-end databases ranging from off-the-shelf ERP products to standard ERP solutions including SAP, Oracle, etc., are used to store this information However, standard audit practices may not be able to identify threats or misconduct in a company due to the sheer volume (sometimes running into millions of lines) of data stored in them. This is where forensic data analytics acts as a “path finder.” It enables companies and their managements to identify and plug control gaps, which otherwise can be exploited to defraud them.

Today, “Prevention is better than cure’’ is an adage that is taken seriously by a large set of organizations. Company management perceive conducting proactive forensic data analytics on available data, helps make informed decisions going beyond MIS reports, It also helps them identify financial impact through recurring fraud, and push in mitigating fraud risk assessment strategies in the supply chain.

With the growth of the retail sectors, the way it is managed has also evolved. Today, large and very large retailers have a professional approach to their businesses. They focus on reducing costs, creating efficient supply chains, maximizing appeal, deriving benefits by being at the right place at the right time, and so forth. But the question is how most of this achieved. Daily transactions generate a large amount of data, but what is important is that this data is used effectively and leveraged to take important business decisions. There is a great deal of information that can be derived from the large amount of information available within organizations, but critical information is often lost due to lack of expertise and specialized tools. Consequently, the most frequent queries from organizations to us pertain to the ways and means by which important information, which would otherwise remain elusive, can be extracted from available data within them. The answer is yes, we can help them extract this data. Forensic data analytics helps to put together the missing pieces, and thereby ensure the smooth operations and financial well-being of organizations in the long run. The objective of this article is to examine the key aspects of forensic data analytics and determine how it can be utilized in the retail industry.

Key risk areas

With the Euro crisis “hitting” the world economy, investors are looking for “safe bid” companies with sound and secure financial books, with the ability to either identify issues through internal audit or investigation. Some of the issues plaguing the sector are mentioned below.

• Theft or misappropriation of goods or stocks: This could simply mean siphoning off physical goods or manipulating internal records to prevent goods from reaching their intended destinations (supply chain fraud).

• Employee/Vendor collusion or conflict of interest: This frequently sees employees floating companies in the names of their relatives or friends and providing services to their own current employers. This is a clear case of conflict of interest, where employees do not declare their interest in external entities, which can sometimes be fictitious, but to which regular payments are made and could result in compromised service/product.

• Return of goods: A large number of goods are regularly returned to particular stores without an accepted goods exchange policy being complied with.

• Bid rigging/collusion: Several retail companies purchase their raw materials through the bidding process. Favored vendors are often selected as the winners of these bids, although there could be other eligible vendors. Kickbacks are generally paid in return of such favors, impacting margins of actual procurement.

• Point of Sales (POS): POS systems can be compromised. These equipments or the private network within the shopping premise, if infected with malware/spyware can give access to sensitive customer related personal and debit/credit card information to fraudsters for unauthorized purchases. This can take place if adequate safety and security measures are not in place.

Why the risk?

Unsafe retail systems pose a challenge to the financial stability of a company. There have been enough recent cases in the news, where it was evident that the losses incurred were not just financial but also entailed loss of reputation, which resulted in decreased sales for these organizations. Retail organizations such as Reebok India, Koutons Retail, Vishal Retail, Lilliput Kidswear and Subhiksha are examples of some such cases in the public domain, and if the lessons learnt from these have not been a learning for companies, the possibility of their being the next on the list cannot be ruled out.

A retail entity deals in thousands of stock keeping units (SKUs) and millions of units of merchandize. Misreporting inventory values to the board or parent body (as well as to bankers), using “cooked up” books, on stocks in warehouses or distribution centers, stocks in transit and on consignment, under-reporting shrinkage levels, stocks sold outright, shelf stocks, etc., can be an alluring proposition for over-ambitious and unethical employees. This leads to auditors struggling to arrive at authentic numbers in time due lack of data and time. Furthermore, reconciling facts by using documents and system figures, and going beyond sample selections restricts them in accurately calculating a company’s accounts.

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In addition to structured data, companies rely heavily on emails for their day-to-day activities. From seeking approvals for payments to negotiating with external vendors, there is considerable reliance on emails. A review of unstructured data can help to analyze sentiments, the tone and elements in a fraud triangle, e.g., pressure, incentive and rationalization. One can also look for “one-liner” communication including “Please call,” “Please help”, “Do not show to auditor”, “Do not discuss on email” or “Please don’t put this in writing,” which, when clubbed with other datasets such as attendance logs or entries in GL on the dates of these communication, can help to unearth potential fraudulent activities. The pattern of words used extensively by individuals in their communication also reveals their emotional quotient. These can all help in identifying the pain points in organizations.

Challenges faced while executing FDA

• While this concept is exciting, it has its pros and cons, and the following unique challenges:

• Lack of clarity on what is required and related costs

• Unavailability of historical data and difficulty of in retrieving it

• Multiple data sources and their integration

• Inadequate co-operation between a business and IT (one with the problem and the other which owns the data)

• Maintenance of data confidentiality

• Lack of understanding of inherent data within an organization

How to rollout FDA?

FDA looks at two kinds of data — structured and unstructured — originating from systems to draw meaningful conclusions.

Structured data comprises information in predefined fields and in the form of tables or a format, where all data lines have a consistent format. Some examples include data saved on an Excel file, GL data stored in an accounting package or details pertaining to an employee in an HR database. Unstructured data comprises information that is not stored in a consistent format, e.g., email data or data spread across various files in an application or a computer.

More and more organizations are relying on applications that store millions of records in their databases. However, this large quantum of information with structured data is not of any use if it cannot help in identification of critical information. Data visualization techniques have proved to be more effective, since humans can absorb large pieces of information in a visual format rather than that displayed in numbers or text. Applying these visualization techniques helps in detection and identification of potential fraudulent activities. A three-way match between the employee master, customer master and vendor master leads to potential conflict of interest and the creation of ghost vendors or customers to inflate costs or sales. Linking payments made from GL accounts and reconciling these with entries in bank statements would help to identify fictitious or related parties. Identifying payments booked on weekends and consistent round payments made to specific parties could also point to a potential problem. Structured data contains significant “interesting hidden information,” which, when unearthed, reveals some interesting facts.

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How can FDA help you?

Business leaders are aware of the need to address fraud risks, but lack of a comprehensive and integrated approach to fraud risk management continues to be a concern. Currently, companies take a “check-the-box” approach to fraud risk management, and conduct isolated risk assessments, whereas the need of the hour is a cohesive but wider approach, which is aligned with their strategic business objectives.

Technology can play a larger role in fraud risk management than it currently does. Forensic Data Analytics does not work on samples but on the entire set of records to which companies have access, without compromising crucial data, which can be missed while auditors are selecting samples. Data analytics, if implemented as a pro-active measure, can help companies identify misuse, fraud or errors in organizations. These need to be addressed before they can cause an organization financial or reputation loss.

Forensic data analytics helps to prioritize areas that need to be focused on to reduce the risk. which could be explored further. Data analytics helps an organization in preparing a remediation

plan it intends to execute, i.e., high risk ones immediately and low-risk ones later on a priority basis. Similarly, if data analytics is implemented as a reactive process, it can safeguard companies from future threats or losses. Therefore, depending on a company’s data size, available budget and need, it can decide on the kind of spread it wants while undertaking FDA.

Over the years, Forensic Data Analysis has moved from examining historical trends and mere number crunching to monitoring and revealing patterns to address or highlight real time or near real time fraud issues. FDA can play a key role in the case of a fraud risk assessment plan devised by organizations. This could be as basic as identifying the related parties of an employee or as complex as identifying bribery or corruption issues culled from GL text narrations or sentiment analysis in emails.

Therefore, as is clearly evident, the benefits derived from a robust fraud risk management plan, using forensic data analytics, far outweighs the associated problems one could encounter during its implementation. Proactive forensic data analytics help organizations manage their fraud risks better, and enable them to add dollar savings to their bottom line.

Mukul Shrivastava Executive Director

Mukul is an Executive Director with Ernst & Young India’s Fraud Investigation & Dispute Services (FIDS) practice. He heads the Forensic Technology Discovery Services

practice within FIDS and handles the two technology divisions — Data Analytics and Digital Evidence Recovery. During his tenure with the firm, he has conducted a number of investigations on stock fraud, misreporting or falsification of financial statements, management, employee fraud, etc., and has conducted due diligence reviews, and undertaken internal and IT audits. His work also includes compliance audits, rebate fraud, the FCPA, the grey market, and advertising and marketing irregularities.

Email: mukul.shrivastava@in.ey.com Tel: +91 22 6192 2777

Sudesh Shetty Associate Director

Sudesh is an Associate Director with Ernst & Young India’s Fraud Investigation & Dispute Services. Sudesh has more than 10 years of experience and specializes

in forensic technology and Intellectual Property investigations on software, information security and software asset management. In addition, he has been involved in conducting technology-related investigations as well as on software IP and SOX non-compliance, information security reviews, vulnerability assessment and penetration testing, and in global rollout of information security technology products.

Email: sudesh.shetty@in.ey.com Tel: + 91 22 6665 5840

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Turning risks and opportunities into results: Exploring the top 10 risks and opportunities for global organizations

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Introduction

Based on our interviews with a panel of retail sector professionals, and on our global multi-sector survey (which included more than 140 retail executives in 15 countries), we have compiled the following rankings of the top 10 risks and opportunities for retail companies.

This is a summary of the report and the complete report can be downloaded from

http://www.ey.com/GL/en/Industries/Consumer-Products/Turn-risk-and-opportunities-into-results--Retail-sector

Top 10 risks

1. Low-growth consumer markets

Despite growth resurging in the world economy following the recession of the last three years, this risk continues to be significant. The recession underlined a structural shift to a low-demand growth environment in the developed world — retailing in Europe is “a zero-sum game where one player’s gain is another’s loss.” (Forecast for 2013 from the current ranking)

2. Regulation and compliance

Traditional regulatory interactions centered on rates are being frequently supplemented by contradictory pressures due to the impact of the environment, and efficiency and security of key infrastructure. (Forecast for 2013 — no change from the current ranking)

3. Inability to control costs or rising input prices

As an economist we interviewed noted, “Low margins mean that costs [have] major effects on profitability.” Seventy-three percent of retail respondents have focused on cutting their sales, general and administrative (SG&A) expenses, while 11% have targeted the costs of goods and services (COGS). (Forecast for 2013 — no change from the current ranking)

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4. Inability to benefit from e-commerce

The objective of reducing carbon emissions from power generation continues to drive transformation in the industry, but the failure of governments to meet key emission objectives means that policies are at the crossroads. Market-based approaches to carbon pricing are losing out to direct regulation of emissions. (Forecast for 2013 — falling from the current ranking)

5. Wrong price image

Price image can often be more important in determining sales than actual product prices. Adjusting complex pricing and branding strategies to adapt to trends such as shifting consumer behavior is therefore a constant challenge. (Forecast for 2013 — no change from the current ranking)

6. Supply chain disruptions

Recent “black swan” events have highlighted the vulnerability of companies to supply chain disruptions in the developed world as well as in emerging markets. Some companies may elect to reverse some of their cost-saving procedures to achieve enhanced supply chain control and flexibility. (Forecast for 2013 — rising from the current ranking)

7. Inability to penetrate emerging markets

As a retail panelist noted, “Especially for Western companies, understanding emerging markets is an undeniable (but blatantly obvious) opportunity.” However, in order for foreign retailers to operate efficiently in emerging markets, they need to achieve critical mass in terms of their stores and revenues. (Forecast for 2013 — no change from the current ranking)

8. Failure to respond to shifting consumer behavior

During the recent recession, consumers reduced consumption, cut back on lavish and impulsive shopping behavior, and increasingly used online price-comparison sites. This change in behavior may be so far off the trend line that a return to pre-recession consumption patterns may no longer be realistic. (Forecast for 2013 — no change from the current ranking)

9. Sourcing

In a less globalized world in which all retailers in a market tended to source their products from the same country, sudden location-specific risks had little impact on the relative competitiveness of market players. However, in a globally diverse market, where retailers tap into different geographical locations, sourcing risks can have a large impact on costs, profitability and market position. (Forecast for 2013 —rising from the current ranking)

10. Volatility in commercial real estate markets

Retailers are impacted both directly and indirectly by the volatility of the real estate market. In addition, they need to stay ahead of real estate trends, e.g., the need for commercial real estate to shift to more dynamic, smarter and greener facilities. (Forecast for 2013 — no change from the current ranking.)

Top 10 risks

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Top 10 opportunities

Top 10 opportunities

1. Rising demand in emerging markets and rise of global middle class

The size of the global middle class is expected to triple between now and 2030. Yet 29% of retail sector respondents in our global survey reported that their efforts to enter these markets have yet to produce any positive results. (Forecast for 2013 — rising from the current ranking)

2. New marketing channels and social media

Across the world, the number of people with regular access to the internet has increased dramatically. Around 28% of the retailers we surveyed reported that their companies had begun to engage with social media and 28% indicated that they were actively investigating the feasibility of engaging with social media. (Forecast for 2013 — rising from the current ranking)

3. Competitive differentiation via CSR and green branding

The global financial crisis, instead of shifting the focus of organizations from corporate social responsibility (CSR), seems to have made it more of a priority. Almost three in four companies in the retail sector consider CSR “a must.” (Forecast for 2013 — a rise from the current ranking)

4. Multi-channel approach

The growth of e-commerce and m-commerce, as well as recent rapid shifts in consumer behavior, have increased benefits for retailers and enabled them to remain in touch with consumers through multiple channels. (Forecast for 2013 — rising from the current ranking)

5. Demographic change

Demographic changes — for example, ageing and migration — are leading to rapid growth in specific market segments. Individuals in developed countries are also increasingly seeking to deny the ageing process. (Forecast for 2013 — no change from the current ranking)

6. Private label

The recent recession has increased sales of private label goods, and many consumers report they will remain loyal to these brands. Retailers have embraced this opportunity by introducing tiered brands for different income brackets and shopper needs. (Forecast for 2013: rising from the current ranking.)

7. Launching new products and services

Consumer behavior is changing, and retailers need to constantly innovate their products and services. Yet 23% of the retail executives we surveyed mentioned that their organizations have not been sufficiently innovative. (Forecast for 2013 — rising from the current ranking)

8. Global urbanization

As one panelist said, “The world’s population is undergoing a historic shift from rural to urban.” Increased consumer incomes and customer concentration are expected to present attractive opportunities to the retail sector. (Forecast for 2013 — rising from the current ranking)

9. Competitive differentiation via local branding

There are significant benefits to be gained by local sourcing of products; these are often healthier, fresher and more environmental-friendly. As one retail executive commented, “There is a growing trend toward ‘solidarity’ with local regions that can provide brands with lots of consumer kudos.” (Forecast for 2013 — rising from the current ranking)

10. Enhancing efficiency in the supply chain

The supply chain presents a significant opportunity for retailers to reduce their inefficiencies and compete on costs, which are becoming increasingly crucial as companies in low-growth consumer markets battle for a market share. (Forecast for 2013 — no change from the current ranking)

For the detailed report, refer to http://www.ey.com/GL/en/Industries/Consumer-Products/Turn-risk-and-opportunities-into-results — Retail-sectormm — The-top-10-risks

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Olivier Macard Partner, EMEIA Retail Sector Leader

Olivier began his career as an auditor and has worked for prominent food and non-food retailers across the world. He has been focusing on transactions and

been involved in conducting significant cross-border due diligence and vendor due diligence in a large number of countries. Since 2006, he has been involved in more than 50 transactions in retail, some of which were very large (global deals with an EV of more than €10 billion), and were conducted in more than 20 countries, most of which were emerging countries. Olivier works closely with several national professional federations that deal in retail and consumer products. He represents EY to the press and regularly writes in newspapers dedicated to the industry.

Email: olivier.macard@fr.ey.com

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In conversation with Mr.Shrikant Zaveri, Chairman and Managing Director, TBZ Original

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Could you take us through the evolution of TBZ Original and share the key learnings from this journey?

Tribhovandas Bhimji Zaveri was launched in 1864 at Zaveri Bazar in Mumbai in a 8 ft x 8 ft room with a tin roof. It was founded by the late Shri Bhimji Zaveri. Those days, the concept of selling readymade jewelry did not exist. Customers got it customized based on their requirements.

From the beginning, TBZ’s aim was to give its best to its customers in terms of design and quality. This information began spreading through word-of-mouth publicity. More and more customers experienced TBZ products and services, and realized the difference in all aspects including their designs, craftsmanship, etc. That is how the brand built its reputation to stand apart from its competitors.

Today, TBZ is a listed company and the fourth generation member of the family, Shri Shrikant Zaveri, is the Chairman and Managing Director of TBZ LTD. — the fifth generation already plays an active on its Board of Directors.

Presently, we have 26 stores spread across 20 cities and 7 states in India. After being listed, the company has opened another nine stores. It plans to open 57 stores across India by the end of March 2015.

How do you foresee TBZ Original evolving in coming years?

I believe TBZ is very strong brand and the brand is considered the premium one in most parts of India. My vision to ride on this brand equity and spread our operations across India in important cities that offer promising business opportunities. I want to see TBZ become the No.1 retail jewelry company in India.

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TBZ Original has stores across major Indian cities? What are the some of the key differences in consumers’ jewelry-purchasing behavior across these markets (Mumbai vs other cities)?

First let me give you the common factors:

1. Buying jewelry is a high involvement decision.

2. It is purchased at trusted stores.

3. Wedding jewelry is mainly purchased in the presence of family members, including the would-be bride

4. Gold is preferred since it offers the highest financial security, but diamonds are seen as fashion accessories.

5. If customers like a design, price frequently takes the back seat.

The differences:

1. Regional preference, caste, community and beliefs influence selection of designs and patterns.

2. Price sensitivity differs from area to area.

How have consumer-buying patterns for jewelry evolved over the last two to three decades (Please provide your input on how consumers’ education and awareness levels, style and fashion factors, etc., affect their jewelry-buying patterns.)

1. Unlike in the past, customers like to explore new designs, semi-western jewelry in gold now.

2. The demand for diamond jewelry is increasing.

3. Jewelry studded with colored stones are preferred.

4. The demand for yellow gold jewelry is frequently being replaced with that for white gold jewelry or those with an antique finish.

5. The demand for light-weight jewelry has increased.

6. Young members of families have a say in selection of jewelry.

How have jewelers changed their value propositions to respond to the changes mentioned above in consumer behavior?

In general, jewelers who wants to grow has begun renovating their stores, increasing their expenditure on advertisements and promotions, improving their inventory, designs, styles, etc.

What is your opinion of the recent changes in duties levied by the Government on import of gold? How will this affect India’s organized jewelry retailing sector?

We believe the Government is working in the interest of the nation to improve our economy.

As regards customers’ demand, we believe Indians will never stop buying gold and diamonds.

How do you see the Indian organized jewelry sector evolve in the next three to five years?

We believe the industry will witness double-digit growth in the next three to five years.

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1 2Walmart’s innovative sustainability hub

Brick and mortar stores moving into the next century

Walmart has developed an online sustainability hub for its suppliers and partners to learn, connect and drive sustainability through collaboration. This site allows them to share success stories and best practices. For example, suppliers who have reduced their carbon footprints through facility, product or company-wide innovations can receive credits for their efforts in contributing to Walmart’s 20MMT goal plan.

In February 2010, Walmart made a commitment to eliminate 20 million metric tons of greenhouse gas (GHG) emissions from its supply chain by 2015.GHG Innovation contributes significantly to Walmart’s business model and “future-proofs” its supply chain.

Walmart is on track with its target to achieve its goal and is constantly entering partnerships with key suppliers to curtail greenhouse gas emissions throughout the life cycles of the products it sells. The company manages a portfolio of many innovation projects that encompass every stage in its supply chain, e.g., sourcing, processing and producing raw materials.

Burberry remodeled its London flagship store in September 2012 to push its on-the-ground stores into the digital era.

In the store, garments are embedded with chips that can be read by screens and mirrors using radio-frequency identification technology. When a customer walks into a changing room holding a jacket, one of the mirrors may respond by turning into a screen, showing images of how it was worn on the catwalk or details of how it was made.

In the childrens-wear room, low-level tables are equipped with iPads that are loaded with drawing apps to keep young customers happy.

A network of small high-speed lifts, concealed behind restored paneling, has been added because online shoppers are not accustomed to waiting. This will help the store’s sales assistants fetch the different sizes required by customers from the back store.

The store has been designed as a physical manifestation of the Burberry website, Burberry World Live.

(Accessed http://www.guardian.co.uk/fashion/2012/sep/12/burberry-london-shop-website on 25th March, 2013)

The company’s suppliers and partners are eager to get the opportunity of communicating their sustainability innovation success stories directly to its Sustainability office.

Walmart invites setting up of communication and collaboration channels with its supply chain to identify and share what is working in its sustainability innovation initiative. The company is also aware that there are pre-competitive opportunities in the market, which creates shared value for its partners. It is therefore concentrating its resources and interest on game-changers — on sustainability innovations that improve the efficiency of its entire system. For example, it is looking for pathways to improve the supply of and demand for recycled-content plastics, which could significantly (and positively) affect its packaging of products in nearly all the aisles in its stores.

(Accessed http://www.walmartgreenroom.com/2013/01/walmart-launches-sustainability-hub/ on 15th February 2013)

Special feature: Innovation board4

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3 Facebook credit - a gift card which moves facebook closer to retail market

Facebook Credit has demonstrated its potential to revolutionize the social networking experience as retailers figure out how to leverage this. It has launched the concept of virtual currency, which enables its users to buy products on game and non-game applications on the Facebook platform. The main purpose of Facebook has been to generate a secondary stream of revenue alongside its ads, and to gather comprehensive data on its users’ browsing and shopping activities.

Ten Facebook credits are equivalent to one US dollar. Credits are currently available in 15 currencies including US dollars, the pound sterling, the euros and Danish kroner. It is expected that Facebook will eventually expand its credits into a micropayment system that is open in any Facebook application. This will offer consumers a quick and secure way of purchasing virtual goods and credits on more than 350 social games on Facebook.

Facebook credits can be purchased with credit cards, Paypal or with a mobile phone number. One can also purchase these through the Payments tab on Facebook account settings or a gift card at many retail stores such as Target, Walmart and Best Buy.

• AppDog gifts users with Apple or Android mobile devices with free Facebook credits in exchange for their downloading apps, which can be free of cost or paid for.

Presently, there are more than 150 developers that use Facebook credits in more than 650 Facebook games and applications, which represent more than 70% of virtual goods purchased on Facebook. Developers offering Facebook credits include Zynga (FarmVille and FrontierVille), CrowdStar (Happy Aquarium andHelloCity), and PopCap Games (Bejeweled Blitz), Playdom, Playfish, RockYou and 6waves. Developers offering Facebook cedits include Zynga (FarmVille and FrontierVille), CrowdStar (Happy Aquarium and HelloCity), PopCap Games (Bejeweled Blitz), Playdom, Playfish, RockYou and 6waves. Facebook retains 30% of the revenue earned through credits and developers get 70%.

(Accessed http://www.bloomberg.com/news/2013-01-31/facebook-introduces-card-that-lets-members-send-each-other-gifts.html on 15th February 2013)

Marketers and online commerce specialists are aware of the great business value of 500 million facebook users. Facebook has announced that its users will be able to use credits to purchase vouchers that can be redeemed for real goods and services. In addition, there are many online and offline ways in which these credits can be purchased. These include:

• Gift cards: Target, Walmart, Best Buy, Radio Shack, GameStop and Safeway sell Facebook credit gift cards in their stores in the US. These are sold in Tesco and Game shops in the UK. They are also sold in more than 500,000 outlets in five Southeast Asian countries as well as in India, Australia and New Zealand.

• Rixty offers its users Facebook credits on their buying prepaid Rixty giftcards with coins or cash at stores and then converting these to Facebook credits.

• Shopkick allows its users to earn Facebook credits by checking in at stores with an iPhone or Android application.

• ifeelgoods enables online retailers to offer Facebook credits as incentives for making purchases, signing for e-mail newsletters and other options.

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4 iPad turns into a menu card

Waiting for stewads to take orders is annoying for diners while eating out. Sree Annapoorna Hotel, a well-known hotel chain in south India, has introduced iPads at its newly opened outlet at the Fun City Mall on Avinashi Road in Comibatore to ease this situation.

Jegan S. Damodarasamy, Executive Director of Sree Annapoorna- Sree Gowrishankar Hotels Pvt. Ltd., came up with this idea on his visits to different restaurants across the country and abroad.

Orders are displayed in the kitchen, where the chefs prepare the dishes. The waiters serve these at the respective tables.

The iPad menu helps the hotel effectively tackle issues relating to manpower and the skills required.

(Accessed http://www.thehindubusinessline.com/industry-and-economy/marketing/now-a-restaurant-that-serves-ipad-to-help-you-place-orders/article4304841.ece on 25 March 2013)

As a customer, one does not have the option of seeing the food one has ordered. Customers invariably place their orders after going through the menu card, and sometimes, even without knowing what the dish looks like.

The iPad not only serves as a menu card, but also shows a picture of the dishes available. It is an interactive “card” with more than 60 items on display. It enables customers to place their orders on its touch screen and also displays the bill amount from time to time.

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5th Floor, Block B-2Nirlon Knowledge ParkOff. Western Express HighwayGoregaon (E)Mumbai - 400 063Tel: + 91 22 6192 0000Fax: + 91 22 6192 3000

14, Mittal Chambers, 1st floor Opp Inox Mall, Nariman PointMumbai - 400021 Tel: + 91 22 619 20040

NCRGolf View Corporate Tower BNear DLF Golf CourseSector 42Gurgaon - 122002Tel: + 91 124 464 4000Fax: + 91 124 464 4050

6th floor, HT House18-20 Kasturba Gandhi Marg New Delhi - 110 001Tel: + 91 11 4363 3000 Fax: + 91 11 4363 3200

4th & 5th Floor, Plot No 2B, Tower 2, Sector 126, NOIDA 201 304 Gautam Budh Nagar, U.P. IndiaTel: + 91 120 671 7000 Fax: + 91 120 671 7171

PuneC-401, 4th floor Panchshil Tech ParkYerwada (Near Don Bosco School)Pune - 411 006Tel: + 91 20 6603 6000Fax: + 91 20 6601 5900

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This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

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