EUR 120.00 For Business Accounts Only

MOSL: Morning India (16/January/20): 1. Consumer (Mobile ordering led disruption in general trade); 2. L&T Infotech; 3. Coromandel Int.; 4. Delta Corp; 5. EcoScope

MOrning India (16/January/20):

Today’s top research idea
Consumer: Mobile ordering led disruption in general trade
** With kirana outlets being the dominant channel for consumer staples companies, modern retail players are striving to disrupt the distributor-led model with initiatives such as mobile/online ordering.

** This disruption will likely accelerate the gradual shift in the channel mix of consumer companies toward MT. Benefits for MT players include better bargaining power with consumer companies, access to the much-larger GT market and data to analyze consumption patterns.

** Our channel checks in Mumbai indicate that the implementation of mobile ordering is still at an early stage and has been beset by glitches. It has received mixed-to-negative response from kirana stores as the incumbent model provides them better credit terms and friendly return policy while maintaining their opaque operations to avoid taxes.

** Nevertheless, this disruption has huge potential and needs to be watched out for.

Piping hot news
US signs 1st phase of 'momentous' trade deal with China; tariffs remain in place
The US on Wednesday signed the first phase of a trade deal with China, which President Donald Trump described as historic, concluding more than a year of tough negotiations including several months of suspension of talks between the two largest economies of the world.