Reliance Retail Betting Big To Spur Domestic Retail Market
Mukesh Ambani’s company wants to increase its presence in the retail business segment and for this purpose, the company has planned to distribute apparel, white goods, and fast moving consumer goods (FMCG) directly to street-shops. Organized retail has a share of 8% in the country’s total retail market, and Reliance Retail wants to increase its business by reaching a large part of this market.
Senior executives of the industry said that the company wants to acquire the country’s 92% market as it cannot just achieve fast growth by betting on businesses associated with the consumer. For this, it will primarily focus on small shops such as grocery stores, help in finance, Goods and Services Tax (GST) procedures, along with strong merchandising and supply chain operations. The company wants to start the pilot of apparel distribution from the beginning of the next year and has conveyed the same information to the vendors. Later on, till April, it will expand to FMCG and white goods.
Executives said that the launch will be done with the private brands of Reliance Retail and later the distribution of big brands will also be included. An executive said, “Reliance’s retail experience of distribution of smartphones has been triumphant and it wants to increase business through this model in other categories. It will be started with the company’s own brands as it was done with Reliance’s Lyf smartphones and will later be distributed for other brands. The private brands of the company are successful in its own stores. For example, in FMCG, the share of private brands is 23%.”
The company will later extend the distribution business to more than 10,000 cities and towns. Reliance Retail has also on-boarded over 7.5 Lakh retailers across the country for its smartphone distribution business. The share of the distribution of smartphones and consumer electronics in the company’s turnover has increased from 34% to 52%.