Reliance has kick-started its retail foray a few months back, with 40 pilot stores in Hyderabad selling fresh vegetables and fruits under the name Reliance Fresh. From today, they will move into the NCR (national capital region) covering Gurgaon and its neighboring satellites. Reliance is offering vegetables at 50% discount and is already a hit with the masses. Here's a report on Financial Times which throws up more insight into their plans and retail's future in India with biggies like Wal-Mart about to enter.
What to look out for -
Reliance plans to open 100 Reliance Fresh stores in Delhi by April as part of a proposed $5bn-$7bn investment in a “farm-to-fork” supply chain that will force radical change on one of India’s biggest and most inefficient sectors.
India has the highest retail outlet density in the world, with an average of 5.5 stores per 1,000 people. But almost all of the 12m “mom and pop” stores that account for 98% of the $300b industry’s sales lack access to capital and technology.
Promising 500,000 net new jobs in three years, the industry’s growth would leave room for modern retailers such as Reliance to co-exist with family-run operations. Reliance plans stores in 784 cities and 6,000 smaller towns.
The emergence of potentially deflationary retail-sector forces will be welcomed by the Reserve Bank of India at a time when inflation has broken out of its 5-5.5 per cent comfort range.
What to look out for -
Reliance plans to open 100 Reliance Fresh stores in Delhi by April as part of a proposed $5bn-$7bn investment in a “farm-to-fork” supply chain that will force radical change on one of India’s biggest and most inefficient sectors.
India has the highest retail outlet density in the world, with an average of 5.5 stores per 1,000 people. But almost all of the 12m “mom and pop” stores that account for 98% of the $300b industry’s sales lack access to capital and technology.
Promising 500,000 net new jobs in three years, the industry’s growth would leave room for modern retailers such as Reliance to co-exist with family-run operations. Reliance plans stores in 784 cities and 6,000 smaller towns.
The emergence of potentially deflationary retail-sector forces will be welcomed by the Reserve Bank of India at a time when inflation has broken out of its 5-5.5 per cent comfort range.
And the tag line could be "Kar Lo Sabziyan Mutti Mein."
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