key retailer report - more · pdf filekey retailer report november 2012 reliance retail...
TRANSCRIPT
Key Retailer Report
November 2012
Reliance Retail Limited, established in 2006, operates retail outlets in Indiaspanning across value and specialty segments. Reliance Retail Limited is asubsidiary of Reliance Industries Limited. Reliance Industries Ltd is India'slargest private sector company with varied businesses and turnover inexcess of US$55 billion. It operates under various brandsincluding Reliance Fresh, Reliance Mart, Reliance Digital,Reliance Jewels, Reliance Trends and Reliance Time Out.Reliance Fresh is an organized food retail chain established in2006 and operates as a supermarket.
Corporate website: www.ril.com
Contact Information (buying office)
Reliance Fresh LimitedBuilding-4, C Wing, Ground FloorReliance Corporate ParkThane Belapur Road, Ghansoli, Navi Mumbai, 400701 IndiaTel: +91 22 44771944
Mr. Rob Cissell, Chief Executive Officer (Reliance Fresh) Email: [email protected]
Mr. Shawn Gray, Chief Operating Officer Email: [email protected]
Background Information
Year Established: Reliance Fresh was founded in 2006.
Store Locations: Reliance Retail runs about 1,200 stores acrossmultiple formats in 86 cities covering six million sq. ft. Reliance Freshconstitutes the mainstay of Reliance Retail’s business and accountsfor 50% of the 1,200 stores.
Average Store Size: A typical Reliance Fresh stores is of 3,000-4,000 sq ft.
Type of Store: Convenience store format
Position within the Market: Reliance Fresh is positioned as aneighborhood store located in within residential areas. It aims toprovide customers with a variety of fresh fruits, vegetables, staplefoods and other products within a convenience store format. RelianceFresh aggressively partnered farmers by following a farm-to-folkstrategy to ensure fresh fruits and vegetables at affordable prices.
Target Consumer: Reliance Fresh targets semi-urban population largely in Tier-2 and Tier-3 cities of India
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Stores and Products
Product Categories: Retail outlets offer both food and non-fooditem. Food Items includes vegetables, fruits, food, beverages,groceries, and dairy products, refrigerated products. Non-food itemsmainly small catering items.
Pricing Strategy: Reliance Fresh operates on low cost model andoffers discounted pricing. Sourcing directly from manufactures andbulk purchasing provides the company with a price advantage. Thus,offering value pricing.
Company Brands & Private Labels Sold: The company has privatelabels for food, dairy products, beverages and groceries.
Reliance has consciously segregated its vegetarian and non-vegetarian items by having a separate brand Delight for thenon-vegetarins with a separate distribution center, as a means tocater to vegetarians. Seeing huge opportunities, they have introducedmany of their own brands.
Key Marketing Tools & Promotions:
– Promotional pricing strategy
– Holistic advertisement promoting the entire brand
– Newspaper advertising
– Loyalty schemes through membership cards.
Suppliers and Sourcing
Sourcing Strategies: It has a backward integration in terms ofprocuring from farmers and manufacturers.
Success Factors and Expansion Plans &Expectations
Expansion plans: Reliance Retail plans to raise up to Rs 4,500 croreor $900 million from its parent company, Reliance Industries, toaccelerate store openings and grow aggressively in select formats,even as some of its rivals look to shutter outlets and curtail expansionin retail business.
The Reliance Fresh profile created by:Nagesh Consults, India