Simple things.. Are they Really Simple ?

Tuesday, January 02, 2007

Reliance Fresh : your shop next door ?

Retail has become a much happening sector. Many heavy weight champions are all in the game. When news started flooding in about their foray into retail, myself and my friend was discussing on this and doubted whether this place is getting over crowded. Apart from many national level players, I could see some regional level players also have a profitable growth plan for their business.

I have one strong feeling, if we people are able to discuss all the plus and minuses, and say good or bad about their entry into the business, they must have thought well ahead of us before jumping on the idea. From our point of view, it is better to reserve our comments. Lets wait and watch.

Recently Mr. Mukesh Ambani said that India has enough market space to accomadate 6-7 organised retail players to take the share of the wallet. Mr. Sunil Mittal has also said that, even in this hot retail scenario,both big player and kirana stores can co-exist.

Fine, so how are they going to start their game?

My guess is Mittal's walmart would definately come in a mega place where there will be a ample shopping/parking space etc etc. It would start from the metros first.

Birla's retail will concentrate on getting into second rung cities. It seems they are clear about that.

So how Reliance is going to operate ?

I live in a street for which one need to take two turns from the mail road. It will be like a less busy area and relatively a small street. Last week I noticed a building which was getting ready for a shop like purpose. Yesteday when I was passing by that place, people were working on the name board. Out of curiosity when I peeped in, I could read - RELIANCE FRESH. It was big surprise for me. The locality is not so busy one and the space of the shop is also not so big one. When I compare it with the other supermarkets in our locality, the place must be smaller or equal, definately not bigger.

I was able to guess their positioning. They are trying to make it as a shop next door. Again, I reserve my opinion and comments for now. Have to wait and see what kind of products they are going to start with, quality etc.

Will update you once they start their operations in full fledge.

Quite interesting to watch all those stuff !!!


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