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Bharati appears to be firm in its retail foray but will be focusing on Food & Grocery unlike Reliance's mega entry into every possible category. Bharati is scouting for a global alliance and appears to be mellow in its retail plans whilst in comparisan to Reliance.
Well after getting dozens of emails and requests for information on Reliance Retail, I'm finally happy to see that Reliance has finally created a page on its website stating a very rough and brief of its retail plan and a link to fill an rather exhaustive online application form.
Reliance Retail Website Link: http://www.ril.com/html/business/business_retail.html
Reliance Retail Application Website Link: http://www.ril.com/html/careers/applyonline_retail.html
Reliance is stated to be in talks with manufacturers in China as well as Pondycherry for sourcing its consumer durables for its planned retail foray. Plans include for a dual strategy to have the exisiting brands available in the country in White Goods along with a introduction of its very own private label.
Source: NDTV
Well its no brain-twister that Pantaloon is currently leading the rat race in being India's most successful retailer (atleast in turnover and expansion) and Reliance is the latest entrant in the Indian Retail Landscape to make ripples across categories and sectors. Whilst till a few months back every retailer was only wondering what would be the effect if Wal-Mart or the likes enters India, then what would thier strategy be. Now all of a sudden there is no mention of Wal-Mart either in media or across industries, for all we have someone right in our backyard.
With Reliance's announcement of its entry into Retailing a few months ago, the entire landscape has changed. Reliance obviously with its large investments, ambitious plans of scale of operations and entry across formats and categories is making headlines by the day even before it has set its first store. Although one could say it is experiementing with its Petrol Bunk Retail Convience Stores at the moment.
There's an interesting read at TMCNET talking about Pantaloon and Reliance in locked horns and secret meetings. Well gosip or facts, its not the last you would hear.
Although the recent Ad for Airtel's Music wherein there is a bunch of smartly dressed store-personell in a supermarket making music out of the store merchandise and directly relates to Airtels Music Downloads. But is this a sneak-peak of Airtel's entry into grocery retailing? Something to think about. Although Bharati-Airtel denies the same, there is no denying its rather obvious to put the two together. The world is not just full of coincidences.
Dixons, UKs High Street Electronics Retailer has finally given into pressure of etailing and is pulling the plug on itelf. Although most stores will not be closed, they will be rebranded as Currys.digital which is part of the Dixons Group.
Dixons will focus purely on e-business for the moment where its seeing 50% growth over the years.
The possibility of rebranding the stores for the moment as Currys.digital is probably because it can not surrender the lease of its 190 stores. The change will start in May 2006. Dixons Group has been under pressure for sometime now with stiff competition from etailers like Amazon and also retail chains like CarPhoneWarehouse.
Retail India Business Blog has crossed a registered subscriber of 600 couple of days back with a daily visitor hit of over 200
Pantaloon, India's very own version of Wal-Mart, is planning to setup a ticketing desk at its stores to cash in the travel boom in the country. Plans include to offer ticketing and hotel bookings although its yet to decide if to go solo or tie-up with an existing travel house for the moment.
Hugo Boss opened its 4th store recently in the country with its presence now in Delhi, Mumbai and Bangalore. Plans include opening up at Chennai, Hydrabad and Kolkata very soon.
Although with the recent change in FDI rules permitting brands like Hugo Boss to enter India with a majority stake of 51%, Hugo plans to still continue its Franchisee Model in the country for the moment.
It should be recalled that when Dr. Manmohan Singh, Prime Minister of India, made comments about Indian Agriculture and expectation of companies like Reliance getting into, that one should expect a huge relation between that and Reliance's plans in Retailing. The recent news splash of Reliance investing Rs. 4000 Crores in agri business in Punjab and Harayana is all part of Reliance grand entry into retailing and the major thrust of Grocery Retailing.
Getting into direct contract farming in such large scale initiatives, proposed building of an airstrip and purchase / lease of 25 aircrafts (as some have reported) just to transport the produce to different hubs is all mind-boggling for a country that has just started to see retailing in such frenzy in the last couple of years.
For the moment whilst Reliance keeps everyone guessing and releasing news like these, its anyones guess that its building a fort before FDI can really be opened up in the country. Reliance has already started to build its entry barriers to International Players like Wal-Mart and Tesco who are very keen on entering India as soon as the government opens up this sector. Reliance's tactics of absorbing the best talent, high salaries, multi-product, multi-format, all only show that its creating the entry barriers for others. Whilst some are wondering how Reliance is going to achieve this, it should be recalled on how Reliance went about in setting up its Reliance Infocom and Reliance Cafe outlets throughout the country in less than 18 months with a speculated investment of 15000 crores+ With atleast double the amount in its kitty now, its anyones guess now what can be achieved.
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