Reliance Retail Reaches the Top Becoming Fastest Growing Brand
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Reliance Retail, Mukesh Ambani-run Reliance Industries Ltd.’s consumer brand, surpassed international brands to bag the top position on the list of ‘Fastest 50 retail brands’. The brand’s e-commerce push with a strong focus on building a strong consumer base and delivery network led to this jump, according to a report released by Deloitte India, a consultancy service company.
The brand jumped 55.8 percent compound annual growth rate (CAGR) to the first position from the sixth position a year ago, the report said. It is also the first Indian retailer to operate more than 10,000 stores in the country.
“Key initiatives taken by the government including liberalization of FDI norms for select sectors; a rollback of the much-debated tax surcharge on foreign portfolio investors; incentives to support several industries; bank consolidation, the amendment of insolvency and bankruptcy code enabling the resolution of financial companies, and a significant cut in the corporate tax rate are sure to show some green-shoots in the Indian economy leading to the boost of customer confidence.
Moreover, the young profile of the country and the increasing dependency on convenience through access to technology and digital platforms make the country one of the growing retail destinations of the world,” said Anil Talreja, Partner, Deloitte India.
Founded in 2006, Reliance Retail houses supermarkets and hyperlocal store under Reliance Fresh, and electronics under Reliance Smart. Clothing and apparel fall under Reliance Trends and Trends Footwear, respectively. Jio’s phones and tablets are also a part of the Retail brand, among jewelry, and online shopping site AJIO.
Increased internet penetration and affordable mobile phones have pushed the internet economy in India. This boom also gave a major boost to e-commerce companies including Silicon Valley-based Amazon Inc.’s domestic arm, and Walmart-owned Flipkart. To compete with these online giants Reliance Industries launched JioMart
The company opened the registration to its Reliance Jio Infocomm Ltd.’s customers in December, last year. Jio Infocomm, a telecommunication unit of Reliance Industries, is the largest telecom operator in India.
JioMart, which will gradually scale up after opening in Mumbai’s Navi Mumbai, Thane, and Kalyan, plans to sell more than 50,000 grocery products, with schemes including no minimum order, express delivery, and no-questions-asked return policy.
In the report, Reliance Retail was competing with U.S-based Wayfare Inc., China’s Vipshop Holdings Ltd., and Amazon Inc., which secured the 20th position, among others.