It will soon be raining consumer durable retailers in India! Reliance Industries is in a hurry to kickstart its operations this month, before international players like Best Buy and Jumbo flood the market. CNBC-TV18 reports.
'Reliance Digital' is the name likely to be up in front of Reliance's Durable Speciality stores. Reliance Retail will open its first durable store in the national capital region, or NCR, by end of this month, which will be followed by two other stores in south India. The company is looking at opening 15-20 such stores, covering six-seven cities in the first year of operation.
Raghu Pillai, Pres & Chief Exec (Ops & Strategy), Reliance Retail says, "Fitch for designing of our stores. We will be opening our stores in Delhi, Bangalore and Mumbai."
This selection of the designing firm is obviously foreseeing the entry of Best buy, the largest consumer electronic retailer globally, into India. Fitch is also designing newer format stores for 'Best Buy' internationally.
Sources tell CNBC-TV18, that CEO of Best Buy will be visiting India this month for initial talks. Also, Dubai-based consumer durable chain, Jumbo, has already bought about six properties in Delhi and should be starting its first store in a month's time.
No wonder then, Reliance is in a hurry to kick start this venture. It is aiming at a topline of about Rs 1500-2000 crore in the very first year. Also Reliance Retail's plans to provide after sales service may finally be falling into place.
Girish V Rao, VP - Sales & Mktg, LG says, "If they meet the standards, we can let them take care of customer service, maybe we could consider that."
Early this year, Reliance Retail had sought margins of about 30-40% from durable majors but they will now have to settle for 13-14% margins.
Source: Moneycontrol
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