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The Reliance Retail Revolution against WALMART ?
It is understood that Reliance is planning to spend upto Rs 100 Crores
(Approximate 25 Million USD $) just on their top management salaries during the first year of their new Retail venture.
How would the late Mr. Dhirubhai Ambani the original Reliance patriach founder have reacted to this golden opportunity to recreate a large retail industry from scratch ?
Perhaps, he would have approached the millions of India's unorganized retail
traders, offered them equity shares in the new retail business, given them
training in modern retail technologies and made them Reliance's working
business partners on a commission basis in it's retail locations all over
India.
India's unorganized retail entrepreneurs may be uneducated.
But they are not street-stupid, but street-smart.
Who know and sense every pulse and breath of the Indian consumer.
Just as the capital markets small investors revolution was triggered by
Reliance a few decades ago, a golden opportunity to trigger the movement from India's large parts of 'unorganized' retail trade (over 98 % plus) to the
organized one (2 %) lies ahead of it.
If it can seize the opportunity.
That also would perhaps be a street smart uniquely 'Indian' Reliance
revolutionary strategy to beat the foreign majors (like WALMART) who would soon be knocking on India's retail doorsteps in the near future.
Be local, to beat global.
Also, see a Periodic (Random) Snapshot of India's Organized Retail Sector.
It is understood that Reliance is planning to spend upto Rs 100 Crores
(Approximate 25 Million USD $) just on their top management salaries during the first year of their new Retail venture.
How would the late Mr. Dhirubhai Ambani the original Reliance patriach founder have reacted to this golden opportunity to recreate a large retail industry from scratch ?
Perhaps, he would have approached the millions of India's unorganized retail
traders, offered them equity shares in the new retail business, given them
training in modern retail technologies and made them Reliance's working
business partners on a commission basis in it's retail locations all over
India.
India's unorganized retail entrepreneurs may be uneducated.
But they are not street-stupid, but street-smart.
Who know and sense every pulse and breath of the Indian consumer.
Just as the capital markets small investors revolution was triggered by
Reliance a few decades ago, a golden opportunity to trigger the movement from India's large parts of 'unorganized' retail trade (over 98 % plus) to the
organized one (2 %) lies ahead of it.
If it can seize the opportunity.
That also would perhaps be a street smart uniquely 'Indian' Reliance
revolutionary strategy to beat the foreign majors (like WALMART) who would soon be knocking on India's retail doorsteps in the near future.
Be local, to beat global.
Also, see a Periodic (Random) Snapshot of India's Organized Retail Sector.
posted by Mahesh Khatri at 7:20 PM
2 Comments:
u reckon they will beat Macus?
I dont want to see Macus everywhere in India!! Macdonald's are good in expanding... They didnt have that oppurtunity in India up until this time. Lets get used to seeing the Big M :(
As reported in yesterday's business newspapers in India, Reliance is indeed planning to buy out several wholesalers or take equity stakes in their organizations for both their forthcoming retail venture.
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