In response, Reliance is building a supply chain that provides small vendors access to products as well. Although product transportation remains rather inefficient, with 40% of products going bad before even reaching customers, Reliance is confident that it knows the Indian customer and carefully avoids bombarding the country with stores, as Wal-Mart has done in other locations. The company plans to create a half-million new jobs and continue to expand the chain.
By the time other companies choose to move into India, Reliance likely will have a strong hold on the market. By law, international companies must partner with Indian firms to do business, so Wal-Mart and Carrefour have yet to expand to India.
The arrival of supermarkets represents a huge change for India, not only because of the change in consumer behavior but because it marks a shift in the entire retail industry. Ultimately, higher-quality products and improvements to the transportation system demanded by the new model should prove beneficial to the country.
1. What steps is Reliance taking to ensure the success of its marketing strategy?
2. In a global marketplace, what advantages does Retail Reliance still have?
Laurie Goering, “India Grapples with Growth of Modern Supermarkets,” The Baltimore Sun, February 04, 2007.