The FMCG market is set for a disruption with Reliance Retail launching its products under brand name ‘Independence’. The company said the brand will be present in multiple categories, including staples, processed foods and other daily essentials, directly competing with the likes of HUL, ITC, Marico and Tata Consumer.
“I am happy to announce the launch of our own FMCG brand, Independence, which brings a wide choice of high quality and affordable products including edible oils, pulses, grains, packaged foods and other daily need products,” said Isha Ambani, Director, Reliance Retail Ventures Ltd.
Mastering the model
To start with, Reliance Retail has launched 20 products in Gujarat on a pilot basis, as it prepares for a national rollout over the next few months. The person explained that the company’s plan is to master the model and then move to neighbouring States. “The product portfolio will be different for each State depending on the demand and the type of product consumed,” the source added.
Arvind Singhal, Founder & Chairman of Technopak Advisors, said Gujarat is the perfect State to pilot as it is the second highest in per capita income and the model, once perfected, can be mimicked country-wide.
Changing dynamics
Industry experts believe that Reliance Retail’s foray into this segment will be a market disruptor just like how Jio changed the telecom market from voice to data centric. “The company has a significant consumer play through channels, including Jio Mart, Reliance Retail and AJio. Their intention was very clear when they acquired Campa Cola and other brands as they were part of the larger strategy and they will play in a wide range. They are slowly building a range of brands to use in the ecosystem,” said Lloyd Mathias, business strategist and independent director.
Consumers will now be able to get a wider range of products with more options at competitive pricing, said Anuj Sethi, Senior Director, Crisil Ratings Ltd.
“Most food and grocery (F&G) retailers who are trading in FMCG brands of other companies are also increasingly introducing their brands, mainly in the value price segment, to drive growth. If owned brands by retailers can achieve revenue ramp-up to sizeable levels, it will help increase the market share of organized FMCG players,” Sethi explained.
While Reliance Retail has private labels, brand Independence will be on a large scale.