As we all know that India’s richest man, Mukesh Ambani owned supermarkets of Reliance Retail have its own little-known food and home cleaning brands.
Contents
Cheap Option Or Something More
Basically, it takes pride of place on shelves alongside global labels owned by giants Nestle, Unilever and Coca-Cola.
Initially, they may seem like a cheap and cheerful option compared to other established brands for urban shoppers.
But if we see closely, they are a bet for Ambani’s pitching brands that are basic, yet still aspirational at ‘kiranas’ – traditional mom-and-pop stores.
Roughly, they serve over 80% of the retail market in the country.
The products such as Snac tac noodles and Yeah! colas are Reliance’s private label brands.
They are also Ambani’s not-so-secret weapons as he sets his sights on dominating a grocery market.
Currently, they are worth a cool $608 billion and expected to grow 20% in 2024, as per the information provided by Forrester Research.
Snac Tac Beating Maggie
Nestle’s Maggi “2-Minute noodles” sit next to Snac tac “Ready in 2 mins” noodles in the supermarket.
Interestingly, both are in yellow-coloured packaging with an image of a red bowl full of noodles, Snac tac costing roughly 18% less.
Similarly, bottles of Yeah! colas stood beside Coca-Cola and PepsiCo’s offerings, at around half the price.
Reliance Business Strategy
So far, Reliance has declined to comment on its business strategies.
Reliance has already become India’s biggest retailer, although the $3.4 billion deal to buy no. 2 player Future Retail still awaits clearance.
According to an industry executive familiar with its strategy, Reliance has “immense focus” on private labels.
“The company’s trying to offer brands of equivalent quality at a lower rate … from a consumer standpoint, that works. It’s a fact, five years down the line, private labels will be a different landscape,” sources say.
What Do Other Brands Say?
Nestle India has not answered questions on Snac tac but mentioned that it continues to “prioritise innovation”.
Further, saying that they are confident in its consumers and will choose the brands that serve their needs in a better way.
Similarly, Hindustan Unilever (HUL), the India’s top consumer goods maker also declined to comment.
In the same way, Coca-Cola didn’t respond but PepsiCo India said it doesn’t comment on the strategies of other companies.
Although, the sales representatives of HUL, Nestle and Indian consumer giant ITC interviewed by Reuters at various Reliance supermarkets expressed concerns.
The similar packaging and lower prices on Reliance brands were luring some customers away, according to them.
At the same time one consumer said that “It’s cheaper than Maggi … I quite like it,”.
Comments are closed, but trackbacks and pingbacks are open.