Reliance Digital, the Largest Seller of Technology Products

Reliance Industries has emerged as the largest seller of durable and technology products in the consumer electronics and mobile phones retailing business. The Mukesh Ambani-led company has used a different strategy from its rivals to establish itself in the market.

Sales of Reliance Digital

Reliance Digital is the consumer electronics arm of Reliance Industries’ retail venture, Reliance Retail. In the Financial Year (FY) 2014 – 2015, Reliance Digital accounted for sales as high as INR 4,233 crores. Reliance Industries revealed this information in its annual report. In the previous year, sales of Reliance Digital wereINR 3,044 crores. Tata-owned Infiniti Retail’s white goods and mobile phone retailing chain, Croma was the leading name at the time, with sales of INR 3,198 crores. Industry experts said that Croma has shifted its focus towards profits and hence its growth rate decreased.

Reliance Retail’s Expansion

In FY 2014 – 2015, Reliance Retail boosted its presence by opening many new stores. It added a number of small size retail outlets as well, known as Digital Express Mini. Overall, the company set up 912 new outlets in one year. At the end of FY 2015, Reliance Digital had a total of 1,196 stores.

Not surprisingly, Reliance Digital also leads as the biggest consumer electronics retailer in FY 2014 – 2015, purely on the basis of number of stores. It raced ahead of Next Retail-Planet M of Videocon Group that had around 800 outlets and franchise stores.

Adding of the retail outlets resulted in a 39% growth of sales for Reliance Digital. Around 25% of Reliance Retail’s revenue is obtained from Reliance Digital. Its value retailing business including hypermarkets, convenience stores, and supermarkets, among others, contributes to the biggest share of its revenue, which is nearly 54%.

As per an analyst presentation prepared after Reliance Industries’ September 2015 results, Reliance Digital is constantly expanding. It has expanded its total number of stores to include 1,380 outlets, spread across 225 cities of India.

Reliance Digital’s Digital Express Mini format has also made itself the largest cell phone retail chain in the country. It is widely establishing itself as a distribution platform for a number of national and international brands. Digital Express Mini stores have made their presence in more than 150 cities of the country. The company is planning to extend the chain of stores to 800 cities.

Reliance Retail’s Role in 4G Launch

According to industry experts, Reliance Retail will play a major role in the telecom venture of Reliance Jio Infocomm’s 4G services. It will focus on the distribution of mobile phones and aftermarket services to enhance the popularity and usage of 4G.

Reliance Jio has partnered with a number of 4G handset vendors. Reliance Retail will sell their Voice over Long-Term Evolution (VoLTE) phones, ranging from INR 4,000 to INR 40,000. It has come up with an initiative known as Reliance Retail 2.0, which will establish the distribution ecosystem for Reliance Jio handsets. Additionally, Reliance Retail has also strengthened its retail network with 1,200 distributors and 1.5 lakh retail stores.

Summary

Reliance Digital has become the largest seller of durable and technology products in the country.

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