Reliance Retail to Launch Project Eve Retail Stores

Mukesh Ambani led Reliance Retail is set to launch a retail experiential store with premium services. The chain will be called Project Eve. These stores will have a host of facilities for the customers and are set to be more premium than the existing chain of Reliance Retail called Reliance Trends.

Project Eve

This chain of stores will have apparels, cosmetics, footwear, and jewelry. There will also be salons and cafés where shoppers can relax and rejuvenate themselves. All of these services will be available under one roof for their convenience.

With regard to shopping, the Project Eve stores will have in-house brands as well as international brands. The chain will focus on high fashion and premium wear in order to differentiate itself from the existing stores in India which are driven primarily by discounts.

According to a report in Economics Times (ET), the stores would be around 5,000-10,000 square feet in size. One of the executives involved in the store launch said that Project Eve will mainly focus on urban markets like Bengaluru, Delhi, and Mumbai.

Director at the retail consultancy Elargir Solutions, Ruchi Sally, stated that Project Eve might face some challenges as international brands like Zara and H&M have a large piece of market share with plans of expansion and these brands are ahead in fashion and style. She also opined that Reliance Retail will have to come up with a unique experiential retail format in order to set itself apart and not through pricing.

Apparel market in India

Indian apparel market is on the rise as there is fierce competition between varieties of indigenous as well as international brands. The Indian apparel market is expected to reach a valuation of around 60 billion dollars by the year 2020. The global brands in India like Zara, Gap, and H&M are aggressively focusing on expansion with a view to tapping into India’s non-metro cities as well.

Experiential retailing is getting more attention as competition is going on increasing. As margins are shrinking for core products, global players like Adidas, Nike and Under Armour are trying to find a way to stand out. Under experiential retailing, these stores are innovating and offering coffee shops, yoga place or gyms inside the store.

About Reliance Retail

Reliance Retail is a diversified group under Reliance Industries Limited (RIL), which is headed by Mukesh Ambani. RIL has undertakings in telecom, petroleum, and media. Reliance Retail is one of the largest retailers in India. It operates Reliance Trends and Reliance Brands which have associations with several international brands, such as Diesel and Superdry among others.

In the Financial year (FY) 2016-17, Reliance Retail’s overall revenue was INR 33,765 crore. Out of this a 15% share or INR 5,000 crore was contributed by the fashion and lifestyle segment. In the previous year, this segment contributed 20% of revenue for Reliance Retail. The percentage of contribution reduced because Reliance Retail shifted the focus from fashion and lifestyle to electronics and grocery. However, margins in the apparel business are significantly higher compared to other business verticals operated by Reliance Retail.

Summary

Reliance Retail is all set to launch a chain of premium fashion and lifestyle stores called Project Eve. These stores will function under the experiential retailing format.

Advertisements

Tags: , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: