Reliance Retail to enter Rural Retailing

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It seems that Reliance Retail will leave no stone unturned to succeed in its Retail foray.  After trying its hand hard across many verticals of Retail, now they are venturing into Rural Retail through rural-business-hub (RBH). Reliance has already faced a lot of revolt in many of the states in India. So, to be on the safer side they are starting from their home state i.e. Gujarat this time. Moreover for its RHB business, the company aims to avoid difficult states such as UP, West Bengal and Bihar. This model will compete with existing players in Rural India like DSCL’s Hariyali Kisan Bazar and Biyani’s Aadhar.  

Reliance will provide farm input, food, grocery, consumer durables, and financial and health services. It will also provide farmers a platform to sell their produce, an equivalent of village haat. A community hall and entertainment facilities will form part of the hub.

A typical RBH would be spread over 3-5 acre and require an investment of around Rs 5 crore, besides the cost of land.

The major challenges which Reliance might face in this business can be:

·         Competing with the existing players like Hariyali Kisan Bazar and Aadhar.

·         Managing village politics as local politicians are quite influential.

·         Success of health services can face major challenge as government already have made huge investment and is still facing problems.

 

-          ;) Rajeev Damani :)

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6 Responses to “Reliance Retail to enter Rural Retailing”

  1. Sarthak Says:

    Aha! Reliance is again at it…Well! We have already discussed the after-effects of unplanned retail “boom” exansion taking place! Consolidation, In my view is applicable everywhere in India :) Just a wait and watch game…

  2. Rajeev Says:

    Very true sarthak..

  3. swapnil Says:

    woh!! thats great…..
    another opportunity to make carrer in rural marketing…

  4. rajeev kalaskar Says:

    Thats good, but still reliance fresh & mart run in loss,
    how they are come up with RBH.
    yes, in rural market huge opportunity
    let’s see what happen?

  5. amit garg Says:

    This is a great project, i had also worked on this in project phase , it will change the people thought process about rural reatil,Hope RBH , to start soon,

    My Best wishes

  6. nitesh kumar chaudhaury Says:

    hi this is nitesh pursuing MBA(RURA DEVLOPMENT &MANGMENT 3 SEM).This will be a great oppourtnity to expand their bussiness in rual areas as this is the only sector which has remain untapped.Day by day their purchasing power is increasing morever the govt main focus is towards rural devlopment many rural programme has been launched like NREGA,BHARAT NIRMAN.I did my summer training in district CHAUNDAULI(UP)to assess the overall govt programme under the guidance of ANURAG YADAV (ADD.COMMISSONER OF NREGA LUCKNOW).I saw their is a huge oppourtnity especially for the corporate sector .PLZ CONTACT ME my number is 9889017979.

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