Reliance Retail to launch Reliance Centro

Reliance Centro is set to launch by Reliance Retail and will likely cause a big battle for the consumer's wallet in the fashion and lifestyle space. The first store was off the ground in Vasant Kunj, New Delhi. In the past, the group had created serious disruption in consumer facing businesses, such as telecommunications and broadband, followed by retail. This foray promises to be the next round of intense competition with a limited number of players in fashion and lifestyle.

A statement from Reliance Retail said Reliance Centro has more than 300 Indian and foreign brands. There are various categories of clothing, footwear, lingerie, cosmetics, sporting goods, luggage, accessories, among others. The first store is spread over an area of 75,000 square feet with over 20,000 style options.

Reliance took over 200 Big Bazaar outlets, 34 Central stores and 78 Brand Factory outlets earlier in the year, which were owned by Future Group promoter Kishore Biyani. Many Big Bazaar outlets have since been rebranded as Smart Bazaar, with Reliance Centro coming up in place of Central. Industry trackers say the Central name may not have been possible to use since it is registered with the Future Group. Centro is also the name of a footwear store chain in Hyderabad.

Susil S Dungarwal, Promoter and Chief Mall Mechanic, Beyond Squarefeet, a mall advisory and mall management company, Reliance Centro will be in direct confrontation with the likes of Lifestyle, owned by the Dubai-based Landmark Group and Shoppers Stop, promoted by K Raheja Corp. He says this is a market that is dominated by these two players and they have been around for over two decades without any serious competition.

On the likely strategy that Reliance will adopt, Dungarwal thinks they will play a variety game in which the product offerings will be substantial and not one led by price. Reliance can be a disruptor because it has the money and ambition. With so many retail formats, they are in a position to negotiate hard with the mall owners. He says that the conglomerate already has Reliance Trends, which has primarily in-house brands. There is no overlap. Harminder Sahni, MD, Wazir Advisors, says there is a lot of room for growth in fashion. India is very attractive for organised retail and we are just at the beginning of a long story.