Reliance preparing to challenge established brands in FMCG sector

New Delhi. Reliance, which revived the yesteryear soft drink brand Campa, has now challenged established FMCG companies by foraying into the personal and home consumption segment and launching products at 30-35 per cent lower prices. Experts in the fast-moving consumer goods (FMCG) sector believe that the availability of Reliance’s products at a lower price than the products of established companies will encourage customers to try them and then buy them again based on their quality and performance. Will decide what to use. The products of RCPL, a wholly-owned FMCG subsidiary of Reliance Retail Ventures Limited (RRVL), are currently available only in select markets but the company is in the process of setting up a pan-India dealership network for the same.

As soon as this happens, their products will be available through modern and common business channels. An industry insider said, “They are building a dedicated distribution network that will include modern B2B channels along with traditional dealers and stockists.” Reliance plans to capture a key position in the $110 billion FMCG segment. and till now the sector is dominated by companies like Hindustan Unilever, P&G, Reckitt and Nestle. Reliance has recently launched several products in the market including bath soap, detergent powder and dish washing soap. Their prices are 30-35 percent less than the products of established companies. Prior to this, Reliance has also tried to compete with brands like Pepsi and Coke by introducing Campa afresh in the market.

Arvind Singhal, chairman, Technopark Advisors, said that Reliance had earlier created a major disruption in the telecom sector by offering low cost services and now it wants to do the same thing in the FMCG segment. But if the quality of its products falls even a little, it will not be able to succeed. Along with this, he said that Reliance has done the groundwork very well before entering the FMCG segment and is giving more emphasis on personal consumption. Dhairysheel Patil, President of All India Consumer Products Distributors Federation, said that the products of RCPL have not yet reached the market and if they are not launched in the media with publicity and advertisement campaign, then people will not even pay attention to them.

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