According to Economic Times, Reliance is offering 6%-8% margin to its retailers and distributors. This margin is double than the average margin. On the other hand, big players like Britannia, Hindustan Unilever offer 3-5% margin to its retailers and distributors.
After venturing into the cola segment, Reliance Chairman Mukesh Ambani has mounted pressure on companies like Parle-G and Britannia. Now, Reliance is all set to compete with big companies like Britannia, Hindustan Unilever, Nestle and Parle. Under the umbrella of Reliance Consumer Products Limited (RCPL), the company is selling its products in the lines of Campa Cola.
Reliance had adopted a strategy to counter leading brands by increasing the margins of retailers and distributors in the cola segment. The company doubled its margin in comparison to other brands. Now, the company is all set to apply a similar strategy for its other products. The advantage of this strategy is that the distributors and retailers give priorities to its products so they can earn more profits.
According to Economic Times, Reliance is offering 6%-8% margin to its retailers and distributors. This margin is double than the average margin. On the other hand, big players like Britannia, Hindustan Unilever offer 3-5% margin to its retailers and distributors.
In fact, the traders shelf these products in front so it could fetch customers’ attention and they also promote the product by urging them to use it. This is the reason that other companies will face pressure from Reliance.
The FMCG branch of Reliance Retail sells food oil, pulses, beauty soap, Snac tac biscuit etc.