Mumbai: In the light
of regional protests against its retail business, Reliance seems to be fine tuning
its business model to keep it on track.
to reports, the company is now looking at partnerships with local ''kirana stores'',
while simultaneously pursuing an independent retail strategy for the larger format
stores in the retail business, hypermarts.
indicate that Reliance Retail has started sending out invitations to retailers
and individuals to adopt the Reliance franchise model. They say that the plan
is to let the company select and revamp the retail outlets, which would then be
operated by the small retailers using a revenue sharing model, and will sell both
Reliance''s as well as other brands.
the company is looking for franchisee options across product categories, including
cosmetics, jewellery, watches, books and toys.
the franchisee option does allow small-time retailers to upgrade their stores
as well as simultaneously increase business volumes through stocking more brands,
not everyone is buying the story.
sceptics amongst the industry argue that this move could more than just forecast
good fortunes for the company, as it would allow Reliance to get the infrastructure
in place, and at some time in the distant or not-so-distant future, allow it to
compel the owners to sell their stores.