Mr Ajai Baijal
President and Chief Executive
(consumer durables, IT & telecom)
Reliance Retail Ltd

elaborates on the newly launched Reliance Digital outlets, in an interview with the Retailer

Retailer: How will Reliance Digital compete with chain outlets like Subhiksha and Big Bazaar, which are already in the market? What made you choose Indrapuram (NCR) as the location for the first outlet?
Ajay Baijal: Reliance Digital will provide the best services and attractive prices. After trying out our format, consumers will realise our value service. At present, there is no such store in the NCR and this has prompted us to select Indrapuram as the location for the first Reliance Digital outlet.

Retailer: How will you satisfy the consumer?
AB: Reliance Digital would resort to 'return facility' if the product is found defective. Good after-sale service and standard warranty of all products sold by the company will be other provisions.

Retailer: Will Reliance Digital have its own warehouses or will the supply be made directly from the manufacturers?
AB: Supply to stores will be from its own warehouses and therefore we plan to develop our own distribution chain. However, we may, in some cases, bank on a direct supply from the manufacturers or producers.

Retailer: How will you maintain minimum prices in the market and compete with Korean and Japanese products?
AB: Reliance Digital is not primarily meant for 'prices'. We lay stress on three elements - price solutions, services and promotion. There are several Indian and foreign brands that want our service. Many foreign brands have contacted us for 'distribution' but we have not yet finalised the details about it.

Retailer: What amount will the company invest in these retail outlets?
AB: The company has planned to invest approximately Rs 25,000 crore. At present, we have decided to invest Rs 5 to 10 crore per big store. The group estimates a turnover of Rs 20,000 crore from its Reliance Digital venture in three years.

Retailer: Which locations are the right locations for opening such outlets? Are you interested in opening such outlets in malls?
AB: We concentrate, while looking out for locations, on good locations with good catchments. When it comes to malls, we are not interested in any mall. We always prefer quality malls to ordinary malls.

Retailer: What are your plans for new outlets in the country, especially in the north?
AB: We have planned to open 150 specialised shops in 90 cities across the country within next three years. Twenty to 30 outlets are coming up in the NCR by 2010. By the year-end, Jaipur and Lukhnow will have one outlet each. Another 8 to 10 stores would also be operational in the state of UP by 2010.

Interview conducted by Pallavi Majha
Email: spallavi@franchiseindia.com