Whatever Reliance does, it has economy of scale and it is not easy to match Reliance Scale. Even Walmart will find it tough.
I feel Reliance can make small KIOSKS but Reliance should go for MEGA STORES in such states which have no problem with Reliance as well as Electricity.
Gujarat is one such state, Punjab / Haryana are another supportive states ( Only issue is electricity) >> Here Reliance should have MODULAR Designs to help it scale up operations as and when Power situation favours.
AP has given support and Relaince should examine it.
RE:Whatever Reliance does, it has economy of scale.
by Shiva on Oct 09, 2007 10:17 AM Permalink
Mega stores will fail purely because of the real estate price.
They cant sell vegetables. If they do they will become vegetables of course rotten.
RE:Whatever Reliance does, it has economy of scale.
by Agnesraja George on Oct 09, 2007 12:07 PM Permalink
In any developed country the retailers are one of the key factor on real estate pricing. If the builder builds and no body buys what they will do with the property. You can see so many malls in Gugoan which are empty without shops and customers. Only organised big retailers can improve this. When retailing becomes organised you will get fresher vegitables. Do you know about 30% of vegitables produced in India are wasted due to poor storage. Only big retailers can invest on better storage.
