Reliance retail has been advertising four times more since July to August this
year compared to the same duration last year increasing its visibility amongst
consumers as it takes control of one-third of India's organised retail market
and competes with ecommerce majors.
Reliance Trends and Reliance NSE 2.57 % Digital including My Jio Store were the top brands advertised by
the conglomerate.
From ranking 162 in the list of top advertisers
on TV, according to Adex data, Reliance Retail moved
to the 32nd spot this year during July-August period.
The advertising has been in the run up to the
acquisition of Future Group's retail business across apparel, lifestyle and
grocery segments. The deal has given the company control over more than a third
of India's organised retail.
Experts said that there will be more such
initiatives from the Mukesh Ambani owned company as it is now competing
directly with the online retail majors like Amazon and Walmart owned Flipkart which spend heavily on
advertising and promotions.
"The real competition that Reliance Retail
has is with the online player and if you look at the offline retailers, they
don't advertise much. That's one reason why offline retailers have gone out of business.
Promotions just in stores doesn't mean anything, retailers also have to bring
customers to stores," said Harminder Sahni, managing director Wazir
Advisors.
The company emerged as the largest advertiser in the retail
sector, accounting for 63 percent of overall TV advertising done by the retail
industry across all national channels.
Other retailers who advertised heavily on television during this period were
Infiniti Retail Croma, Zoya Healthcare and Metro Cash and Carry, according to
the Adex data.
The Reliance Industries, which clocked revenues of Rs 1.63 lakh crore in the
retail business last fiscal, will look at gaining market share in apparel and
grocery segment as it has in electronics, experts said.
Sandip Ginodia , CEO
ALTIUS INVESTECH PVT LTD
We deal in over 60 unlisted companies with 15 years of experience
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