Word of Caution for Indian Retail Chains

Regaining The Lost Freshness!!!

The under laying principle of earning for a retail chain is marked by sales in volume while keeping the prices low as well as keeping an edge from the nearest competitors. Another marked approach other than selling in high volume which can bring profit to retail chain to counter their higher establishment cost is efficiency in supply chain (procurement) and distribution. While on the consumer side a retail enterprise must think about savings of the consumers, best value of purchase, a less time consuming and a non-tiring affair.

Everything goes fine when it comes to medicines, FMCG, consumer durables, IT, wellness, auto accessories and other product that have higher shelf life but when it comes to food, a retailers’ strategies tumble’s down and results into longer than sale by date on the retailers self for most of the items, subsequent staleness of fresh items resulting in chaotic behavior of employees which churns down permanent or returning customer. Further, infringe online groups who shares their daily life and personal experience online may permanently ruin reputation of a brand to the point of no return and a complete collapse afterward.

So why these companies like The Reliance fresh supermarket chain(RIL’s Rs 25,000 crore venture) who once claimed of “farm-to-fork’’ is failing?

Retailers part of story

When the company first started its operation in October 2006 by starting its first store at Hyderabad, the company claimed that its focus will be on fresh produce like fruits and vegetables at the prices much below the market. Their “farm-to-fork” theory in which they claimed they will procure directly from source i.e. farmers and will remove middle men from the sourcing chain after a while started to show its colours. Further Reliance Retail is minimising its exposure in the fruit and vegetable business and positioning other items comprising food as the majority of the stock. In some states the chain may not stock fresh items entirely. Although their claims are that they have decided not to compete with local vendor due to political and due to their own inability to create a robust supply chain on the other side.

Although their part of story is true but not complete so what went wrong and still what is amiss from their part of story?

Keep watching this for more…..