The Hindu Business Line : Reliance Digital promoting ‘connected home’ concept

Gurgaon, March 7 Mukesh Ambani-owned Reliance Retail is planning to popularise the ‘connected home’ concept through its consumer durables and IT retail venture — Reliance Digital — even as the company is eyeing a lion’s share in the consumer durables and electronics segments.

Connected home offers users the opportunity to connect all their consumer durables, electronic and IT products at home with their personal computer or laptops through Microsoft software such as Windows Vista and X Box.

Reliance Digital has introduced the concept at its 42,000-sq-ft store in Gurgaon in the National Capital Region.

“The connected home concept will be initially showcased in a 450-500 sq ft area in the stores and the company is planning to add more such kiosks in its outlets,” Mr Ajay Baijal, President and Chief Executive, Consumer Durables IT and Telecom, told Business Line.

The company is also planning to increase the number of stores from four to 150 by 2011. Reliance Digital has also tied up with US-based Apple to open iStores in the country.

The iStores will retail products manufactured by Apple, including the popular iPods and will be initially set up in Hyderabad and Bangalore.

Mr Baijal said the Reliance Digital stores function as one-stop shops for all technological solutions in the consumer durables and telecommunications segments and have 7,000 SKUs in the durables, electronics and IT space.

“We hope to capture about 10-15 per cent of the estimated Rs 70,000-crore electronic goods market,” he said.

Asked if the company is pursuing private labels, he said, “We are looking at consumer durable private labels. However, we need a minimum scale to be profitable in the business. We are evaluating the possibility of introducing various new brands for the customers to choose from.”

He said the company is open to tie ups with international players if foreign direct investment is allowed in the sector.

Reliance Digital will also provide pre- and post-sales services through its in-house RelianceresQ vertical as also EMI schemes through Reliance Finance.

More Stories on : Strategy | Retailing | Consumer Electronics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page