Retailers go extra mile to woo customers

MUMBAI: Stacked on the rear shelves of the just opened Reliance Fresh outlet in Hyderabad is a clue; exactly the kind retailers scour markets sniffing around for. Heaped in two black plastic crates are puja flowers; chrysanthemums and the more expensive, but headier, jasmine.
Though slightly incongruous in this air-conditioned 2,300 sq ft Banjara Hill outlet, with its aisles of wrapped vegetables, well stocked visi-coolers and bar-coded produce, they are a clear sign of how modern retail is bending over backwards in the face of local tastes and preferences.
On the shelves are four to five varieties of rice including a local favourite, sona masuri. A number that may go up to 40 or more, once Reliance rolls out nationally. "We have placed small sample bowls in front of each variety as Indians typically like to touch and feel the produce before purchase," said Jai Bendre, head, food marketing.
The upcoming Reliance Fresh stores, part of Reliance ambitious Rs 25,000 crore retail initiative, will have separate non-vegetarian sections and offer home delivery much like the neighbourhood kirana. Onions, potatoes, tomatoes and other price sensitive categories are being offered in three quality grades, each a few rupees expensive than the other, to serve all wallet sizes. In house brands of staples rub shoulders with more expensive ones and cut vegetables and fruits are being sold alongside regular ones.
Hyderabad, where eleven pilot stores have opened is being used to tweak critical supply chain or backend, which enables global heavyweights like Wal-Mart to offer the cheapest rates and the widest choice of products. Reliance Fresh's pilot farm-to-fork project currently uses 16 collection centres in and around Hyderabad to collect fresh produce.
Be it cabbage from Bangalore or tomatoes from Madanpalli, 32 vehicles and around 100 people are involved in ferrying it to processing centre, having cold storages and rooms, where it is cleaned, sorted and graded.
Reliance says pickups usually reach the processing centre anywhere between 12 to 18 hours from collection. "The earlier you pre-cool, the longer the shelf life. So as we grow and volumes pickup, the collection centres may be fitted out to act as mini-processing centres," said Gunender Kapur, head of the foods business. This is in addition to the fruits and vegetables it buys from local vendors and directly sourced regional specialities like apples from Himachal Pradesh."
Right now the emphasis is to ensure that whatever is available reaches stores fastest. But going forward, we will work with farmers on what to grow and how to grow it best," said Sanjay Asthana, head of agri-business.
Reliance Fresh offers a glimpse into how food retailing is likely to shape up in this country. Already retail brands like Food World, Food Bazaar, Subhiksha, are fighting it out in markets like Hyderabad each trying to outdo the other by offering the best prices, widest range and special promotions.
While food, the largest part of any household budget, holds enormous potential, this is a business that requires deep pockets and long waiting periods. A lot of things need to be got right, especially location. "Typically most of the everyday buying is done in shops that are in and around where one stays. Ideally walking distance and hardly anything beyond one and a half to two kilometres," says Atul Ahuja, principal consultant, Technopak.
But the rewards for those who get it right can be gratifying as Reliance Fresh discovered; the puja flowers sold out in two hours of the store opening.