Reliance Retail to Make Value Store Foray with Yousta 2023
In the first phase, Reliance Retail will open new Yousta stores in locations like Hyderabad, Delhi, and Mumbai that are between 5,000 and 10,000 square feet in size.
Yousta is a new value retail shop style developed by Reliance Retail, the largest organized retailer in the nation. Reliance Retail will directly compete with Trent’s Zudio, Landmark Group’s Max Fashion, and Shoppers Stop’s Intune due to the transaction, knowledgeable sources have told Fe, as growth potential for the sector beckon.
During the first phase, Reliance Retail will launch new Yousta stores in Hyderabad, Delhi, and Mumbai. These stores will vary in size from 5,000 to 10,000 square feet.
Pricing would be less than Rs 500 per unit, focusing on attracting young people, kids, and families. The number of Yousta stores will gradually increase in the coming months, with Reliance Retail aiming to increase that number to 200–250 over the following several years. According to those in the know, the store is in talks with malls and high streets in several locations to lease space for the new model. Reliance Retail executives weren’t immediately available for comment.
Reliance Retail’s action, according to some analysts, is a tardy recognition of a sector that accounts for roughly 90% ($45 billion) of the projected $50 billion domestic fashion industry. A 10% ($5 billion) share of the local fashion market is estimated for the high end.
“The upper end of the fashion sector has received much attention from clothing shops lately. Despite the high levels of wealth at the top, the market has grown congested with national and international brands, according to Devangshu Dutta, CEO of Gurugram-based retail consultant Third Eyesight.
“The larger value retail market has consumers in the middle and lower middle class who, while conscious of their budgets, are also aspirational,” he claims. “With the right product and pricing, volume sales can be significant in this segment,” he claims.
Reliance Retail already has Reliance Trends, a value retail model with almost 2,500 locations nationwide. According to industry analysts, the firm has been attempting to expand its appeal in the category by adding new shop types. They assert that Yousta will fill that void.
The value retail industry has the potential for long-term growth since many customers are switching from unbranded to branded items. According to Aliasgar Shakir, a retail analyst at Mumbai-based brokerage Motilal Oswal, they are searching for reasonably priced branded items that value stores can sell.
According to several industry analysts, the market’s discretionary downturn has forced clothes retailers to pay more attention to the value retail sector.
According to Venu Nair, MD & CEO of Shoppers Stop, “Intune is a ‘Fashion For All’ format, which is one of our strategic initiatives to cater to young families,”
On the conference call, Nair acknowledged that there had been some deceleration in the garment market as a whole and that the company’s entrance into value retail may enable it to capitalize on the expanding market for low-cost clothes and lifestyle goods.
Max Fashion and Trent’s Zudio have ambitious intentions for the segment. During Trent’s FY23 annual general meeting, the firm recently announced that it would open 200 Zudio outlets in FY24, far more than experts had predicted. Trent added 117 Zudio locations in FY23, bringing the brand’s total number of places to 352.
According to top business officials, Max Fashion will open 100 new stores in the upcoming year, bringing its total number of outlets close to 600.
Reliance Retail, part of the multifaceted conglomerate Reliance Industries Limited, has made a bold strategic move in the retail space by announcing a collaboration with Yousta for 2023. This collaboration marks a new chapter in Reliance Retail’s growth, focusing on the value store sector. Here, we delve into this partnership, exploring the venture’s motives, potential implications, and what it means for the Indian retail landscape.
Reliance Retail is the retail division of Reliance Industries Limited (RIL), India’s biggest private sector company. With over 12,000 stores across India, it has become a significant player in the retail space. Their operations extend across various sectors, such as groceries, electronics, fashion, etc.
Yousta is an emerging brand known for offering value-driven products, especially in the lifestyle and home essentials category. Its business model emphasizes quality and affordability, which aligns well with Reliance Retail’s latest strategic direction.
The partnership with Yousta aims to expand Reliance Retail’s footprint in the value store segment. By joining hands, both entities are eyeing the vast untapped market seeking quality products at reasonable prices.
Key Highlights of the Collaboration:
- Exclusive Products Range: The collaboration will see the development of an exclusive range of products under the Yousta brand to be sold through Reliance Retail outlets.
- Omni-Channel Strategy: Combining online and offline channels, the partnership aims to offer a seamless shopping experience, providing convenience and accessibility to consumers across India.
- Localization: The collaboration is expected to benefit from Reliance’s deep penetration in tier II and tier III cities, coupled with Yousta’s expertise in creating value products that suit local tastes and preferences.
- Sustainability Focus: Both companies have committed to sustainability, and the collaboration may also focus on environmentally friendly practices.
The collaboration allows Reliance Retail to diversify its product portfolio and enter the value store segment with significant growth potential. By leveraging Yousta’s strengths in value-driven products, Reliance Retail can target a broader consumer base, especially in smaller towns and rural areas.
This collaboration is expected to intensify competition in the value retail segment, providing consumers more options. Expanding into new markets may create jobs and stimulate local economies.
The strategic collaboration between Reliance Retail and Yousta is a significant development in India’s retail industry. Targeting the value store segment, the partnership is well-aligned with the needs of the value-conscious Indian consumer. It further accentuates Reliance Retail’s commitment to innovation, diversification, and expansion. How this collaboration unfolds will be keenly watched in the coming months, as it holds the potential to reshape the dynamics of the retail industry in India.
