An interview with Mr. Darshan Mehta CEO, Reliance Brands (India’s inflection point is yet to come)
How is the retail sector performing in India?
The year 2008 and 2009 were economic tsunamis. But 2010, the industry is looking up and the inflection point in Indian retail is yet to come.
Factors like mall development and retail infrastructure are still developing. As far we are concerned, We have had a six week sell-through. So this is a good indicator of the time to come in the retail sector.
What is the roadmap for the evolution of the business?
Retailing is largely driven by food. But outside food the big category is apparels and the accessories. At least for luxury retailing, the confidence that was shaken is getting back on track. Lot of luxury retailers are far more confident now of the Indian growth story.
We will continue to bring more international labels to India.
Will joint venture continue to be preferred business model for you?
We believe that the joint ventures are the most robust model and ensure longevity of the relationship as compared to time-bound franchisee model. The best years for India lie ahead, we believe.
Referral geographies like Japan and China point towards this.
What is the biggest challenge for you?
The biggest challenge is to convince potential partners and also reaching right customer, location and real estate are problems that most retailers face. We don’t want the brand to lose relevance due to a bad location. We may look at launching our own label soon.
