Reliance Consumer finding it hard to sustain buyer interest in core products

Reliance Consumer's core product rollout territories such as Gujarat and Uttar Pradesh are showing low interest in the company's products, according to an Emkay report. Due to low sales, some stores that backed the company and carried their products due to extended credit terms have cut their inventory. B2B services from JioMart have declined significantly.

The company introduced its products in Uttar Pradesh in July 2023, heavily promoting them through trade partners. To succeed, a brand must be pushed into the market and attract people, but Reliance Consumer's offers lack this "pull" component, says the report.

"Successful FMCG brands and products need consumer traction ("pull") and trade backing ("push"). However, Reliance Consumer prioritises "push" over consumer demand. Thus, brand expansion is expected to be constrained," it adds.

Read the Emkay report here.