Reliance Retail partners with Walt Disney to tap growing kids market
Reliance Retail, a subsidiary of Reliance Industries, has entered into a licensing deal with global entertainment and lifestyle major, Walt Disney. The retailer will reportedly develop and market products under its private label across segments with Disney characters like Mickey and Minnie Mouse and Donald Duck. This will include kidswear, back to school, stationery, gaming products, accessories and packaged food.
The Indian kidswear market was estimated to be around INR Rs 66,904 crore in 2017, accounting for 20% of the total apparel market of the country. It is expected to grow at 8% CAGR to touch INR 145,445 crore by 2027, which underlines the tremendous potential it has.
It is expected that Reliance will leverage its wide retail network across the country, including tier-3 and tier-4 cities, to grab this opportunity. It will especially focus on the apparel, which has the maximum prospects in this segment.
Currently, Reliance Retail operates over 540 stores across three brands – Reliance Fresh (convenience stores), Reliance Smart (hyper format stores) and Qwikmart (in petrol pumps). For the quarter ending December 2018, the grocery format was the third largest in revenue contribution accounting for 17% of revenue after its Jio business (34%) and consumer electronics (31%).
Reliance Retail is expected to contribute substantially towards Reliance Industries’ overall growth, as the division focuses on adding more outlets, bulk sourcing of goods for better economics, high sale volumes and cost management measures to boost margin expansion.