http://www.managementparadise.com/forums/RELIANCE RETAIL PLANS TO SELL JEANS AT RS 199
Sujit John, Bangalore
The Times of India
One of Wal-Mart's most talked about products — for remarkably low-price — is $10 jeans. Now, India's aspiring Wal-Mart, Reliance Retail, is planning to come with jeans at Rs 199 (less than $5) when it starts its hypermarket venture.
The company has asked Arvind Mills, the world's biggest denim manufacturer, to produce jeans that can be sold at that price. Sources in Arvind Mills said the company was working on it but declined to provide details.
Sriram Srinivasan, head of Reliance Retail's apparel business, said he could not comment on the matter. Other sources close to Reliance said Reliance does not expect to make money on the product, but intends to use it as a "loss leader". In other words, sell it at a loss to increase store traffic and sales of other items.
Sujit John, Bangalore
The Times of India
One of Wal-Mart's most talked about products — for remarkably low-price — is $10 jeans. Now, India's aspiring Wal-Mart, Reliance Retail, is planning to come with jeans at Rs 199 (less than $5) when it starts its hypermarket venture.
The company has asked Arvind Mills, the world's biggest denim manufacturer, to produce jeans that can be sold at that price. Sources in Arvind Mills said the company was working on it but declined to provide details.
Sriram Srinivasan, head of Reliance Retail's apparel business, said he could not comment on the matter. Other sources close to Reliance said Reliance does not expect to make money on the product, but intends to use it as a "loss leader". In other words, sell it at a loss to increase store traffic and sales of other items.
