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HomeTrends'Wyzr', Reliance's New Kid On The Block, Is Set To Jolt The...

‘Wyzr’, Reliance’s New Kid On The Block, Is Set To Jolt The Dominance Of Electronic And Home Appliances Multinationals; Reliance Expanding Its Footprint In All Sectors.

Reliance is set to up its game and is ready to introduce its own brand where it can firmly control the product design and manufacturing to win the highly competitive electronics and home appliances market.

So what is Reliance aiming at, and how does it plan to disrupt the dominance of multinationals in the local consumer electronics and home appliances market ?

Well, the answer is – with a new made-in-India brand, Wyzr. 

Two executives familiar with the plans stated that the company is in the process of finalizing production agreements with domestic contract manufacturers Dixon Technologies and Mirc Electronics, the parent company of Onida. 

They mentioned that the company aims to establish its own manufacturing plants in the medium term, subsequent to gaining market share for the brand.

Wyzr, Reliance Retail, Electronics Market

According to the executives, Reliance Retail’s latest venture includes the introduction of Wyzr air coolers, with plans to expand into various other categories such as televisions, washing machines, refrigerators, air conditioners, small appliances, and LED bulbs. 

The company intends to design and develop these products internally, aiming to establish a domestic brand in a market predominantly controlled by international brands. Notably, it had previously introduced the private label brand Reconnect, utilizing third-party manufacturing. 

During RIL’s fourth-quarter earnings call on April 22, Reliance Retail’s chief financial officer, Dinesh Taluja, briefly mentioned the launch of the new brand without providing further details.

Reliance, Wyzr

Regarding distribution, the company plans to retail Wyzr products through its own Reliance Digital stores, alongside independent dealers, regional retail chains, and major e-commerce platforms like Amazon and Flipkart, as per the sources. 

Additionally, JioMart Digital, responsible for B2B distribution of electronic products, will extend the reach of Wyzr to other retail outlets. 

Notably, JMD witnessed a 20% increase in its merchant base during FY24.

The Wyzr product line is expected to offer competitive pricing compared to established brands such as LG, Samsung, and Whirlpool, particularly in categories like TVs, refrigerators, and washing machines. 

While Tata-owned Voltas leads the market in air conditioners, it faces stiff competition from multinational corporations like LG and Daikin.

The Blue Print

Following the previous strategy, Reliance had disrupted the feature phone market dominated by multinational corporations (MNCs) with its own product, JioPhone. 

Now, the company aims to replicate this success in the electronics sector by capitalizing on the make-in-India initiative.

In 2022, Reliance made a significant move by acquiring a 50.1% stake in the Indian arm of the US-based manufacturing solution company Sanmina for Rs 1,670 crore, signalling its entry into the electronics manufacturing domain. 

Reportedly, there are ongoing discussions about potentially utilizing Sanmina’s 100-acre campus in Chennai to establish a plant for Wyzr products, although no final decisions have been made yet, as currently, the immediate focus remains on launching the products.

Previously, Reliance Retail attempted to sell televisions and certain appliances under its Reconnect brand, albeit with limited success. 

These products, designed and manufactured by partners, were exclusively available at Reliance Digital stores without significant marketing efforts. 

These were positioned to compete with private label brands like Koryo from Future Group and products offered by Tata-owned Croma retail chain under the same brand name. Despite these efforts, Reliance Retail still retains the Reconnect brand for accessories.

Additionally, Reliance Retail acquired licenses for the BPL and Kelvinator brands some years ago, introducing a few models of TVs, refrigerators, and washing machines. 

However, these products failed to gain substantial market share. They were either locally manufactured by companies like Dixon, Mirc, and PG Electroplast, or imported from China and Indonesia, produced by TCL, Midea, and Toshiba.

During the earnings call, Taluja highlighted the positive trajectory of Reliance’s FMCG (Fast-Moving Consumer Goods) business, which completed its first full year of operations. 

Brands like Campa in the beverages segment and Independence in staples have seen significant traction and customer acceptance. Taluja also mentioned the company’s efforts to establish a localized supply chain across different regions to scale up these businesses effectively.

Analysis of the Indian Home Appliances Market

The Indian home appliances market has achieved a significant milestone, generating USD 75 billion in the last year and showing promising potential with a forecasted Compound Annual Growth Rate (CAGR) of 5.5% for the coming years.

Projections indicate that the consumer electronics and home appliances market in India is poised for substantial growth, expected to increase by USD 2.3 billion between 2022 and 2027.

Marked as one of the rapidly expanding sectors in India, the home appliance industry has witnessed consistent growth, propelled by the demand for both large and small appliances. 

In 2022, various categories of household appliances experienced growth in both retail volume and current value, reflecting a thriving market. However, there exists significant untapped potential in segments such as air conditioners (ACs), washing machines, and refrigerators.

The dynamic economy and evolving lifestyles of Indian consumers have contributed to this surge, characterized by an increasing number of working individuals, nuclear families, single-person households, and job migrations. 

As a result, there is a growing demand for accessible appliances that offer convenience, effectively reducing the time and effort required for daily activities. 

The market’s growth is further propelled by a focus on energy-efficient products, the rising penetration of digital technologies, and the growing aspirations of consumers.

India’s policy framework has also witnessed substantial evolution, particularly concerning commercial and regulatory aspects, creating a conducive environment for the expansion of the home appliances market.

The growing urban middle class and the aspirational aspirations of rural India, coupled with governmental reforms like GST, are driving the appliances industry into a new era of exponential growth. 

This surge in consumer demand in India is primarily fueled by the rising disposable incomes within Indian households and the accessibility of credit, leading to heightened purchasing power. 

Moreover, rural areas are being electrified, strengthened by social media’s growing influence and the surging popularity of online shopping, all contributing to the anticipated uptick in demand.

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