Reliance Retail Eyes Affordable Toy Segment Expansion Through Rowan Brand

New Delhi:

Reliance Retail is increasing its enterprise into the fast-growing toy sector by its model Rowan to function within the reasonably priced phase with a smaller store measurement.

The corporate was operating its toy distribution enterprise by Rowan. It has now introduced this homegrown model to the entrance finish by opening its first EBO (unique model outlet) at Gurugram in NCR within the final quarter with a retailer measurement of 1,400 sq ft.

Underneath this new format, Reliance Retail, the retail arm of Mukesh Ambani-led Reliance Industries, may have a spread of reasonably priced toys not solely from the model Rowan on its cabinets but in addition from different manufacturers, stated an trade supply.

Reliance Retail additionally has the long-lasting British toy retail model Hamleys in its fold.  Hamleys is the world’s oldest toy retailer and was acquired by Reliance in 2019, marking the primary acquisition of a worldwide retail model by the corporate.

Hamleys would proceed to function within the premium area, whereas model Rowan would assist Reliance Retail to faucet the mid-premium and mass phase with its reasonably priced choices, the supply stated.

The unit worth of toys will probably be a lot decrease at Rowan shops, and the reductions provided will probably be greater. Therefore, merchandise will probably be extra reasonably priced, he added.

Furthermore, in contrast to Hamleys, the shop measurement of Rowan shops will probably be a lot smaller, ideally measuring between 500-1,000 sq ft, he famous.

“We additionally launched Rowan, which is a brand new format from Reliance as a toy retailer, which is a small format, sometimes round 500-1,000 sq ft in measurement, promoting extra reasonably priced toys. So, that format additionally obtained launched throughout this quarter, and we’ll additionally see it additional ramp up as we go alongside,” Reliance Retail Head of technique and enterprise improvement Gaurav Jain stated. 

Hamleys at the moment has a worldwide footprint throughout 15 nations with over 200 doorways and is India’s largest chain of toy shops.

With each manufacturers in its portfolio, Reliance Retail Ventures Ltd (RRVL) is likely one of the main toy distributors.

Earlier in June this yr, Reliance Manufacturers Ltd (RBL), a unit of RRVL, had introduced a three way partnership with Italian firm Plastic Legno SPA and purchased a 40 per cent stake within the latter’s toy manufacturing enterprise in India.

In response to a joint report by trade physique FICCI and KPMG, the Indian toy market was estimated to be round $1 billion in 2019-20 and is predicted to double to $2 billion by 2024-25.