Home-makers will find it difficult to resort to the easy-to-make tomato rice for a meal, at least for some time to come. With the price of the commonly-used vegetable shooting up to Rs. 60 a kg in many retail markets in the city, most customers had to be content with a small quantity despite paying higher price. People now buy only half the quantity of the weekly requirement of vegetables. The increase in the price of most vegetables, including cabbage that is usually cheap, had also hit the business of small hotels and roadside eateries.
Sandeep mentions in his blog that the prices in the organized retail outlets like Reliance Fresh are too high, almost 70% higher than the Mandi outside the mart. Who cares for the ambiance when your prices drill a hole in my purse? I am going to reduce my intake to meet the price increase and consume less. Will I come to your outlet when I know that buying from the farmer directly is cheaper or for that matter any other player whose competency is cost leadership? he answer is yes.
So Mr. Ambani, either reduce prices by cutting down your margins or else I am not going to come to your store.
2 comments:
tiger
no one invites shopper to reliance or food bazaar to pick SABZIs, even in their BTL campaigns they are least in promoting FnV, so the point of havin low margin never occurs.
despite of high prices most of the FnV are rotten.
So its on us to shop and nt Mr. Ambani who need to make decision.
People are now inclining towards other food products like chicken which is Rs.100 per kg(max) and fish which ranges from as low as Rs.20 per kg to Rs. 300 per kg.
So Ambanis should change otherwise consumers will not come and how long can Ambani run empty shops?
More than 98% of the vegetable sales is done by unorganized retail and this change can make them gain more market.
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