Reliance Retail Ltd., run by Mukesh Ambani, has announced its foray into the premium grocery segment as it seeks to capitalize on the purchasing power of affluent Indians.
The gourmet food store – Freshpik – will sell exotic vegetables and artisan cheese to artisan muffins, personal care products and kitchen accessories, according to the press release released Thursday.
Freshpik will provide an integrated physical and digital shopping experience, including personalized 3D printed chocolates and a self-checkout feature, said Damodar Mall, general manager in charge of groceries at Reliance Retail.
The Indian gourmet food market is currently valued at $ 1.3 billion and growing at a compound annual growth rate of 20%, according to the India Brand Equity Foundation. The first store is located in Reliance’s Jio World Drive Mall in the Bandra-Kurla Complex Mall in Mumbai, which is home to a quarter of the country’s 1,007 billionaires, according to IIFL Wealth Hurun India Rich List 2021.
“It’s an upscale mall and any mall should have food and groceries for pedestrians,” Abneesh Roy, executive vice president of research at Edelweiss Financial Services, told BloomberQuint. “Also, there won’t be a lot of competition as it is still a niche segment in India.”
Some of the early entrants in this segment include Godrej’s Nature’s Basket (acquired by Spencer Retail Ltd.), Le Marche, Nuts ‘n’ Spices and Future Group’s Foodhall. The segment translates into sustained activity for several local brands such as Araku Coffee, The Gourmet Jar, Yellow Butterfly and Earthbowl Farms, to name a few. Other than that, gourmet products are available on e-commerce platforms like Amazon, Flipkart, and Big Basket.