Reliance Retail's Strategic Expansion: Launches Fashion World by Trends in Tier 2, 3, and Lower Towns

Reliance Retail is making a strategic move into tier 2, 3, and lower towns with the launch of value apparel retail outlets under the brand Fashion World by Trends, according to a report by Economic Times. Leveraging the franchise model, Reliance aims to establish over 500 stores, entering into direct competition with rural-focused chains like V-Mart Retail.

The retail giant has already unveiled five Fashion World by Trends stores in key locations such as Siliguri, Dhule, and Aurangabad. These outlets, covering approximately 5,000 square feet, offer a curated merchandise assortment tailored for each market. Notably, this marks Reliance's initial foray into a dedicated format for smaller markets, emphasizing a broader outreach to rural areas.

Reliance Retail, known for its diverse operations in smaller towns across apparel, groceries, electronics, and telecom, sees this expansion as an opportunity to tap into the untapped potential of rural markets. Executives from Reliance Retail revealed that the Fashion World by Trends stores will feature distinct merchandise, with a focus on affordability to attract first-time buyers of branded and ready-made apparel.

The company plans to roll out 20 Fashion World by Trends stores by the end of the month and aims to establish over 100 stores within the next year. The strategy prioritizes towns where Trends stores are currently absent.

Targeting populations of less than one lakh, these outlets will offer a wide range of apparel, including ethnic wear, kids' wear, and men's and women's clothing sourced from both national value brands and Reliance-owned labels. With over 4,000 stores across various brands, Reliance Retail views this franchise-based expansion as a strategic move to broaden its business-to-business scope in the branded apparel segment.

According to executives, Reliance has the capability to transform existing apparel retailers into Fashion World by Trends stores, facilitating supplies through the business-to-business distribution channel. The move underscores Reliance Retail's commitment to expanding its footprint in untapped markets and capturing a new segment of consumers in India's evolving retail landscape.