According to the Economic Times, Reliance Industries Limited (RIL) is set to challenge the supremacy of multinationals in the Indian consumer electronics and home appliances sector. Its strategy includes the launch of a new Indian brand, Wyzr.
Reliance is reportedly preparing to launch a “JioPhone” in the Indian consumer electronics market in collaboration with Wyzr, hoping to capitalize on the “Make in India” initiative and replicate the continued success of Wyzr. An executive revealed to ET that “Reliance has already transformed the multinational phone market with its ‘JioPhone’ product.”
RIL is reportedly finalizing production deals with domestic manufacturers Dixon Technologies and parent company Onida Milk Electronics. The long-term goal is to set up its own manufacturing facilities once Wyzr is present in the market.
Reliance Retail, the company’s retail division, has already introduced the Wyzr air cooler, the Economic Times reports. This is just the beginning of future plans that include TVs, washing machines, refrigerators, air conditioners, small appliances and LED lights. What sets Reliance apart is its intention to design and develop these products itself, which differentiates it from previous white label ventures such as Reconnect.
Sales strategy and target market
Wyzr products are available at Reliance Digital stores, independent retailers, regional chain stores and e-commerce platforms such as Amazon and Flipkart. JioMart Digital (JMD), which manages B2B e-distribution, will play an important role in distributing Wyzr to other stores through its growing network of retailers.
Wyzr’s target market is budget-conscious consumers. According to the Economic Times, Wyzr’s products will be priced competitively against established brands such as LG, Samsung and Whirlpool.
Learning from past experience
Interestingly, this is not Reliance’s first foray into the electronics market. The company previously launched the Reconnect brand, but had limited success due to its reliance on third-party design and manufacturing and insufficient marketing efforts.
In 2022, Reliance acquired a 50.1% stake in the Indian subsidiary of U.S.-based Sanmina for Rs. 1.670 billion to expand its reach in the electronics manufacturing sector. Sanmina has a 100-acre campus in Chennai, where a Wyzr products factory could possibly be set up, executives suggested. However, according to a report, nothing has been finalized yet and the product launch is a priority.
Reliance Retail continues to use the Reconnect brand for its accessories. A few years ago, the company licensed the BPL and Kelvinator brands and introduced several models of TVs, refrigerators and washing machines, but failed to capture a significant market share.
These products are designed and manufactured in the country by companies such as Dixon, Mirc and PG Electroplast, while others are imported from China and Indonesia and manufactured by TCL, Midea and Toshiba.
“Reliance management believed that, to succeed in this market, it needed its own brand with strong control over product design and production,” the executive stated.
RIL appears to have learned from its past mistakes. Wyzr is taking a more global approach, with in-house design, management of production through partnerships and possible future installations, and an extensive distribution network.