Mukesh Ambani owned Reliance Retailwill bring to India yet another foreign trade name. It plans for a joint venture with Daiso, which is the largest chain of 100-yen shops in Japan.
Daiso plans to tie-up with Reliance Retail, a subsidiary of Reliance Industries Ltd. for a shop-in-shop format in Reliance’s numerous outlets in India. Daiso has grown to be the largest chain of one-coin shops in Japan, with a humble start by a street vendor, who sold 100-yen products. It has over 3000 stores across the globe.
Mr. Hirotake Yano, President of Daiso said,” We have been in talks with Reliance for over three years now to zero-in on the joint venture.” He did not mention the timeframe for the venture to be formalized, but said that Daiso’s first shop-in-shop format in India is expected to be established in Gujarat.
Mr. Yano said that the Indian price for the products is yet to be decided. Daiso offers products in all the following categories: dining and kitchen, food, home décor, health and beauty, stationery, hardware, toys, giftsetc. The products are high quality products at a very low price. In Singapore, the decided price is $2 (Singaporean), and in Australia it is $2.80 (Australian currency), for any item.
Reliance Retail has over 1000 stores in India, retailing food and groceries, apparels, footwear, home products, IT products, electronic products, etc. Formerly, it has several joint ventures with international brands. Earlier this month, Reliance Retail was in news for its future conglomerate with Dairy Queen Inc., the global frozen food retailer.
After Reliance signs a bond with Daiso group of companies, the products procured will be imported from Japan, Korea, Indonesia and China. The variety of products from a differing range of prices will be offered at a fixed discounted rate in India.