Hi Abhishek, point well taken about the distinction between marketplaces and single brand license entities. But the chart simply illustrates the broad contours of their financial performance, as reported. The article is more about the broader trend of change in shopping preferences, and the logistical and sourcing changes it required.

Shruti Venkatesh

I disagree that there was a bias, as we bring forth the changes in services and strategy of all three players. To your first point of most orders being services like hair cut - well, in fact, Urban Company doesn't have hair cut service for women. It is just for men. And as they are asset light and they earn a commission on each service, their business model is well-suited for current times. To your second point on it being an unfair comparison, I think even if we had multiplied walk-ins into total store count, it would have been confusing. Hence, we chose to give store count and monthly walk-ins separately. But yes, thanks for your feedback. Will surely work on incorporating these nuances better in future charts and graphics.

Shruti Venkatesh

Thanks Manjari. It is indeed the case that some will find it tougher than others to overcome the Covid wave. To your question on acquisition or shift of employees to Urban Company, I'm afraid I do not have much information on it. Primarily because the industry is highly unorganised, and the reporting on this story was limited to larger chains versus an online player like Urban Company. But it is surely an interesting point. Thanks for bringing it up.

Shruti Venkatesh

Yes, quite possible. Which is why salon chains continue the expansion, with modifications to store size/services.

Shruti Venkatesh

Absolutely Radhika. That would be a full-fledged story in itself.

Shruti Venkatesh

Hi Prashant, yes. The vertical was shut down barely a year later, in mid-2017, due to poor response from customers.

Shruti Venkatesh

Hi Shrinivas, you are right. Urban Company's order number is of all professionals put together. And the walk-in data is per outlet of Lakme and Naturals. This is simply indicative of the scale of all three while the story delves deeper into how their business has fluctuated in recent months

Shruti Venkatesh

Hi Hemendu, thank you so much for your feedback. To your first point, the statement was established after we referred to research reports from several brokerages, some of whom have been quoted in the story. The Jefferies report especially lays out the contribution of different channels quite well. To your second point, there are indeed several articles on how growth of private labels has dented sales for FMCG firms globally. In Europe, for instance, private brands even rank as category leaders in certain cases. 

Shruti Venkatesh

Completely agree with you, Srikanth. That's going to be a huge concern for FMCG firms if Reliance Retail is able to expand the market share of private labels.

Shruti Venkatesh

True Sarvesh. History of private labels would be very interesting to chronicle. But we didn't include too much context on it within this article, as that would shift focus away from the story-line.

Shruti Venkatesh

Hi Thanmaya, you are absolutely right when you say that little has translated into action when it comes to JioMart. However, it does not rule out the fact that RIL is focussed on expanding this network. Also, customers are both brand conscious and price conscious, depending on the product category and its usage, as highlighted in the story. While private labels is an old strategy, the sheer scale post acquisition will allow Reliance Retail to push its products across a much larger network of stores than any of its peers. And yes, like you said, FMCG firms are likely to be working on retaining their hold on the unorganised sector.

Shruti Venkatesh

Hi Kardam, in the first instance, where we say just 4% is organised, it is the overall market split between organised and unorganised. In the graph, we are referring to the revenues that FMCG firms get from the organised and unorganised channels. So there isn't a mismatch.

Shruti Venkatesh