FoodWorld: Pioneering Organized Food Retailing in India
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The Private Brand Initiative
Having built up sizeable brand equity amongst the masses, it seemed to be natural for FW to tap the private brand initiative. Ever since its inception, FW used to sell products like rice and pulses under the brand name FoodWorld.
Using Technology For Success
Much before it started its operations, RPG had identified technology as one of the crucial areas for success. This was one of the primary reasons that it did not start FW until a suitable technology partner (Dairy Farm) was identified. RPG noted that item-by-item inventory control would be critical for the success of FW.
The Road Ahead
By the end of June 2002, FW had established 81 supermarkets in Chennai, Bangalore, Hyderabad and Pune. More than 1,500 employees served over 600,000 customers per month (refer Exhibit I for FW's presence in India). The focus on private labels resulted in the success of 'Natures Bounty' and 'FoodWorld' brands, together accounting for about 22% of its sales by 2002. New stores were being opened regularly with the latest store opening in early-2003, in Hyderabad. Having stabilized to a great extent by February 2003, FW had begun experimenting with varying retail formats...
Exhibit I: Foodworld - Presence in India (2002)*
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