Reliance Consumer Products Targets Pet Food Market With Aggressive Price Cuts

According to The Economic Times, Reliance Consumer Products Ltd (RCPL), the fast-moving consumer goods (FMCG) division of Reliance Retail, is preparing to enter India's rapidly expanding pet food market with a competitive price plan. Distributors and business partners have been notified by the company that the prices of its new pet food brand, Waggies, will be 20–50% less than those of well-known brands like Nestlé, Mars, Godrej Consumer Products, and Emami. The products will be introduced at tier-2 hubs' general trade shops and semi-urban stores, indicating Reliance's intention to capitalise on the growing pet care market, which is being driven by an increase in pet ownership and a move towards high-end food items.

Price Cut a New Business Strategy Adopted by Reliance

The action is similar to Reliance's long-standing tactic of lowering prices in order to quickly grow new companies. The company has frequently employed aggressive pricing to foster broad acceptance, starting with Jio's disruptive telecom launch in 2016 and continuing with Campa Cola's re-entry into the beverage sector and JioCinema's affordable streaming options.

Rivals are forced to increase promotions, alter margins, or release lower-priced packs as a result of Campa Cola's beverages being 20–40% less expensive than those of its competitors in the soft drink, juice, energy drink, water, and staples categories. JioCinema reduced the cost of its premium ad-free subscription last year to INR 29 for individuals and INR 89 for a family plan, which is almost half of what it was before.

In order to draw customers, the site used to watch the Indian Premier League (IPL) for free. This was in contrast to Disney+ Hotstar, which provided IPL access on subscriptions beginning at INR 299 in 2022. With free, unlimited high-speed 4G data and telephony, Reliance Jio revolutionised India's digital environment in 2016. The business was able to add 16 million users in only one month and 50 million within 83 days of its debut.

India’s Pet Food Market

Redseer published a report last month predicting that the petcare market, which is presently valued at $3.5 billion, will grow to $7–7.5 billion by FY28. According to the survey, individuals are now searching for specialised, high-end care rather than just basic services. According to the survey, the country has seen an increase in pet adoption.

As of the fiscal year 2023–2024, over 32 million pets lived in Indian households. During the Covid-19 outbreak, many homes adopted stray animals or rescued pets, resulting in a substantial increase in the pet population. As new pet parents started spending more on their pets' maintenance, health, and general well-being, this change resulted in a boom in the pet care industry.