Synopsis:
Reliance Consumer’s entry with Campa Sure could affect existing players in the bottled water market. By offering competitive pricing, it may attract consumers away from established brands.
Reliance Consumer Products Limited has entered the packaged drinking water market with SURE mineral water under the Campa brand. Priced at Rs.5 for 250 ml, it offers affordable, high-quality water at 20 to 30 percent lower prices than rivals like Bisleri, Aquafina, and Kinley.
An aggressive pricing strategy and extensive distribution network could pose significant challenges to existing bottled water brands. The company’s ability to leverage its retail logistics and aggressive pricing may erode the market share of established players like Bisleri. The company’s investment in the beverage sector amounts to Rs.8,000 crore, expanding its presence and challenging competitors.
Reliance Industries Limited launched Reliance Jio in 2016. Before Jio’s entry, the market was dominated by established players like Bharti Airtel, Vodafone India, and Idea Cellular, offering limited 3G services at high prices. Jio disrupted this status quo by introducing free voice calls, unlimited data, and affordable 4G services, compelling competitors to drastically reduce their tariffs.
Jio’s highly competitive pricing caused its subscribers to reach more than 100 million users just a few months after launch. Meanwhile, the existing telecom companies struggled to sustain. Bharti Airtel and Vodafone Idea saw their revenues and profits declining, which made them consider a merger or restructuring to remain in the industry. Other operators, such as Aircel, Tata Docomo, and Uninor, were unable to compete effectively and left the market.
The launch of Jio not only increased competition in the telecom sector but also led to significant growth in India’s digital space, significantly increasing internet usage across the country.
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Stock that will face competition
What can happen to the other water businesses is that they may face increased competition, pressure to reduce prices, and a need to improve product quality or distribution networks to retain customers.
Smaller or less efficient players might struggle to maintain market share, while larger companies may have to innovate and increase their operations to compete effectively in the changing market.
The entry of Reliance’s Campa Sure into the bottled water market will create competition for Tata Consumer Products, Varun Beverages, and IRCTC. Tata Copper+, Varun’s Aquafina, and Rail Neer cater to the mass segment. Campa Sure’s lower pricing could pressure sales and could bring a challenge to Aquafina’s, Rail Neer’s and Tata Copper’s market share, potentially affecting revenue, pricing, and marketing strategies.
Written by Jhanavi Sivakumar
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