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Reliance Retail signs Exclusive Brand Licensing & Distribution Deal with Electrolux to relaunch Kelvinator under 10-year contract

Reliance Retail, Consumption Slowdown, Kelvinator Refrigerator, Mukesh Ambani-Led Reliance Industries, Swedish Appliance Maker, Electrolux, Kelvinator

Kelvinator is coming back to India. Economic Times reports that Reliance Retail has signed an over 10-year contract with the iconic refrigerator brand’s Swedish parent Electrolux for brand licensing, manufacturing, marketing and distribution. Other appliances like washing machines, air-conditioners and microwave ovens too would be relaunched. Analysts say the arrangement will be a win-win: Kelvinator has strong consumer appeal and Reliance will be able to scale it up. Reliance Retail runs a network of over 8,200 stores, including Reliance Digital and Jio stores. Kelvinator’s brand license with Videocon was called off last year over non-payment of royalty.

A potentially promising move, but fraught with several challenges. Consumer durables’ customers desire good / great product quality, great design, financing support, and very good post sales service that includes installation, repairs, and maintenance. Reliance will have to ensure that its Kelvinator offer matches and delivers the same promise as Samsung, LG, Whirlpool, Blue Star, and others do in specific product categories. It is not so easy to do so.

Kelvinator definitely has nostalgia factor in its support. And people wouldn’t think much before zeroing in on a kelvinator product. But to stay in the market they would need to bring in the best in class technology. Reliance can make use of data it has to understand what exactly is a customer requirement and put it to good use over here. Through its number of chains Reliance retail offers the best chance to scale up the business. With increased focus on retail the debt reduction plan of Reliance might just be a successful one.

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It’s certainly not famous among GenZ but definitely known to GenX and GenY. If they have to appeal to Indian Consumers they have to compete with famous brands and come up with the latest tech and feature. Kelvinator is a household name and I’m sure it does have an appeal among Gen X and Gen Y. But it’s success would now be determined by how it.

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1). Adapts to the market.
2). Understands needs and behavior of the modern consumer.
3). Brings technology into the market.

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Kelvinator is a familiar name and the brand appeal is definitely there. IF marketed properly and with high quality products it can easily be a top contender in the market. I hope they bring in new features and durable tech focusing on a niche rather than flood the market with a “ME TOO” product.

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