Reliance Webstore setting up direct sales, to sell 2mn mobile handsets

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Reliance Anil Dhirubhai Ambani Group (RADAG) has diversified into direct selling of telephony products and services under its retail arm Reliance Webstore and is eyeing a revenue of Rs 110 crore in the first year. Currently, RADAG sells telecom products and services under its retail arm Reliance Webstore, which has 234 Reliance World Stores.

The foray into direct sales and its consolidation under Reliance Webstore is expected to result in substantial increase in sales and new customer acquisition. The group is currently setting up a direct sales channel across 100 top cities in India and the channels will be consolidated under Reliance Webstore, Sarup Chowdhary, director & CEO, Reliance Webstore, said.

“We are targeting a revenue of Rs 110 crore in the first year from the direct selling out of which 20% is expected to be contributed by handset sales. We are targeting two million handset sales through the direct-selling model annually,” he said.

The direct selling agents will sell Reliance Mobile (prepaid & post-paid), mobile handsets, mobile accessories, BlackBerry products, Reliance Netconnect data cards, Reliance Hello (wireless phone), global calling products. It also has corporate offerings like video and audio conferencing at the customer footstep.

This channel is expected to provide incremental 20% business growth in the first year. Over the next three years, the direct selling operations are expected to contribute nearly 50% of its gross bottomline, he said.

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