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Old 23rd October 2008, 17:10   #1
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Default Reliance Autozone, is this the future of ICE scene in India

Traditionally, ICE installations have been the purview of Individuals in India. Indepent shops, or chain of 2-3 shops, local to a city etc.,
But recently reliance autozone made entry with multibrand ice installation.
Their prices are lower, and they give bill and warranty.
Of course quality of installation is anybody's guess.
but my question is, that reliance is the first, soon many other big players may also enter the market.
Will that kill the small installer market, atleast for budget installs.
In the west, bread and butter installs go to big name brand stores, and specialist installs go to the specialists etc.,
In India, most of the installs are bread and butter installs, so does that mean that the days of the small ICE installer are over?
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Old 23rd October 2008, 17:14   #2
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The small ICE installer might end up working with Reliance Autozones.
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Old 23rd October 2008, 17:20   #3
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Quote:
Originally Posted by esteem_lover View Post
The small ICE installer might end up working with Reliance Autozones.
Why would reliance want to hire somebody else, when they have in house installers?
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Old 23rd October 2008, 17:33   #4
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I do not think specialized installers will go out of business. People will go to them for the skill and they will charge installation fee if equipments are from outside. Otherwise the profit will be through a combination of equipment sale and installtion charge, as happening now.

I do not think Reliance can have a monopoly in the audio business as it is mainly an unorganized market.

Some of the small installer employees may move to big players for better pay.

Anyway, competition is good for the end customer and we would get good service and more choice.
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Old 23rd October 2008, 17:44   #5
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History suggests that whenever Reliance has entered a new market (where there is no presence of any big players) there has been a near monopoly situation. Cnsider BigFlix. The Local Vendors who were giving Movies on hire are slowly closing down as they cant match the service provided by Big Flix.

My guess is that many people go for the grey market stuff for Car Audio and these guys will continue to go to the local Installers.

Lets wait and watch what all Reliance AutoZone will be providing and at what cost.
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Old 23rd October 2008, 17:44   #6
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Quote:
Originally Posted by tsk1979 View Post
Why would reliance want to hire somebody else, when they have in house installers?
I am talking about the personnel working for the small time dealers who also provide installation services.
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Old 23rd October 2008, 17:45   #7
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Quote:
Originally Posted by PatienceWins View Post
I do not think Reliance can have a monopoly in the audio business as it is mainly an unorganized market.
Another thing for Reliance to tackle is "Gray market pricing". Would be hard to match prices if they have to pay all taxes.

OTOH, since most people have no idea about ICE components, Reliance might bring in cheap Chinese imports and do things super cheap.
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Old 23rd October 2008, 18:50   #8
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Quote:
Originally Posted by NetfreakBombay View Post
OTOH, since most people have no idea about ICE components, Reliance might bring in cheap Chinese imports and do things super cheap.
Exactly!, This is what it's doing in Reliance Digital, Reliance Mart etc..
Whatever be the product, doing perfect installation is an art, not sure if they can match it specialist but services will definitely be more organized.

Last edited by greatDrive : 23rd October 2008 at 18:51.
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Old 23rd October 2008, 21:05   #9
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Quote:
Originally Posted by vinit.merchant View Post
History suggests that whenever Reliance has entered a new market (where there is no presence of any big players) there has been a near monopoly situation. Cnsider BigFlix. The Local Vendors who were giving Movies on hire are slowly closing down as they cant match the service provided by Big Flix.

My guess is that many people go for the grey market stuff for Car Audio and these guys will continue to go to the local Installers.

Lets wait and watch what all Reliance AutoZone will be providing and at what cost.
Quote:
Originally Posted by NetfreakBombay View Post
Another thing for Reliance to tackle is "Gray market pricing". Would be hard to match prices if they have to pay all taxes.

OTOH, since most people have no idea about ICE components, Reliance might bring in cheap Chinese imports and do things super cheap.
Check out the prices. Reliance is very clever. They offer slightly older models at grey market prices.
For example Sony HU, MRP 10,000. Grey is around 6K I think, they offer it for 10K and give 4 speakers(sony) for free and this includes installation.
So user things "Wow with bill and warranty installation under 10K"
This class of user does not care about specifications, if it plays mp3 and is sony, its good enough.


Quote:
Originally Posted by greatDrive View Post
Exactly!, This is what it's doing in Reliance Digital, Reliance Mart etc..
Whatever be the product, doing perfect installation is an art, not sure if they can match it specialist but services will definitely be more organized.
They can't match specialists, but they can match 90% of the grey market installers, infact they can better them
I saw sun films being installed in a brand new swift, and they were doing a good job from what I saw.
I bought floor mats for 250rs a set of 5, even in grey you do not get for less than 350 for that quality.
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Old 23rd October 2008, 21:08   #10
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Quote:
Originally Posted by tsk1979 View Post
For example Sony HU, MRP 10,000. Grey is around 6K I think, they offer it for 10K and give 4 speakers(sony) for free and this includes installation.
10k is decent price (and value) for average customer. And this setup is sufficient for listening to FM (which is primary use of ICE for average customer).

I am sure this formula will work.
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Old 23rd October 2008, 23:22   #11
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Lets just wait and see how there installations are.

If they are similarly priced as the installs with bill and warranty and have good install quality / layout , it may just be good for the company and the business ( if not the ones in the same business)
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Old 23rd October 2008, 23:48   #12
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Quote:
Originally Posted by tsk
They offer slightly older models at grey market prices.
Now, that solves it.
Reliance must have gone to Sony and picked up the entire old stock at 20-25% of its value.They have this entire country to feed.So, one can imagine the volume. Sony would have happily obliged for sake of liquidity.
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Old 24th October 2008, 04:07   #13
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If any indication of Reliance telecom, they will go for mass market, they are not in the luxury market.

Installers vending and installing high end products such as Steg, Infinity, JBL high end amps, Hertz, Illusion etc need not be concerned, keep away from the segment Reliance targets its safe.

Proof of the pudding - fabrics Vimal vs Raymond. Vimal is nowhere, Raymond is the preferred choice of a lot of people. There's even Reid & Taylor, Gabbana etc.

Mass market brands such as Sony, Pioneer, Blau would go to reliance.

My 2 cents.

Cheers

M M
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Old 24th October 2008, 10:41   #14
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I have been to the Reliance Autozone in Gurgaon a couple of times. And yes, there is stuff that will please the masses - Sony etc
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Old 25th October 2008, 03:47   #15
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I love how everything is getting professionalized these days, these moves are best for us customers. Cleaner ways of business and healthy competition would bring prices down too.
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