Even as media reports abound with news of the rising impact of Quick Commerce on General Trade Retail, another new development has garnered headlines, promising newer dynamics in the FMCG retail. 

Reliance Consumer Products Ltd (RCPL), the FMCG division of Reliance Industries,reintroduced Campa Cola, armed with highly competitive pricing and a smart retail strategy. In the process the brand stands as a serious challenge to the giants in the space –Coke and Pepsi.  

The move not only gives a new twist to the famous Cola wars, but also promises shifts in retail strategies. According to reports, the company plans to expand brand visibility and presence by working in close association with small retailers, and gaining greater shelf space.  It is reportedly offering retailers significantly higher margins on its Rs 10 pack.  

Indeed, nothing works like a good pricing strategy. By offering Campa Cola at Rs 10 and Rs 20 for the 200 ml and 500 ml bottles respectively (as against Rs 40 for a 600 ml bottle of Coke or Pepsi), RCPL is ensuring wider reach and market access. Reportedly, the company’s pricing has forced its rivals to slash their product prices too.  

Also, by incentivising retailers, the brand stands to gain through greater in-store visibility. This combined with its own retail network,means unrivalled brand visibility in General Trade retail. It also means a boost to the industry surrounding retail - namely the POP display and in-store merchandising industry, which has been under pressure with the shifting focus of FMCG brands to Ecommerce and more recently to Quick Commerce. A recent joint report by Deloitte and industry body FICCI highlighted a near two-fold increase in the share of quick commerce in FMCGs’ total e-commerce sales, a surge that is expected to continue, throwing an even bigger question mark over FMCG brands’ focus on in-store visibility. 

Now with Campa Cola entering the picture promising better margins, and retailers encouraged to display the brand more prominently, there is likely to be greater demand for in-store display and merchandising solutions that meet the needs of both the brand and the retailers. However, as a few POP industry players that Retail4Growth reached out to recently had pointed out, there will be even greater demand from brands on innovative solutions and therefore greater pressure on the industry players to keep reinventing themselves and adapt to the changing dynamics. This might mean going beyond a mere visibility solution and offering something truly engaging - something that makes the customers keep coming back to the stores.