Online is the future of next Generation. If you have to buy something search online, If you have to sell something sell online. In recent years eCommerce industry has grown very fast with operating in different portfolios.
People want household items
like Sabse sasta, Sabse accha, Aata, Chini, Daal, Sabun by sitting at Home.
Apart from this, If we get offers on products it is 'icing on the cake'. It is
easy to enter in this segment and many startups have sustained their identity
in online market as well. We have so many online leading organizations, Home
grown Startups, MSMEs. etc.
India has grown very fast in the space of startups with disruption in the
industries they operate in the last 10 years followed by US and China.
Mukesh ambani finally announced in 42nd annual general meeting (AGM) in
2019 to launch his new venture online grocery eCommerce Name Jiomart calling it
'Desh ki nayi Dukaan'. Another incumbent in the grocery space like Grofers
and Bigbasket. Mukesh Ambani reliance's sees a $700 billion opportunity
in new commerce which is more than 3 times of GDP of Pakistan even. Retail
contributes to 10% in the GDP of India. Now we can guess how big is the Indian
retail market. Due to Online to Offline Model many small vendors will get
benefit from JioMart.
But wait other Giants like Amazon and Wallmart have their own
strategies too to compete with JioMart. if we talk about Kishore biyani
led Future group they are also going to launch many Hybrid model like Jiomart.
Future group announced retail 3.0 model name 'Tathastu'.
E commerce industry currently operating in their niche space, such as Retail,
Technology, Grocery, Agriculture, Real Estate, Electronics, Fintech, Cinema
etc. Top players dealing in grocery space are BigBasket, Grofers, Zopnow,
Nature's Basket, Reliance Fresh, Amazon Pantry, Aaramshop, Bazaar Cart etc.
Retail eCommerce - Myntra, Crazeal, Lenskart, pepperfry, healthkart.
Like we have so many startups and companies in online space.
E commerce industry falls under 6 types of category - Business to
business (B2B), Business to consumer (B2C), Consumer to consumer (C2C),
Consumer to business (C2B), Business to administration (B2A) and Consumer to
administration (C2A). Moreover this way companies are creating Tech and Nontech
jobs as well. So what we can see here is online space is operating for
everything and everyone. Online purchase can give you several offers on items
and deductions in price are seen on many festivals and in many occasions.
Where you can get services of Jiomart.
Though the Industry is limited to urban
areas so far. Most of Startups still do not give services to rural areas and
have no services at all.
Initially the company would be doing it's pilot operation in the suburban
Mumbai areas of Navi mumbai, Thane and Kalyan. Gradually they will scale up the
JioMart presence. So What if Jiomart comes in field, will it be able to serve
rural market as well ! Probably Jiomart can serve to each customer the way they
have reached in telecom in rural areas as well. Mukesh ambani has invested a
lot of money in marketing and planning for jiomart which will be launched as
App like jio app. So hope everyone would be able to take services gradually be
it urban or rural citizen.
What will happen to other competitors?
JioMart will be new rival to
other players like Amazon, Wallmart, Grofers, Swiggy, Flipkart, Dunzo? The
biggest problem Wallmart, Amazon, Flipkart already facing is FDI but FDI will
not affect the Indian company like jiomart.
Flipkart, Amazon and Wallmart have already acquired many startups, invested in
startups ideas and launched new lucrative initiatives for sellers as well.
Amazon has already invested in Future group and Aditya birla group to compete
with Challenges like JIoMart.
Players "those who will give best services and offers to consumers"
will sustain in this market now because consumers will go to place where they
have maximum benefits be it Wallmart, Amazon, Grofers or Jiomart.
Consumers want 'Sabse sasta', 'sabse accha', 'sabse jaldi'. So we have
to see what more strategies these competitors will apply to overcome from
Jiomart as future challenge. Will they survive like the way in telecom
Vodafone, Airtel against jio? It has been said that due to highest numbers of
users of jio in telecom Jiomart will take advantage of it as well. Will
Wallmart and Amazon loose their market in india ?
Will Jiomart really be barrier for other competitors like Mukesh the way Mukesh
ambani disrupted telecom industry ? Well we have to wait and see how better
services a common people of nation would recieve ! We have to wait for Jiomart
App launch.
Claimed benefits over competitors.
They claim to offer more than
50,000 grocery products.
No home delivery charges.
No minimum order required for free delivery.
Preregistered consumers can get rupees upto 3,000.
Includes express delivery promise.
Offering No question asked return.
Consumers can pre-register for the launch by providing details such as name,
address, mobile number, email address and then generate OTP. Consumers can also
ask for WhatsApp assistance while registering with the e-commerce website.
From where Jiomart will get products ?
Company will not have its
warehouse instead it will connect to offline retailers to cater to online
consumers in their area. Jiomart will link producers, traders and small
merchants and others through technology. Jiomart will function alongside the
company's existing line up business including supermarket, hypermarkets,
wholesale stores and online stores.
Initial products said to be staple, soaps, shampoos and other household items.
Reliance will soon launch app in both the platform IOS and Android and claim to
use AI in eCommerce industry.
Jiomart will partner local grocers and equip them with points of scale (PoS)
terminals, integrated billing applications, Low interest working capital,
Inventory management skills, Supply chain management and GST compliance.
Well let me mention here Reliance retail already
have strong presence in offline as Reliance fresh all over the country. To come
online last year Reliance acquired logistics services platform grab A grub to
augment its e Commerce venture
#jiomart #relianceretail #grocery #onlinegrocery #mukeshambani
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