Scatmag.com



Register here for a free copy of SATELLITE & CABLE TV Magazine, SMS & email Update




May 2019

RELIANCE PREPARES E-COMMERCE LAUNCH


In January 2019, RIL Chairman & Managing Director Mukesh Ambani said that group companies Reliance Retail and Reliance Jio would jointly launch a new e-commerce platform in the country and Gujarat would be the first state to get it.

The e-commerce bet is in line with Ambani's aim to generate half of the group's revenue from the consumer businesses over the next 10 years. This will be a major shift where currently, 80% of the group's sales comes from its traditional oil and gas business.


TRIALS ON

Reliance Industries' retail arm 'Reliance Retail Ltd' is testing its food and grocery app among its employees before the commercial launch of its e-commerce venture. Reports are that the app will be commercially rolled out before end 2019 - probably before the Divali buying season.

The strategy will ride on the back of JIO's broadband delivery infrastructure.



TAKE ON AMAZON

Reliance Industries' entry into the Indian e-commerce market, could disrupt the online retail industry, currently dominated by Amazon & Walmart-owned Flipkart.

Significantly, Reliance Retail has withdrawn its fashion and lifestyle products from online marketplaces including Amazon and Flipkart.




1,26,000 CR MARKET

India's online retail is currently worth $18 billion (₹ 1,26,000 Crore) annually & accounts for 3% of the total retail market in India, according to India Brand Equity Foundation.

They further estimate that online retail in India will increase to $ 170 billion by 2030, implying a 21% Compound Annual Growth Rate (CAGR).



4G & Wired Broadband Connectivity Is A Key Enabler For Online Sales


FOOD & GROCERY

While food and grocery is the largest consumption category in India, accounting for two-thirds of India's retail market, online sales in this category are still restricted to the top cities.

Amazon has declared plans to soon offer foods & groceries in India.

Reliance already sells food and grocery products through its website Reliancesmart.in.



RELIANCE RETAIL NETWORK

Reliance Retail operates neighbourhood stores, supermarkets, hypermarkets, and wholesale, speciality and online stores.

The company already has a vast network of 10,415 physical locations from where it sells goods to consumers.


LOCAL PARTNERSHIPS

For its e-commerce venture, RIL plans to sign on local merchants, boosting their sales through what is known as the O2O (online-to-offline) marketplace, a business model pioneered by the Chinese e-commerce giant Alibaba Group Holding Ltd.

Under the O2O model, a consumer searches for the product or services online but buys it through an offline channel.

RIL's plan is to consolidate merchants under an e-commerce platform. The merchants, in turn, will cater to the demand. This will help the company save costs and enter areas currently outside the traditional purview of e-commerce companies.