How will Reliance e-commerce affect retailers of Delhi-NCR?
Mukesh Ambani’s next target after Airtel/ Vodafone are Amazon and Flipkart. Reliance has announced its entry in e-commerce.
Mukesh Ambani’s next target after Airtel/ Vodafone are Amazon and Flipkart. Reliance has announced its entry in e-commerce.
What is it about?
Reliance Retail and Reliance Jio Infocomm would jointly launch a new e-commerce platform in the country.
Gujarat would be the first state to get it.
The new e-commerce project would empower 1.2 million shopkeepers in Gujarat.
Why does it matter for Delhi-NCR?
Amazon and Flipkart had grown independent of local retailers. They had built their supply and distribution chains.
Reliance aims to flip the model. It plans to integrate retailers with its ecosystem of point of sale machines, payment bank accounts, GST software, telephony and e-commerce.
Each retailer will upgrade to a new age format, with a minimum investment of INR 3000 and upwards. Each retailer will have access to warehouse, a bank account, digital payments and accounting.
What is the bigger picture?
Amazon and Flipkart control 70% of e-commerce in India, which is less than 10% of the organised retail.
Reliance aims to focus on unorganised retail, which is 90% of the total retail. It’s similar to its Jio strategy, where it targeted users, which did not have money to go online.
Reliance is not just wanting to be the next Amazon, or Alibaba. It is aiming greater than that.
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