Behind Reliance’s foray into e-commerce are the figures, which show that India’s e-commerce sector will be worth $200 billion in the next 4 years. Global firm Morgan Stanley estimates that in 2026 this important industry of India will reach $ 200 billion. It is clear that the trust of the people of the country has increased in the online market and more and more people are adopting it and will continue to adopt it.
How is Geomart’s strategy different?
Reliance launched JioMart when the country was in lockdown. Gradually expanded its e-commerce portal. Now it has become a complete e-commerce portal, on which everything from household goods to fashion and electronics is available.
Both Flipkart and Amazon depend on third-party vendors. This means sellers are completely different from these platforms. If we talk about Geomart, then most of the products on it are from Reliance’s own brands. It is claimed that goods are delivered to people’s homes from 15,000 Reliance retail stores present across India.
Offline-Online Hybrid E-Commerce Model
JioMart has found success recently with its offline-online hybrid e-commerce model. For the first time, the company conducted a Diwali sale on its platform from 23rd September and saw sales increase by 2.5x during the week. Although the market share of JioMart was very less, this beginning was effective in establishing the roots of the company. The established platforms of Flipkart and Amazon had a market share of 88 percent in the first week of September.
The next sale will be bang
According to a report in Rest of the World, Sanjay Kothari, market researcher at Redseer, said, “From an acceptability and usage perspective, Indian customers welcomed JioMart.” He further added, “This year, the focus was on establishing JioMart as a well-grounded platform and clearly conveying that message to its users. When the next festival (SAIL) comes around, they will be in a good position to become one of the big players in this sector.”
Amazon struggles, and Geomart grows
In a short span of 2 years, JioMart has left behind its peers in the grocery category. Today, JioMart makes 600,000 deliveries per day across 260 cities and towns in India. This fulfillment was done through Reliance’s own retail stores and neighborhood mom-and-pop outlets called kiranas. Kirana stores supplied 88 percent of total consumer purchases in 2020.
Reliance has been renting point-of-sale (POS) machines to digitize grocery stores. Research firm Bernstein acknowledged the success of JioMart in a note dated 30 August. The firm wrote in its note – While Amazon struggled to maintain its dominance, Reliance expanded its e-commerce operations to become the leader in the online grocery category.