Jio-Mart- case study

 Jio-Mart- case study

INTRODUCTION

 JIO (Joint Implementation Opportunities)

JioMart is an online grocery store that aims to provide 50,000+ grocery products, at competitive discounts and express delivery at your doorstep.

It will partner with local retailers and is not going to follow the footsteps of other competitors in this field, by avoiding the system of warehousing.

Currently, it has begun its operations in Mumbai, Kalyan, and Thane in Maharashtra.

SCOPE IN RETAIL SECTOR:-

At present, India’s unorganised retail industry accounts for about 80 per cent of the country’s total retail business.

Features of Jio-Mart

Online-To-Offline (O2O):

JioMart is going to operate on Online to Offline model, which means it will connect with local retailers and deliver goods to the customers by procuring them from the nearest store located in the customer’s vicinity.

This model is unlike the warehouse model used by Grofers and Amazon Now.

 JioMart aims at organizing the unorganized retail sector, hence benefitting local shopkeepers whose businesses were earlier being adversely affected due to competitive pricing and warehousing strategies of other online retail stores.

In addition to increased sales and margins, these shopkeepers will be equipped with points of sale (PoS) terminals, integrated billing applications, GST compliance, hence ease in taxation and also providing them inventory management skills and supply chain management skills.

In this way, RIL will establish its new venture which is termed by them as "Desh Ki Nayi Dukaan".

STATISTICS

The online grocery market currently deems for solely 0.2% of the overall market, it’s expected to reach $10.5 billion (1.2%) by 2023.

Amazon Retail India posted a loss of INR 127.4 crores and a revenue of INR 139/- crores in 2019.

The online grocery market is ruled by BigBasket and Grofers with 70% market share by their side.

Dunzo’s loss broadened to INR 169 crores this year compared to last year, they reported a loss of INR 21.9 crores.

Swiggy Go another hyperlocal player is currently operating in Bangalore and Hyderabad is aiming to spread over 300 cities by the end of this year.

Online grocery delivery is one of the fastest-growing parts of India’s $60bn ecommerce market, with annual sales growth rising to 87 per cent, according to consultancy AT Kearney.

HOW IT WILL FUNCTION:-

The company is signing up local merchants offering them an online-to-offline (O20) marketplace, a business model pioneered by Chinese e-commerce giant Alibaba Group Holding Ltd.

JIO MART WILL completely transform the unorganized retail market

The newly launched venture would act as an aggregator where it will partner with local grocers and equip them with points of sale (PoS) terminals, low-interest working capital, inventory management skills, and help with GST compliance.

kirana stores have been invited to register on the platform

Reliance has digitally connected the local grocery stores and some of their products can be seen live on its platform

RIL’s retail arm Reliance Retail started sending JioMart invites to its telecom users

RIL’s retail arm plans to “empower” 30 million small traders and merchants via its platform

JIO MART- deploying new-age technologies to link producers, traders, small merchants, consumer brands and shoppers on an all-India basis.

JIO MART- also working on merchant Point of Sale (POS) Solution in order to create an ecosystem for India’s commerce

JIO MART- user-friendly digital platform is designed for inventory management, customer relationship management, financial services

New commerce is Reliance Retail’s offline-to-online initiative, which would link producers, traders, small merchants, brands and consumers through technology.

The company has been working on its new commerce plan for nearly two years and currently runs neighbourhood stores, supermarkets, hypermarkets, wholesale, speciality and online stores

Reliance Retail aims to connect as many as 30 million neighbourhood stores through the venture

The company would soon roll out apps for Android and iOS platforms.

SERVICE

Free home delivery- JioMart is going to give you the benefit of delivery of commodities at your doorstep, by procuring it from the nearby store, and that too, free of cost, 

No minimum value- Generally, ecommerce sites set up a minimum value of a purchase to validate free delivery.

For example, Grofers has the policy of providing free delivery for a minimum purchase of Rs 500.

JioMart will not expect any minimum payment to and hence, will not charge delivery charges, even for the smallest of an item to be ordered.

Express Delivery- Express delivery means quicker delivery than ordinary service.

In ecommerce, it is generally within 24 hours.

No questions asked return policy-

When you wish to return some goods ordered online, you almost always have to face some unnecessary questions which you may not wish to answer to, but cannot avoid.

JioMart is saving you from this botheration.

Early bird discount of Rs 3,000- JioMart has come up with the promotional strategy of pre-registration, in which people can save up to Rs 3000 on future shopping.

Jio has started sending invites to its existing telecom service users in selected areas.

He already has a good customer base in the retail sector with Reliance Fresh, functioning successfully on the Brick-and-Mortar model.

Being the true businessman he is, the planning to set up an ecommerce platform was started way back in 2019.

After all, his ambitious project has to compete with global ecommerce giants, such as Amazon and Walmart-owned Flipkart.

FUTURE SCOPE:

JioMart wasn’t an overnight expedition of Mukesh Ambani but is considered to be a well-assessed move with the sole motive of capturing this highly sought-after segment which is projected to grow up to $1.2 Trillion by 2021.

  

MERGER ACQUISITION FOR FUTURE

Acquisition of Grab A Grub:

Grab A Grub is an Indian logistics startup, founded in 2013.

In March 2019, Reliance Industrial Investments and Holdings Limited (RIIHL) acquired it for $14.9 million to support the logistics of Mukesh Ambani’s “planned e-commerce venture”.

He chose Grab as it has worked efficiently with some mega-brands such as McDonald's, BigBasket, Myntra, Amazon Now, Swiggy, etc. and provides numerous services.

 Acquisition of C-Square:

C-Square Info Solutions Private Limited, founded in 2002, provides software solutions for various functions online ecommerce, salesforce, retail, etc.

 It was also acquired by RIIHL in March in 2019, for an amount of $11.56 million.

A strategic move by RIL, it, too, was aimed to brace JioMart.

COMPETITION :-

My Jio Mart will take on the might of e-tailers such as Amazon and Flipkart with help from local grocers to establish itself as a force

JioMart, which comes with the tag line “Desh Ki Nayi Dukaan”, is expected to take on online grocery specialists such as Bigbasket and Grofers, and large e-tailers with grocery delivery plans, such as Amazon and Walmart-backed Flipkart.

BENEFIT FOR RELIANCE JIO MART

Reliance had unveiled its new commerce plan a few months back and the plan is seen as a $700 billion opportunity for the company.

AREA SERVED:

JioMart will cater to online shoppers in Navi Mumbai, Thane and Kalyan, with plans to scale it up gradually