The JioMart Story
OVERVIEW AND BACKGROUND
JioMart is a revolutionary step taken by Mr. Mukesh Ambani to solve the problems of over 3 crores of Kirana store owners. Reliance brings to you a ‘Desh Ki Nayi Dukan’ where you are served by your local grocery shopkeepers through the digital JIO chain at your doorstep.
JioMart is not just an online shopping store but a vision of new India to generate better prospects for lower and middle-class people who are forgotten. JIO has always been an economical option for most of the Indians and this will only be an extension to it.
BUSINESS MODEL
JioMart had started a point of sale (PoS) machine installation process and a platform to place orders for Kirana (corner) stores in early 2019.
Jio has recognized four indispensable sources of strength to get an enlargement that includes.
Augmenting geographical stretch,
Introducing brand new store conceptions and channels,
Reinforcing and upgrading customer experience, and
Leveraging technology.
The JioMart operates on an online-to-offline (O2O) business model, i.e., customers could buy products directly by the app from neighboring sellers. It is a retailing platform to give consumers packaged goods and kitchen supplies.
By this approach, all the offline sellers can supply their products on the JioMart and can relate to a broad extent of online customers.
As oil to telecoms syndicate launches its digital commerce enterprise to go live, encouraged as it is, after the latest investment by the Facebook, social media giant. In July 2020, the company announced that they will be getting into the electronics, fashion, pharmaceutical, and healthcare verticals as well. JioMart has added a subscription service to its grocery segment for delivering daily essentials such as milk, bread, fruits, etc. in Chennai and Bengaluru.
In October 2019, JioMart signed an agreement with Infibeam Avenues. Under this deal, Jio will use Infibeam's solutions to power its e-commerce and digital payments services.
BUSINESS MODEL
Reliance revealed the business model of the JioMart, the e-commerce website will allow local vendors and small Kirana stores to take orders through WhatsApp while the orders will be delivered within 24 hours or the same day to the customers.
Currently, Reliance Retail stores are delivering the orders on the JioMart, but later eventually the Jiomart will work on a hybrid model whereby its own retail stores, as well as local Kirana stores, will be roped in for order fulfillment for the quick delivery.
JioMart also works as a traditional e-commerce website where users place orders online through the website and app and the product is delivered by the company at a specified time.
The local Kirana stores can now be able to register online for the grocery's delivery platform JioMart. After the JioMart Kirana registration, the company helps them to make their Kirana shop digital to receive orders through WhatsApp.
After the order is prepared by the Kiaran then it sends the confirmation to the user to pick up the order from the store
Reliance Retail Ltd.'s new e-commerce venture JioMart is launched with the tagline “Desh ki Dukan.” Jiomart business model works on the O2O (online-to-offline) model where the customers can order online, and the product is delivered from the local Kirana store
Jio Mart is using a hyperlocal business model as a platform to enable local offline businesses to reach out to their targeted customers ensuring product delivery within a noticeably brief time. It will empower their local and small businesses to become more of them.
Elements of Marketing:
Price: 5%-10% on MRP, Special discount for First-timers, flash sale, and super savers. Jio-mart makes use of Value-Based Pricing which is primarily based on a consumer's perceived value of a product or service.
Products: FMCG, Durable goods, Consumer goods, staples.
Place: Local Kirana stores, Reliance retail stores.
Promotion: JioMart had organized its five-day sale, as part of Independence Day offerings following Reliance Digital’s Digital India Sale, from August 15 to August 19.
Source:https://economictimes.indiatimes.com/
FINANCE
Brokerage IIFL Securities said Reliance JioMart, the new commerce venture that went live in May, could clock revenue of Rs 4,000 crore in its first year of operation. The assessment has been made based on orders per day, which have been growing, it said orders per day were 250,000, according to IIFL, the figure is now 400,000.
Brokerage Morgan Stanley has said that JioMart was poised to sell half of all online grocery to India in the next few years, led by significant investment by the company ahead. According to a Goldman Sachs report, JioMart is poised to sell half of all online grocery in India, which is expected to see 5million orders every day by 2024
10 deals in 53 days (about 1 month 3 weeks)! Jio Platforms rakes in whopping Rs 1.04 lakh cr, Facebook announced an investment of $5.7 billion (about $18 per person in the US) in Jio platforms Ltd.
The kiranas, as they stand today, have a demand-side problem as modern trade, discounters, and online are gaining market share and a supply-side problem.
On the supply side, a tie-up with Jio Mart is likely to help the store from an analytics-led understanding of the assortment at stores and better cost of procurement by receiving help from Reliance's scale.
Jio Mart platform offers to retailer's greater demand generation from taking the store online and using the existing Jio customer base.
There is a willingness to pay a premium for packaged grocery products, the price differential between loose and packaged groceries are 10% (4% for packaging, 5% GST).
FUTURE
The Jio-Facebook deal, wherein Facebook will invest Rs 43,574 crore in Jio platforms. As part of this deal, WhatsApp—Facebook’s popular messaging platform —will collaborate.
Owing to this collaboration, JioMart users will be able to place their orders through WhatsApp and Facebook while payments can be made using the ‘WhatsApp Pay’ feature (currently in pilot) and will soon be available for Indian WhatsApp users.
JioMart-will empowers 3 crores mall Indian Kirana shops to digitally transact with every customer in their neighborhood.
JioMart is planning to open thousands of small grocery outlets or Reliance Smart Points and Smart Stores, these Reliance Smart Points will be a smaller version of Smart Store with a more local presence in nearby markets.
OUR VIEW
The pecking order in the $2-billion online grocery market in India has been shaken up by newcomer JioMart. Based on orders per day, JioMart, the two-month-old e-commerce venture of Reliance Industries (RIL), is ahead of rivals Big Basket and Amazon, numbers shared by these firms and sourced from the industry indicate.
While JioMart is doing 250,000 orders per day, as shown by RIL Chairman and Managing Director Mukesh Ambani, Big Basket is doing 220,000 orders per day. JioMart is emerging as a serious challenger in India's expanding e-commerce market, but Amazon and Walmart's Flipkart will be difficult to defeat.