Vegetables, groceries are the
new buzz in the E-Commerce industry. Gone are the days that only the people
residing in metros can have groceries delivered to their homes with a single
click of an app. Even if you are in tier 2 or 3 cities, you are getting it, and
don't you worry if you are not getting it, because soon JioMart will be there.
Almost a year old in the industry, JioMart is riding on Reliance's power, and it's available across the country. JioMart is the next big thing in online grocery retail even as the sector sees tough competition from Grofers, BigBasket, Amazon, Flipkart, and Swiggy.
What is JioMart?
JioMart is the platform between
customers and nearby stores. It serves as a procurement and delivery channel
between manufacturers and merchants.
JioMart was soft-launched in
December 2019 in selected areas of Thane, Navi Mumbai, and Kalyan. However, as
the coronavirus lockdown began, the opportunities in e-grocery became more demanding;
JioMart was the quickest to act and expanded to over 200 cities in less than one
year.
The platform allows you to
purchase from among 50,000 products. The product ranges from groceries and
other essential items to private label products owned by Reliance Retail.
Reliance also stated that it would
continue to add new features to JioMart, which it calls 'Desh Ki Nayi Dukaan.'
The 'new commerce' platform is taking on BigBasket, Amazon Pantry, and others
in a fast-expanding e-grocery market.
Why E-Grocery?
Online Grocery is projected to
grow up to $1.2 Trillion by 2021.
It's quite evident that JioMart will not be restricted to just food and Grocery, but very soon, the platform would also include electronics, fashion, and lifestyle, and pharma products.
O2O channel:
JioMart is offering an O2O
(online-to-offline) marketplace. This business model was started by the Chinese
e-commerce giant Alibaba Group.
 |
Pic Credits and Read more about O2O, Click here: |
Under the O2O model, any consumer searches for the product online, but it is procured through an offline channel and delivered.
O2O model gives JioMart an edge
over others as it has an outstanding presence across India and its leveraging offline-to-online
approach by partnering with Kirana stores.
JioMart also uses inventory from Reliance Retail outlets.
90% of grocery retail in India
is catered to 10 million local Kirana stores. E-grocery business wants to
improvize the unorganized retail sector. These local stores and businesses were
adversely affected due to the competitive
pricing and warehousing strategies of online retail stores.
JioMart will be giving them an
opportunity to increased sales and margins.
JioMart will also help these shopkeepers in technical expertise like PoS (point
of sale) terminals, integrated billing applications, and GST compliance system.
The company also plans to upskill the shopkeepers in inventory management and
supply chain management.
The current footfall of JioMart:
JioMart has already been launched in more than 200 cities, leveraging Reliance Retail's store network and with Kirana partnerships across 20 cities as per Goldman Sachs report.
|
Company |
Launch
date |
Presence
(no. of cities) |
|
Amazon
Fresh |
August
2019 |
9 |
|
Flipkart
Supermart |
November
2017 |
5 |
|
Swiggy
Stores |
February
2019 |
30 |
|
BigBasket |
October
2011 |
26 |
|
Grofers |
December
2013 |
30 |
|
JioMart |
December
2017 |
200+ |
The Goldman Sachs report also showed that the new app downloads for JioMart in recent times have been double than BigBasket and Grofers put together.
It should be noted that downloads don't necessarily translate to transactions on the app. However, it is an indicator of initial customer engagement, which can translate into future market share, which we can see happening.
Another strategic advantage in favor of JioMart's side is its integration with WhatsApp. Facebook's $5.7 billion investment in Reliance in April made it very clear that Reliance Retail would be leveraging WhatsApp's existing large user base in India to reach out to new customers.
Currently, you can also order on the JioMart platform via WhatsApp.
Acquisitions by Reliance Group for boosting JioMart:
🔥 Acquisition of NetMeds for $83 million: Reliance has also acquired online pharmacy company NetMeds
🔥 Grab A Grub for $14.9 million: Grab A Grub is an Indian logistics start-up. Grab might have been chosen because it worked successfully with McDonald's, BigBasket, Myntra, Amazon Now, and Swiggy
🔥 C-Square for $11.56 million: C-Square provides software solutions for verticals like e-commerce, salesforce, retail, etc.
🔥 Fynd for $15 million: Reliance pumped in for an 83% stake in the hyperlocal delivery start-up
🔥 Zivame: It has picked up around a 15% stake in online lingerie retailer Zivame
🔥 Urban Ladder for Rs 182 Crore: 96% Stakes in the online furniture retailer
Future Retail (Big Bazaar): This acquisition Retail for almost ₹25,000 crores also gives JioMart access to BigBazaar stores across the country.
Competitors like Grofers and
Swiggy has reduced its E-grocery presence and are currently active in significantly
fewer cities. This will give it an added advantage for JioMart.
Swiggy has pulled back from groceries,
fruits, vegetables, and other essential deliveries in about 100 cities.
Currently, Swiggy operates food delivery services in nearly 500 cities, and it has
restricted Grocery to approximately 20 cities. Sailing on the same boat, Zomato
has been scaling down its grocery offering since June.
The withdrawal of these
verticals from the native app has come when the e-grocery segment has turned
hyper-competitive.
Reliance's JioMart has dethroned BigBasket to become the largest e-grocer in India within a few months of its launch.
JioMart clocks over 700K orders daily, while BigBasket and Grofers processes over 120K and 150K orders a day.
We may also witness Tata's entry
to the E-grocery segment as the group talks to acquire a majority stake in
BigBasket. Grofers and Zomato were also in merger talks, but the words didn't
move beyond the preliminary stage.
With the entry of Mr. Ambani in the Indian E-grocery and E-commerce market, a severe threat looms over existing grocery and E-commerce ventures.
Besides being a famous brand
name, JioMart has some features that lend it an upper hand over its competitors,
and we might be seeing a grand slam home run by Mr. Ambani.
https://en.wikipedia.org/wiki/JioMart
https://startuptalky.com/jiomart-case-study/#
https://yourstory.com/2020/10/jiomart-subscription-milk-bread-deliveries-bengaluru-chennai
https://entrackr.com/2020/12/exclusive-swiggy-moves-away-from-grocery-and-fresh-produce-delivery/
I have found that this site is very informative, interesting and very well written. keep up the nice high quality writing. Sourcing Strategy in Supply Chain Management
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