Ecommerce is a fast growing business and is grabbing a lot of attention. It was evident from Reliance Industries’ 41st AGM that Wal-Mart, who is set to acquire etailer Flipkart, and Amazon may face quite a competition in the market.
Mukesh Ambani, chairman of Reliance Industries, has shown quite an interest in acquiring some piece of the ecommerce business in the long run in order to channel the presence of Reliance’s physical retail shops and Jio’s digital infrastructure.
Reliance is one of the largest and fastest growing retail companies in India. Its fashion retail counterpart Reliance Trends and consumer electronics band Reliance Digital are two of the most successful. However, at present, it does not have a common ecommerce platform.
Since Reliance is already a successful company, its ecommerce will have an edge over others. Ajio which is its first pan Indian ecommerce venture has gone through a huge marketing endeavor recently. Reliance also has other online initiatives like RelianceSMART.in. Reliance operates the largest portfolio of 41 international brands such as Gas. A single ecommerce platform is desired, especially since ecommerce business is expected to bloom over next 10 years.
Other than Walmart or Amazon, grocery start-ups like BigBasket and Grofers will face quite a challenge. Reliance sold over 500,000 tones of groceries last year. According to Ambani, the ecommerce platform will help bring together the growing customer footfalls at Reliance Retail stores and the growing Jio connectivity customers and provide them a comfortable and personalized shopping experience with the help of holographic technology, augmented Reality, and VR devices. The existing ecommerce players will have to face quite a strong competition.