The increasing scope of business growth in the online sector has
encouraged India’s successful organization Reliance
Retail Ltd (RRL) to enter the segment and compete with the online industry
leaders including Amazon and Flipkart. Amazon is one of the pioneers and leader
internationally while Flipkart has been taken over by retail giant Walmart some
time back. Today RRL – is the largest retailer in the country. The company is
eying endless and fast growth in the online sector and has so planned some of the
big ventures. The company is sure to give a very strong competition in the
The richest man of Asia is planning to give Jeff Bezos of Amazon a run on the financial backgrounds. The chairman of Reliance Industries, Mukesh Ambani, is about to launch his own e-commerce platform. This platform of Reliance Retail would compete with leading brands Amazon as well as Walmart’s Flipkart in India. One of the most powerful companies situated in India is Reliance and now, growing its retail presence across all the corners of India where a market is conquered by neighborhood grocery stores.
According to the sources, the motive of RRL is to establish an
online platform for all the offline merchants and stores to sell their products
online to the consumers of India. Well, this platform is quite similar to the “Alibaba”
which is an online marketplace. The set-up of marketplace is still going on and
it is not named yet. As the internet users are growing to five hundred million,
e-commerce is also expanding by thirty per cent every year. As per the
estimates by Morgan Stanley, the opportunity for online retail in India is
grown up to $200 billion by 2027.
Through it mobile broadband unit, Reliance Jio, the group is
already having access to vast consumers. It decreases the cost of internet broadband
for getting more number of Indians online.
Dinesh Moorjani of Comcast Ventures told, “A cheap mobile broadband
service introduced by Reliance about two years ago. It created an environment
where every person started using the internet on the go and got addicted to the
Jio is adopted by everyone from blue-collared workers to the
corporate executives. New guidelines for e-commerce sector has also been issued
by the Indian government earlier this year. Both of the companies, Amazon and
Walmart, have originated from the United States and have been fighting for
market share in the growing Indian market. More job opportunities have been created
by Amazon especially in India as compared to any other nation.
“More protectionist policies, localization of data and preferential
treatment towards the domestic companies throughout the last nine months” as stated
by Nisha Biswal, president of the United States-India Business Council. The
trend is quite challenging.
One of the largest players in the e-commerce industry in India is
Amazon and presently, it faces the risk related to frequent regulatory changes.
It is impossible for ample number of technology companies to expand their
business in China due to prevailing policies and India is a nation where they
are expecting to win more. Amazon tried to enter China but Alibaba got the
victory. So, India is a huge bet for Amazon. But e-commerce is not an easy
market to achieve the target, not for overseas players.
A large number of Indians residing in big cities such as New Delhi
and Mumbai are buying most of the goods through online retail platforms. Ten
thousand retail stores are hoping to tie-up with Reliance industries in six
thousand cities and cater to the Jio subscribers of about three hundred million
to arrive at the masses. The next step of Reliance Industries is to move into
the sector of e-commerce and to take the advantage of consumer base. This is
the massive project for Asia’s richest man and it is expecting to be less
costly for Indians.
Reliance Retail Ltd. (RRL) has its own success
story. Nothing is impossible for the group as the company under the leadership
of the successful businessman Mukesh Ambani is already doing better in the
retail sector as well. As per the information from the reliable sources, RRL currently
operates through its three major divisions – (i) grocery, (ii) consumer
electronics, and (iii) fashion and lifestyle. If we talk about its grocery
segment, the company functions using the three key systems – (i) neighbourhood
stores (Reliance Fresh), (ii) supermarkets (Reliance SMART) and (iii)
wholesale/ B2B cash & carry stores (Reliance Market). It also runs its dedicated
grocery online shopping platform by the brand name RelianceSMART.in accessible
24×7. It has lately introduced a new concept of store by the name Qwik Mart
which is a convenience store co-located with the outlet of Reliance Fuel
Reliance Retail Limited is also the leading
organized retailers in India in the segment of consumer durables and
information technology today. This segment runs eight thousand stores across the
nation through ResQ service centers (full-fledged service arm), Jio Stores/Jio
Points (Smaller stores facilitating sale of Jio services, mobility and
connectivity products) and Reliance Digital Stores (Big-box Consumer
In addition to the above, RRL also sells its own demanding
branded products under the popular brand including Enzo, RelGlow, Best Farms,
Kaffe, Mopz, Expelz, Home One, Graphite, Good Life, Masti Oye and more.
Thus, it is difficult to stop RRL from achieving its unbeatable niche in the online segment over the time. It will certainly give a strong challenge to Walmart owned Flipkart and Amazon in India.