Mukesh Ambani officially launched his telecommunication venture called Jio (Joint Implementation Opportunities) and set an example by turning Jio into the largest mobile network in India and the third-largest mobile network operator in the world with over 322.99 million subscribers
Witnessing the growth in revenues, profits, and market share in the above-mentioned sectors, Mukesh Ambani is now all set to try his hand at e-commerce through his new venture called JioMart. Let’s have a look at Jio Mart concept and what is it all about
JioMart is an online grocery store that aims to provide 50,000+ grocery products, at competitive discounts and express delivery at your doorstep. It follow an on-demand model. The company will avoid the system of warehousing and will partner with local retailers who will source the grocery products and they will deliver it to the customers. JioMart began functioning in January 2020 and is currently operational in Navi Mumbai, Thane, and Kalyan. The company is expected to be launched soon in other parts India. However, its exact launch date is not known yet.
The JioMart App will soon be available for download on Google Play Store and on Apple Store.
Features of JioMart
JioMart will operate on the Online to Offline business model, which means it will connect with local retailers and deliver goods to 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.
The company aims at correcting the unorganized retail sector, benefiting local shopkeepers whose businesses were 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, thereby easing taxation and also upskilling them in inventory management and supply chain management.
This way, RIL will establish its new venture, termed as “Desh Ki Nayi Dukaan”.
JioMart claims to offer consumer-friendly services like:
Free home delivery: It will give you the benefit of delivery of commodities at your doorstep by procuring it from the nearby store, and that too free of cost, which your Kirana wala bhaiya might not.
No minimum value: Generally, e-commerce sites set up a minimum value of a purchase to validate free delivery. For example, Grofers has the policy of free delivery on a minimum purchase of Rs 500. It will not expect any minimum payment and will not take delivery charges, even for the smallest of items ordered.
Express Delivery: Express delivery means quicker delivery than ordinary services. In the e-commerce segment, it is generally within 24 hours.
No questions asked return policy: When you wish to return goods ordered online, you are almost always bombarded with unnecessary questions that you may not wish to answer but cannot avoid. JioMart will save you this hassle.
Early bird discount of Rs 3,000: The platform has come up with a promotional strategy of pre-registration wherein people can save up to Rs 3000 on future shopping. Jio has started sending invites to its existing telecom service users in selected areas.
Relevant read: Reliance’s Online Grocery Service JioMart Expands services in 200 Cities
The Idea Behind Starting JioMart
JioMart wasn’t an overnight expedition of Mukesh Ambani but a well-assessed move with the sole motive of capturing the highly sought-after e-commerce segment which is projected to grow up to $1.2 Trillion by 2021.
He already has a good customer base in the retail sector with Reliance Fresh which functions successfully on the brick-and-mortar model. JioMart owner Mukesh Ambani’s plan to set up an e-commerce platform started way back in 2019. His ambitious project emulates his desire to compete with global e-commerce giants such as Amazon and Walmart-owned Flipkart.
- 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 Jio Mart founder Mukesh Ambani’s “planned e-commerce venture”. Grab was chosen as it worked efficiently with some mega-brands such as McDonald’s, BigBasket, Myntra, Amazon Now, Swiggy, etc.
- Acquisition of C-Square: C-Square Info Solutions Private Limited, founded in 2002, provides software solutions for various functions like e-commerce, salesforce, retail, etc. It was acquired by RIIHL in March, 2020 for an amount of $11.56 million. A strategic move by RIL, it was aimed to strengthen JioMart