JioMart Paves Its Way to Online Shopping

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While Reliance Jio is hitting the nail on the head so far as the telecom industry is concerned, JioMart has now entered the e-commerce business.

Growth of e-Commerce

With the transmission of a novel coronavirus, people are finding online shopping more convenient than physical shopping. And, it is expected that people will keep the ball. Online shopping seems to gain momentum in all age groups. So, the online payment system will grow with a variety of convenient options available (GooglePay, PayTm, PhonePe). 

Under such circumstances, the companies of the United States (Facebook, Netflix, Google, Apple) have already shown interest in investing in India. Well-informed of the above mention facts, there are chances of a shift in the behaviour of the market favouring e-commerce. Hence, JioMart set foot in e-commerce crossing 10 lakh downloads in Google Play Store and is amongst the top three shopping apps already. 

Indian market is the world’s fastest-growing market. Also, according to IBEF, the Indian market will grow around $1.3 trillion in the coming years. The online business contributes 3-4% of retail as compared to organized retail and traditional retail. According to IBEF, organized retail contributes about 9% in the Indian market. Yet, unorganized retail includes 90% of the same. JioMart will concentrate on the unorganized retail while operating its O2O (Online-to-Offline) strategy. 

JioMart makes an entrance

JioMart has made an entrance in e-commerce calling itself “Desh Ki Nayi Dukan”. Following the strategy of Jio Telecom, JioMart introduced its groceries and food services among its employees. At first, JioMart was providing its services in Mumbai suburban areas (Navi Mumbai, Thane & Kalyan). Jio has now launched its e-commerce portal in 200 cities. JioMart follows the idea to transform e-commerce which dominated by BigBasket and Grofers. JioMart accounts for online shopping of fruits & vegetables, Dairy & bakery, staples, snacks, beverages, personal care, home care, and baby care. There is no minimum requirement for the order. There is an initial 5% discount on MRP on selected products.

JioMart Collaborations

JioMart products will be sourced from the farmers who have collaborated with the brand. It has connected with offline retailers who will be able to expand their sales digitally during the pandemic (Covid-19). During the pilot phase, JioMart was functioning with a WhatsApp Business Account. JioMart’s telecom base Jio telecom adds an advantage to transform e-commerce. JioMart has a partnership with Facebook-owned-WhatsApp which has around 400 billion users in India. US-based social media platform had announced Rs. 43,000 crore investment in Reliance Jio, which will also be helpful for JioMart. JioMart will be global partners with Reliance Retail in the near future. It is also in talks with Big Bazaar chain of stores and is planning to get the same. 

Competition Inc and Walmart Inc.-owned Flipkart dominate the online retail industry with food and grocery being the most consumed category in India. Yet, most of the consumers are from the top cities. Now that JioMart has entered into the e-commerce play, it will involve consumers from small cities as well. JioMart enjoys the advantage of massive capital strength, significant grocery operation, and good brands in collaboration. Since it will deliver food and grocery item it will also act as competition for Swiggy’s Suprdaily, BBDaily, Milkbasket, Ninjacart, and Crofarm. JioMart aims to focus on India’s small traders, farmers, and MSMEs. If JioMart captures the market like Jio Telecom, it will overturn the online market. 

The revised FDI norm affects Amazon and Flipkart which creates a challenge for the two retailers. But, JioMart belonging to Reliance Industries Ltd. which is an Indian company that will enjoy the benefits. Also, an e-commerce policy will launch that will impact foreign companies in India. Only Reliance Industries Ltd. and The Tata Group can invite competition to Amazon and Walmart. Yet, Tata Cliq is not performing well in the market which will benefit JioMart. 

Marketing strategy

Staples such as sugar, oil, flour, rice, and other essential items are cheaply available on JioMart than BigBasket, Grofers, and Amazon, etc. JioMart has been concentrating on price-conscious customers to enlarge its market. Also, offers like “pay Rs.19 and get products worth Rs. 150” are attracting Kirana owners. Reliance is also promoting its private labels such as Best Farms, Good Life, Masti Oye, Kaffe, Enzo, Mopz, Expelz, and Home One under JioMart. Reliance Retail stores have spread their market in small towns as well as creating one of the largest supply chains in India. So far as promotion is concerned, JioMart adopts strategies wherein it introduces ad campaigns on television, magazines, newspapers, and social media. 

JioMart operates as Offline-to-Online (O2O) where the customers can buy products from nearby stores by the aid of the JioMart app directly. The idea behind such a concept is that the offline stores will be able to connect with online customers as well.

                                  Source: ETech, Illustration; Rahul Awasthi

The Challenge for JioMart

E-commerce player, Walmart, announced the creation of the Walmart Vriddhi Supplier Development Program. Even Flipkart has launched ‘Samarth’ to promote the Indian artisans, weavers, and craftsmen. Also, Walmart and Flipkart have invested in startups like NinjaCart and Shadowfax to empower them. So far as Amazon is concerned, it has invested around $6 billion in India recently. It has acquired a 49% stake in Future Groups to give a fierce competition to the other market players. Amazon has even invested in Aditya Birla Group and has 5% Equity in Shoppers Stop for Rs.179.25 crore. Amazon opened its largest office in Hyderabad, India after the US. The office will provide large employment opportunities in India. is now on Telegram. Follow us for regular legal updates and judgment from courts. Follow us on Google News, InstagramLinkedInFacebook & Twitter. You can also subscribe to our Weekly Email Updates. You can also contribute stories like this and help us spread awareness for a better society. Submit Your Post Now.


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