Ambani’s O2O aka online-to-offline commerce bet – JioMart is finally skyrocketing at an incredible pace!
It has recently come to light that this new eCommerce venture from Reliance Industries has observed 4 times more orders than it was receiving in the pre-lockdown period.
The trend is spotted in the company’s FY20 annual report wherein they dedicated an entire section to discuss the progress of JioMart.
The number of orders JioMart is current clocking per day has been indicated to be somewhere around 4,00,000 right now according to retail analysts.
In the previous month, Ambani in their annual general meeting indicated that they were doing close to 2,50,000 orders per day and hoped to ramp these numbers up quickly. This shows that RIL surely is keeping up with their goals on time.
When it comes to transaction value on JioMart, it currently, is clocking an average of only Rs. 500 per order. However, the figure will definitely go up when Reliance Retail’s fashion, lifestyle and electronics channels get thrown in the mix as well.
For FY20, electronics outlets of Reliance Retail constituted nearly 73% of their 12,000 stores, while fashion and lifestyle made up 20.2% and grocery took up only 6.8 %.
It is now predicted that JioMart will further accelerate its pace as Reliance Retail has brought one more noted company under its umbrella.
On Saturday RIL announced the acquisition of Kishore Biyani led Future Group which will give their retail arm access to Biyani’s network of more than 1,700 brick and mortar stores.
In the near future, the JioMart venture will undoubtedly merge all the individual channels that Reliance Retail currently has for fashion, lifestyle and electronics. This is something that Mukesh Ambani has repeatedly brought up in various statements and interviews.
Now, with the added arsenal of having the Future stores, which under its name has well-established brands such as Big Bazaar, Central and Brand Factory, JioMart, which is currently a part of Reliance Retail, will become even more indomitable.
According to Ambani, sellers can expect to have a higher edge here as well because their O2O platform will be acting as a centralised procurement and delivery platform.
Currently, Reliance Retail is focusing on upping their game in the grocery delivery sections with a combination of various tactics. The first and the most major one is definitely is them teaming up with the Facebook-owned instant messaging platform WhatsApp.
Besides, the company is also in the process of introducing SMART points which are basically neighbourhood stores under the grocery brand Reliance SMART. They are onboarding as many Kirana stores as they can throughout the country to spread as fast they can.
The FY20 annual report highlights how the entire concept of the SMART Point network was taken from idea to execution within a mere set up 45 days period of time. This was launched with 18 neighbourhood stores up and running in the Thane, Navi Mumbai and Kalyan areas near Mumbai.
As of now, Reliance Retail is busy trying to capture a sizeable share of the vast untapped potential in the country for consumption using their unique mix of physical stores, digital platforms and B2B channels.
Ambani has also indicated that JioMart is receiving strong interests from global strategic and financial investors in the upcoming quarters. Therefore, we might just be able to witness RIL attracting another flurry of heavy investments to pump into their e-com venture. We will keep you updated on all future developments. Until then, stay tuned.