JioMart has started with a beta test in December 2019. Crept up with an official rollout in the month of May this year. And my word has it traipsed to the top!
The juggernaut that is JioMart just keeps on adding to its laurels. If the latest report by JP Morgan is a marker of progress, Mukesh Ambani’s ambitious e-commerce venture has already topped a million daily active users, further adding 2.3 million active users every month!
The report also features some telling stats, which clearly show how JioMart has leapfrogged BigBasket and Grofers when it comes to daily active users. The fact that both BigBasket and Grofers being established brands have been pushed out in sheer numbers, is a reflection of the pace with which Mr. Ambani has pursued his e-commerce venture. Granted, both the bigwigs have an upper hand in the number of app downloads with 7-8 times more, but at this rate, JioMart is sure to catch up soon.
With the closely contested retail market in the country, Reliance Retail is having to battle out for supremacy on multiple fronts, with Amazon and Walmart owned Flipkart looking to expand their footprint in every which way possible. And in a dynamic e-marketplace like India, even while accounting for only 3 percent of total retail sales in the country, e-commerce has already touched the sky by amassing a $61.1 billion market. It’s safe to say that JioMart has a wide horizon to explore in the meantime.
Pandemic the catalyst
Now that we look at it, the pandemic induced lockdown also came at an opportune time for JioMart. Sensing the need of the hour and the opportunities in e-grocery which were about to be spawned, JioMart moved early and was able to expand into over 200 cities. As such, with 15,000 SKUs at its command, analysts favourably expect Reliance’s e-commerce business to churn an annual revenue of $59 billion, with the net worth expected to balloon to $145 billion in the decade. Staggering indeed.
Even though Kirana stores still account for a majority of 90% of grocery retail in India, JioMart’s partnership with Zuckerberg leg Facebook has all the ammunition to trump those traditional imprints. Facebook’s pumping of $5.7 billion, with WhatsApp’s integration with JioMart at the front and center, has given Reliance the power to tap into WhatsApp’s 400 million user base to acquire more customers.
Strategic acquisitions have been a key feature in Reliance retail spreading its wings, case in point being examples like Grab-a-Grub and online pharmacy Netmeds. By investing $15 million in the hyperlocal delivery start-up, picking up a stake in online lingerie retailer Zivame, online furniture retailer Urban Ladder among others, all of which have been aimed at bolstering its e-commerce foothold in India. That is not adding the controversial Future Group’s acquisition for a mammoth ₹25,000 crore too!
Considering the facts that 80% of the population is yet to make their first online purchase, Indian e-commerce expected to lodge a 12.1% CAGR till 2023, coupled with the rising rural internet penetration, there is much more for players like Amazon, JioMart and Flipkart to aim at. And with the headway JioMart has made in the past 7 months, the crown looks theirs for the taking.
Stay tuned for more updates.