Billionaire Mukesh Ambani-controlled Reliance Retail is poised to make it tough for Jeff Bezos’s Amazon and Walmart-led Flipkart in India in the coming festive season as JioMart—the e-commerce platform of Reliance Retail—is ready to trigger an e-commerce price war, and the pricing of fashion items, smartphones and consumer electronics will probably be lower than the other online market platforms.
In an attempt to expand its food and grocery business, JioMart has forayed into fashion, smartphones and consumer electronics segments whereby it wants this platform to become a full-fledged online retail entity competing against Amazon and Flipkart.
The deep discount will mainly be applicable on private and exclusive brands such as its own fashion brands as well as on electronic goods from BPL, Kelvinator, Sharp and others. They further mentioned that prices will be lower for mainstream electronic and smartphone brands too. Large companies such as Apple and Samsung have stated in the past that as per Indian laws they do not control pricing on any platform.
It is worth mentioning here that Reliance Retail has tightened its grip on India’s organised retail sector after it raised Rs 13,000 crore from overseas investors for its retail business, and it all set to unveil these categories in most cities where it is brick-and-mortar retailer by next month and run big festive online discounting sales similar to Flipkart’s Big Billion Days and Amazon’s Great Indian Festival sales which start with Navratri and continue until Diwali—the biggest online retail business period of the year, the business daily mentioned. Also, it may be noted that the Mukesh Ambani-controlled retail giant has announced the acquisition of retail and wholesale business from Future Group for Rs 24,713 crore in August this year, which will cement its position in both online and offline retail further.
In Bengaluru, JioMart has launched its services via its value fashion store chain Reliance Trends. Reliance Retail will meet all JioMart orders from its over 11,800 physical stores, delivering in three hours to a day in most cases. Furthermore, JioMart has rolled out subscription-based delivery of milk and bread in Bengaluru and Chennai, a segment that will put it in a battle against Big-Basket’s BB Daily and others.
More importantly, JioMart’s prices for grocery, fashion, smartphone, television, refrigerator and consumer durable items will be among the lowest in the industry, the daily quoted sources as saying.
The primary aim is to garner a large share of total sales this festive season (from mid-October to mid-November) and attract buyers and beat competitors, the financial daily quoted an unnamed senior industry executive as saying. Another executive mentioned that the company is actively considering rolling out smartphones and electronics in some of the larger markets, including state capitals.