JIOMART
DESH KI NAYI DUKAAN
1.1 What is JioMart?
1.2 What is the business model?
1.3 How you can place orders?
1.4 What benefits you will get?
JIOMART
JioMart is a subsidiary of Reliance Retail and it was started as a joint venture between Reliance Retail and Jio Platforms. Both these are subsidiaries of Reliance Industries Limited (RIL) which is owned by Indian billionaire business magnate Mukesh Dhirubhai Ambani.
JioMart is an e-commerce chain and online grocery delivery service that provides groceries from Reliance Fresh, Reliance Smart, and neighborhood Kirana stores.
The JioMart platform was soft-launched in December 2019 and in April 2020 a pilot project of JioMart has been launched in selected areas of Navi Mumbai, Thane, and Kalyan for early trials. In May 2020, Jiomart was launched in 200 cities in India and it is adding its own stores and expanding its network very rapidly in India. As the current COVID situation is boosting the online business, this situation will help JioMart with the increasing sales orders.
So I must mention that RIL has launched Jiomart at this very correct timing.
Business Model:
This works on the O2O business model, Online-to-Offline.
The idea is to bring millions of small businesses online. JIOMART is an aggregator of your neighborhood grocery stores.
Initially, the O2O concept was led by Alibaba, one of the biggest e-commerce giants. Then the Amazon followed with the acquisition of Wholefoods. So the two biggies are already working on this model. So this raises the question in our minds that what is this model exactly.
In Early 2019, Jiomart started with the Point of Sale (POS) machine installation program in the Kirana stores. These Kirana stores cover the maximum crowd from their residential areas. These stores are onboarded for JioMart's online business. Also, JioMart has given traditional stores the option to list their store on JioMart if they wish to, and also they can list their products which they want to sell on JioMart Website. So the customers are actually ordering the products which are listed by their neighborhood stores, Reliance fresh or Reliance Smart. So your offline purchase becomes online with the help of JioMart. However, the business of offline traders and retailers came online through JioMart.
This is the O2O model currently JioMart is following.
Reliance's long term vision would be converting its 400 Million+ subscribers into customers on this E-commerce platform. On my Point of view, this will be an easy win for Reliance as they first need to target the people who are their existing JIO subscribers. That is how Reliance already has its subscriber base in place. So now its all dependent on how the business model works here-on...
Jio is sending promotional messages to Jio subscribers for promoting JioMart and offering them more discounts.
Reliance is also seen promoting its private labels on its JioMart site, So we may see most of the private brands selling groceries and many Kirana products on JioMart. This can be a major source of revenue for JioMart in the future.
The Reliance Retail led by Mr. Mukesh D. Ambani currently operates 621 R' Fresh and R' Smart stores and delivers 500 metric tonnes of fruits and veggies every day, as per company data.
As per Wikipedia Information, "JioMart has promised to offer over 50,000 grocery products with free home delivery, without minimum order values and what they are calling is an express delivery promise and a no questions asked return policy. This service will be available through Android and iOS apps". But Right now, Only the JioMart website has gone live; JioMart may soon come up with an android app for its e-commerce platform.
JioMart will now directly compete with Amazon and Flipkart in the e-commerce sector; Just like they disrupted the telecom market.
Online Orders
The grocery market is one of the biggest markets in India, which comes out to be 70% of the overall and the neighborhood shops drive 90% of it.
Visitors can order the groceries online by visiting the online portal jiomart.com which has gone live a few days back. The service has gone live for almost all metro cities like Mumbai, Delhi, Kolkata, Bengaluru
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| I.3. Payment Options on Jio Mart |
CLSA said Reliance Mart aims to deliver orders within two days; while JioMart does not commit on delivery because of the current lockdown situation.
Online order flow:
- Login to www.Jiomart.com
- Enter your PIN-code to see the service is available in your area.
- Sign up for the JioMart
- Shop for the products and groceries that you like to buy & add the product into the cart from various categories
- All products are available at a discount on the MRP
- After adding products to the cart, click on the cart icon
- Enter delivery address
- Select the payment option & Pay
- Your order is placed
- You will receive a confirmation message
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| I.4 Order confirmed |
You can download the JioMart app from playstore to place the orders.
Provided Benefits
The company is giving a minimum of 5 percent discount on select products. Post the development, JioMart lists all the major grocery categories like fruits and vegetables, dairy and bakery, snacks, beverages, staples, personal care, home care, and baby care, and many more.
The nationwide rollout gives a good alternative over existing market players in this space like Grofers, Bigbasket, Amazon Pantry, etc.
Below are some highlights:
- No Delivery charges on orders above 750
- Cash on delivery orders are available as well
- The Store is open 24*7 for you to order
- Allows to shop from wherever you are
- Minimum 5% discount on Maximum Retail Price (MRP)
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Don't think jiomart can ever beat amazon and flipkart because they are already doing great job. This platform is not stable yet and will take months to get sufficient data to be stable.
ReplyDeleteYes, this is not stable yet and the products are also less right now on this website, but i think their domestic rival is Dmart .. letss see they can beat Dmart or not :)
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