Recently if you have seen the news, you might know that Mukesh Ambani is entering the eCommerce field. Here he is going to compete with Amazon, Flipkart, Paytm & big players. Jio Change eCommerce business, but there’s a twist here When did he declare this news?
When the government changed some rules of FDI. The government has declared that these companies cannot work on inventory because 100% of FDI doesn’t exist in the eCommerce field. They were providing enormous discounts which affected the offline stores.
Side by side monopolies and there were many products that were being sold in these stores only, now this rule is not new. This rule was made in 2008. Where the government declared that any wholesaler cannot sell more than 25% of his products.
What were they doing? They were selling amazon exclusive products. Means all their products on amazon. This violated the rule and this was stopped too. But this is only for international companies. If any Indian owns, then not to worry If a person’s 50% stakes are owned by a foreign company.
Here Mukesh Ambani is using his own money and Jio Change eCommerce business in India. He’ll have the control and all these new rules won’t be important for him. What does he want to do?
He has an offline retail channel where they are selling these products. Whether electronics, clothes, or groceries. Side by side they’ve Jio network, online users.
Today in India, if a person is able to use the internet, then it’s because of JIO. So JIO has created a barrier in this field of telecom. People went crazy for free internet.
Earlier internet plans were very expensive and Jio made the platform.
- Today Jio has more than 25cr. Subscribers. Why because Airtel, Vodafone are being silly.
- Recently they came with a plan that If you didn’t do a recharge of 35rs. Then they’ll terminate your number. Basically unlimited validity now it’s not unlimited any more.
- This will affect them only Jio has made a platform. They’ve all the database along with their offline experience. Now they are going to create an eCommerce store, and this won’t be a normal eCommerce.
I was reading the interview. They are going to give you an immersive experience (3D). Immersive experience means augmented reality. I opened my phone and it took access to my camera. After this Suppose I want to buy a sofa set. Now I can examine whether that sofa will look good or not, using the camera. Whether it’ll look good or not, whether this curtain will look good or not.
Here they’re talking about VR too Means this device you’ll think that’s real. Now I don’t think every person has a VR device. But after4-5 years VR may become common.
But personally, I think all the offline retail shops keep those devices there and you can experience the product there and purchase on the basis of that experience Just like the experience of walking Just wear the VR device and whatever you like, pick that in your cart, thus Jio Change eCommerce business in India.
During an interview, Mukesh Ambani said that Reliance Jio is going to have more than 12 lakh retailers store, and will be going to start this year.
Let’s talk about their distribution channel they are doing the same thing as Tata Cliq. They’ve their own retail channels and Jio network People who use JIO will order. That order will be sent to their offline store. That nearby retailer will deliver to the destination. They have more than 10,000 POS (point of sales) Means shops In future, this will increase.
According to my survey, their delivery time will be 3-4hour. 3 – 4 Hour delivery. Along with the experience. Indian company- What can be better than this? The main point was the summit because all the actions were discussed in this summit. He said one more thing that data colonization whether you use Whatsapp, Facebook It’s been stored internationally, not in our country. So Mukesh Ambani said in this summit.
“I appeal to PM that our data should be stored by our country’s companies not outside because there were many rumors about the data leak.”
That’s why I think They are going to enter the hosting field also. They’ll provide hosting services also.
Flipkart runs by Singapore Not an Indian company. They were transferring the money from Singapore to India, and here they were working on an inventory model. Basically they created loopholes.
The Government of India created strict actions against it and created a draft in December. The policy was applied right after January.
People are talking about Stay but I don’t know but no worries even if we don’t get discounts. After three months, Reliance is going to come when JIO was launched, they gave FREE internet/ Now that they are in clothing, they may give you coat for free. Now JIO will face some challenges.
As per my understanding, the fashion industry operated on a good margin. Here e-commerce is profitable, no doubt. Not that much profitable in electronics. Less margin. but they have offline channels and through orders will go through offline channels and delivery through offline shops, profit can be good.
But in groceries, I think In India people prefer fresh vegetables. With you too? Right if yes, then do tell me in the comments. We don’t buy in large amounts like vegetables of 10 days. 2-3 days is possible. Now the concern is the decrement of bucket size!
Two options, company charge delivery cost. If the delivery charge is high, they won’t buy fewer charges, which might create a loss. Here we need to figure out. I personally believe their minds are sharp in these things. Today, in cities people do buy via online vegetables or even a week because they are busy in their life.
But a normal middle-class person still buys for 1-2 day Fresh veggies. There won’t be many online orders. This niche will be in loss, But Mukhesh Ambani doesn’t work in loss or he won’t add this niche until unless the market is organized. Or they will come when the grocery market will be stable or they will figure out a way something profitable.
Now I ask you a question, will Reliance be able to compete with Flipkart and Amazon? Will they be able to conquer them? YES or NO?? I trust them. TATA although their products are costly than Amazon and Flipkart. You’ll see TATA in this field too.