JioMart Case Study | business model

When it comes to the Indian business world, one can refer to Mr. Mukesh Ambani – the owner of Reliance Industries and the wealthiest businessman in India. He has footprints in some of the key sectors of the Indian economy such as refining, oil and gas, petrochemicals, telecoms, retail and media. Reliance’s oil refining business has been its crown jewel.

In September 2016, Mukesh Ambani officially launched his telecom company called Jio (Joint Implementation Opportunities) and set an example by making Jio the largest mobile network in India and the third largest mobile network operator in the world with over 322.99 million subscribers (Source : Wikipedia) .

Witnessing the growth of revenue, profits and market share in the above sectors, Mukesh Ambani is now ready to dabble in e-commerce through his new company named JioMart. So what exactly is JioMart all about?

JioMart – Highlights of the company

platform name JioMart
Industry Online grocery store, e-commerce
headquarters Bombay
founder Mukesh Ambani
Founded May 2020
parent organization Reliance Retail Limited
website jiomart.com

JioMart – How does it work?
Features of JioMart
The idea behind launching JioMart
JioMart – business model and revenue model
How do I become a seller at JioMart?
How JioMart consumers and retailers will benefit from the Jio Facebook deal
A danger for Grofers, Amazon Now and Big Basket

JIO Mart case study

JioMart – How does it work?

JioMart is an online grocery store that offers 50,000+ grocery products at discounted prices right at your doorstep through an express delivery system. It follows an on-demand model. The company will avoid the warehousing system and instead work with local retailers. These retailers source the grocery products and deliver them to the customers.

JioMart was launched in January 2020 and is currently up and running Navi Mumbai, Thane and Kalyan. The company plans to roll out its services to other parts of India soon. However, exact start date is yet unknown.

JioMart’s app is available for download in the Google Play Store and in the Apple Store.

Features of JioMart

JioMart will operate on the Online to offline business models; It will liaise with local retailers and deliver goods to customers by sourcing them from the nearest store near the customer. This model differs from the warehouse model used by Grofers and Amazon Now.

The company aims to correct the disorganized retail sector and help local shopkeepers whose businesses have been impacted by online retail stores’ competitive pricing and stocking strategies. In addition to increased sales and margins, these store owners will be equipped with point-of-sale (PoS) terminals, integrated billing applications and GST compliance. It will also train them in inventory management and supply chain management.

RIL would like to name its new company “Desh Ki Nayi Dukaan’in this way.

JioMart claims to offer the following consumer friendly services:

  • Home delivery for free: It gives you the benefit of having goods delivered to your doorstep by sourcing them from the nearby store, and doing so for free, which your ‘Kirane Wala Bhaiya’ may not.
  • No Minimum: In general, ecommerce sites set a minimum value for a purchase to validate free shipping. For example, Grofers has a free shipping policy on orders of INR 500 or more. JioMart does not require a “minimum payment” and waives shipping costs, even for the smallest items ordered.
  • Express delivery: Expedited shipping means faster delivery than ordinary services. In the e-commerce segment, it is usually within 24 hours.
  • No Questions Asked Return Policy: If you want to return goods ordered online, you will almost always be bombarded with unnecessary questions. And most of the time they can’t be avoided. JioMart will save you from this hassle.
  • Early Bird Discount from INR 3000: The platform has developed a promotional strategy of pre-registration where people can save up to Rs 3000 on future purchases. Reliance Jio has started sending invitations to its existing telecom service users in select territories.

Reliance’s JioMart Expands Services | How to use JioMart

Reliance’s JioMart expanded its services to more than 200 cities in India. Read how it competes with Bigbasket & Grofers in the electronic food market.


The idea behind launching JioMart

Mukesh Ambani - JioMart owner
Mukesh Ambani – JioMart owner

JioMart was not an overnight expedition by Mukesh Ambani, but a deliberate move with the sole motive of conquering the high-demand e-commerce segment. The domain is expected to grow to $1.2 trillion by 2021.

Mukesh Ambani already has a sizeable retail customer base with Reliance Fresh, which works successfully on the stationary model. JioMart owner Mukesh Ambani’s plan to launch an e-commerce platform dates back to 2019. His ambitious project matches his desire to compete with global e-commerce giants like Amazon and Walmart-owned Flipkart.

Reliance acquired Grab and C-Square
Reliance acquires Grab A Grub and C-Square
  1. Takeover of Grab A Grub: Grab A Grub is an Indian logistics startup founded in 2013. In March 2019, Reliance Industrial Investments and Holdings Limited (RIIHL) acquired it for $14.9 million to support the logistics of Jio-Mart founder Mukesh Ambani’s “planned e-commerce venture.” Grab was because it successfully partnered with some mega brands like McDonald’s, BigBasket, Myntra, Amazon Now and Swiggy.
  2. Acquisition of C-Square: Established in 2002, C-Square Info Solutions Private Limited provides software solutions for industries such as eCommerce, Salesforce, Retail, etc. It was acquired by RIIHL in March 2019 for US$11.56 million. A strategic move by RIL aimed at strengthening JioMart.

JioMart – business model and revenue model

JioMart net sales
JioMart net sales

RIL offers to local dealers O2O (Online-to-Offline) Marketplace via JioMart. This business model was pioneered by Chinese e-commerce giant Alibaba Group Holding Ltd. developed. In the O2O model, a consumer searches for the product or service online but buys it through an offline channel.

It connects to local retailers and delivers goods to customers by sourcing them from the nearest store to the customer’s location. The customer uses his or her official WhatsApp number to place the order. After confirmation, the user receives the invoice, which must be paid in cash. When the store is ready with the order, the customer will receive a notification to pick up the order at the store.

How do I become a seller at JioMart?

A retailer can register with JioMart to become a seller. After registering with JioMart, retailers get the support they need to ensure smooth delivery of goods to customers.

Registered grocery store owners can use the app to list their inventory, take orders, create quotes, and manage online sales. JioMart will ensure that the sellers connected to its platform get a smooth selling experience.

How JioMart consumers and retailers will benefit from the Jio Facebook deal

The Jio-Facebook deal, while Facebook will invest INR 43,574 ($5.7 billion) in Jio platforms, will make life easier for consumers and retailers connected to JioMart. As part of this agreement, WhatsApp – Facebook’s popular messaging platform – will partner with JioMart. Thanks to this collaboration, JioMart users can place their order via WhatsApp and Facebook, while payments can be made using the “WhatsApp Pay” feature (currently in pilot phase).

JioMart services were made available on WhatsApp from April 25, 2020 Navi Mumbai, Thane and Kalyan. JioMart currently only operates in these three cities. However, only cash is currently available as a means of payment.

“In the very near future, JioMart – Jio’s digital new commerce platform and Whatsapp – will enable nearly 3 million small Indian Kirana stores to do business digitally with every customer in their neighborhood.” said Mukesh Ambani, CEO of Jio Mart.

A danger for Grofers, Amazon Now and Big Basket

According to one report, grocery delivery startups like Blinkit (formerly Grofers), Big Basket, and PepperTap have done extremely well over the past few years with massive funding and exponential revenues Years. Some established e-commerce platforms like Paytm and Amazon saw the potential and started delivering groceries and basic necessities as well.

The entry of the largest player in the Indian market poses a serious threat to existing food delivery businesses. Aside from being a popular brand name, JioMart has some characteristics that give it the upper hand over its competitors.

Conclusion

When Jio entered the telecoms segment, it sparked a revolution and turned the tables. Big shots like Airtel and Vodafone, which dominated for years, were brought down. A potential revolution is on the horizon again because of Reliance’s JioMart.

frequently asked Questions

What is JioMart’s business model?

RIL offers to local dealers O2O (Online-to-Offline) Marketplace via JioMart. This business model was pioneered by Chinese e-commerce giant Alibaba Group Holding Ltd. developed. In the O2O model, a consumer searches for the product or service online but buys it through an offline channel.

Who is the founder of JioMart?

JioMart was started by mukesh ambani, India’s richest man. Damodar Mall is the chief executive officer of Reliance Retail’s grocery business.

Where is JioMart’s service available?

JioMart operates in more than 100 cities in India. To check JioMart availability in your area, enter your PIN code at the time of ordering.

Does JioMart charge for delivery?

Currently they do not charge a delivery fee for the orders placed on JioMart.

When was JioMart launched in India?

Jiomart was originally launched in April 2020. It was launched in 200 cities in India in May 2020.

Which is the parent company of JioMart?

Reliance Retail is the parent company of JioMart.

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