India’s wealthiest man is set to take on Amazon and Walmart’s Flipkart

104

While Amazon and Walmart-owned Flipkart pay billions to make a dent in India’s retail market and wheel from current regulatory hurdles, the two businesses have toppled upon a new challenge: Mukesh Ambani, Asia’s wealthiest man.

The Competition Begins 

Reliance Jio and Reliance Retail, two subsidiaries of Ambani’s Reliance Industries, stated that they have soft-launched JioMart, their e-commerce enterprise that operates jointly with neighborhood stores, in parts of the state of Maharashtra — Navi Mumbai, Kalyan, and Thane.

The e-commerce enterprise, which is marketed as “Desh Ki Nayi Dukaan” (Hindi for the new shop of the country), currently gives a catalog of 50,000 grocery things and guarantees “free and express delivery.”

The soft launch this time appears months after Ambani, who operates Reliance Industries — India’s biggest industrial house — stated that he desires to service tens of millions of retailers and store partners across the nation.

If there is anybody in India who is placed to compete with heavily-backed Amazon and Walmart, it is him. 

Reliance Retail, which was established in 2006, is the biggest retailer in the country by income. 

It assists more than 3.5 million consumers each week through its approximately 10,000 physical stores in more than 6,500 Indian towns and cities.

Reliance Jio is the second-biggest telephone operator in India, with more than 360 million users. 

The 4G-only carrier, which started commercial services in the second half of 2016, disrupted the binding telecom operation in the country by giving lots of data and voice calls at small to no charge for an extensive period.

E-commerce still values for just a part of total retail sales in India. 

India’s retail market is expected to grow to $188 billion in the following four years, up from around $79 billion last year.

During a discussion earlier this year, Amit Agarwal, administrator of Amazon India, said, “one point to keep in mind is that e-commerce is a very tiny portion of total retail expenditure in India, presumably less than 3%.”

What Amazon & Flipkart Are Planning Next 

To get their businesses more interesting to Indians, both Amazon and Flipkart have extended their offerings and started new companies. 

Both platforms have begun to sell grocery items in current quarters and are going on food retail, too. 

Amazon has acquired stakes with several retailers in India, including in India’s second-biggest retail chain Future Retail’s Future Coupons, Indian supermarket chain More, and department store chain Shopper’s Stop.

SEE ALSO: Indian education startup Byju’s becomes profitable

For more information and the latest tech news, keep reading iTMunch.