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How Reliance can Beat Amazon and Flipkart

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Reliance Industries Ltd. has been continuously diversifying their business since 2014. Now, the company is going to capture the market in the e-commerce business.

After becoming a leader in telecom giant in just 4 years, the managing director of the company, Mukesh Ambani announced in a Vibrant Gujarat Summit – 2019 that Reliance is looking to build a unique e-commerce strategy.

India’s richest man Mukesh Ambani also added that this new business of Reliance will give employment to 1.2 million people in Gujarat. Besides, Reliance will start the e-commerce April or May.

These are the alarming words for Amazon India and Flipkart who are the leading e-commerce players in India.

Flipkart is now owned by Walmart and its headquarter is located in Singapore. The company provides discount on almost every product by using Foreign Direct Investment(FDI).

On the other hand, Amazon invested $16 billion for establishing its Indian e-commerce business.

Both the companies manage to grow their business by giving too much discounts.

From 1st February 2019, both Amazon India and Flipkart will not able to give discount because they were breaking the law of FDI.

All the companies which are located out side of India will not provide too much discount from 1st February.

The Business Strategy of Reliance Retail:

Mukesh Ambani who owns 44.7% of the company will use his own money to build the whole business.

So there would be so much discount that Reliance can provide. On the other hand, Amazon and Flipkart will not be able to provide bigger discounts than Reliance. So, that’s how they will start capturing the e-commerce market.

Reliance don’t need to invest billions of dollar for creating an ecosystem for e-commerce.

Also read: Why Amazon and Flipkart will not give discounts?

Reliance Retail Ltd. :

Reliance Retail Ltd. is a subsidiary company of Reliance Industries Ltd. Reliance Retail was founded in 2006.

According to Wikipedia, Reliance Retail had a totalof 3837 stores in April 2018 in India. You would be amazed that the annual revenue of Reliance Retail is $10 billion.

What Reliance Retail includes…

  • Reliance Market.
  • Reliance Fresh.
  • Reliance Smart.
  • Reliance Trends.
  • Reliance Digital.
  • Reliance Footprint.
  • Reliance Jewels.

These are the retail stores. That’s why the infrastructure is ready for starting e-commerce company.

The Biggest Advantage:

Reliance Jio has more than 227 million users. They may not need to spend to millions of dollars in advertisements because they can promote via My Jio app to millions of users for FREE.

Another big thing is the delivery time. While Amazon India and Flipkart are competing in 1-day delivery service, Reliance can deliver just in 4 to 5 hours.

Why?

Most of the medium or big cities in India already have so many Reliance Retail stores.

Whenever we order from the store, it will be sent to the nearest retailer store and they will deliver to us within no time.

Also read: How does Reliance Jio get Marvelous Success?

Conclusion:

After knowing such things we can clearly assume that Indian e-commerce business is about to change.

Amazon India and Flipkart may struggle a lot because Mukesh Ambani ‘the big boss‘ is coming.

Do you think Reliance will change the e-commerce market in India? If you do so, leave a comment with yes. And if you don’t leave a comment with no.

Watch this video to know more…


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Thank You

Anuj Vohra

Hi , I am Anuj Vohra. Founder of Itsfacile.com & Saral Investment.

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