Reliance Jio announced its foray into the e-commerce sector. The Jio E-Commerce app will be responsible for serving the Kirana stores rather than selling directly to consumers. The app will also distribute coupons to people on the Jio platform.
How does it work?
The way the Reliance Jio E-Commerce app works are that it will allow offline Kirana stores to come on the platform and use services offered by Reliance Jio. These services include inventory management, logistics, supply chain requirements and even ordering of stock from Reliance Retail and Wholesale stores. The app will also serve as a portal to exchange credit and complete transactions.
What’s there for consumers?
The real story begins here. Not only does the app provide the Kirana store owners a chance to be on a countrywide supply chain, it also provides users on the Jio network coupons to these Kirana stores. This is where Jio will make most of its money. The plan is to ask big manufacturers like Dabur and HUL to collaborate with Jio and provide discount coupons. It will allow targeted selling of goods, faster clearing out of stock and most importantly a bigger crowd at Kirana stores because who doesn’t love a good old-fashioned discount.
How will they make Profit?
The model works because Reliance Jio plays the middleman between the big manufacturers and Kirana stores. It helps them both reach a bigger and more targeted consumer base. Reliance won’t even have to take up the hassle of delivery and will yet earn money.
Jio has already started rolling out the scheme to around 5000 kirana stores in Ahmedabad and Mumbai. It plans to cover the whole country by the end of the year. The company isn’t planning to take a dig at Flipkart or Amazon. The goal is to invest in one of the most under-rated markets these days, the kirana stores.
When the Jio E-Commerce app is fully ready, it will allow the filing of GST and claims, manage inventory, order for delivery services, etc.
Mukesh Ambani has always been innovative with Jio. Whenever Jio did something, it made waves. Taking investment decisions no one possibly could and churning out profits from them has become second nature to him. We just hope (and kind of know) that Jio has more much pleasant surprises for us.