Retail Chronicles_ Volume-2_Issue8_16-30November

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Offline-To-Online: Jio’s Grand Entry in E-Commerce By Kapil Gupta It has been one year since the announcement of demonetization, and since then we have seen Digital big shots likes of Amazon, Flipkart and Paytm taking over everywhere. Vying to their success at one hand offline giants like Shoppers stop and Big Bazaar is coming up fast on digital platforms, on the other side Reliance Jio, a name which has become synonymous to Disruption, after eating up the most significant piece of pie of Telecommunication sector is now eyeing to make a substantial entry by doing something which is not thought of yet. The company is working on the model in which it will enable the customer to buy FMCG products from E-commerce websites and even from their nearby Kirana stores using digital coupons via its Jio Money. A practical pilot project is already operational in the metro cities, and it is expected to be panned out in the entire country on a full scale by the first quarter of the next year. . After toppling the telecom industry upside down, Reliance Jio is now trying to step into the most crowded sector, i.e. E-Commerce. Jio is planning to leverage its vast network and millions of users to sustain in this market. 05
06 Looking at this information, it can be quickly expected that given its rapid growth to gain more than 150 million subscribers, its entry into online-tooffline E-commerce will trigger a market share war among mobile payment wallets such as Paytm, Freecharge, Mobikwik and phonepay etc. just like it did in the telecom sector. India’s $650-billion retail industry which comprises only 3-4% E-commerce and 8% of organized retailers such as shoppers stop and Big Bazaar, still has 88-89% void of small entities, local vendors and corner stores. Jio is planning to bridge this 88-89% gap with E-commerce. For their pilot project, Jio has already tied up with ITC, Wipro, Godrej Consumer products etc. In the initial stage, Jio will provide its platform to these consumer brands, on the other hand, it will connect with the corner stores through brands’ distribution networks. In this plan, instead of offering cash back to its customers, Jio will send digital coupon codes of a brand to its mobile users. The users will be able to use those digital coupon codes at nearby stores to buy goods. Stores (online/ organized/ unorganized) enrolled with Jio would be equipped with software to scan or read these coupons. To facilitate better connectivity between manufacturer and retailers, Jio will also partner with the offline stores to provide its platform for clearance of stock. Jio will also allow the retailers to send text messages regarding promotional offers even to those who aren’t Jio customers. Jio is also planning to provide the facility of Geotagging to retailers and E-commerce websites by which they can push the sales in leftover stocks for a specific geographical area. This will allow the brands to make their retailers proactive in stocks clearing. Jio is also planning to introduce a new technology in which a missed call will allow Jio to indicate to shoppers about the promotional offers in a specific area. The revenue model of this plan is also a unique one. Jio will charge the brands for using its platform for ‘below the line marketing.’ It is a money saving option of advertising for those companies which involve the distribution of leaflets and . other promotional material in their advertising. It is obvious that Jio will not use a single penny on it as it already has a huge network of infrastructure, technology and consumers, neither it will use its money for offering discounts on products. Jio has already on-boarded many such e-commerce brands but with this giant step of using its pre-existing network, it is seeking to get more brands whose products are omnipresent in Indian markets.
Page 1 and 2: in The City: New One8 of Results De
Page 3 and 4: NEW IN THE CITY By Aditi Barde Indi
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Retail Chronicles_ Volume-2_Issue8_16-30November

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