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MUMBAI: Reliance Industries' e-commerce venture JioMart has inched closer to market leader BigBasket's monthly and daily active user base, according to a BofA Global Research report.

"The DAU/MAU ratio, a function of retention, is also highest for Big Basket and JioMart at 17% and 16% respectively," said BofA which has based the findings on latest trends of key apps in India according to Feb-21 Sensortower data.

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JioMart, launched in May last , has cornered a 20% market share among distributors in Bengaluru.

Kotak Institutional Equities surveyed 100 grocery retailers, which have partnered JioMart in Bengaluru, and found that the Reliance Industries' entity is not only offering cheaper prices to retailers but also has a much larger share of the distribution pie compared to competitors such as Amazon.

This is relevant as most retailers deal with multiple distributors.

Also, food and grocery accounts for the bulk of sales at these retailers and while JioMart has improved its service levels, analysts believe, there is enough headroom to get more kiranas.

Retailers earn their product margins besides an average delivery charge of Rs15-20 per order.

"All respondents mentioned that B2C orders from JioMart’s portal are being supplied and delivered to households directly by the retailers; this is contrary to Mumbai, wherein most retailers were providing only last-mile delivery for products supplied by JioMart," the report said.

Reliance Retail, parent of JioMart and the wholly owned subsidiary of Reliance Industries (RIL) launched JioMart in the thick of the pandemic last year. With over 3,500 stores, Reliance Retail is the largest in the country and the only one with presence across electronics, fashion, and grocery.

Distributors are also pushing Reliance's private label products across categories. About 37% of Mumbai retailers stock JioMart’s private label products, as surveyed in December. In comparison, nearly 13% of retailers stock private label products of other distributors such as Amazon and Metro.

Reliance Retail sells staples, food, home, personal care and general merchandise under its own brands such as Best Farms, Good Life, Masti Oye, Kaffe, Enzo, Mopz, Expelz and Home One. Most e-commerce retailers—grocery firms and others—are increasingly focusing on such in-house brands which offer better margins.

"A better way to look at this is to look at only those 32 retailers with a partnership with Amazon – only 22% of these retailers stock Amazon’s private label products implying that pushing private label is an important part of JioMart’s distribution strategy," the report said.

JioMart engages with small retailers in two ways - acting as a distributor by supplying products to retailers and utilising the small store network to fulfill its orders for JioMart.

In the grocery segment, Reliance Retail has a 20% share amongst organised players and is 40% larger than the second-largest player, DMart. In fashion retail, the company has 5% share of the organised segment and is over 50% larger than peers like Aditya Birla Fashion (ABFRL).

At $6 billion in revenues, Reliance Retail accounts for a third of India's organised electronics retail, and 12% of overall electronics retail. It also generates an additional $10 billion in connectivity (telecom) revenues for Jio's services.

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