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Reliance Retail, Jio best positioned player in $150 billion e-commerce market: Report
The report also said that the Indian e-commerce market is the largest opportunity in the Indian internet ecosystem. It is also expected to reach $133 billion by 2025 from $24 billion 2018, a 5x market, with 30 percent CAGR.
A report by brokerage Berstein has stated that Reliance Retail and Jio are best-positioned players in the largest and are the fastest-growing e-commerce market in the long term.
The report also said that the Indian e-commerce market is the largest opportunity in the Indian internet ecosystem. It is also expected to reach $133 billion by 2025 from $24 billion 2018, a 5x market, with 30 percent CAGR.
In a new report, Bernstein Research said Bernstein Research said India is evolving into a three-player market with Amazon, Walmart and Reliance. The conventional retail business model starts out either offline (Walmart) or online (Amazon). "It's a disruptive playbook -- integrate offline online prime makes it the strongest competitor to Amazon/Walmart," Bernstein said.
In the report titled, ‘The Long View: India eCommerce - A 150 bn dollar market. Three players. One Disruptive Playbook’, it said that both the companies are best-positioned player in $150 billion Indian e-commerce market ahead of Amazon and Walmart. As per the report, this comes as the companies own potent combination of largest retail store network, dominant telecom operations and strong digital media.
Further adding, it said that both Retail and Jio have several advantages including "home field advantage".
As per the report, “We believe Reliance Retail/Jio is the best positioned player in the largest and fastest growing E-Commerce market. The advantages of its retail network, its mobile network, its digital ecosystem and its 'home field advantage' in a famously complex regulatory and operating environment mean in the Long Term, it will likely claim the lion's share of the US$150 billion eCommerce marketplace.”
As per the brokerage, “RIL is the only Indian player to have an integrated (offline online prime) offering and the ability to compete with global tech giants (Amazon, Walmart).”
The telecom has about 430 million mobile subscribers while its retail has about 18,300 retail stores in India which is $30 billion in sales while its digital mix is scaling up 17-18 percent ($6 billion, e-commerce).
Meanwhile, this report also comes at the time when the JioMart has reportedly laid off over 1,000 employees as part of its efforts to streamline operations after its acquisition of Metro Cash and Carry. Moreover, in the coming weeks, the online wholesale format of Reliance Industries plans to implement a larger cost-cutting initiative, which includes reducing its wholesale division's workforce by two-thirds. These measures aim to improve margins and reduce losses after JioMart initiated a price war in the grocery B2B space.
JioMart has asked over 1,000 employees, including 500 executives from its corporate office, to resign, sources familiar with the matter revealed to The Economic Times. In addition to this, hundreds of employees have been placed on a performance improvement plan, and the remaining sales staff have been shifted to a variable pay structure, reducing their fixed salaries. Indian e-commerce industry has been witnessing intense competition and companies are constantly reevaluating their strategies to stay ahead in the market.
(With inputs from agencies)
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Business NewsNewsReliance Retail, Jio best positioned player in $150 billion e-commerce market: Report
First Published:25 May 2023, 06:04 PM IST
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