Amazon Concerns-Reliance's JioMart Acquisition In India

  Amazon Concerns-Reliance's JioMart Acquisition In India The local e-commerce startup plans to grow even further, making tremendous progress in the past year and a half. JioMart, the e-commerce platform of Indian billionaire Mukesh Ambani, launched in India a year ago. Ambani's Reliance Retail, a subsidiary of Reliance Industries Limited ( RELIANCE (NSE) ₹2.071,95 -20,65 (-%0,99), was already in a solid position with its network of physical stores. It even created a challenge against Amazon, which is making aggressive attempts in India. Fast-tracking JioMart has a presence in nearly 200 cities in India. He even made statements that would make Amazon have nightmares.

The extraordinary rise of JioMart

Ambani pointed out in his local meeting that JioMart reached 650,000 orders in a single day. Compared to the short period before, there was an increase in many folds. (an average of 250,000 or even 500,000 at the end of 2020) This impressive growth has been driven by JioMart's strategy of placing local artisans on its platform. JioMart brought 300,000 merchants and local artisans in 150 cities; this is a very appropriate move as local shopkeepers reportedly control 96% of India's lucrative food and grocery market evaluated. Also, JioMart plans to shift into a higher gear as it will add another 10 million merchant partners over the next three years. This could be a concern for Amazon  AMZN (NASDAQ) $3.721,80 -9,61 (-%0,26) in India as the e-commerce giant seeks to expand its reach in the fast-growing niches of India's online shopping market.

Amazon Concerns-Reliance's JioMart Acquisition In India

Reason for worrying Amazon.

Amazon currently relies on local stores in India's second- and third-tier cities (population: 20k-50k to 50,000-100k) for growth and increased e-commerce adoption. Small towns accounted for about two-thirds of Amazon's orders in India, brought in 85% of new customers and managed to expand. Amazon reported in March that it had registered more than 50,000 sellers in 450 cities under this program. Although these numbers show that Amazon is lagging behind JioMart, they do show that it dominates more cities. The company's grocery category doubled its growth in India last year. 31% of Amazon's share in the Indian e-commerce market It is estimated to be a little over. The market size is 38,5 billion in 2017 and the volume is expected to reach 200 billion dollars in 2026. But Amazon will have to step up its game if it wants to maintain its momentum and market share in India in the face of new competition.  

Source: The Motley Fool

 

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