The quick commerce market is rapidly expanding, with companies like Swiggy, Blinkit, and Zepto leading the charge. Now, JioMart, under Reliance Retail, is set to re-enter this market with its unique approach. Unlike other platforms that promise 10-minute deliveries, JioMart will offer a 30-minute delivery service, providing a broader range of products. Reliance Industries is not directly entering the quick delivery sector. Instead, the company is focusing on enhancing its grocery delivery service, JioMart, by improving logistics and supply chain efficiency. This strategic move aims to strengthen JioMart's position in the competitive e-commerce market. Reliance is leveraging its extensive retail network to provide a robust and efficient delivery system without specifically targeting the quick delivery segment. The overall goal is to offer a more reliable and faster grocery delivery experience to customers through JioMart. Let’s learn what is fuelling behind this strategic plan and how the way looks ahead for JioMart.
Strategic Approach and Expansion
Reliance Retail has formed an inter-departmental team led by Damodar Mall, CEO of Reliance Retail's grocery business, and Sandeep Varaganti, CEO of JioMart, to oversee this new venture. This initiative marks Reliance's second foray into grocery delivery, having previously operated during the COVID-19 pandemic with a model similar to Flipkart and Amazon, focusing on standard delivery times rather than quick commerce. In the beginning, JioMart will deliver groceries in 7-8 cities. The company will later scale up to cover over 1,000 cities. This comes after Reliance discontinued its 90-minute grocery delivery service JioMart Express. JioMart will not adopt a dark store model for its quick commerce operations but tap into Reliance Retail's vast network of stores and fulfilment centres.
Operational Efficiency and Technology Integration
Unlike competitors, Reliance Retail will not establish dark stores or warehouses for hyper-local deliveries. Instead, it will utilize its extensive network of stores and partnerships with nearly 20 lakh kirana stores to facilitate the 30-minute delivery model. Technology platforms like FYND and Locus will optimize delivery routes, ensuring efficiency and reliability.
Consumer Insights and Product Expansion
Research conducted by Reliance Retail indicates that consumers are willing to wait up to 30 minutes for most products. This insight has shaped the company's strategy to focus on a wider assortment and competitive deals. Initially, the quick commerce service will offer groceries, with plans to expand to electronics and apparel by leveraging Reliance's 19,000-plus store network.
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Not only Reliance, Walmart's Flipkart is also gearing up to foray into the quick commerce space. Currently, Blinkit leads quick commerce with about a 40-45% market share. As per Goldman Sachs, the size of the online grocery market in terms of gross order value is estimated to be about $11 billion as of FY24 of which, quick commerce makes up about 50%.
The new service, named "JioMart Express," will be initially launched in eight cities, namely - Pune, Delhi-NCR, Kolkata, Mumbai, Hyderabad, Bengaluru, and Chennai. The service will be integrated into the JioMart app, aiming to provide a convenient and comprehensive shopping experience for customers.
Reliance Retail's entry into the quick commerce market with a 30-minute delivery model represents a strategic shift aimed at providing a broader range of products and better deals for consumers. By leveraging its extensive retail network and technological platforms, Reliance aims to create a robust and efficient delivery system that stands out in the competitive landscape.
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