JioMart Will Beat Amazon, Flipkart In Next 4 Years; Can Grab 31% Market Share In India (Report)
According to the analysts, Reliance Industries Ltd’s JioMart could become the fastest-growing e-commerce platform in India, rivaling the existing players in this segment such as Amazon India and Flipkart.
Analysts Prediction For Jio Mart
Earlier launched in May, RIL’s online gross merchandise value (GMV) will reach $35 billion in FY25 with a 31% share of the e-commerce market from around 1% now, according to Goldman Sachs.
Here GMV represents the total value of merchandise sold over a given period and considered as a measure of growth.
In the second quarter of this fiscal, RIL’s retail business recorded a robust growth across consumption baskets.
They have posted a sales of Rs 41,100 crore, which definitely shows the growth from Rs 31,620 crore which was reported in the June quarter.
During the pandemic-induced lockdown, 85% of the countries grocery stores were shut.
For Jio Mart, the grocery segment, staples and processed food drove the growth.
In addition to that, home and personal care products also deliver a strong performance as people continue to work from home during this time.
Expanding their business compared to the last quarter, JioMart has scaled up partnerships with 1,700 merchants and extended ‘kirana’ store partnerships to 20 cities against six.
In the said quarter, they have opened 232 stores, taking the total store count to 11,931 stores.
JioMart Emerging As Multi Segment
In a 2 November note, UBS said, “JioMart is evolving into a multi-segment e-commerce play. It will not be restricted to just food and grocery but would also include electronics, fashion and lifestyle and pharma products. This would make JioMart a full-fledged ecommerce player with an assortment comparable to or even wider than Amazon and Flipkart,”.
RIL’s own infrastructure of ‘Trends, Digital and Jewels’ stores, as well as acquisitions such as Netmeds, Grab and Fynd, would help in a seamless integration and faster ramp-up of JioMart, the note said.
As per the SensorTower data, the company is witnessing strong app downloads for JioMart (grocery) and Ajio (apparel).
In addition to that, Ajio’s revenue increased four times.
On the other hand, the contributions from digital electronics sales and grocery e-commerce through JioMart have also become sizable.
RIL’s e-commerce is the approval for WhatsApp Pay to go live on the UPI platform will also aid its growth.
Additionally, WhatsApp’s integration with JioMart will strengthen the offering for the 60 million small merchants.
It will also strengthen the telecom operator Reliance Jio Infocomm Ltd.