When Reliance Corporation launched Jio Telecom in 2016, many people doubted its success and its business policy. Apart from this, when Jio introduced its data plan scheme, many people were also accused of adopting a policy of monopoly in the market by Jio. But today the situation is that no one is standing far away from Reliance, and now it seems that the same policy will also be used in Reliance's e-commerce venture ie Jio Mart.
We do not have to say this, but rather, the pricing policy of Jio Mart points towards Diwali. According to a Business Standard report, "When shopping in India is at its peak on the occasion of Diwali, at that time, Jio Mart will break the sales dominance of Flipkart, the local unit of Amazon and Walmart with its unique pricing policy ."
But how will this be possible? Actually, Jio Mart has started offering huge discounts on items available on its site, be it confectionery, or namkeen, biryani masala etc. For example, if a gift pack of a biscuit is available for Rs 300, then it will be available to you at Geo Mart for less than Rs 150. Similarly, smartphones and other technical products available in Reliance Digital stores will be available with a discount of around 40 percent.
Actually, this is due to the huge investment that Reliance Industry is getting. The Business Standard report further stated, "After earning a full $ 20 billion investment for its technology company, Reliance Industries attracted people to invest in its retail wing, which led to its acquisition of KKR & Co and The entire $ 6 billion investment has been received from Silver Lake. Due to Ambani's online dreams, he will now face a direct fight with American players [Amazon and Walmart], who have invested a lot in India . ”
India, one of the world's largest consumer markets, currently has unlimited investment options. By 2026, India will be able to get $ 200 billion in investment by the famous investment company Morgan Stanley. Just as Reliance Jio took a few years to establish itself on the premise that it is now being seen as a strong alternative to 5G technology, hence leading to American companies dominating e-commerce. The path is not going to be easy at all.
Apart from this, what Reliance is doing in the retail sector at the moment, is the twelfth of every Indian company - government policies are promoting local sellers in every way, of which Reliance is the largest. Since late 2018, India's Foreign Investment Acts have made it almost impossible for companies like Amazon and Walmart to monopolize e-commerce. International companies do not have the right to own more than 51 percent in any supermarket chain.
In such a situation, it will not be wrong to say that Jio Mart has made a big entry in e-commerce due to its aggressive pricing policy. The way they are offering huge discounts on their products is an indication that the coming time is for Indian companies, and Reliance will be the foremost among them, no matter the challenge.
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