JioMart – Mukesh Ambani Went For Shopping And.. 1. Reliance Retail Dunzo Deal. 2. JioMart Awesome Strategy

 

Reliance just the name is enough.

In today’s  Era, RIL is not just a company name, but it is one of the reputed companies which every Indian feels proud of. RIL company was founded by Dhirubhai Ambani in the year 1966 as a Polyester Firm which was earlier named “Reliance Corporation”. Which was later changed to Reliance Industries. RIL later entered the Telecom sector, Retail sector, financial services, Petrol Refining sector, HydroPower Sector.  RIL Group is one of the foremost profitable companies in India. Every days we keep hearing and seeing news about RIL.

Today we will discuss one of those few news and the story behind it .

Few days ago, Mukesh Ambani went out for shopping and bought 25.8% stake of Dunzo.

Why?

Lets Find Out

RIL has made a lot of attempts to get into the online shopping market. But Ajio and RIL Digital failed to become dominant in the market.

So, in December 2019, RIL made one more attempt to get into online shopping. Which was renamed as JioMart which is a part of a retail sector of RIL.

Jio Mart Goal:

JioMart’s goal is to quickly deliver fresh fruits,vegetables, dairy items etc to customers.

Quick delivery of groceries is a tough market: Jio Mart has a lot of big competitors like Bigbasket and Grofers.

Adopted A Strategy That Proved To Be Effective

To win against these competitors, Jio Mart followed a smart strategy.

I’m calling it “The Partnership Strategy“.

First Jio Mart partnered with 56000 kirana shops.

Conclusion:  Jio Mart didn’t need to worry about buying from wholesale and storing the items. The kirana shops took care of that.

Next, Jio Mart partnered with WhatsApp.

Conclusion:  Now, people cold ordered from Jio Mart directly on WhatsApp. No need to download a separate App.  Plus, Jio Mart was able to grow rapidly with WhatsApp’s 500 Million users.

Using the partnership strategy, Jio Mart solved two problems:

1. Supply chain
2. Growth

Problem facing

The only problem remaining was delivery.

Since, Jio Mart mainly delvers fruits, vegetables and dairy products,  People want these items fresh , so Jio Mart needed quick delivery.

Here Enter Dunzo

Dunzo has one of the best quick delivery services in India. They have spent so much time and money to achieve this awesome delivery service .

That’s why Reliance invested $240 Million for 25.8% stake in Dunzo. Following this deal, Reliance Retail is now the largest shareholder in Dunzo.

After this deal, Jio Mart gets access to Dunzo’s quick delivery service. Now RIL will hold 25.8% stake in Bengaluru- based startup Dunzo, marking the oil-to-technology conglomerate’s entry into the ultra-fast commerce space.

Operation Strategy:

• A customers orders from Jio Mart on WhatsApp.
• Jio Mart sends the order to the nearby kirana shop.
• The kirana shop packages the order and hands it over to the Dunzo delivery guy.
• The Dunzo delivery guy quickly delivers it to the customer.

Creative Competition

• RIL’s entry into the fast-growing burgeoning commerce space comes at a time when significant investments are being made in startups such as Blinkit (formerly Grofers), Mumbai-based Zepto and Swiggy’s Instamart, Tata-owned Bigbasket is also expected to to launch its 15-30 minute delivery service soon.
• Global technology giant Google, which holds about 8% stake in Jio platforms, is also an investor in Dunzo. RIL’s funding comes on the back of rising investor interest in Dunzo, which has attracted a number of suitors including the Tata Group, food delivery firm Swiggy and financial investors.
• Apart from the quick delivery platform, Walmart-owned Flipkart also has a 90-minute delivery service called Flipkart Quick but is trying to bring it down to 30-45 minutes this year =.
• Recently, Blinkit also said that it will deliver a range of products to consumers outside grocery stores in 10 minutes.