• This pandemic has made shopping at public places so difficult for everyone. And as a wise man once said , " Never waste a crises". Most of Businesses emerged as a results of problems faced by people. Amazon and Flipkart inspite being a leader in e-commerce platforms are not able to deal with groceries at a large. Reliance Industries knew it very well that they can have a great opportunity in groceries being delivered to home during this crises within a short time. As the name suggests Jio mart is an online groceries store. The platform was launched in December 2019.They offer you convenience for shopping and everything that you need at home. As you already know jio joined hands with Facebook. So you can even order via whatsapp or Facebook! You can get everything from a single virtual store! Let it be fresh fruits, dairy items, rice, household, personal care or food for you pet dog! You will get discounts , offers and many more! But this virtual store would surely make some competitors worry!
BUSINESS MODEL OF JIO MART
• You might have heard of B2B model or B2C models or C2C models but here jio mart follows O2O Business model. This is the same model that is followed by Alibaba in china. B2B means Business to Business model. Walmart is the best example. B2C means Business to customer model. Big bazaar is the best example. C2C means customer to customer model. Olx is the best example.
• O2O means "Online To Offline" but also "Offline to Online", indicating the two-way flow between the online and the physical world, especially retail and ecommerce, but also between brand marketing and shopper or point-of-sale marketing efforts to influence purchase decisions. For example, consumers could see an ad online and be driven to visit the store, or be in a physical store but ultimately purchase online for a variety of reasons (selection, price, convenience, etc).
• The local kirana stores ( grocery stores) have tie ups with jio mart. And whatever you order are delivered to you through them! This leads to local business empowerment. You might wonder that what if your nearby stores don't have the products you desire for? Then the products would be delivered to you through reliance smart or other reliance stores!! And they provide delivery till Rs. 20000!! And if you have an order higher than Rs. 20000 then you will be notified via whatsapp and you can collect the order from your nearby kiran stores!! Isnt the model quite fascinating?
•Reliance is also giving the kirana owner many attractive offers. For example, pay Rs 19 and get products worth Rs 150. At the core of JioMart’s strategy is to woo middle-class families through its idea of unbundling, and in the process, change purchasing habits. Incentivise smaller, but more frequent purchases with discounts and coupons, while keeping product value intact.For instance, if you are buying a detergent from a modern retail store, you pay Rs 95-98/kg for a 5kg bundle, typically preferred by upper-middle-class families who shop in bulk. Jio will discount it by further Rs 10 per kg, and sell in 1-2 kg packs. ( As per Economic times)
HOW WILL RELIANCE EARN?
Jio mart provides everything on a huge discount. They have tie ups with local stores and also benefit them. Then how will they earn? Reliance retail with a turnover of 1.3 lakh crore is the largest and fastest growing retail company. They will earn through bulk of sales and selling their stakes. They will emerge as a public company on share market very soon.
THINGS TO LEARN
1. LOCAL EMPOWERMENT
Jio mart leads to global empowerment of local kirana stores owner. Unlike amazon and Flipkart. They would have support from jio and they would love to join hands with jio. This leads to integrity between people. Using the trend of vocal for local, they gave the name "desh ki apni dukaan" showing the love and respect for being the country's store unlike amazon and Flipkart being owned by other countries.
2. NO MINIMUM ORDER VALUE
The other home delivery stores have a fixed upper limit for order value.Jio mart with a catelogue of over 5000 products is tempting everything. You can always order via whatsapp!!! Thats so convenient.
3. EASE OF ORDER
You can order via whatsapp or Facebook. As you know that reliance joined hands with facebook. Facebook invested Rs. 43,574 crore in Jio platforms, a unit of reliance industries ltd. , For a 9.99% stake in all cash deal.
4. FLEXIBILITY FOR CUSTOMERS
Customers can pay via credit card, coupons, cash on delivery as per their convenience. The customers must not suffer! Have you started online payment system for your business? You must digitalize with time!
5. AMAZING DISCOUNTS
The customers must not feel that you only do business for profit. They offer everything for 5% less than MRP. They attract everyone through discounts.
6. FAST EXPANSION
A pilot was launched in select areas of Navi Mumbai, Thane and Kalyan in April 2020. In May 2020, JioMart was launched in 200 cities and towns in India.
7. BE A FAST MOVER
If you are not the first mover , be the fast mover. Amazon and Flipkart started their groceries delivery much before. But jio mart will overtake them by being fast mover.
8. FLOW WITH TREND
Digitalisation is bringing quantum leaps in business. It is the need of the hour. You must have shift from offline Business to online business sooner or later.
9. OWNERSHIP MINDSET
They believe the success and reputation of the company is paramount. Having an ownership mind-set is fundamental to their existence. It creates a sense of inspiration and purpose. It enables accountability and accomplishment. It ensures their strong commitment to the highest standards of safety and environment.
10. ONE TEAM
Whatever the strength of the individual, they will accomplish more together. They put the team ahead of their personal success and commit to building its capability. They trust each other to deliver on their respective obligations.
Apply this learnings in your life and business! And remember never waste a crisis. Keep learning! Keep exploring
- Drashti Panjrolia
Note: The work is being originally collected from various sources and written primarily by author. The author does not claim over images.
Very good analysis
ReplyDeleteThank you sir. Keep supporting us.
DeleteGreat job you guys
ReplyDeleteThank you mr. Vishwanshi Gadhavi. Keep supporting us.
ReplyDeleteGreat content Drashti ๐✌๐ป
ReplyDelete