Reliance Retail slows cash burn to boost JioMart sales and avoid deep discounts.
Quoting two people familiar with development, HEY reported that the retail oil conglomerate plans to make the platform profitable for almost every trade.
In addition, it wants to attract thousands of small and medium enterprises as sellers in JioMart and roll out an incubation program for direct-to-consumer (D2C) brands to grow them by offering marketing and distribution assistance in a serious attempt to make JioMart the biggest market in the country in the next two years.
The assortment during the 2022 holiday season grew to 2.5 million products from 30,000 products last year. JioMart has already onboarded approximately 16,000 third-party sellers, and independent sellers account for more than 15% of business versus less than 10% for unpreferred third-party sellers in competing marketplaces.
“However, JioMart will stay completely away from such a practice with prices and offers similar to those sold at Reliance stores or third-party sellers. JioMart will be an omnichannel extension,” the executive added.
He added that Reliance already sells most items in its stores at competitive prices, pointing out that in several cases the prices are among the best thanks to the scale of operations and the lower cost of supply.
“The economies of scale will increase further with JioMart. But nothing will be sold below cost unlike what some competitors continue to do,” he stressed.
In 2020, Reliance Retail launched its
At JioMart, grocery accounted for 70% of business just a few months ago, but it’s now 50%, and the contribution from non-groceries will increase further, one of the executives quoted by the daily.
Besides, Reliance Retail has signed a distribution pact with more than 50 regional traditional sweets manufacturers across India to distribute, mass-produce and develop traditional Indian sweets with extended shelf life.