Reliance Retail slows cash burn to boost JioMart sales and avoid deep discounts | Techno Glob

Reliance Retail slows cash burn to boost JioMart sales and avoid deep discounts

Reliance Retail slows cash burn to boost JioMart sales and avoid deep discounts.

New Delhi: Reliance Retail, the retail arm of billionaire Mukesh Ambani, controlled by Reliance Industries (RIL), is unlikely to pump money into predatory online discounts to drive traffic and sales for its online market. JioMart line.

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.

The financial daily quoted one of the executives as saying, “E-commerce discounts have already declined after the pandemic, although on special days some platforms continue to indulge in deep discounts on a few categories like cell phones and electronics”.

“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 e-commerce JioMart service with online groceries, but started to include new categories last year.

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.

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