JioMart, the e-commerce venture of Reliance Industries, has begun selling electronic goods as it looks to gain traction. Within two months of its launch, the platform has become the largest e-grocer, and now is the ideal time to launch electronics since the festive season has already begun.
The shift is expected to change the dynamics of the online distribution of electronic goods that are currently dominated by Amazon and Flipkart e-commerce giants. Although the category is currently available in Navi Mumbai, it will likely soon be rolled out across several cities.
A quick look at JioMart ‘s website reveals that it offers brands such as Samsung, Mi, Apple, and Sony Bluetooth headphones and speakers, along with kitchen appliances, small home appliances, personal care items, including shavers and trimmers, among others.
The two markets give substantial discounts relative to JioMart when comparing the prices of Amazon and Flipkart goods.
Though JioMart has established itself as India’s largest e-grocer by processing over 600 K transactions a day within three months of its launch, it was also among India’s top three downloaded shopping apps in August, according to the Sensor Tower survey.
Flipkart and Amazon have largely dominated the online electronics and smartphone categories. Discounts and exclusive brand collaborations have so far drawn customers to both channels. They will now face rigid competition from JioMart, as all strategies, including discounts, are likely to be implemented rapidly in new categories.
The timing for getting into the electronics and smartphone categories is fine, according to experts monitoring the e-commerce space. During the sales of Amazon and Flipkart flagships that ended yesterday, the two groups overshadowed the others. On JioMart, these categories are also normal for doing better.
Besides, JioMart has already announced its entry into fashion other than food and electronics.
Reliance has been ramping up its consumer-facing e-commerce sector since the start of this fiscal year. The platform has also been exploring a subscription-based micro-delivery model, similar to BBDaily and Milkbasket, since becoming a pioneer in the e-grocery market.
42 percent of laptops purchased in India during June-August were purchased online, compared to 25 percent a year earlier, according to researcher GfK India, which monitors actual sales. Compared with 22 percent a year earlier, online television revenues accounted for more than a third of total revenues.
For smartphones, the share was 32 percent (29 percent) and it was 43 percent (38 percent) for premium smartphones priced above Rs 30,000.
Euromonitor International said the share of e-commerce has more than doubled to around 15 percent this year for appliances such as refrigerators and washing machines.
Late last month, JioMart, which began selling food and groceries, ventured into fashion. Global investors, including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, and ADIA, have recently raised Rs 37,710 crore from Reliance Retail.