According to recent insights by Bernstein Research, US-based Reliance Group is set to reign supreme in India’s e-commerce market, valued at $150 billion. Ahead of multinational giants Amazon and Walmart, Reliance Group has emerged as a force to reckon with, boasting the largest retail store network, dominant telecom operations, and a robust digital presence.
As Bernstein noted, the Indian market is rapidly evolving with three key players: Amazon, Walmart, and Reliance. The country’s unique market dynamics, marked by a propensity to ‘leapfrog’ technologies and considerable distribution hurdles, necessitate a different approach to e-commerce. Bernstein stressed that an integrated model (offline plus online plus prime), extensive distribution capabilities, and an inherent cost advantage against purely online players are pivotal for success.
Reliance Industries’ telecom subsidiary, Jio, has a customer base of 430 million mobile subscribers. In addition, its retail branch operates 18,300 retail stores across India, and its digital outreach is growing at an impressive rate of 17-18 per cent, according to a news agency.
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“Reliance’s disruptive playbook — integrating offline, online, and prime services — positions it as a formidable adversary to Amazon and Walmart,” Bernstein claimed.
Currently, Reliance ranks third in India’s e-commerce landscape, with e-commerce sales worth $5.7 billion.
“We are convinced that Reliance Retail/Jio is ideally positioned in the largest and fastest-growing e-commerce market. Leveraging its retail network, mobile network, digital ecosystem, and ‘home field advantage’ in a notoriously complex regulatory and operating environment, it is poised to seize the lion’s share of the $150 billion-plus e-commerce market in the long run,” Bernstein asserted.
Bernstein also emphasized the attractiveness of the Indian market, highlighting the abundance of affluent households. Furthermore, India boasts one of the lowest 4G data prices globally and the highest per capita mobile data consumption, augmenting the allure of the digital market.
This news is based on a report by Fibre2Fashion website.
