Amazon India and Flipkart might be going to face a new competition in the Indian market. Mukesh Ambani's Reliance Retail has jumped into online sales market of smartphones, gadgets, televisions, refrigerators and air conditioners. Now, this is going to be tough both Walmart-backed Flipkart and Amazon e-commerce website.
It seems Reliance is not ready to stop, it keeps on expanding its business in all sectors. The company started the action from the telecom industry and slowly moved to the fibre net sector. Now the company is aiming at the online retail market.
Reliance Retail has launched an online storefront for Reliance Digital. The store will sell all the smartphones, gadgets and electronics. With the launch of this new online portal, Reliance Retail is preparing to fight head-on with its rivals.
Reliance Digital is also preparing to conduct a heavy discount on some of the exclusive models and older devices. Reliance Digital already has an aggressive pricing for the product in its offline stores.
"Nevertheless, Reliance Digital already has an aggressive pricing for its offline stores which are, at times, even the lowest in the market and top brands like LG, Samsung, Sony, Xiaomi and Panasonic now control most of the online discounts so pricing will be quite competitive with Amazon and Flipkart," an industry executive told the Economic Times.
How Reliance Digital online is different from others
To keep itself different from other e-commerce websites Reliance Retail has planned to offer an in-house service wing called ResQ. This wing will offer installation, demo and after sales service of the products.
The company is aiming to use Reliance Digital and smaller Jio stores as fulfilment centres for the products sold online. The company has been piloting this online sale of mobile phones and consumers electronics for employees for over a year.
If we see the numbers, 38 percent of the smartphone sale happen in India through the online market. For televisions, the online sales stand at around 12 percent. Appliances sales are limited to 6 to 7 percent while personal care gadgets like shavers and dryers score 15 to 20 percent of sales.
Flipkart, Amazon, Paytm Mall and Mi Store are the big players in this segment lets see how Reliance Digital will take on all the rivals available in this segment.