In the Indian business world, it is impossible to ignore the name of Mr. Mukesh Ambani-The chairman and managing director of India’s Biggest Company Reliance Industries, and also the richest businessman in India.
His footprints are in some of the most significant areas in the Indian economy like refining, oil and gas telecom, petrochemicals and telecom media, and retail. Reliance’s business in refining oil has been its greatest asset until now.
On 5 September 2016, Mukesh Ambani officially launched his telecom venture called JIO and set a precedent in the process of turning Jio into India’s biggest mobile phone network operator and the third-largest mobile network operator in the world, with more than 322.99 million users.
As we witness the increase in revenue profit, revenues, along with market share, in these industries, Mukesh Ambani is now looking to try his hand at online shopping through his new venture JioMart. What exactly is JioMart really about? You will Find Everything about How does JioMart makes money? What is JioMart’s business model? Jiomart Revenue Model?
What is jiomart?
JioMart is an online store for groceries that offers 50,000+ groceries items at a discounted price right at your doorstep with an expedited delivery system. It operates on an on-demand basis. The company will stay clear of the warehouse system and work with local retailers instead. They will source food items and deliver them directly to the consumers.
JioMart was launched in January 2020. Reliance Industries Ltd finally launched its online store under the Jio platform which is JioMart. The service was launched in the Mumbai region and then expanded its service to all over India. JioMart will develop the pan-India digital infrastructure through a partnership with the local Kirana store, and its retail stores.
JioMart JioMart has received positive feedback from its customers following the launch of the service.JioMart has expanded its operations in various cities of India.
The Facebook-owned Whatsapp along with JioMart collaborated to make the experience of JioMart more seamless and to connect with customers of WhatsApp. Customers can place orders via Whatsapp which can help customers easily to place orders through JioMart.
Features of JioMart?
JioMart operates on an online-to-offline business model It will be able to connect directly with nearby retail stores and then deliver products to customers, by purchasing the items from the closest retailer in the area. This Business model is different from the warehouse model used by Grofers, Amazon and other startups in India.
The company aims to improve the unorganized retail market and assist local shopkeepers that have suffered from the competitive pricing and warehousing practices of online retailers. Alongside the increase in sales and margins, the shopkeepers will also be outfitted with points of sales (PoS) terminals and integrated billing software in addition to GST-compliant. They will also be trained in inventory management as well as the management of supply chains.
RIL intends to establish its brand new venture, moto’ Desh Ki Nayi Dukaan’, in this way.
JioMart claims to provide the following customer-friendly services:
Home delivery is free: It gives you the convenience of having items to your door by purchasing them from the nearest retailer, and it’s for no cost, something that the ‘Kirane wala Bhaiya’ you receive might not.
There is no minimum amount: Generally, e-commerce sites establish a minimum amount of a transaction to ensure free delivery. For instance, Grofers has a policy of free delivery for purchases that have a minimum that is INR 500. JioMart will not demand any minimum amount and will do not charge delivery fees, at least for the lowest amount of products ordered.
Express Delivery: Express Delivery means faster delivery times than regular services. In the realm of e-commerce, the delivery time is usually delivered within 24 hours. No-questions-asked return policy when it comes time to send back the items you bought online, you’re nearly constantly bombarded by unneeded questions. JioMart will help you avoid this trouble.
Early bird discount up to INR 3000. It has created a promo plan of pre-registration in which customers can save as much as 3000 rupees on their future purchases.
Reliance Jio has started sending invitations to its existing customers using its telecom service JIO in selected regions of India.
How does JioMart make money? What is JioMart’s business model?
RIL offers local businesses the opportunity to sell their products on an O2O(online-to-offline) marketplace using JioMart. This model of business was developed by the Chinese company Alibaba Group Holding Ltd. In the O2O Business method a buyer is able to search for the item or service on the internet but then purchases it offline. The online store will permit local sellers and smaller Kirana stores to place orders via WhatsApp and orders will arrive within 24 hour or on the next day to customers.
At present, Reliance Retail stores are currently delivering orders to the JioMart however, in the future Jiomart will adopt a hybrid model in which its own retail stores along with local Kirana stores are involved in order fulfillment for faster delivery.
JioMart also functions as an e-commerce site that is traditional in nature which lets users make online purchases through their app or website and then the product is delivered by the business within the time frame specified by the user.
Till Now JioMart offering its services in more than 200 towns and cities in India including major cities such as Mumbai, Chennai, New Delhi, Hyderabad, Chennai, and Kolkata. The mobile app of JioMart isn’t yet available, however, it is available on the Jiomart website is up and running for its customers (www.jiomart.com).
Local Kirana stores are now able to register online with the delivery of groceries platform JioMart. Following registration, with JioMart Kirana sign-up the company will assist the store owners to transform their Kirana shop digital and to be able to accept orders via WhatsApp.
Once the order has been prepared by the Kirana store the company sends a confirmation to the customer to take the order at the store.
How does JioMart make money?
Jio Mart has tied up with local retailers which allow these local stores or merchants to attract greater customers and boost their sales through Jio Mart’s app. Jio Mart and in exchange, Jio Mart charges some Specific Percentage commission to them in accordance with the amount of the order.
As Jio has just announced their Jio Mart platform, it is possible that they initially not be charging any fees from retailers but as they reach a large number of customers and retailers, they will begin to implement the previously mentioned model to earn revenues.
The Idea Behind Starting JioMart?
JioMart was not an overnight venture of Mukesh Ambani, but rather a carefully analyzed move with the sole aim of capturing the desired e-commerce market. It is predicted to reach $1.2 Trillion by 2022.
Mukesh Ambani has already built an impressive base of customers collection in the retail industry through Reliance Fresh which functions successfully with the brick-and-mortar business model. JioMart owner Mukesh Ambani’s plans to launch an online shopping platform dates back to the year 2019. The project is akin to his ambition to compete against the world’s biggest e-commerce companies like Amazon along with Walmart’s Flipkart.
What JioMart Consumers and retailers will benefit from This Jio-Facebook Deal?
The Jio-Facebook agreement which stipulates that Facebook is investing INR 43,574 million ($5.7 billion) in Jio platforms will ease the lives of both retailers and consumers who are associated with JioMart. In the course of this agreement WhatsApp, Facebook’s most popular messaging platform — will join forces with JioMart. As a result of this partnership, JioMart users will be in a position to order via WhatsApp as well as Facebook and payment can be made through the ‘WhatsApp Pay’ feature (currently in the pilot phase).
JioMart services will be available via WhatsApp beginning on April 25th, 2020. JioMart services are available in Navi Mumbai, Thane, and Kalyan. JioMart is currently operational within these cities exclusively. However, the sole method of payment that is currently offered is cash.
When Jio made its debut in the telecom sector and sparked a revolution, it changed the game. Large players such as Airtel and Vodafone who had dominated for years were sent to the ground. The possibility of a revolution is in the works thanks to Reliance’s JioMart. What do you think?
JioMart – FAQs
1. What is Jiomart’s Business Model?
RIL offers local businesses the opportunity to sell their products on an O2O(online-to-offline) marketplace using JioMart. This business model was created by the Chinese company Alibaba Group Holding Ltd. In this O2O method, a customer is able to search for the product or service on the internet, but then purchases it offline.
2. Who is the founder of Jiomart?
JioMart was founded by Mukesh Ambani who is India’s wealthiest man. Damodar Mall is the chief executive director of Reliance Retail’s retail business.
3. How does JioMart make money?
Jio Mart has a Partnership with local retailers which allows these stores or local merchants to gain customers and to increase their sales from the application of Jio Mart and in exchange, Jio Mart charges some commission to them in proportion to the amount of the order.
4. Where is JioMart’s service available?
To determine the availability of JioMart in your region Enter your pin code when you place an order.
5. Is the JioMart app available?
Yes ! Reliance Retail’s first-ever online consumer-oriented marketplace JioMart has launched its application on the Google Play Store and iOS App Store. Its JioMart app has exceeded the 10 Million mark of downloads for the Google Play Store and is among the 10 top apps in the “Shopping” category.
so that’s it for this blog hope you know everything now about How does JioMart makes money? What is JioMart’s business model?