Reliance JioMart Quick Commerce Entry - Can it give tough competition to Blinkit and Zepto?

Reliance is about to offer ultra-fast delivery of groceries. We're excited to explore how it will scale and what's unique about the model. Now let's get into the details. 

How Many Ventures is Reliance India Already In? 

To talk numbers, Reliance has left no stones unturned to step into an industry that's doing wonders. It's there in all the sectors, the profitable ones being: 

• Telecommunication, that's Reliance Jio

• Reliance retail

• Petrochemicals, refining, oil and gas

• Media and entertainment - Jiocinema, also Network 18

• Reliance e-commerce 

The conglomerate undoubtedly comes with a good portfolio. 

Now, let's talk about what's important to us

How Is JioMart Working? 

JioMart, because of the offers offered initially - it quickly became a great hit in the market. 

Initially, JioMart focused on grocery delivery. It became a great hit among consumers because of the flexible delivery options - like schedule slots and next day delivery. 

What worked for JioMart? It actually benefited immensely from Reliance Retail's extensive network. At that time, there were over thousands of stores across the country. 

Did everything go well? 

Not really. Reliance actually discontinued the JioMart Express. This service actually promised 90 minutes delivery. 

But when it comes to JioMart, it's a bit hit in the market, as the seller base jumps 3X YoY. 

Right now, the platform is even working on offering online and offline shopping experiences. It recently opened offline stores, Reliance SMART.  

Why Does Reliance Want to Enter the Quick Commerce Market? 

The quick commerce market is a/will be a big hit in the near future. Reason being: 

• Growing demand for convenience -  Lifestyles of customers is now busier than ever. They prefer quick and convenient shopping solutions. Quick commerce exactly caters to this demand by offering ultra fast delivery of groceries

• Market size - The online market in India is estimated to be worth $11 billion. Quick commerce accounts for about half of this value at $5 billion. 

• Demographic trends - Millennials and Gen Z consumers are much tech savvy. They look for value and convenience. By entering this market, Reliance can tap into a young and growing customer base. 

• Competitive edge - Reliance has that competitive edge. It already has the database and access - that is a vast network of physical stores and fulfilment centres. It gives Reliance a strategic advantage. 

Because, if looked into how Zepto and Blinkit till date were operating - they were all into the dark store model. The infrastructure with which Reliance will enter the market, will make the deliveries faster and more efficient.

What Makes JioMart's Quick Commerce Strategy Unique? 

We believe - JioMart will do great if it's entering the quick commerce space. It would probably be the next disruption, and the reasons are: 

• Unlike competitors who rely on dark stores, JioMart will instead be using Reliance Retail's extensive network of physical stores and fulfilment centres. This strategy will help JioMart to reduce operational costs and even the deliveries will be quicker

• JioMart already integrates both online and offline shopping experiences. It allows customers to shop easily across platforms. This Omni channel approach improves customer convenience and loyalty 

• There are 18,000 JioMart stores currently operating out there. If JioMart is able to utilise the resources well, it can offer a wide range of products, including non-grocery items. For example, Blinkit recently added sports category into its app, and even JioMart quick commerce can start offering these. 

• Reliance already has the infrastructure. It undoubtedly has the best financial resources. JioMart can hence scale its operations rapidly. 

Who Are The Major Competitors In The Quick Commerce Market? 

The quick commerce market in India is highly competitive. Some amazing players with good market share are: 

1. Blinkit: Formerly known as Grofers, Blinkit holds a dominant position in the quick commerce sector. It approximately holds 40-45% of the market share. The company offers ultra-fast delivery of groceries and essentials within 10-15 minutes.

2. BigBasket: It's again a well-established player in the online grocery market. According to the news, BigBasket has expanded into quick commerce with its BB Now service, and it's doing great here.

3. Swiggy Instamart: Swiggy, again is a leading food delivery platform. Initially, Swiggy was just a food delivery app. But when it launched Instamart, the aim was to capitalise on the quick commerce trend. Instamart offers fast delivery of groceries and everyday essentials.

4. Zepto: As compared to the ones mentioned in the list above, Zepto is a newer entrant. Zepto came into existence in 2021. It then quickly gained traction with its promise of delivering groceries in under 10 minutes. The company focuses on hyper-local fulfilment to achieve this speed.

5. Flipkart: Walmart-owned Flipkart is preparing to enter the quick commerce space. This step might further intensify the whole competition. But we believe that Flipkart’s extensive logistics network and customer base will help the venture well to compete in this sector.

Each of the competitors above have entered the market, or will be entering the market with some very unique strategies. 

We believe some will be able to capture a good market share. 

How Will Reliance's Entry Impact The Market? 

Once Reliance will enter this competition, the whole market will have a great impact, like: 

• More competition. Since Reliance is entering with substantial financial resources and nationwide presence, Reliance can compete aggressively on pricing. Next, it can speed up the delivery part and might offer more product range

• There will be a pressure on local kirana stores. Even now they are facing these regular customer footfall issues. Reliance's entry could accelerate this trend - as customers will get their orders delivered quickly and affordably 

• As the competition will keep on intensifying, smaller players will start struggling to keep up. 

What Is The Future For Quick Commerce in India? 

The future is quite promising. 

• Since people are moving to urban areas and leading a busier lives, there is a massive demand for quick and convenient shopping solutions

• Innovations in logistics are already happening. With data analytics and artificial intelligence - the deliveries will be quicker and efficient 

• Millennials and Gen Z consumers prioritise convenience and speed. They want instant gratification. They are preferring digital solutions more. And all of this is aligning well with the quick commerce model

Now, Let's Look Into The Challenges

Even Reliance's journey is not too gold if it will enter the quick commerce space. It has to face

• Operational logistics issues. It has to work on managing inventory, coordinating deliveries, and maintaining product quality - we guess this part will be easy since Reliance is already doing great with JioMart

• Building and maintaining customer trust. Reliance has a good brand equity. Thus, even with JioMart quick commerce, it has to ensure that they are meeting consumer expectations - in terms of delivery speed, product quality, and also overall customer service 

• Established players like Zepto (share being 32%), Blinkit (37%) - they have already set high standards in the metro cities. Reliance will need to differentiate itself. It has to give customers compelling reasons to switch to JioMart's quick commerce service. 

With over tens and hundreds of ventures that Reliance has started out with - even this would do great, if everything falls right. Stay tuned to this page, as we'll be updating information with new news coming in!