Mukesh Ambani who is chairman of Reliance Industries going to launch his own e-commerce platform in India to challenge Amazon and Walmart. Reliance is an Indian top company that is growing its dominated market in Asia. The rich man of Asia has a goal to create and spread its online marketplace in India just like Alibaba. The goal is to allow the offline merchants and kirana stores to sell their products online to the Indian customers.
In India, there are 500 million users of the internet and e-commerce is growing by 30%. According to Morgan Stanley, the multinational banking company, the Indian online retail market will become an opportunity of $200 billion by the end of 2027.
Mukesh Ambani Reliance Market in India
Reliance is growing its market through “Reliance Jio”, which is a mobile broadband internet providing unit. This has subsidized the internet broadband cost by bringing more people online.
Dinesh Moorjani of Comcast Ventures revealed that Reliance Jio has created an online environment couple of years ago, when they have provided free broadband internet to the users and made them addicted to the use of the internet.
Jeff Bezos Amazon
Government of India has introduced new e-commerce policies this year in order to target the international markets like Amazon and Walmart to make their expansion difficult in India. Moreover, they claim that Amazon has more job opportunities in India in comparison to any other company. In order to capitalize their market in India, U.S companies have spent a lot.
Moorjani further said that Amazon is facing a regulatory challenge in India.
Mark Mahaney, Managing Director at RBC Capital Markets said that Amazon is a key player in the e-commerce market of India and it is facing a regulatory environment risk. There are many speculations that have been made regarding the survival of Amazon in this situation. It is believed that the low level of revenue reported by Amazon than expected in the Q1 of 19 Revenue is partially due to this regulation.
Gene Munster of Loup Ventures unveiled the fact that when Amazon tried to enter the Chinese market, it was ran over by the Alibaba. Hence, India is the only market where Amazon can prevail and this is the only opportunity for their big win.
While, e-commerce is not a market which can easily be navigated, not even for the domestic players.
Reliance is planning to create a 10,415 retail stores across 6,600 cities and aims to access the 307 million subscribers of Jio.
Sources said that expansion of Reliance in e-commerce is not an easy task and it would be expensive. They are trying to raise external capital and in talks with the Saudi Aramco too for this purpose.