Reliance To Claim Lions Share Of Indias $150 Billion E-commerce Market, Says Bernstein
/
Companies/
News/ Reliance to claim lion’s share of India’s $150 billion e-commerce market, says Bernstein
NEW DELHI : New Delhi: Reliance Retail is best positioned to lead in India’s $150 e-commerce market in the long-run, analysts at Bernstein said in a report dated 24 May.
“We believe Reliance Retail-Jio is the best positioned player in the largest and fastest growing e-commerce market. The advantages of its retail network, its mobile network, its digital ecosystem and its “home field advantage" in a famously complex regulatory and operating environment mean in the long term, it will likely claim the lion’s share of the over $150 billion e-commerce marketplace," they said.
The report essentially gives Reliance an edge over incumbents such as Amazon and Flipkart in the long-run given the former’s extensive retail network, digital capabilities including its heft with Jio mobile services.
Currently, India’s e-commerce market is led by the big two—Flipkart and Amazon—that corner an estimated 60% market share. It is expected to reach $150 billion by 2025, with online penetration doubling in the next five years. Flipkart with $23 billion gross merchandise value or GMV and Amazon’s $18-20 billion gross merchandise value lead on scale with 60% market share. Reliance is currently number three with an estimated $5.7 billion in e-commerce sales driven by attractive categories of fashion (Ajio) and JioMart (e-grocery).
However, the report said that RIL is building the largest digital ecosystem in India.
Since 2015, RIL has built Reliance Retail into a 18,000 plus store nationwide chain with GMV of $30 billion, a dominant 4G network with 430 million subscribers in Reliance Jio, and a strong digital media platform encompassing OTT-IPL, music streaming, and news through strategic acquisitions.
“Reliance Industries is building the largest digital ecosystem in India. Jio has 430 million mobile subscribers. Its digital ecosystem is compelling. Its retail arm has 18,300 retail stores in India. Digital mix is scaling up 17-18%. It’s a disruptive playbook—integrate offline, online and prime makes it the strongest competitor to Amazon or Walmart," the said.
This makes RIL the only Indian player to have an integrated offering and the ability to compete with global tech giants such as Amazon and Walmart, according to the report.
Reliance has also swept up several large retail assets including Metro Cash and Carry over the last two-to-three years and stitched partnerships with the likes of Meta. In 2020 Meta invested $5.7 billion in Jio Platforms Limited, part of Reliance Industries Limited.
“We expect Jio to become the core platform for India’s digital economy. As more consumers and small business move online, we see an expansion of India’s digital total addressable markets which we expect would reach trillion dollars by 2025," it further added.
Catch all the
Corporate newsand Updates on Live Mint. Download The
Mint News Appto get Daily
Market UpdatesBusiness News.
Updated: 25 May 2023, 11:33 PM IST
Next Story
No Network
Server Issue
Internet Not Available
Pro-Palestinian Protests Surge: Unveiling Fault Lines On American Campuses
In recent months, American universities have become the focal points of escalating pro-Palestinian protests, with events... Read more
Hong Kong Introduces Groundbreaking Cryptocurrency ETFs For Retail Investors
Hong Kong has entered a new era in the realm of cryptocurrency investments with the recent introduction of the first spo... Read more
UK's Local Elections 2024: A Decisive Political Landscape Shift
In the spring of 2024, the United Kingdom witnessed a pivotal moment in its democratic process as local elections unfold... Read more
The Fragile Lifeline: America's Aid To Ukraine Amidst Political Struggles
Amidst escalating tensions with Russia, the United States has once again extended a vital lifeline to Ukraine in the for... Read more
Trailblazers Of Change: Generation Z's Role In Shaping The Future
Generation Z, often referred to as Gen Z, is making waves as a generation that is actively shaping the future. Their rep... Read more
Bridging The Aisle: The Role Of Bipartisanship In Shaping U.S. Foreign Policy Through Ukraine Aid
In a significant display of legislative solidarity, the U.S. House of Representatives recently passed a substantial aid ... Read more