Reliance Retail's re-entry to Quick Commerce, not to compete with BlinkIt, Zepto!?
Reliance Retail, India’s largest retailer, is set to make a strategic re-entry into the quick commerce sector after its previous venture was shut down last year. This time, the company is aiming for a 30-minute delivery target, a significant improvement from its earlier 90-minute delivery goal.
Unlike its competitors such as BlinkIt and Zepto, Reliance Retail will not rely on the dark store model. Instead, it will leverage its extensive network of 2 million Kirana partners and 18,000 stores across India. This unique approach aims to enhance delivery efficiency and customer reach.
Initially, Reliance will focus on delivering groceries. Plans are already in place to expand into other categories like electronics and apparel in the near future. The company’s phased expansion strategy will see JioMart Express, the new quick commerce platform, starting operations in major cities including Mumbai, Delhi-NCR, Chennai, Hyderabad, Kolkata, Pune, and Bangalore.
To meet the ambitious 30-minute delivery target, Reliance Retail will utilize advanced tech platforms such as FYND and Locus for fulfillment and logistics. This integration is expected to streamline operations and enhance delivery speed and accuracy.
The quick commerce market in India is becoming increasingly competitive. BlinkIt is expanding its dark store network and aiming for over 60% year-on-year Gross Order Value (GOV) growth. Tata Digital is considering a substantial investment in BB Now, and Flipkart is also planning to enter the quick commerce arena.
According to a report by JM Financial, dark stores now stock more than 6,000 SKUs per store, compared to 2,000-4,000 SKUs a few years ago. This indicates a significant increase in inventory variety and availability, highlighting the growing importance and competitiveness of the quick commerce market.
Reliance Retail’s re-entry into quick commerce with JioMart Express signifies a strategic move. Even with a 30-minute delivery target, it will heat up the already red-hot quick commerce market.
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Sources: ET, Inc42, Zomato Q4FY24 Presentation, JM Financial- sectorial deep-dive
#Strategy #Quickcommerce #retail #Reliance