Its Official that Reliance Industries will be launching its own E-commerce business. For this, the Oil Giant has sought the approval of its shareholders to
Reliance Industries has entered this space a few years back albeit in a low profile manner. Reliance Industries Limited’s Reliance Fresh Direct is into selling foods, vegetables, confectioneries, personal care products and has restricted its operations to the confines of Mumbai, Navi Mumbai and Thane. Also, the corporate behemoth is presently sells online apparel brands like the Quicksilver and Stevemadden. The Mumbai chapter of Reliance India Limited’s retail stores may be seen as a stepping stone for launching of a bigger platform. The e-commerce sector is projected to become 70 bn dollar market by 2019 with good number of established players like the Flipkart.com , Snapdeal.com, E-bay, Amazon-in in this space and the e-commerce is yet to reach its potential. This sector has enough space to accommodate a few more players. But the entry of a heavy weight player like Reliance must be seen as game changer of sorts for Reliance Industries literally has all the wherewithal i.e. enough funds, physical stores to support its e-commerce business and to launch such a big platform. However, on one front where it is found conspicuously wanting is operational experience which can be compensated for by whatever little experience it has gained from its low profile exposure.
Previously, Kishore Biyani’s Future Group launched Big Bazar Direct and hoped to rope in 10% of their profit from e-retailing but without any success. Reliance Direct Fresh has however, received encouraging inputs from its low profile operations. But launching an E-commerce platform in a large scale is not a cake walk in today’s context. Reliance Industries has more than 2000 brick and mortar stores operating across India.