Reliance Retail to engage kiranas for direct-to-consumer sales through JioMart: Report

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Reliance Retail is looking to exit from the direct sale aspect of its e-commerce platform JioMart and will instead engage kirana stores to sell products to customers within their neighbourhoods.

Based on a “franchising model”, the development would shift Reliance Retail’s business model away from its competitors such as Grofers, BigBasket and Amazon.

Two sources told the Times of India that contracted kiranas will source products from Reliance or elsewhere. In case the product ordered is not in stock with the kirana Reliance Retail will supply the goods in question. Margins will be split equally, it said.

Moneycontrol could not independently verify the report.

Reliance Retail will, however, continue sale of perishable goods from its stores for products such as fruits and vegetables or products with low shelf life.

JioMart’s new system will be undertaken on pilot basis with over 56,000 kiranas in 30 cities in the June quarter before being fully adopted. The company is also on a drive to recruit kiranas from more than 100 cities by April 2021, the sources added.

One source said that since on boarding kiranas is a “long drawn process” the next few months will follow a “hybrid model of sales” through kiranas in areas where tie-ups are in place and direct sales from Reliance Retail stores in areas where kirana partnerships are yet to be signed.

The source however affirmed that Reliance “will eventually exit from direct fulfilment of FMCG and grocery in JioMart”.

Besides the changes to JioMart, Reliance is also reconfiguring its business-to-business cash-and-carry store Reliance Market. These stores will now be turned into fulfilment centres where kiranas can place online orders for B2B delivery of products from Reliance, as per the report.

Pilot for this already underway, the sources said.

Reliance did not respond to queries, as per the report.

Disclaimer: Reliance Industries (RIL) which is the parent company of Reliance Retail, JioMart and Reliance Market is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments which publishes Moneycontrol.