So, in today’s article we will find out about Deal between JIOMART-Kirana stores-WhatsApp-Facebook. What is JIOMART? Their Business Model? How JIO MART will make money? Problems facing by JIO MART?
Before knowing about the JioMart; let’s know a bit about Jio
Jio started in the year 2007 as Reliance Jio Infocomm Limited; 13 years ago. Yes, 2007 not 2016, and disrupted the whole telecom sector with its free internet and voice call. If you want to read more on JIO click here.
Jio Mart is an online-to-offline (O2O) business platform with its tagline ‘Desh Ki Nayi Dukaan’ (country’s new shopping store) that makes the local Kirana stores nearby your home go digital. Here, the customers can place an order online, but purchases the order offline (nearest Kirana store); similar to takeaway or deliver to doorstep.
JIO plans to create a super-app called JioMart similar to WeChat, which includes online purchase (e-commerce), digital payments, messaging, and various other features (may include social media in the future). This will provide the company insights on users information on spending habits, interests, and many others because DATA IS THE NEW OIL.
Jio aims to connect 20 crore customers to three crore offline stores throughout the country.
Customers can place an order on JioMart’s WhatsApp number 88500-08000. Some of the benefits of JioMart include no minimum order value, no questions asked returns policy, free home delivery, express delivery, and huge savings.
HOW THE DEAL BETWEEN JIO AND FACEBOOK WILL HELP JIOMART?
Ever since JIO has launched its telecom business it’s well known for market disruption and soon be the king of the market. This is what Ambani’s are known for. Whichever business they get into, they always want to be the king like Oil-to-gas, Reliance Retail, Jio, and many more to come. Now imagine, Jio’s disruption strategy and Facebook (WhatsApp) data and user base. This will make sure that JioMart will be a market leader very soon.
Jio has a customer base of around 400 Million users and growing. Whatsapp has a customer base of around 400 Million users and growing. Of course, it includes those who use both Jio and Whatsapp on a single device. This deal will help JioMart by placing orders through Whatsapp messaging, Whatsapp pay (to be launched soon). The huge customer base, database, or data analytics of customers using Facebook, Instagram, and Whatsapp will help JioMart in targeting customers and target ads. The in-app payment service will increase the user convenience. To know more about the deal between Jio-Facebook and other companies click here.
If we combine both users, the result is enormous. Even if we consider 10% of the users will use JioMart in the future with an average purchase of Rs.500; no wonder it will disrupt the market again.
“In the near future, JioMart and WhatsApp will empower nearly three crore small Indian Kirana shops to digitally transact with every customer in their neighborhood. This means all of you can order and get faster delivery of day-to-day items from nearby local shops. At the same time, small Kiranas can grow their businesses and create new employment opportunities,” by Mukesh Ambani, CMD, Reliance Industries.
HOW JIOMART WILL EARN
JioMart will mainly earn as a distributor by providing goods to the Kirana stores. It will also provide a POS machine and earn a transaction charge, also it will earn with the in-app payment service like JioPay.
Subsequently, it may provide a credit feature to the stores and charge them if they miss the deadline. With the increase in stores under JioMart, it may start sponsored ads to show the store name on top like Zomato and Swiggy. Meanwhile, they might start premium stores with the JioMart banner.
PROBLEMS FACING BY JIOMART
The Kirana stores are one-man show which means it is a family run business with a single man running behind the counter were he collects the list or orders from the customer and provide it one by one. On the other hand, JioMart works on an app. So, he has to check both mobile-device and the customers present before him and serve them, which is a tedious job for which he might have to hire a person and shed money out of his pocket.
The local distributors provide a credit of one week to one month for Kirana stores. But, this is not the case with JioMart; they have to pay online without any credit. Even if they provide a credit they might charge extra if the stores miss the deadlines.
Kirana stores fear that going digital would make them declare their earnings and pay taxes.
In conclusion, JioMart will start adding Kirana stores one by one; which leads to competition among them, and this will lead to adding more stores under JioMart to increase their sales. JioMart gets benefitted.
Thank you for reading and hope to see you in the next one.