- Online festive season sales start from Navratri and continue till Dhanteras.
- It is the biggest source of revenue for Indian e-commerce.
- Almost half of the annual turnover of Indian e-commerce comes from online festive season sales.
Reliance Retail is the most aggressive in placing orders for the festive season this year. The company wants to run most of the business through the webstores of its e-commerce ventures Ajio, JioMart and Reliance Digital. Several senior executives of leading brands say this is Reliance Retail’s first major attempt to win market share from rivals like Amazon and Flipkart.
Ajio is the fashion ecommerce venture of Reliance, while JioMart is the umbrella marketplace for grocery, value fashion, electronics and a few other categories. Electronics retail chain Reliance Digital has set up its app and webstore.
How much did Reliance’s order volume increase?
Executives say the order volume from Reliance has grown between 70% and 400% compared to the previous festive season year, while the volume growth for orders placed by sellers from Amazon and Flipkart is between 40 and 70 percent. Online festive season sales start from Navratri and continue till Dhanteras. It is the biggest source of revenue for Indian e-commerce. Almost half of the annual turnover of Indian e-commerce comes from online festive season sales.
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Ajio aims to grow more than 50%
Reliance is aiming to grow Ajio by over 50% and this Diwali, aims to reach half the size of online fashion market leader Flipkart-Myntra jointly. In electronics and grocery, Reliance Retail has a two-fold increase compared to last year. Guna is aiming to grow and aspires to be the market leader in groceries. While manufacturers have faced supply challenges for smartphones and electronics, Reliance still expects higher order volumes and sales growth for its niche brands like BPL, Kelvinator and upcoming affordable smartphone JioPhone Next.
The industry executive said, “Last year Reliance started focusing on ecommerce and it was still growing. This will be the first year that its ecommerce platform has grown, has a nationwide presence and is all bricks and mortar. The stores are enabled for omni-channel sales. Since there are supply issues in electronics, most of the focus is on fashion and groceries.”
JioMart sales expected to reach Rs 3,000 crore
Another executive says that Ajio had sold around Rs 2,900 crore in the last financial year, while in the April-June quarter itself this year it has crossed the Rs 1,000 crore mark despite the lockdown. He said Reliance expects Ajio’s sales to reach around Rs 4,500 crore this fiscal. JioMart sales are expected to be Rs 3,000 crore.
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