The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Yash Malani, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
Reliance Retail, a subsidiary of Reliance Industries Limited, is the latest brick-and-mortar retailer to enter into already crowded e-commerce market. It will be competing against established domestic players such as Myntra or global firms such as Amazon. The company’s retail portal, named Ajio.com was launched at the Lakme Fashion Week which was attended by Isha Ambani, daughter of India’s richest man, Mukesh Ambani. Presence of Isha Ambani during the launch clearly indicates that the next generation is involved in the new-age businesses of the group.
The shopping portal seeks to attract working woman and provide them with latest fashion. It has a team of experts who will curate collections specifically for the portal. It will also host in-house design collections. Their collection will range from ethnic woven saris to the Capsule Collection offering the best of boutiques across India. The portal will have a collection of accessories and footwear apart from over 200 Indian and international labels. The collection showcased at the Lakme Fashion week will also be available on the portal.
Ajio.com will leverage Reliance Retail’s sourcing, supply chain and retail operations capabilities. It is expected to be a unique fashion portal which will represent the modern Indian woman.
According to government data, India has about 40,000 pincodes. The company’s target for the next 2 months is to take its delivery capacity to 15,000 pincodes. Considering a forecast of India’s e-commerce sector to produce sales of 36.7 billion dollars by 2020, according to a KPMG report, it is a great opportunity for Reliance Retail.