Reliance Retail To Enter E-Commerce in 6-8 Months, Will it Work?
After Kishor Biyani, its Mukesh Ambani’s turn to jump on to the e-commerce band wagon. The billionaire owner of Reliance Industries is planning to enter e-commerce with Reliance Retail, according to a new report.
Reliance Retail has plans to enter e-commerce in 6 – 8 months, The Economic Times reported. A technical team is working on the project and is likely to setup an online marketplace, it said. That would mean that it will directly compete with the likes of Amazon, Flipkart, Snapdeal, eBay and others.
The company currently runs over 1500 stores across the country and posted sales of nearly Rs 3,500 cr for the September quarter. Reliance Industries also runs a closed b2b e-commerce portal for businesses wanting to purchase Polyester and other products produced by the group.
Mukesh Ambani’s brother Anil Ambani’s Reliance Entertainment runs an e-commerce portal called Bigadda. It was launched as a social network but later pivoted to an e-commerce website mostly dealing in electronics. The social networking business was shut down in 2011. As an e-commerce venture, Bigadda is not much of a big deal.
In September, retail baron Kishor Biyani launched Big Bazaar Direct, a direct selling platform for which it will use a tablet based e-commerce backend. The idea is to setup franchises across the country.
Large format retail stores that went online haven’t been doing all that well. Take Biyani’s Future Group for instance, has been struggling with its previous e-commerce foray. In my earlier post, I’d pointed out that Futurebazaar isn’t anywhere close to what it set out to achieve. Its traffic is dwindling too.