Mr Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited now planning for e-commerce business wherein it will have online and offline shopping experience.
Ambani’s major aim is to generate half of the group’s revenue from consumer businesses in the next 10 years. Currently 80% source of sales of the group comes from its traditional oil and gas business.
The cost of delivery will be very high presently and in order to make the plan successful they have to create a local market and make their presence available to their local merchants and customers.
As per O2O model, a client can search the products or services online and can purchase it through offline channel. The reliance plan is to associate its merchants under e-commerce platform and in return it will capture the demand from the available market. By avoiding the discounts, company can save its cost and it penetrate areas currently outside the traditional purview of e-commerce companies.
Reliance has a physical presence in the country with Retail Stores: 4000, Jio points: 4000 and about 50 warehouses and it will be raised to 10,000 over a period of time which will help them in their e-commerce venture.