Reliance Industries to appoint 1.5 Lakh Sellers for its E-commerce Business

Mukesh Ambani-led Reliance Industries Limited is planning to launch its e-commerce services. It is making in-depth preparations for its huge entry in the online industry.

E-commerce Initiative of Reliance Industries

At an analysts’ meet held at Trident Hotel in Mumbai, Reliance Industries announced its results for the July – September quarter. It then unveiled its plans of its e-commerce venture. The company stated that around 30,000 sellers will be appointed by the end of October, after which it will launch its e-commerce platform. It further said that it will register a total of 1.5 lakh small and medium vendors by the end of the Financial Year (FY) 2015 – 2016.

Reliance Industries wants to build an e-commerce platform as large as that of Amazon, Snapdeal, and Flipkart, which are making investments in billions of dollars to push their businesses. Amazon started its operations in India,in June 2013. It has enrolled nearly 50,000 vendors, while Snapdeal, which started its operations in 2012, has around 2 lakh sellers.

Through a presentation, Reliance Industries revealed that its e-commerce platform for electronic products is ready to go live. It also said that its online grocery store will be officially launched between January and March, 2016. Apart from these, the organization is also planning to roll out a professional fashion and lifestyle online marketplace. To this end, it has partnered with popular fashion brands originating from a host of countries including Singapore, Switzerland, Australia, Turkey, China, and Russia, among others. In addition to this, Reliance Industries will boost the production of its private brand as well.

Road ahead for Reliance Industries

The e-commerce market in India is bound to grow. The Boston Consulting Group and the Retailers Association of India issued a report in February, 2015 stating that the size of the e-commerce market in India, which was $17 billion in 2014 will grow to $60 – $70 billion over the next four years.

Tata Group is also planning to enter the e-commerce market, but, it won’t be easy for any offline retailer to establish a notable business in the e-commerce industry. For instance, the largest listed retailer of India, Future Group and biggest department store operators of India, Shoppers Stop, have both struggled to survive in their respective online retailing businesses.

However, the fate of Reliance Industries seems to be different. It is entering the e-commerce market after undertaking thorough preparations. It has drafted its online business plan after a lot of research and brainstorming. At present, the company runs 2,857 stores of varied formats, in more than 250 cities of India.

Reliance Industries’presentation mentioned that it has the most modern and best warehousing facilities ready, while its order fulfillment and automation tools are being tested for enhanced efficiency. It also said that the company has signed and integrated core logistics partners. In addition, for its online grocery retailing, the company already has the infrastructure, along with the fulfillment centers.

Summary

Reliance Industries Limited (RIL) will be launching its e-commerce initiative with 30,000 vendors in 2015 and enrol another 1.2 lakh by the end of March, 2016.

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