Reliance prepares to take on the ecommerce battle

Reliance Industries is aggressively pushing its ecommerce agenda to take on leading ecommerce players like Amazon, Flipkart and Snapdeal. Being the largest retail player in the country, with revenues of around Rs 15,000 crores in the year ended March 2014 and over 10 million square feet of retail space, the Mukesh Ambani-led company’s strategy includes opening of stores or malls, starting a cash and carry operation, and a direct to home and mail order services for all categories of products and services.

As a part of its digital plan, the company wants to offer a digital payment service, create a globally managed data networks, platforms relating to social, commerce, messaging, communication, gaming and other online services, as well as buy and sell mobile applications including gaming, web applications and websites for mobile phones.

Reliance Retail has already entered the ecommerce market by selling grocery and other items through Reliance Fresh format. This venture is being test-marketed in Mumbai, Navi Mumbai and Thane areas.

After Walmart announced its wholesale online retail operations recently, Reliance is expected to follow the model with two high-margin categories — fashion & lifestyle and electronics followed by groceries. Reliance Retail operates through more than half-a-dozen brands like Reliance Fresh, Reliance Footprint, Reliance Trends and Reliance Digital.