But where are the kirana stores? JioMart launches in 200 cities without them
Mukesh Ambani-owned Reliance Retail is Jiomart franchise set to rope in local kirana stores as franchise partners to fulfill orders placed on its ecommerce platform JioMart. Reliance Retail will exit from the direct sale of packaged food, grocery and FMCG products. The kirana stores will sell these products to consumers in their respective neighbourhoods.
The Economic Times citing two industry executives aware of the plans mentioned in a report that the kiranas will source goods from Reliance or elsewhere. In the case of products ordered on JioMart and not in stock with the kiranas — which typically sell the 300-400 most popular items — Reliance Retail will supply them and the margins will be shared equally. However, Reliance will continue with the sale of perishables such as fruits and vegetables from its stores or fulfilment centres, the business daily mentioned.
Further Reliance Retail has decided to shelve its B2B cash-and-carry store format, Reliance Market, which will be turned into fulfilment centres for B2B delivery of products to kiranas. The neighbourhood stores will place their orders online and get deliveries at their outlets.
JioMart has signed in nearly 56,000 kiranas from 30 cities to pilot this system of direct sale to consumers from kiranas in the June quarter.
The sources mentioned above told the publication that Reliance Retail is planning to enroll kiranas in over 100 cities by April and will eventually implement this format whereever JioMart has operations.
“Since roping in kiranas is a longdrawn process, for next few months JioMart will have a hybrid model of sales through kiranas, and in pin codes where there is no such partnership, the Reliance Retail stores will fulfil till the time kiranas are roped in,” one of the persons cited above told ET. “But Reliance will eventually exit from direct fulfilment of FMCG and grocery in JioMart.”
Analysts say this strategy will help Reliance Retail in the long run to fulfill customer orders placed on JioMart faster than competition and will also help it in achiving higher volume.