Walmart is ready to enter into the Food retail business in India one of the few businesses where 100% FDI is allowed. It has already launched Flipkart Supermart which provides groceries at very low prices and free delivery at purchases above Rs. 600/-. But Reliance is already a genius in the retail space with actual brick and mortar stores or physical stores present in the Country, Reliance has over 10,000 stores in over 6000 cities with over 500 million visitors to these stores. Amazon is also trying to acquire stake in Retail chains like Aditya Birla Group’s More and Biyani led Future Group.
The biggest advantage that the Mukesh Ambani led Reliance Group has is its presence in several cities in India. It has more than 10 brands that cater to almost any Indian need of the Indian consumer. It has access to over 40 brands that have a huge demand for in the Indian retail space. So, an online platform will only leverage the existing network. Spending in logistics would drastically reduce in which Amazon and Walmart led Flipkart hugely spend at the moment. Logistics can be of far superior quality which can enhance online shopping user experience.
Twisted e-commerce policy biggest deterrent for Amazon and Walmart to compete against Mukesh Ambani led Reliance
While Amazon and Walmart are cash rich in terms of Capital. Reliance too has the power of being cash rich. Other entities like petroleum and textile contributing hugely to its coffers. But the advantage that Reliance has over the others is that the New Indian FDI policy on e-commerce restricts investment by foreign companies. Which is the biggest advantage for the Mukesh Ambani led reliance group. Speculations say that it was Mukesh Ambani’s relations with the ruling BJP government that led to such a policy being drafted.
Reliance has historically entered into any business system with the huge discounts. Which has always sent shockwaves across the sectors it launches. May it be the launch of RCom in 2003 or Jio in 2015. It reduced prices of what the market was offering. It has set a trend in the telecom sector in 2003 and 2015. In 2003 it reduced call prices. In 2015 it reduced data prices making India the highest Internet consumer in the world (Click Here to read detailed report). It will be no surprise but obvious that with a click of a button Reliance will ouster both Amazon and Walmart. As Both the American Giants will not be able to match the discounts that Reliance will offer. Indians love Discounts.