Jio Mart – Desh Ki Nayi Dukaan :

Distribution and Channel Management

Jio mart is an online platform that operates in more than 200 cities. In June 2021, JioMart reached
6.5 lacs orders a day. JioMart has been highly successful in pushing its private labels to the small
stores. As of December 2020, close to 37% of Mumbai retailers hoard JioMart’s private label
products, whilst only 13% of retailers hoard the private label goods of Amazon and Metro. With
over 4 million downloads, JioMart entered the top three downloaded shopping apps list in August
2020 (Flipkart - 8.7 mn, Amazon – 8.3 mn).

Distribution Channels:

JioMart operates on 2 distribution models:

1) Inventory Model- Under this model, the orders received by the JioMart are fulfilled by the
Reliance retail stores. Customers can use their application - JioMart to place their orders. It does
not have any retail outlets and depends on its warehouses and the fulfillment stores for order
fulfillment. All the reliance retail outlets will be converted to the fulfillment centers which will
deliver the order to the customers.

Apart from above strengths, JioMart offers the following benefits to the customers:

• No minimum order
• No Delivery fees
• Express Delivery
• User friendly interface with voice integration and barcode scanner
2) Hyper Local Model- Under this model, the Kirana stores i.e., the local retailers are roped in
for order fulfillment. It is famously known as Kirana Delight Model explained below:

JioMart has also incorporated O2O, online-to-offline model leveraging its latest deal with
Facebook. It has planned to allow customers to order via WhatsApp. Under this, the consumer
was able to search for the products online but bought it from offline channel, creating an
omnichannel strategy.

Data on key distribution parameters:

Particulars Details
No. of orders per day 6,50,000
No. of cities covered 200
No. of merchants 3,00,000
No. of units (per day) 30,00,000
Average per ticket size 350

JioMart has gained early success both in terms of market penetration and customer acquisition.
But the industry is highly competitive. The bare minimum profit margin, competition from the
local and national player, high price elasticity of demand makes it more fierce. It has to focus
on improving its operational efficiencies, increasing its private labels, expanding into new
segments like high margin products ( electronics, fashion etc.).

- Group 3