Mukesh Ambani-led Reliance Industries Limited has started withdrawing its products like clothes, shoes including fashion and other lifestyle products from its rival marketplaces like Amazon and Flipkart. This step is ahead of its hybrid online-to-offline e-commerce portal launch.
In the last few months, RIL has accelerated its withdrawal process as the company is gearing up for its e-commerce launch. The move is largely in sync to RIL’s aim to create exclusivity for its brands.
Two of the company’s subsidiaries – Reliance Trends and Reliance Brands are asked to speed up the phasing-out process from non-Reliance marketplaces. Both the subsidiaries have stopped taking new orders from this month.
A lot of products which are being withdrawn includes global brands for which RIL has acquired the rights to sell in India. Reliance has entered into a joint venture with International brands like Diesel, Burberry, Canali, Emporio Armani, Marks & Spencer, Jimmy Choo and Kate Spade.
Reliance Industries Limited has asked all its subsidiaries to sell only on Ajio.com. Last year, Mukesh Ambani said that he wants to create a hybrid online-to-offline e-commerce platform. RIL is now on the ground to make this happen by integrating its offline retail arm and online technology platform.
According to Mr Ambani, the new platform will redefine retail in India by enabling all customers to transition from simple shopping to personalized immersive shopping using new technologies like Augmented Reality, Holographic Technology and Virtual Reality. The marketplace will host grocery, jewellery, fashion and electronics products.
RIL is also working with Kirana stores and consumer brands to create an operational model. This model will help buyers shop at neighbourhood shops using digital coupons via its Jio Money platform. The firm has started testing the model in Mumbai, Chennai and Ahmedabad.
As per industry experts, RIL has edge over its foreign rivals as it can sell, own and control inventory on its platform. In December, the government had brought regulations on foreign direct investment (FDI) in e-commerce marketplaces that favour local players.