Reliance e-commerce gears up to challenge Amazon, Flipkart in 2020

"Profitability remains a concern for the big players. There has been investment in certain new classes, but nothing much has changed this year."

Reliance's potential entry into e-commerce space by Diwali next year will bring enormous competition to Amazon and Flipkart.

“The discount-based approach mastered by Reliance has been reflected in which vertical they put their money in. They will probably enter into e-commerce with the high-potential grocery sector near Diwali next year or maybe later.” Meena said, “The schedule is still a concern, but they are coming big. "

Reliance Retail joining the online retail sector is the biggest challenge facing Amazon and Walmart-Flipkart, as the giant led by Mukesh Ambani is well placed to create massive market turmoil.

Reliance Retail operates 10,415 stores in more than 6,600 cities and towns, with 500 feet per year, giving the company the kind of scope needed to start operations in India quickly.

Reliance Retail has already launched its food and grocery application for its pilot test among its employees.

According to the Indian Brand Equity Foundation (IBEF), the Indian e-commerce market is expected to grow to $ 200 billion by 2026, driven by the increased penetration of smartphones, the launch of 4G networks and the increase in consumer wealth.

The country's ongoing digital transformation is expected to increase from total Internet users in India to 829 million by 2021.

Another major concern for Amazon and Flipkart is the new e-commerce policy which is still in the consultation stage. India questioned Amazon's "predatory prices" and "deep discounts."

Prabhu Ram, Director of the Industry Intelligence Group (IIG), said: “Next year, it remains to be seen what would be the new e-commerce policy based on the recommendations of many industry stakeholders.”

The grocery sector is a major growth area in 2020.

“We have seen players like Grofers (supported by SoftBank, Tiger Global, and Sequoia Capital) participate in this sector. Social commerce will be another major area for growth in 2020. Facebook has also made investments in Meesho, a platform that allows Indian entrepreneurs to establish online businesses via social channels Meena said."

"The ability of current and future players in the field of e-commerce will be greatly tested in 2020," he added.

Image Source: tradebriefs

Also Read: Mukesh Ambani gained $17 billion in 2019 to become Asia's highest gainer