Reliance Retail’s e-commerce foray to be biggest challenge for Amazon and Flipkart

Agencies
May 21, 2019

Reliance Retail's upcoming entry into the online retail sector is the biggest challenge for Amazon and Walmart-Flipkart as the Mukesh Ambani-led behemoth is well positioned to create massive disruption in the market, a new report has stressed.

According to the global market research firm Forrester, the online retail sales in India will grow at a five-year CAGR of 25.8 per cent to reach $85 billion by 2023, despite the hiccups of demonetization in 2016, GST in 2017 and the governmental changes in eCommerce policy announced last December.

The time is ripe for Reliance Retail, which operates 10,415 stores in more than 6,600 cities, with 500 million annual footfalls - giving the company the kind of scale required to swiftly launch India-based operations.

"One of the things that will trouble Amazon and Flipkart is Reliance's history of launching operations via massive discounts," Satish Meena, senior forecast analyst at Forrester Research, said on Tuesday.

Reliance entered the telecom sector in 2003 with the Monsoon Hungama tariff plan, which brought tariffs for voice calls down to just Rs 0.40 a minute from the existing rate of Rs 2 a minute, followed by the launch of Jio 4G plan in 2016 that dropped data rates from Rs 250 per GB to Rs 50 per GB.

"This kind of discounting can disrupt any market, and we expect something similar to happen in the grocery space during Reliance launch," Meena added.

Reliance is fast working on creating the world's largest online-to-offline New Commerce Platform, according to Mukesh Ambani, Chairman and Managing Director, Reliance Industries.

"Due to the recent changes in eCommerce policy and the restrictions on an inventory-led model for marketplaces with FDI, Reliance Retail is finding a favourable policy environment to launch operations where it can use its existing retail infrastructure to deliver goods to customers," the Forrester report noted.

Reliance launched the food and grocery app among its employees in April 2019 to prepare for the commercial launch later in the year.

Reliance Retail is the largest retailer in India, with $18.7 billion in revenue during financial year 2019, and it grew at a CAGR of 55 per cent in the last five years.

Reliance Retail had $81 billion in revenue and $9.4 billion in profit during 2019.

"This gives Reliance Retail access to long-term capital from the conglomerate, which has a presence in energy, petrochemicals, telecom, textiles, retail, and natural resources," said Forrester.

Reliance Retail also has a portfolio of over 40 brands, from the midmarket to premium segments and including Hamleys (which the company has acquired for Rs 620 crore) and Marks & Spencer.

"These can provide a boost to the fashion and lifestyle segment, which will be the largest category by online spending in the coming years," said the report.

Reliance launched its mobile business at the end of 2015, and by April 2019, it had over 300 million mobile subscribers, making it the third-largest player in a short span of time.

Jio is building on these mobile subscribers by investing in related services to create an ecosystem that gives customers access to rich content and payments options.

This ecosystem will be available for Reliance Retail to build on.

To compete with Amazon and Flipkart, Reliance will have to significantly improve the customer experience, both in stores and on its online channel, because discounts and cashbacks will not generate loyalty for online customers, as we saw in the Paytm Mall case.

"Removal of discounts may lead to a significant loss of buyers from the platform. The positioning of the Reliance platform and its fulfilment will play a critical role in the fight against Amazon and Flipkart," emphasised the Forrester report.

The eCommerce competition in India remains fierce.

Amazon has been the most popular online retailer since it surpassed Flipkart in 2016, although Flipkart is still the single-largest online retailer, with 31.9 per cent market share in 2018 (38.4 per cent if you include Myntra and Jabong), closely followed by Amazon at 31 per cent.

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Agencies
March 3,2020

Facebook on Monday launched a new consumer marketing campaign in India titled 'More Together'. India is the first country in the Asia Pacific region where such a campaign is being rolled out.

It is also the first time that Facebook is rolling out a 'high decibel campaign of this stature in India', the company said in a statement.

It is also the first time that Facebook is rolling out a 'high decibel campaign of this stature in India', the company said in a statement.

"India is at the heart of Facebook and one of our focus areas this year is to tell the exciting story of a service that is deeply embedded in the fabric of India," said Ajit Mohan, Vice President and Managing Director, Facebook India.

The campaign would have multiple campaigns over the next few weeks in eight languages and the one will be set in the context of Holi.

Facebook in 2019 introduced a new company logo to further distinguish the company from the Facebook app.

The company recently announced the appointment of Avinash Pant as the Marketing Director for India operations, to drive the consumer marketing efforts across the family of apps.

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Agencies
June 19,2020

Denser places, assumed by many to be more conducive to the spread of the coronavirus that causes COVID-19, are not linked to higher infection rates, say researchers.

The study, led by Johns Hopkins University, published in the Journal of the American Planning Association, also found that dense areas were associated with lower COVID-19 death rates.

"These findings suggest that urban planners should continue to practice and advocate for compact places rather than sprawling ones, due to the myriad well-established benefits of the former, including health benefits," says study lead author Shima Hamidi from Johns Hopkins Bloomberg School of Public Health in the US.

For their analysis, the researchers examined SARS-CoV-2 infection rates and COVID-19 death rates in 913 metropolitan counties in the US.

When other factors such as race and education were taken into account, the authors found that county density was not significantly associated with county infection rate.

The findings also showed that denser counties, as compared to more sprawling ones, tended to have lower death rates--possibly because they enjoyed a higher level of development including better health care systems.

On the other hand, the research found that higher coronavirus infection and COVID-19 mortality rates in counties are more related to the larger context of metropolitan size in which counties are located.

Large metropolitan areas with a higher number of counties tightly linked together through economic, social, and commuting relationships are the most vulnerable to the pandemic outbreaks.

According to the researchers, recent polls suggest that many US citizens now consider an exodus from big cities likely, possibly due to the belief that more density equals more infection risk.

Some government officials have posited that urban density is linked to the transmissibility of the virus.

"The fact that density is unrelated to confirmed virus infection rates and inversely related to confirmed COVID-19 death rates is important, unexpected, and profound," said Hamidi.

"It counters a narrative that, absent data and analysis, would challenge the foundation of modern cities and could lead to a population shift from urban centres to suburban and exurban areas," Hamidi added.

The analysis found that after controlling for factors such as metropolitan size, education, race, and age, doubling the activity density was associated with an 11.3 per cent lower death rate.

The authors said that this is possibly due to faster and more widespread adoption of social distancing practices and better quality of health care in areas of denser population.

The researchers concluded that a higher county population, a higher proportion of people age 60 and up, a lower proportion of college-educated people, and a higher proportion of African Americans were all associated with a greater infection rate and mortality rate.

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News Network
April 17,2020

Paris, Apr 17: Even as virologists zero in on the virus that causes COVID-19, a very basic question remains unanswered: do those who recover from the disease have immunity?

There is no clear answer to this question, experts say, even if many have assumed that contracting the potentially deadly disease confers immunity, at least for a while.

"Being immunised means that you have developed an immune response against a virus such that you can repulse it," explained Eric Vivier, a professor of immunology in the public hospital system in Marseilles.

"Our immune systems remember, which normally prevents you from being infected by the same virus later on."

For some viral diseases such a measles, overcoming the sickness confers immunity for life.

But for RNA-based viruses such as Sars-Cov-2 -- the scientific name for the bug that causes the COVID-19 disease -- it takes about three weeks to build up a sufficient quantity of antibodies, and even then they may provide protection for only a few months, Vivier told AFP.

At least that is the theory. In reality, the new coronavirus has thrown up one surprise after another, to the point where virologists and epidemiologists are sure of very little.

"We do not have the answers to that -- it's an unknown," Michael Ryan, executive director of the World Health Organization's Emergencies Programme said in a press conference this week when asked how long a recovered COVID-19 patient would have immunity.

"We would expect that to be a reasonable period of protection, but it is very difficult to say with a new virus -- we can only extrapolate from other coronaviruses, and even that data is quite limited."

For SARS, which killed about 800 people across the world in 2002 and 2003, recovered patients remained protected "for about three years, on average," Francois Balloux director of the Genetics Institute at University College London, said.

"One can certainly get reinfected, but after how much time? We'll only know retroactively."

A recent study from China that has not gone through peer review reported on rhesus monkeys that recovered from Sars-Cov-2 and did not get reinfected when exposed once again to the virus.

"But that doesn't really reveal anything," said Pasteur Institute researcher Frederic Tangy, noting that the experiment unfolded over only a month.

Indeed,several cases from South Korea -- one of the first countries hit by the new coronavirus -- found that patients who recovered from COVID-19 later tested positive for the virus.

But there are several ways to explain that outcome, scientists cautioned.

While it is not impossible that these individuals became infected a second time, there is little evidence this is what happened.

More likely, said Balloux, is that the virus never completely disappeared in the first place and remains -- dormant and asymptomatic -- as a "chronic infection", like herpes.

As tests for live virus and antibodies have not yet been perfected, it is also possible that these patients at some point tested "false negative" when in fact they had not rid themselves of the pathogen.

"That suggests that people remain infected for a long time -- several weeks," Balloux added. "That is not ideal."

Another pre-publication study that looked at 175 recovered patients in Shanghai showed different concentrations of protective antibodies 10 to 15 days after the onset of symptoms.

"But whether that antibody response actually means immunity is a separate question," commented Maria Van Kerhove, Technical Lead of the WHO Emergencies Programme.

"That's something we really need to better understand -- what does that antibody response look like in terms of immunity."

Indeed, a host of questions remain.

"We are at the stage of asking whether someone who has overcome COVID-19 is really that protected," said Jean-Francois Delfraissy, president of France's official science advisory board.

For Tangy, an even grimmer reality cannot be excluded.

"It is possible that the antibodies that someone develops against the virus could actually increase the risk of the disease becoming worse," he said, noting that the most serious symptoms come later, after the patient had formed antibodies.

For the moment, it is also unclear whose antibodies are more potent in beating back the disease: someone who nearly died, or someone with only light symptoms or even no symptoms at all. And does age make a difference?

Faced with all these uncertainties, some experts have doubts about the wisdom of persuing a "herd immunity" strategy such that the virus -- unable to find new victims -- peters out by itself when a majority of the population is immune.

"The only real solution for now is a vaccine," Archie Clements, a professor at Curtin University in Perth Australia, told AFP.

At the same time, laboratories are developing a slew of antibody tests to see what proportion of the population in different countries and regions have been contaminated.

Such an approach has been favoured in Britain and Finland, while in Germany some experts have floated the idea of an "immunity passport" that would allow people to go back to work.

"It's too premature at this point," said Saad Omer, a professor of infectious diseases at the Yale School of Medicine.

"We should be able to get clearer data very quickly -- in a couple of months -- when there will be reliable antibody tests with sensitivity and specificity."

One concern is "false positives" caused by the tests detecting antibodies unrelated to COVID-19.

The idea of immunity passports or certificates also raises ethical questions, researchers say.

"People who absolutely need to work -- to feed their families, for example -- could try to get infected," Balloux.

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