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Reliance Industries entry in online retailing will digitise 5 million kirana stores

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Mukesh Ambani, Richest Indian, Reliance Industries, Online retail shop, Retail stores, Bank of America, Kirana stores, Groceries, Sundries, Business news

New Delhi: Richest Indian Mukesh Ambani-led Reliance Industries’ entry into online retailing will help expand the current 15,000 digitised retail stores to over 5 million by 2023, a study of Bank of America Merrill Lynch said.

As much as 90 per cent of India’s USD 700 billion retail market is unorganised, made up mostly of neighbourhood kirana stores selling groceries and other sundries.

These kirana stores are keen to upgrade their tech and this is driving a wave of modernization, the study said.

“This is on the back of growing competition from modern trade and e-commerce,” it said. “GST implementation has also acted as a catalyst, creating further modernization pressure as GST compliant bills have to be generated.”

Reliance, with a deep footprint in over 10,000 Reliance Retail outlets pan-India, is working to create the world’s largest online-to-offline e-commerce platform in the country.

 

Mukesh Ambani, Richest Indian, Reliance Industries, Online retail shop, Retail stores, Bank of America, Kirana stores, Groceries, Sundries, Business news

 

Reliance is looking at installing its Jio MPoS (mobile point-of-sale) device at kirana stores to connect neighbourhood suppliers to its high-speed 4G network that can be used by its customers to order supplies.

It will take on SnapBizz, Nukkad Shops and GoFrugal in this fragmented MPoS space. While Jio MPoS is available at a one-time investment of Rs 3,000, SnapBiz offers the same machine at a one-time cost of Rs 50,000, the report said.

One-time charge on Nukkad Shops is Rs 30,000 to Rs 55,000 while GoFrugal offers POS software at a one-time investment of Rs 15,000 to Rs 1 lakh.

Jio MPoS has no merchant discount rate (MDR) on any charge and offers a loyalty programme, it said, adding its monetization strategy include merchandise delivery, advertising and supply-side aggregation.

“We believe, with RIL’s entry, we could see an increase in merchant adaptability, as the price points will likely come down (RIL’s current one time deposit is Rs 3,000) and reach should expand.

 

Reliance entry into online retailing will extend retail stores to 5million by 2023:

 

“Consolidation is also a possibility; as a big player, RIL is entering an otherwise scattered market. Overall, we expect RIL to help expand the current 15,000 digitized store base to 5 million-plus stores by 2023,” it said.

The brokerage said it met with SnapBizz management at their office in Bengaluru. It has 4,500-plus devices installed over seven cities in India or over 30 per cent of the digitised store base.

“The Merchant PoS by SnapBizz is a point of sale platform where merchants can keep a digital record of their inventory, generate GST compliant bills and keep a track of consumer’s buying patterns, in addition to making payments,” the report said.

For a one-time payment of Rs 50,000, the merchant gets a PoS device with Snapbizz software, a screen space to display ads and a personal app to interact with users.

SnapBizz is working with Israeli start-up Stampee to design targeted couponing/promotions for customers.

 

Mukesh Ambani, Richest Indian, Reliance Industries, Online retail shop, Retail stores, Bank of America, Kirana stores, Groceries, Sundries, Business news

 

SnapBizz has a contractual agreement with retailers to share aggregate level data with third parties; however personal consumer data is not shared, it said.

The brokerage said it visited 15 stores in Mumbai and Navi-Mumbai to get feedback on general MPoS.

“Most retailers we visited were happy with the merchant PoS and believe the return on investment is good,” the report said. “Kirana stores liked the ease of billing/generating GST complaint bills the best. The PoS system provides an option of adding in-built discounts and also push offers to the entire customer database via SMS.”

Majority of shops visited are not synching inventory in PoS and mainly are using it as a billing device.

Kiranas either found it difficult to enter new inventory items or were reluctant to enter with a fear of sharing data to POS firms.

 

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Tesla bags 200,000 orders for its futuristic ”Cybertruck”

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New Delhi: Elon Musk is back with a bang with his all-new “Cybertruck”. Irrespective of the controversies the all-new Tesla Cybertruck has gathered, it is one of the most radical wheels that has gone on sale in recent times and is becoming quite popular by the day.

Elon Musk took to Twitter to share that Tesla has already received 200k orders since the launch of the “Cybertruck” which was actually 3 days ago(22 November).

Tesla Cybertruck’s production is expected to begin in late 2020. The electric pickup truck is available in three trims — single motor RWD with a range of over 250 miles, dual-motor AWD with a range of more than 300 miles and tri-motor AWD with a range in the north of 500 miles.

The single motor RWD variant of the Cybertruck can go from 0 to 60 mph in below 6.5 seconds and has a towing capacity of over 7,500 pounds, while the dual-motor AWD trim can make 0-60 mph in under 4.5 seconds and boasts of a towing capacity of more than 10,000 pounds. Tesla claims that the tri-motor AWD variant of the vehicle is good for 0-60 mph in less than 2.9 seconds and gets a towing capacity of 14,000 pounds.

Given its relative performance and price, the Cybertruck could be a massive success for Tesla as it enters into the largest segment in the US market. Almost three million pickups were sold to consumers in 2018. If Tesla can carve off a tiny sliver of that, it’ll go a long way toward taking Tesla’s annual sales to the next level.

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