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Back in November 2022, when <keyword id="19918826" type="General" weightage="20" keywordseo="ChatGPT" source="keywords">ChatGPT</keyword> was launched for the public, interest around <keyword id="19896272" type="General" weightage="20" keywordseo="generative-AI" source="keywords">generative AI</keyword> reached new heights. The AI chatbot’s ability to respond to questions in a manner as if a human being was talking left many people surprised as well as awestruck. Soon, AI became a buzzword in the tech industry and investors started pouring funds heavily into AI companies. <h2><keyword id="19959576" type="General" weightage="100" keywordseo="Dunzo" source="keywords" meta.keywordsubtype="org" meta.entityname="Dunzo" meta.hostid="261" meta.entityid="Dunzo">Dunzo</keyword> co-founder staring his <keyword id="20128843" type="General" weightage="20" keywordseo="AI-company" source="keywords">AI company</keyword></h2>In May, an Economic Times report based on insights from market research firm Tracxn said that AI startups in India have already raised USD 91.7 million in funding so far this year, which is a significant increase from USD 29.6 million during the same period last year. And now, former <a href="https://www.businessinsider.in/business/startups/news/quick-commerce-platform-dunzo-lays-off-30-of-its-workforce/articleshow/99290084.cms" data-type="tilCustomLink" target="_blank">Dunzo </a>chief <keyword id="22628971" type="General" weightage="20" keywordseo="Mukund-Jha" source="keywords">Mukund Jha</keyword> is reportedly looking forward to start his own AI company. A Moneycontrol report citing sources said that Jha is in discussions to raise between Rs 50-80 crore (approximately $6-10 million) from <keyword id="22628972" type="General" weightage="20" keywordseo="Together-Fund" source="keywords" meta.keywordsubtype="org" meta.entityname="Together Fund" meta.hostid="261" meta.entityid="Together Fund">Together Fund</keyword> for his new venture. This comes after Jha stepped down from the board of the cash-strapped startup Dunzo last year. Jha's new venture reportedly focuses on generative <a href="https://www.businessinsider.in/business/startups/news/ai-startup-neysa-raises-20-mn-from-matrix-partners-nexus-venture-partners-more/articleshow/109181059.cms" data-type="tilCustomLink" target="_blank">artificial intelligence</a> (Gen AI) and aims to automate quality assurance (QA) processes. "Think of it as a blend of AI and SaaS," an insider told Moneycontrol. QA involves creating and running tests, identifying errors, and providing feedback to ensure products meet quality standards. <h2>What happened with Dunzo?</h2>The delivery startup Dunzo delivers essential goods like groceries, household items, fruits and vegetables, pet supplies, pharmaceuticals etc to people locally. Supported by <keyword id="19901342" type="General" weightage="20" keywordseo="Reliance-Retail" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Retail" meta.hostid="261" meta.entityid="Reliance Retail">Reliance Retail</keyword>, the startup has faced strong competition from companies like Zepto, Swiggy, and BlinkIt. Despite raising around $500 million, Dunzo has struggled to secure additional investment and manage payroll. In February, there were rumors that Flipkart might acquire the platform, but there have been no updates on this matter since. Dunzo, on the other hand, was making headlines earlier this year for facing various financial struggles. The company’s top investor Lightbox also exited in May this year. On the other hand, the company is reportedly experiencing a cash crunch and owes approximately Rs 11.4 crore to various vendors, including Google India, Nilenso, Clover Ventures, Facebook India, Cupshup, Koo, and Glance. <h2>About Together Fund</h2>Together Fund, from which Jha is reportedly going to raise funds for his new venture, has invested in over 20 companies across various SaaS sectors, including recruitment, sales intelligence, marketing, healthcare, and cloud solutions for connected devices. “Our areas of focus span across SaaS, enterprise software, developer tools, open source software, cloud-native infrastructure and API-first businesses. We typically invest early (seed, pre A or series A) to help founders through the crucial zero-to-one part of their journey,” the company’s website reads. Together Fund was founded in 2021 by Girish Mathrubootham of Freshworks, Manav Garg of Eka Software, and Shubham Gupta formerly of Matrix Partners India. It initially raised USD 85 million for its first fund and increased the total to USD 150 million with its second fund announced in 2023

Dunzo co-founder Mukund Jha plans to start his own AI company, seeks to raise up to Rs 80 crore from Together Fund

Reliance Retail-based <keyword id="3275685" type="General" weightage="80" keywordseo="dunzo" source="Orion">Dunzo</keyword>s B2B logistics arm, Dunzo for Business (D4B), on Thursday announced its partnership with the governments Open Network for <keyword id="1664180" type="General" weightage="50" keywordseo="digital-commerce" source="Orion">Digital Commerce</keyword> (<keyword id="5862596" type="General" weightage="20" keywordseo="ondc" source="Orion">ONDC</keyword>) to provide last-mile delivery services to local enterprises on the ONDC network. D4B has a fleet of over 75,000 delivery partners, connecting over 20,000 merchants to customers and running millions of orders every month. GrowthFalcons is one of the first businesses D4B has serviced on ONDC. "We are very happy to have a strong logistics provider like Dunzo for Business on the ONDC network. This partnership will accelerate our efforts to make last-mile logistics accessible to a wider audience of buyers and sellers across India," said T Koshy, CEO, ONDC. D4B's key merchants include Fynd, Wellness Forever, DotPe, EatClub and Magicpin, among others. "Starting our journey with key metros, we will scale our services to more cities and become the backbone for intra-city deliveries in the Indian e-commerce ecosystem", said Dalvir Suri, Co-founder, Dunzo, and Head of Dunzo for Business (D4B). Dunzo is present in the top eight cities in India and has over 10 million users. It is backed by <keyword id="58448" type="General" weightage="50" keywordseo="reliance-retail" source="Orion">Reliance Retail</keyword>, Google, Blume Ventures, Aspada Investments, LightBox Ventures, STIC Ventures and 3L Capital, among others. With ONDC, a Unified Payments Interface (UPI)-type initiative of the Ministry of Commerce and Industry to promote open networks, the government is trying to create the largest interoperable open platform in a bid to break e-commerce monopolies and build a more democratised digital marketplace by bringing micro, small, and medium enterprise as well as small traders online. Dunzo earlier this year raised $240 million to expand its footprint in India.ONDC recently boarded Go Frugal, Paytm, Digit, PhonePe and Loadshare, among others. E-commerce platform Snapdeal is set to debut on ONDC this month.

Reliance-backed Dunzo's B2B logistics arm arrives on ONDC

<ul><li>Quick commerce platforms like <keyword id="3275685" type="General" weightage="20" keywordseo="dunzo" source="Orion">Dunzo</keyword>, <keyword id="12437554" type="General" weightage="20" keywordseo="zepto" source="Orion">Zepto</keyword>, Blinkit are getting ahead of the retail stores in terms of fast delivery at your convenience.</li><li>Grocery shopping in India’s major cities is set to undergo a never-seen-before tec(h)tonic shift led by quick commerce platforms, says a report.</li><li>Meanwhile, <keyword id="2407038" type="General" weightage="20" keywordseo="dmart" source="Orion">DMart</keyword> is still aggressively opening stores in parts of the country to get back to pre-covid levels.</li></ul>The stores are coming to the consumers – figuratively. The local kirana store or India’s largest retail chain, all of them are keen on getting a piece of the <keyword id="1410674" type="General" weightage="20" keywordseo="online-grocery-delivery" source="Orion">online grocery delivery</keyword> market. DMart, for instance, has set up its app and pick-up centers for home delivery after handling its bulk delivery orders during the pandemic. Reliance Retail too stepped into this delivery business with its app, <keyword id="8506093" type="General" weightage="20" keywordseo="jiomart" source="Orion">JioMart</keyword> with little success, though it has also invested in Dunzo. Time does matter When it comes to the delivery market, it’s not about what you deliver, how you deliver but it’s all about ‘when’ you deliver. Most of the online <keyword id="2709620" type="General" weightage="20" keywordseo="grocery-delivery" source="Orion">grocery delivery</keyword> hinges on timing which is why quick commerce companies are walking away with a lion’s share of the pie. “Grocery shopping in India’s major cities is set to undergo a never-seen-before tec(h)tonic shift led by quick commerce platforms,” said a report by JM Financial. Online grocery market has two segments -- quick commerce and scheduled e-grocery. Only Jiomart, Bigbasket and DMart are scheduled e-grocery stores, all the other platforms are in a race of quick delivery business. And the segment seems to be ruled by the ‘10-30-minute delivery’ offered by platforms like <keyword id="6358977" type="General" weightage="20" keywordseo="swiggy" source="Orion">Swiggy</keyword>, Blinkit, Zepto and Dunzo. Most of the retail chains who intend to deliver groceries however have a one-day lag period between order and delivery. Added to that, quick commerce platforms are addressing multiple consumer pain-points such as convenience, speed, curated assortment, value, and round-the clock standardized services. Online food ordering business is <a href="https://www.businessinsider.in/retail/news/grocery-business-is-like-poison-pill-for-zomato-after-failing-miserably-two-times-as-per-analysts/articleshow/92202068.cms">aiding growth in the e-grocery as well</a>. Customers who order food online for convenience, wider selection, discounts and standardized customer support are also likely to be more amenable to ordering grocery items online for the very same reasons. This opens up cross-sell opportunities for food-techs like Swiggy and Blinkit, which is merging with Zomato. Paan to curds - quick commerce delivers it all A February 2022 Survey by LocalCircles indicates that 71% of the households used q-commerce platforms to either order daily use items such as milk, bread, eggs, curd, fruits and vegetables, etc. They also ordered indulgence items such as soft drinks, ice creams, chocolates and paan. Though, only 29% of the surveyed households used q-commerce for ‘all their grocery’ purchases. For the bulk purchases however, the large format stores are still in the running as people are going to the stores. DMart is still aggressively opening stores in parts of the country to get back to pre-covid levels. “We believe it will look to accelerate store expansion and the benefit of recent expansion is yet to fully kick in – revenue intensity is lower than pre-Covid levels,” said analysts at ICICI Securities post its March quarter earnings. Redseer estimates the grocery market size in India was worth $620 billion in 2021, which is expected to grow at a CAGR of 8% over the next four years to reach over $850 billion by 2025. Quick commerce is all set for the long haul Quick commerce players are also vying for a bigger piece of the entire pie. The quick ordering might start with fresher foods like fruits and vegetables, meat, dairy and other ready-to-cook items; and also indulgence categories like chocolates, biscuits, snacking items, cold drinks, and tobacco. But it could extend to others too. “We also expect grocery staples, cooking essentials, medicines, baby and personal care, home care and pet care, amongst others, to pick up as consumers become more habituated to ordering through the platforms,” said the JM Financial report. Recently, Swiggy raised $700 million for quick-commerce grocery service Instamart. Zomato poured $150 million into quick commerce startup Blinkit. Zepto raised $200 million and lastly Reliance Industries also caught the quick commerce train by investing $200 million in Dunzo. This also means that competitive intensity is likely to be severe in the near term, between them and also with the big retailers. “Only those platforms that have very strong customer recall, robust back-end supply chain and/or strong balance sheet are likely to survive this battle of attrition,” said the report. JM Financial believes that quick delivery platforms have what it takes to disrupt the unorganized grocery market including neighbourhood kirana stores or even retail chains like DMart in large cities. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Platform </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Earliest delivery option </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jiomart </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No timeline committed </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bigbasket </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Next day morning </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">DMart </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Next day morning </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Instamart </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blinkit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">50 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zepto </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dunzo </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">41 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bigbasket Now </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ola Dash </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amazon Fresh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3-4 hour </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Flipkart Quick </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">90 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fraazo </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">90 mins </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FreshToHome </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Next day morning </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Licious </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3-4 hour </td></tr></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-gives-a-tenth-of-his-networth-to-charity-azim-premji-is-impressed/articleshow/92426271.cms">Gautam Adani gives a tenth of his networth to charity, Azim Premji is impressed</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrencies-show-signs-of-life-after-a-bloodbath-but-future-remains-uncertain/articleshow/92427941.cms">Cryptocurrencies show signs of life after a bloodbath, but future remains uncertain</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/rejected-i-banks-manufacturers-for-not-having-enough-women-on-board-says-mamaearth-founder/articleshow/92429742.cms">Rejected i-banks, manufacturers for not having enough women on board says Mamaearth founder</a>

DMart and JioMart are unable to keep pace with Dunzo, Swiggy Instamart, Ola Dash

<ul><li>Campa is targeting the growing market of downtraders by pricing its soft drinks attractively. </li><li>When you are drinking a cola, you are not just consuming a soft drink, you are consuming a branded experience, says Ambi Parameswaran, branding guru and author. </li><li>Campa has to get its distribution right and match the width of distribution that other colas have today, says Harish Bijoor, branding expert. </li></ul><keyword id="15793554" type="General" weightage="20" keywordseo="reliance-consumer" source="Orion">Reliance Consumer</keyword>’s Campa Cola relaunch at an invitation price of 200 ml at ₹10, and 500 ml at ₹20 – is clearly aimed at taking on rivals Coca-Cola and Pepsi head-on. Reliance is a master at disrupting existing categories with its entry level pricing and innovative marketing models. Just recall the launch of Jio’s high speed broadband mobile services in 2016 for free. The <a href="https://www.businessinsider.in/retail/news/reliance-brings-back-the-iconic-campa-beverage-brand/articleshow/98520789.cms">launch of Campa-Cola</a> is right not just from the season point of view but also because the <a href="https://www.businessinsider.in/finance/article/inflation-burns-a-hole-in-the-pockets-of-indias-lower-income-households-from-fmcg-goods-flip-flops-to-crackers-consumption-takes-a-backseat/articleshow/95536971.cms">heat of inflation has burned a hole </a>in the pockets of Indians. In the last six months, many Indians, both rural and urban, have been hit by high inflation and have been downtrading – that’s shifting to cheaper brands or even going for unbranded products. The FMCG market is in the most price-sensitive state it has even been in the last few years. Campa is targeting this growing market of downtraders, at a price that’s almost half of what other cola brands offer. “Yes, it caters to this trend,” agrees Harish Bijoor, founder of a consultancy firm, Harish Bijoor Consults, adding, “There is relevance for a lower-priced cola – a local cola with a friendly price versus an MNC cola with MNC prices.” “Penetration pricing can boost Campa’s traction among the price-sensitive Indian masses, especially in the rural markets. The aggressive pricing will magnify the impact of the relaunch amid the cost-of-living crisis, as 68% of Indian consumers are extremely concerned about the impact of inflation on their household budget,” says Bobby Verghese, consumer analyst at GlobalData. Price matters, but brand matters too Ambi Parameswaran, branding guru, author, and the former head of FCB Ulka, however, believes that it’s hard to beat established brands like Coca-Cola and Pepsi with a pricing strategy alone. “When you are drinking a cola, you are not just consuming a soft drink, you are consuming a branded experience. There have always been lower priced and local colas in the market but they found limited success. They (Reliance) will have to bring in celebrities and invest big money in marketing,” he adds. Reliance has launched Campa across three different flavours – cola, lemon and orange — which covers the entire gamut of soft drinks. “They launched one unified brand across flavours and that might work,” opines Parameswaran. Reliance also went with the slogan ‘The Great Indian Taste’ as it relaunched an iconic brand Campa which was once competitor to Parle’s Goldspot, Thums Up and Limca – the last two ended in the kitty of Coca-Cola, which made its comeback in the ‘90s. Campa, however, could not withstand the growing competition of Pepsi and Coca-Cola, and shut shop in 2000-01. After it was acquired in August last year, it’s Campa that now has a moneyed backer with marketing muscle and a giant retail footprint of 17,225 stores, offline. Reliance also retails groceries and more online and launched sales via WhatsApp six months back. It also owns a stake in Dunzo – a quick commerce retailer. “Reliance can also leverage its own offline retail and e-commerce stores to quickly narrow the gap with Coca-Cola and PepsiCo’s nationwide distribution networks and bolster Campa’s market penetration. In terms of pricing, Reliance Consumer can go toe-to-toe with multinational operators,” said Francis Gabriel Godad, business development manager, GlobalData India. Where is the footprint? Yet, the cola market is like no other FMCG brand. With the need for refrigeration and a rock solid distribution channel that Coca-Cola and Pepsi have built for years – this might be a tough act to follow if not break. “It’s not just pricing. They have to get distribution right and match the width of distribution that other colas have today. Colas retail differently – most of them are sold out of kirana stores, dhabas and others,” explained Bijoor. Reliance Retail’s footprint can drive the sales of large soda packages. “At home consumption only contributes to 20% of cola sales. The rest is purchased on-the-go,” says Parameswaran. Moreover, Pepsi and Coca-Cola have built their empires on the theory of exclusivity. For example, McDonald’s retails Coca-Cola (only) at its outlets and Burger King goes with Pepsi. In India, these brands have ‘owned’ dhabas and small-time restaurants where either of the brands’ products are retailed extensively. Since this is where most Indians eat, it also helped them make colas a part of Indian meals which matches with biryanis as easily as it does with burgers. Thanks to extensive marketing campaigns, they penetrated rural markets, killed local goli soda businesses and have become the ‘thanda’ of choice. Colas and cricket The third dimension of the cola business after price and distribution, is the ‘taste’. Even today, Thums Up is perceived as the ‘strong’ cola, with the other two colas close behind. Bijoor and Parameswaran say that with colas, it’s more about the brand than the taste and few people can recognize cola brands in a blind tasting. Yet, consumers tend to buy the brand they feel they like the most. Godad says that Campa can build a similar recall as it announced plans to launch an intensive marketing campaign at the Indian Premier League (IPL) 2023 – the cricket tournament with a viewership of over 200 million. This too is a page out of Pepsi’s playbook which has had popular brand ambassadors among cricketers like Sachin Tendulkar and more. At one point in time, it even engaged almost all of the Indian cricket squad to the 2003 world cup in South Africa including Sourav Ganguly, Rahul Dravid, Harbhajan Singh and more in its ads. Reliance Consumer intends to bring similar energy into its marketing. “Reliance’s branding activity during the (IPL) event will thereby amplify Campa’s mass-market awareness in the cricket-loving nation. Moreover, as the official sponsor of the popular ‘Mumbai Indians’ IPL team, Reliance Group can rope in popular cricketers as brand ambassadors. This is a powerful marketing strategy given that endorsements by celebrities or organizations are an essential feature that 29% of Indians actively look for when purchasing products, according to GlobalData’s 2022 survey,” says Godad. In addition to all, Reliance is also not building a ‘new brand’ either, it is bringing back an old brand with nostalgia value that still rings a bell with Gen Xers and millennials — that’ll send at least a few to try a brand they once loved. SEE ALSO <a href="https://www.businessinsider.in/business/news/millennials-want-the-security-of-their-own-roof-over-heads-finds-cbre/articleshow/98120129.cms">Millennials want the security of their own roof over heads, finds CBRE</a> <a href="https://www.businessinsider.in/business/news/healthcare-consumer-goods-minted-the-most-indian-dollar-billionaires/articleshow/98913863.cms">Healthcare, consumer goods minted the most Indian dollar billionaires</a>

Campa has to go beyond invitation price to build the brand & distribution network

<ul><li><keyword id="6355199" type="General" weightage="50" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword>’ retail segment could reap the benefits of sales traction driven by growth in the network, highlighted Yes Securities.</li><li>The company has spent close to a billion dollars on assets and building its capabilities in the retail sector.</li><li><keyword id="58448" type="General" weightage="100" keywordseo="reliance-retail" source="Orion">Reliance Retail</keyword> has over 14,400 stores in India and it also sells 50 high-end international brands in the country.</li></ul>The retail arm of oil-to-chemical conglomerate Reliance Industries Limited (<keyword id="6484187" type="General" weightage="20" keywordseo="RIL" source="Orion">RIL</keyword>) may bring positive news for its shareholders in the upcoming earning call, scheduled for Friday (May 6, 2022). According to ICICI Securities, a muted third wave of Covid-19 may see Reliance Retail’s EBITDA — or earnings before interest, taxes, depreciation, and amortisation — at a new high in the fourth quarter of fiscal year 2022, between January and March 2022. The report was released in October, 2021, a few months before India entered the third Covid-19 wave. Even though India did cross 300,000 daily COVID-19 cases during the third wave at one point, it was largely muted in terms of government restrictions, death toll and hospitalisations. <div type="image" title="Reliance Retail could touch new heights thanks to a muted third wave of COVID-19 and increased investments" msid="91314770" hostid="261"></div> Yes Securities, in its quarterly preview, mentioned that Reliance Industries is expected to report improvement in its earnings — on both quarterly and annual basis — on account of stronger refining margins. The revenue, however, would face a partial offset due to weaker margins in petrochemicals. Lastly, the report also mentioned that the telecom segment is expected to benefit from higher average revenue per user (ARPU) realisation whereas the retail segment would reap the benefits of sales traction driven by growth in network. Notably, RIL has invested more than <a href="https://www.businessinsider.in/retail/news/asias-richest-man-mukesh-ambani-is-on-a-shopping-spree-for-private-fashion-labels/articleshow/90439055.cms">$1 billion in acquiring assets and building capabilities</a> of Reliance Retail. <a href="https://www.businessinsider.in/retail/news/mukesh-ambanis-reliance-retail-has-brands-like-clovia-zivame-manish-malhotra-ritu-kumar-armani/slidelist/90355186.cms">Key investments</a> by Reliance Retail in FY2022: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Deals </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Timeline </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Clovia </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">89% stake in lingerie brand company for ₹950 crore ($124 million) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2022 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Abraham &amp; Thakore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bought an undisclosed majority stake in fashion label Abraham &amp; Thakore. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2022 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><a href="https://www.businessinsider.in/business/startups/news/mukesh-ambani-led-reliance-retail-[%E2%80%A6]0-million-in-google-backed-dunzo/articleshow/88734641.cms">Dunzo</a> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25.8% stake for $200 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">January 2022 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambani-buys-a-new-york-hotel-that-liam-neeson-loves/articleshow/88786404.cms">Mandarin Oriental New York</a> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$98.15 millon for 73.37% stake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">January 2022 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><a href="https://www.businessinsider.in/business/news/reliance-retail-buys-majority-stake-in-robotics-firm-addverb-tech-for-132-million/articleshow/88971842.cms">Addverb Technologies</a> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">54% stake for $132 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">January 2022 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amante </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Acquired lingerie brand Amante from Sri Lanka-based MAS holdings. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">November 2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ritu Kumar </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">52% stake for undisclosed amount </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October 2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JustDial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40.95% stake for ₹3,497 crore (approximately $450 million) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">July 2021 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Reliance Industries Limited (RIL) Bank of Baroda Capital Markets (BOBCaps) expects Reliance Retail’s EBITDA to bump up 32% annually over the next three years to reach ₹22,500 crore by FY2024. The company also expects Reliance Retail to close the last fiscal year at ₹11,800 crore, the report added. “On the back of expansion of physical stores, integration of acquisitions, digital commerce with stores and merchant partnerships, we build in 32% growth in revenue over FY21-FY24. RIL has invested ₹76 billion in 9MFY22 in assets/ capabilities to improve customer reach, quality of products and services,” BOBCaps said. <div type="image" title="Reliance Retail could touch new heights thanks to a muted third wave of COVID-19 and increased investments" msid="91314690" hostid="261"></div> The stock brokerage firm expects Reliance Retail’s EBITDA margin to recover from 5.9% in FY2021 to 7.1% in FY2024 as the retail business leverages its large scale and national presence. “The company plans to accelerate the growth momentum and expansion as the operating context normalizes by: Increasing the pace of new store rollouts Scaling up the Digital Commerce business Fast-tracking new merchant onboarding Integrating new acquisitions and scaling up new businesses Strengthening the supply chain infrastructure, product, and design ecosystem in line with business expansion,” a report by Motilal Oswal added. Notably, Reliance Retail has over 14,400 stores in India. It also currently sells 50 high-end international brands — like Steve Madden, Jimmy Choo, SuperDry, Diesel, Gas, Armani, Burberry, Hugo Boss and others — in India under Reliance Brands Limited (RBL) banner. RBL, which is a brand licensing arm, operates 680 stores and 916 shop-in-shops in India. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/rbi-hikes-repo-rate-by-40-basis-points-to-4-4-as-it-seeks-to-reign-in-inflation/articleshow/91311941.cms">RBI hikes repo rate by 40 basis points to 4.4% as it seeks to reign in inflation</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/70-office-workers-in-india-feel-increased-pressure-at-work-due-to-the-labor-shortage/articleshow/91309906.cms">70% office workers in India feel increased pressure at work due to the labor shortage</a>

Reliance Retail could touch new heights thanks to a muted third wave of COVID-19 and increased investments

<ul><li><keyword id="7887330" type="General" weightage="20" keywordseo="reliance-retail-revenue" source="Orion">Reliance Retail revenue</keyword> ₹57,714 crore in the third quarter (Q3) of FY21.</li><li>This is ₹20,000 crore higher than the revenue it reported in the same quarter last year.</li><li><keyword id="58448" type="General" weightage="20" keywordseo="reliance-retail" source="Orion">Reliance Retail</keyword> spent over $1 billion on acquisitions and strategic partnerships between April to December 2021.</li></ul>Mukesh Ambani-led Reliance Retail — a subsidiary of oil-to-chemical conglomerate <keyword id="6355199" type="General" weightage="20" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword> (RIL) — has reported its highest ever revenue in the October to December quarter of financial year 2022. The company’s revenue crossed ₹57,714 crore in the third quarter (Q3) of FY21, which is nearly ₹20,000 crore higher than the revenue it reported in the same quarter last year. It has also surpassed Reliance Retail’s January-March quarter (FY20) revenue by ₹10,000 crore. Notably, Reliance Retail had previously cited January-March figures as its <a href="https://www.businessinsider.in/retail/news/reliance-retail-emerges-as-the-fastest-growing-segment-for-mukesh-ambani/articleshow/82331594.cms">highest ever quarterly revenue</a>. The company’s EBITDA (earning before interest, taxes, depreciation, and amortisation) was nearly 24% higher at ₹3,822 crore. <div type="image" title="Reliance Retail earns $1.3 billion more than its best ever quarter" msid="89044974" hostid="261"></div> Overall, the company has reported a revenue of ₹1,41,711 crore in the first three quarters of financial year 2022. It is already nearing FY2021 revenue figure of ₹1.57 lakh crore. “Retail business activity has normalised with strong growth in key consumption baskets on the back of festive season and as lockdowns eased across the country. Our digital services business has delivered broad based, sustainable, and profitable growth through improved customer engagement and subscriber mix,” Mukesh Ambani, chairperson and managing director of Reliance Industries, said. Reliance Retail has witnessed strong growth momentum in fashion and lifestyle business as well as groceries. Festive season, successful winter wear collection and higher footfall in stores contributed to this growth. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Business </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Updates </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recorded highest ever revenue and EBITDA (earning before interest, taxes, depreciation, and amortisation) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Digital and new commerce </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ajio recorded the highest ever growth, Zivame reached a milestone of 100 stores, and Urban Ladder grew 2X over last year. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer Electronics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer Electronics stores posted double-digit growth with improvement across all operating parameters. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fashion &amp; Lifestyle </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Highest ever quarterly revenue with 2X growth over last year. </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Reliance Retail in its recent financial statement also mentioned that it has invested over ₹7,600 crore (over $1 billion) in acquisition and strategic partnership between April to December 2021. In the last quarter, the company had made three acquisitions, which included grocery chain Jaisuryas and women’s intimate wear brand Amante. The retail giant also invested $200 million in Google-backed quick commerce platform Dunzo to further enhance JioMart. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/business/corporates/news/fortune-oil-maker-adani-wilmar-to-open-its-3600-crore-ipo-on-january-27/articleshow/89033308.cms">Fortune oil maker Adani Wilmar to open its ₹3,600 crore IPO on January 27</a> <a href="https://www.businessinsider.in/retail/news/hul-increased-price-of-wheel-detergent-rim-bar-lux-surf-excel-many-times-in-last-three-months/articleshow/89037315.cms">You have been paying more for detergents, soaps over the last three months</a> <a href="https://www.businessinsider.in/investment/news/twitters-long-awaited-hexagonal-profile-pictures-that-give-bragging-rights-to-nft-holders-is-here-but-not-everyone-loves-it/articleshow/89042268.cms">Twitter’s long-awaited hexagonal profile pictures that give bragging rights to NFT HOLDers is here — but not everyone loves it</a>

Reliance Retail earns $1.3 billion more than its best-ever quarter

<ul><li><keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>’s ecommerce market is expected to reach $130 billion by 2025. </li><li>Social ecommerce firms in India like Meesho are performing better than traditional ecommerce firms. </li><li>The world’s biggest ecommerce company is struggling to gain a foothold in India’s Tier 2 and 3 cities due to regulatory setbacks.</li></ul><keyword id="18635" type="General" weightage="100" keywordseo="amazon" source="Orion">Amazon</keyword> marked a spectacular entry into India in 2013 and not just because <keyword id="191583" type="General" weightage="50" keywordseo="jeff-bezos" source="Orion">Jeff Bezos</keyword> sat atop a colourful truck or it invested $7 billion into the market. India is one of the biggest emerging ecommerce markets globally, estimated to reach $130 billion by 2025. Almost ten years later, its success is being questioned by a wealth management firm, Bernstein, in its latest report. Amazon is now the second largest player behind Flipkart with a gross merchandise value of $18-20 billion and has over 170 million products. But it’s yet to turn profitable in a market where the average order value is below $10 (approx. ₹800). “Besides growth-related investments, profitability has also been impacted by a higher mix of low margin product categories (e.g., smartphones with sub 5% net margins). Amazon has struggled to scale volumes in higher margin categories such as fashion and beauty and personal care,” said the Bernstein report. Fashion has seen the highest growth in the last few years, and so has grocery. But the latter is led by quick commerce players like Dunzo, Zepto and <keyword id="12724311" type="General" weightage="50" keywordseo="blinkit" source="Orion">Blinkit</keyword>. Amazon and Flipkart are market leaders in mobiles and consumer electronics. But the share of this segment in the ecommerce market is declining. Indian regulations give <keyword id="10926" type="General" weightage="50" keywordseo="reliance" source="Orion">Reliance</keyword> an edge over Amazon In spite of having 700,000 sellers on its platform, Amazon is yet to gain ground in a very important category in India — tier 2 and tier 3 markets. As per the report, these markets account for around 50% of all e-commerce sales, and they’re growing. “Reliance leads in India with a strong 1P business with over 15,000 store retail footprints. Flipkart is the frontrunner in the apparel category and social ecommerce firm Meesho is winning in tier 2/3 cities where Amazon struggles to perform,” it said. 1P business is where retailers have an online presence like Reliance with a wide brick and mortar footprint. Amazon however is a 3P player who works with sellers. The regulations in India are skewed towards the former, and tougher for MNCs. “Regulations don't allow for an inventory-led 1P model for a foreign entity like Amazon. The company has made investments into local retailers like <keyword id="64373" type="General" weightage="50" keywordseo="shoppers-stop" source="Orion">Shoppers Stop</keyword> (fashion), More (grocery), and a rumoured stake in <keyword id="1560087" type="General" weightage="50" keywordseo="ecom-express" source="Orion">Ecom Express</keyword> (logistics) but integration has been limited as the regulations don't allow for full control,” the report said. At the same time, its key competitor Reliance scaled up its ecommerce operations to around 19% of core retail sales, thanks to its 15,000 stores and ability to manage an inventory-led model. “Amazon's management attrition has also increased recently, potentially signaling difficulties achieving desired scale,” the report said. Amazon’s worldwide consumer CEO Dave Clark left the company after 23 years in 2022. Here’s where ecommerce growth is at The sweet spot for ecommerce growth in India is Tier 2+, the report says, which is a market that’s seeking products tailored to their needs. <keyword id="3030142" type="General" weightage="50" keywordseo="myglamm" source="Orion">MyGlamm</keyword>, <keyword id="1932100" type="General" weightage="50" keywordseo="bewakoof" source="Orion">Bewakoof</keyword> and Sleepy Owl are able to achieve this with a large chunk of their business coming from these towns. However, due to regulations, Amazon cannot make headway here too. The inability to operate a 1P model has limited the availability of private labels versus the competition, which further pressures margins, the report says. “Despite the importance of the market, we estimate that it contributes less than 5% to Amazon's overall value. At Amazon's current valuation, we see the India business as a call option for Amazon investors, as long as the company is disciplined around capital allocation,” says Bernstein. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/upcoming-new-smartphones-launching-in-india-in-september-2022/slidelist/93945270.cms">Upcoming smartphones launching in India in September 2022</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/cash-rich-family-offices-of-small-towns-are-buying-into-the-india-startup-story/articleshow/93944024.cms">Cash-rich family offices of small towns are buying into the India startup story</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/meet-laxman-narsimhan-the-pune-boy-wholl-soon-be-the-ceo-of-starbucks/slidelist/93941369.cms">Meet Laxman Narsimhan, the Pune boy who’ll soon be the CEO of Starbucks</a>

Amazon is struggling in India unlike Reliance, Meesho says wealth management firm Bernstein

<ul><li>The development comes after the CCI revoked its clearance to Amazon’s 2019 deal with Future Coupons.</li><li>The deal had set ground for Amazon’s disapproval of Reliance Industries- <keyword id="44949" type="General" weightage="20" keywordseo="future-group" source="Orion">Future Group</keyword> deal.</li><li>The Supreme Court of India in August 2021 upheld the emergency award given to Amazon by the Singapore arbitrator.</li></ul>Kishore Biyani-led <keyword id="375475" type="General" weightage="20" keywordseo="future-retail" source="Orion">Future Retail</keyword> has asked the Delhi High Court to declare the arbitration proceedings in Singapore, which passed judgement in favour of Amazon, as illegal, according to a report by news agency Reuters. The development comes after the Competition Commission of India (CCI)<a href="https://www.businessinsider.in/retail/news/amazon-future-deal-cci-clears-the-way-for-reliance-acquisition-by-revoking-2019-deal/articleshow/88343227.cms"> revoked its clearance to Amazon’s 2019 deal</a> with Future Coupons, a subsidiary of Future Group. The deal had set ground for Amazon’s disapproval of Reliance Industries' ₹24,715 crore deal to buy the retail assets as well as warehouses of the Future Group. Notably, Amazon had bought 49% stake in Future coupon in 2019, which gave it access to gnarly 3% stake in Future Retail. As per Amazon’s agreement with Future Group when the deal was signed, The Biyani-led company could not sell any of its retail assets to 11 companies including Reliance. Future Group, however, went ahead to sell its retail assets to Amazon. The Singapore International Arbitration Centre (SIAC) considered the Future-Reliance deal to be invalid on these grounds. Now that the CCI has revoked its clearance to the two-year-old deal, Future Retail seeks Delhi High Court’s intervention to invalidate the Singapore-based arbitrator’s verdict. The <a href="https://www.businessinsider.in/retail/news/amazon-wins-supreme-court-case-against-mukesh-ambani-reliance-retail-and-kishore-biyanis-future-group/articleshow/85092072.cms">Supreme Court of India in August</a> 2021 upheld the emergency award given to Amazon by SIAC. The "continuation of the entire arbitration proceedings is a perpetuation of illegality," Future Retail was quoted as saying by the latest Reuters’ <a href="https://www.reuters.com/markets/deals/indias-future-retail-asks-court-declare-arbitration-with-amazon-illegal-2022-01-03/?taid=61d2b78ea4e5640001ce72a9&amp;utm_campaign=trueAnthem:+Trending+Content&amp;utm_medium=trueAnthem&amp;utm_source=twitter">report</a>. Business Insider has reached out to Amazon and Future Group for comments on the report. Last month, Amazon had reportedly told SIAC that the suspension of the 2019 deal does not mean that the transaction between the two companies is void, as the CCI has given the ecommerce giant the chance to reapply the deal. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/mamaearths-revenue-neared-500-crore-by-selling-its-personal-care-products-in-fy2021/articleshow/88658722.cms" data-type="tilCustomLink">Mamaearth says it has turned profitable as revenue neared ₹500 crore last year</a> <a href="https://www.businessinsider.in/business/startups/news/khatabook-dunzo-purplle-rapido-and-17-other-startups-that-can-become-unicorns-in-2022/slidelist/88614480.cms" data-type="tilCustomLink">From Dunzo to Purplle to Khatabook — here are the 21 startups that may turn unicorns in 2022</a> <a href="https://www.businessinsider.in/#:~:text=Tata%20Motors%2C%20Maruti%20Suzuki%2C%20Future%20Retail%20and%20other%20hot%20stocks%20on%20the%20first%20trading%20day%20of%202022" data-type="tilCustomLink">Tata Motors, Maruti Suzuki, Future Retail and other hot stocks on the first trading day of 2022</a>

Amazon Vs Future Retail: Kishore Biyani-led company asks court to declare Singapore arbitration illegal

<ul><li>With <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> Quick, the company will now deliver groceries, phones, stationery, electrical appliances, and more – within 90 minutes. </li><li>Flipkart Quick will begin operations in select locations in Bengaluru.</li><li>Flipkart’s hyperlocal foray comes at a time when the sector has seen the entry of <keyword id="8506093" type="UNKNOWN" weightage="20" keywordseo="Jiomart">JioMart</keyword> – Reliance’s bet on e-commerce, and already had the presence of the likes of Google-backed <keyword id="3275685" type="PERSON" weightage="20" keywordseo="dunzo">Dunzo</keyword>, SoftBank-backed <keyword id="2466939" type="PERSON" weightage="20" keywordseo="Grofers">Grofers</keyword>, and <keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword>.</li></ul>Indian e-commerce giant Flipkart’s latest offering is in the <keyword id="2917849" type="PERSON" weightage="20" keywordseo="Hyperlocal-delivery">hyperlocal delivery</keyword> space. With Flipkart Quick, the company will now deliver groceries, phones, stationery, electrical appliances, and more – within 90 minutes. Charging a minimum delivery fee of ₹29, customers can choose 2-hour slots or get their orders within 90 minutes between 6 am and midnight. Flipkart Quick will begin operations in select locations in Bengaluru – Whitefield, Panathur, HSR Layout, BTM Layout, Banashankari, KR Puram, and Indiranagar. “While we start with our dark store (no walk-in) model, wherein we enable sellers to store inventory close to the consumer; this model has the potential of encouraging local entrepreneurship and enabling new business strategies and partnerships. Today, with Flipkart Quick - our Hyperlocal capability, we have the potential to bring together the whole network of neighbourhood Kirana stores onto our platform with just a click,” said Sandeep Karwa, Vice-President, Flipkart. This adds to the string of latest releases from Flipkart – it recently bought out Walmart’s India business, forayed into social commerce with its refurbished goods platform 2GUD and also acquired a stake in Arvind Fashion for ₹260 crore. However, Flipkart’s hyperlocal foray comes at a time when the sector has seen the entry of JioMart – Reliance’s bet on e-commerce, and already had the presence of the likes of Google-backed Dunzo, SoftBank-backed Grofers, and BigBasket. Been in the making for over a year Flipkart has been making several bets to ready its hyperlocal delivery service. In December 2019, Flipkart had invested in logistics platform Shadowfax. Kalyan Krishnamurthy, chief executive officer, Flipkart had then said that the partnership with Shadowfax will help build a strong foundation for hyperlocal deliveries, by including kirana stores. In the same month, Flipkart and Walmart had invested an undisclosed amount in the fresh produce delivery startup Ninjacart. In May 2019, the e-commerce company had launched Flipkart Supermart to foray into grocery delivery. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/reliance-is-building-up-its-retail-empire-ahead-of-future-deal-reliance-brands-adds-zivame-in-its-cart/articleshow/77215871.cms">Reliance is building up it’s retail empire – ahead of Future deal, Reliance Brands adds Zivame in its cart</a> <a href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-india-first-quarter-preview-sales-and-share-price-chart/articleshow/77216142.cms">Maruti is getting bigger in a shrinking market</a>

Flipkart offers 90-minute delivery as competition from JioMart, Dunzo, BigBasket heats up

<ul><li>With people not venturing out of their homes due to the lockdown and then the fear of coronavirus, kirana stores are turning to partner with online delivery platforms. </li><li>Hyperlocal delivery platforms and e-commerce companies like <keyword id="8506093" type="UNKNOWN" weightage="20" keywordseo="Jiomart">JioMart</keyword>, <keyword id="3275685" type="PERSON" weightage="20" keywordseo="dunzo">Dunzo</keyword>, <keyword id="6358977" type="UNKNOWN" weightage="20" keywordseo="swiggy">Swiggy</keyword> and Zomato have been ramping up their offering from kirana stores.</li><li><keyword id="84065" type="COMPANY" weightage="20" keywordseo="FMCG-companies">FMCG companies</keyword> too can leverage the <keyword id="992651" type="ORGANIZATION" weightage="20" keywordseo="kirana-store">kirana store</keyword> loyalty to push their brands as it brings new users as well as the chance to offer new products.</li></ul>The likes of Dunzo, Swiggy, and JioMart have recognised India's local mom-n-pop stores, also called kirana stores in Hindi, are indispensable. So have the customers. The kirana stores, on the other hand, are also lured by the digital platforms. An increasing number of store owners have embraced the advantage of home deliveries via these platforms but are wary of losing margins. Kiranas to the rescue When the coronavirus lockdown began in March, a panic struck across the country with people hurrying to their nearest kirana store to gather groceries. Four months later, consumer spending at kirana stores are still 22% higher than pre-Covid levels. “They have been winning the loyalty of the current consumers and acquiring new ones,” said Prem Kumar, Founder &amp; CEO of Snapbizz. Kirana stores – not just a stone’s throw away but also a button away People not venturing out of their homes has not just hurt crowded department stores, even corner shops on every street have seen fewer customers. This is a fertile ground for technology, particularly online orders and home deliveries. According to a survey by EY India, 40% of respondents (kirana store owners) said that they want to partner with online delivery and supply platforms as they feel it can help them grow and tide over in these testing times. The report further said that it's time for FMCGs, large retailers and financial services companies to “recognize that the kirana store is the new local touchpoint and their conduit into the daily life of a trusting consumer.” “As we move from now to next and beyond this crisis, the new level of growth for kirana stores will come from partnerships and symbiotic relationships,” said Shashank Shwet, Partner, customer experience and design thinking, EY India. The opportunity for e-commerce and FMCG brands And here’s where the likes of Dunzo, Swiggy Stores and Zomato come in who are pushing for hyperlocal deliveries. Zomato and Swiggy, who have both been impacted due to the restaurant shutdown during the pandemic and people’s aversion for ordering online, have latched on to the grocery delivery business swiftly. Even the likes of PhonePe, who have so far largely been a payments player, or NoBroker, a real estate platform, are ramping up their operations to include deliveries from the users’ nearest kirana stores. Reliance’s JioMart has spread to over 200 locations across India, in the middle of the pandemic, partnering with kirana stores and delivering to users’ doorsteps. “India will leapfrog from being a retail-led ecommerce model to an offline to online one where shopkeepers goods are delivered,” Paytm founder Vijay Shekhar Sharma had said in an earlier interview. <div type="Youtube" id="satElBUTBIQ" title="Episode 1 | All You Need To Win In The Post Covid Economy: India&amp;#39;s Digital Reboot" thumbUrl="https://i.ytimg.com/vi/satElBUTBIQ/mqdefault.jpg"></div> FMCG companies like Hindustan Unilever and Marico, too, can leverage the kirana store loyalty to push their brands as it brings new users as well as the chance to offer new products. “79% of respondents in non-metros and 50% in metros state that there are new consumers coming to their store post the lockdown period,” said the EY survey. The survey said that at least 69% kiranas in the non-metros were able to sell alternative brands to their customers, and this could turn out to be a great opportunity for new brands. Will they survive the discounts? One of the major factors of e-commerce to hit kirana stores were the deep discounts offered by e-commerce players to gain users. And there’s also another big price to pay – commission price. EY’s survey believes this could still be a hurdle for kirana stores as the partnerships with online players come at a high cost and are not yet profitable. What’s driving these stores to online is the customer's willingness to pay digitally. As social distancing stays on as the new norm, digital payments have been on the rise. <div type="image" title="UPI 2020." msid="76826733" hostid="261"></div> “Covid-19 is forcing sectors to digitize as businesses can’t be closed for a long period of time and social distancing is here to stay, for the next 12 months at least. Small and medium businesses and consumers are beginning to realise the friction and frustration involved in handling cash after having experienced seamless digital payments,” said Harshil Mathur, co-founder of Razorpay. SEE ALSO: <a href="https://www.businessinsider.in/education/news/trumps-new-visa-policy-leaves-foreign-students-enrolled-online-in-a-lurch-take-transfer-or-leave-us/articleshow/76825867.cms">Trump's new visa policy leaves foreign students enrolled online in a lurch — take transfer or leave US</a> <a href="https://www.businessinsider.in/business/news/phoenix-mills-is-prepping-for-a-two-year-coma/articleshow/76825696.cms">One of India's largest mall operators is prepping for a two-year coma</a>

JioMart, Dunzo, Swiggy and likes want to ride the trust earned by India’s kirana stores during the lockdown

<ul><li><keyword id="6672294" type="General" weightage="20" keywordseo="reliance-life-sciences" source="Orion">Reliance Life Sciences</keyword> has reportedly approached India’s drug regulator, seeking permission for trials of its vaccine.</li><li>The subject expert committee (SEC) is said to have reviewed its application yesterday and gave its approval.</li><li>Phase-1 of the trial usually lasts for 58 days to determine the highest dose that most patients can tolerate.</li></ul>Indian pharma firm Reliance Life Sciences on Thursday, August 26, reportedly received regulatory approval to conduct clinical trials of its <keyword id="8904563" type="General" weightage="20" keywordseo="covid-19-vaccine" source="Orion">COVID-19 vaccine</keyword> candidate. The company — run by India’s richest man <keyword id="3820" type="General" weightage="20" keywordseo="mukesh-ambani" source="Orion">Mukesh Ambani</keyword> — has reportedly approached India’s drug regulator, seeking permission to start Phase-1 trials for its proposed two-dose vaccine, according to a <a href="https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/reliance-life-gets-regulatory-nod-for-trials-of-2-dose-vax/articleshow/85669453.cms">report</a> by The Economic Times (ET), which quoted sources it did not name. The subject expert committee (SEC) is said to have reviewed its application on Thursday and has given its approval. Reliance Life Sciences aims to obtain reliable information on safety, tolerability, how it reacts with living organisms (pharmacokinetics or PK) and mechanism of action of the drug. The company aims to determine the maximum tolerated dose (MTD) with these trials. Business Insider has reached out to Reliance Life Sciences seeking more details about their vaccine and Phase-1 trials. A person aware of the development told the publication that Phase-1 of the trial usually lasts for 58 days to determine the highest dose that most patients can tolerate. The company will be able to conduct phase two or three of the vaccine only after phase one is completed, the person told ET. The vaccine by Reliance Life Sciences will be a recombinant protein vaccine, similar to the Corbevax vaccine developed by Hyderabad-based Biological E. Biological E is expected to <a href="https://www.hindustantimes.com/india-news/biological-e-s-covid-19-vaccine-likely-to-be-launched-in-september-report-101627294911918.html">apply</a> for an emergency use authorisation (EUA), which allows temporary use of a medicine under specific conditions. So far, six vaccines have received EUA in India. This includes Zydus Cadila’s vaccine, Serum Institute of India’s <keyword id="9617748" type="General" weightage="20" keywordseo="covishield" source="Orion">Covishield</keyword>, Bharat Biotech’s <keyword id="9485939" type="General" weightage="20" keywordseo="covaxin" source="Orion">Covaxin</keyword>, Russia’s Sputnik V, Moderna and Johnson &amp; Johnson. Drugs Controller General of India (DCGI) had approved <a href="https://www.businessinsider.in/science/health/news/cadila-healthcare-to-launch-zycov-d-vaccine-for-12-year-old-and-above/articleshow/85564761.cms">Cadila Healthcare’s ZyCoV-D </a>COVID-19 vaccine for emergency use, earlier this week. ZyCoV-D vaccine is also suitable for the younger population above 12 years of age. Adding to it, the vaccine is needle-free unlike other vaccines. The company plans to manufacture 10-12 crore doses of ZyCoV-D annually and is expected to be made available in September in India. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/infosys-wipro-adani-green-and-other-top-stocks-to-watch-out-for-on-august-27/slidelist/85676193.cms">Infosys, Wipro, Adani Green and other top stocks to watch out for on August 27</a> <a href="https://www.businessinsider.in/business/startups/news/google-backed-dunzo-earned-nearly-600-crore-from-8-cities-in-fy21-ceo-says-theyll-start-expanding-now/articleshow/85656919.cms">Google-backed Dunzo earned nearly ₹600 crore from 8 cities in FY21, CEO says they'll start expanding now</a> <a href="https://www.businessinsider.in/tech/enterprise/news/amazon-twitter-hyundai-and-dominos-are-buying-indian-software-fuelling-a-75-billion-dream-chased-by-top-vcs-like-sequoia-and-tiger-global/articleshow/85646116.cms">Amazon, Twitter, Hyundai, and Domino’s are buying Indian software fuelling a $75 billion dream chased by top VCs like Sequoia and Tiger Global</a>

You Searched For "dunzo reliance" and got 11 results

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