Amazon and Walmart’s Biggest Indian Rival Finds Out Grocery Is Difficult Business
Reliance Retail’s foray into India’s online groceries has run into initial hiccups.
The entry of Reliance Retail into India’s lucrative online grocery market could pose some substantial challenges for Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) thanks to its ability to quickly scale up its reach. But it looks like JioMart — Reliance Retail’s online grocery venture — is already running into challenges that come with scaling up quickly.
This could be bad news for JioMart’s future in India’s huge consumer discretionary space and help the American retailers bolster their already strong positions in that market.
Reliance Retail’s online grocery business runs into initial hiccups
Reliance Retail launched JioMart with the aim of making a dent in India’s online grocery market on the back of its existing infrastructure of hundreds of grocery stores spread across several Indian cities. In fact, JioMart went from a pilot project to delivering groceries across 200 Indian cities in the space of just four months.
But recent reports suggest that JioMart has run into execution challenges that range from delivery hiccups to the quality of products delivered. Twitter is abuzz with Indian consumers complaining of bad packaging, rotten vegetables, order cancellations, higher pricing, and delayed deliveries. Consumers are also complaining about a bad customer service experience.