Reliance Jiomart created turmoil
Reliance Industries' JioMart app has shaken India's grocery market badly.
JioMart app has shaken India's grocery market badly. If small shopkeepers are happy, then the livelihood of lakhs of people is in trouble. Domestic salesman Vipresh Shah has not been able to sell a single tablet of Dettol soap to the shopkeepers for eight days. These are the same shopkeepers who have been buying goods from them for 14 years. Vipresh Shah is the official distributor of the UK's Rackit Bankers Company in Vita near Sangli, Maharashtra. He says that even his most loyal customers are now breaking down because they are moving towards the Jiomart partner app. Vipresh says that when you go to sell goods, the shopkeepers show the app on which the prices are reduced by 15 percent. He says, "I am a distributor of Rickets, so I used to be the king of the market. Now customers say that look how much you have looted us.
Jiomart is the app of India's richest person Mukesh Ambani's company Reliance Industries, through which he wants to revolutionize the retail sector of India. There are thousands of such small places like Vita in India where small grocery shopkeepers are now going to Geomart to buy goods in bulk. These small grocery shoppers still own the majority of India's $900 billion retail market. The way Mukesh Ambani had thrown the telecom industry into turmoil through Jio, something similar is now being done in the retail sector. Through Geomart, he is also giving tough competition to American companies like Amazon and Walmart and is rapidly spreading in India. How the turmoil happened There are about six lakh villages in India. Of these, there are about 4.5 lakh distributors for bulk supply. Till now these wholesalers have been selling goods to grocery shopkeepers at a margin of 3-5 per cent. This business is done personally and the grocery shopkeepers themselves take the goods or the merchants deliver the goods to them. But Reliance's model is creating turmoil in this system.
On Jiomart app, grocery shoppers order from their own shop and they get delivery within 24 hours. Reliance also provides training to shoppers on how to order. Apart from this, there are also facilities like lending and free samples. Photos: Most famous market Millions of small distributors and salesmen of companies like Racket, Unilever, Colgate Palmolive are suffering. In conversation with dozens of salesmen, distributors and people of a trader group, it came to the fore that the entire business of these people is in trouble. These people told that after the arrival of the app, it has come down by 20-25 percent, due to which a large number of people have to be fired and even have to sell vehicles. Vita distributor Vipresh Shah told that he used to work with eight people, out of which he has fired four. They fear that their family business, which has been going on for 50 years, will not last even six months. Fierce protest The effect of this turmoil has come to the fore in the form of violence in many places. In many places in Maharashtra and Tamil Nadu, the way of JioMart vehicles has been stopped.
The All India Consumer Products Distributors Federation has four lakh agent members. The president of this association, Dhairyashil Patil, says that he will continue to oppose Reliance. Patil said, "We will adopt guerrilla technology. We will continue the movement. We want companies to understand our value." However, this is not affecting Reliance and the retail venture that started in 2018 is being pushed forward in full swing. Reliance did not respond to questions about this, but a source close to the company said that the kirana shops have to be sold in their own right. Adding to the network will continue. Colgate and Unilever also did not respond while Rackit said simply that its customers and distributors are an important part of its business.