wordpress blog stats
Connect with us

Hi, what are you looking for?

Traditional distributors face challenge from Reliance JioMart, threaten to disrupt supplies to kirana stores

Key issues that have to do with JioMart’s e-commerce model spell fresh trouble for traditional distributors.

Distributors of household goods of major companies have threatened to disrupt supplies to kirana stores if the companies continue to provide products at lower prices to Reliance's JioMart, a letter sent by the All India Consumer Products Distributors Federation (AICPDF) to Hindustan Unilever, Colgate, ITC, Reckitt, and other FMCG companies revealed. Kirana stores currently account for over 80 percent of India's retail market and they are increasingly turning away from traditional company salesmen and towards Reliance to buy their stock due to the low prices offered by JioMart. JioMart is intent on disrupting the e-commerce market by taking on Amazon and Walmart-owned Flipkart, but the threat the company poses to distributors sheds light on the new set of challenges that the traditional retail model faces. Why are distributors frustrated? In November, Reuters published a report shedding light on the challenges faced by distributors because of JioMart's entry: Lower prices on JioMart: Kirana stores that were once-loyal customers of distributors were now buying from Reliance because the JioMart Partner app offers prices up to 15 percent lower, one distributor told Reuters. In one example, a retailer was able to buy a two-tube combo of Colgate MaxFresh toothpaste for about ₹115 from JioMart whereas the traditional distributor paid ₹145 for the same product from the company and offered it to the retailer at ₹154, which is nearly 34 percent higher than what JioMart offered. Reliance is able to offer these low prices because of the bulk buying power and the negotiating power it has due to…

Please subscribe/login to read the full story.
Written By

Free Reads

News

Experts debate the efficacy of ex-ante regulation in India's fast-evolving digital market. Is preemptive control the answer?

News

Lacking plans about the use and regulation of artificial intelligence, use of drones, health stack, cybersecurity and Smart Cities, the manifesto does not have...

News

WhatsApp’s new policy lowers the age limit to 13, facing fierce criticism from child protection groups in Europe.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ