Home Uncategorized Jio-Facebook deal: Disruption is the new word

Jio-Facebook deal: Disruption is the new word

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Facebook Reliance Jio deal 696x464 1 - Jio-Facebook deal: Disruption is the new word

A big gap of demand and supply…

An interesting fact about our shopping habits in India is -despite so much of our going online for almost everything, we purchase only three per cent of our requirement from the online market place. For the rest of the remaining 97 per cent part; we run to a nearby store or a place of our choice. Post Jio – Facebook deal, the dynamics seem to change fast and quick.

And a big opportunity..

The country is booming with approximately 1.4 Billion people. With so many people around, there are unlimited numbers of demands from everyone for everything. This insatiable demand is so huge is that even companies like Amazon and Flipkart are gasping for air to meet the demand.

This is a scenario expected even to be bigger in coming times and leaves a big opportunity for new players in the market who have a good infrastructure to stand up against the challenge.

And 2 Ms smell it…

And when it comes about how to encash it, no better than the wealthiest person of Asia and one of the wealthiest men of the world understand it better. They know how to meet the demand of the people. Jio – Facebook deal was bound to happen one way or other.

Recently, Facebook acquired around 10% stake in Reliance Jio in a $ 5.7 billion deal to become Jio’s largest minority partner. The idea behind this Jio – Facebook collaboration seems brilliant but natural. Just have a look on motives of Mukesh Ambani and Mark Zuckerberg and you will see a strategic marriage of the local commercial centres with the social part the people living around these local service providers.

This should ring a loud bell in the ears of Amazon and Flipkart who are so far the king of the Indian online market and the market is monopolized by these two giants.

Because Jio has made a name…

Facebook already know how deep Jio is in into Indian middle-class mindset. Back in 2016, Jio introduced dirt-cheap data to India and since then they are numero uno here in terms of providing the data-based services here. Not just that; people are buying televisions, music, Electronic equipment and other utilities from Jio. Jio has a solid market presence in India.Jio FB 1024x675 1 1024x620 - Jio-Facebook deal: Disruption is the new word

For the social part, Indians are Facebook addicted too. And they prefer Facebook-owned Whatsapp messenger also. Approximately 450 Million Indian users use Facebook or WhatsApp daily. These staggering numbers are such big possibility for Mark Zuckerberg which he can not just overlook.

Together, Jio – Facebook have plans to bring a revolutionary change in Indian’s online shopping horizon. This collaboration is an attempt to bring fulfilment of daily requirements and social life under a single umbrella.

Where to buy from? Guptajee or Agrawalji??

It is simple actually. Through JioMart, Reliance wants to aggressively chase the grocery space in India. This domain is so far captured by Amazon, Flipkart and few more players. Jiomart can reach a large number of households with support of the data based services provided by Facebook provided platforms on cheap data from Jio. https://68274lnbjcqhetbbg33v6ubl6f.hop.clickbank.net/

The only difference is that- This grocery space is to be filled by the local vendors around the locality where the services are provided with Facebook-owned means like Whatsapp. Jio – Facebook deal is different from Amazon and Flipkart business model where the identity of vendor remains unknown.

This is how it works…

Your wife asks you to get grocery at the best rate available around. You pick up your phone where cheapest mobile data is provided by Jio and you browse nearby stores on Facebook for best deals. You call the store or drop a message that is just a stone throw away from your home. You pay him on Facebook-owned WhatsApp ( WhatsApp payment-A soon to be launched application) and he delivers you the items in next few minutes because he is near to your location.

That is where Amazon and Flipkart seem lagging as they don’t have such support of data-based applications. Also, unlike Jio – Facebook they don’t have such a plan to bring small grocers online at present. Also, they don’t have a dedicated payment system for these grocers on which Whatsapp is currently working. facebook whatsapp and jio collabration - Jio-Facebook deal: Disruption is the new word

WhatsApp… A liability?

Interestingly, Whatsapp has been a liability for Facebook so far. For them, it is a kind of social service. The plan to monetize WhatsApp also doesn’t seem to get traction. But Jio- Facebook deal can change the stride in their favours. Whatsapp is useful in messaging and now it can be used as a payment platform also.

Additionally, in India digital payment is rising very fast. In Covid-19 lockdown, it has further zoomed upwards. It is expected to reach around $1 Trillion in the next 3 years. So far, the big players in India are Paytm, PhonePe, Amazon and Google Pay. After approval from the Indian government, WhatsApp may be the biggest digital payment service platform due to its sheer reach in India.

The demand for such a service is already high. The emergence of the Jio – Facebook business model will disrupt the calm of companies which are already in this business. The market is going to be more competitive definitely. It will be interesting to see how other players come up against this challenge.

 

Latest: As on 24 May 2020,

Reliance Industries Ltd has launched the much talked online grocery service, JioMart today. JioMart will deliver groceries in more than 200 cities and towns across India . JioMart, the e-commerce venture of Reliance Industries will offer delivery of grocery items from neighbourhood small kirana stores as mentioned in previous paragraphs. Jiomart is not just a callenge to AMazon and Flitkart, it will a formidable challenge to local market players as well.

5 COMMENTS

    • The joint venture between Reliance and Jio may be a pathbreaking deal. Reason being, it will greatly help the small retailers to compete with Walmart and Amazon in terms of quality and service. For the people like us, availability of good products at good price and generation of employment will be a boon.

  1. Great insight, this deal surely be a path breaking step in business and will bring lot of change in Indian market. The deal between wealthiest man of India and one of the wealthiest man of world will. Surelu bring lot of wealth for people associated in this deal

    • More than anything else, It will bring all those small retailers online who want to give a good deal to people but somehow lacked the skill of how to do it.

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