Soon after Reliance Retail, a subsidiary company of Reliance Industries Limited, announced its plans of launching its own e-commerce platform, the company has started withdrawing its products from rival e-com platforms.
Apart from its brands offering apparel, footwear and lifestyle, Reliance is even retreating the global brands for which it has selling rights in India. The company sells its products on online platform such as Amazon, Flipkart, Myntra, Jabong and Tata Cliq, among other sites.
It may also be noted here that the company has around four dozen joint ventures or master franchise arrangements with international labels including Diesel, Kate Spade, Steve Madden, Burberry, Canali, Emporio Armani, Furla, Jimmy Choo and Marks & Spencer.
The expected online marketplace by Reliance Retail will offer everything from food to fashion. The brand withdrawal process has gained pace in an attempt to create exclusivity and attract consumers to its portal.
An executive of the company, on the condition of anonymity told, “We have been told to sell only on Ajio-.com and through their own monobrand sites for different labels.”
The Government’s recent updated its regulations on foreign direct investment (FDI) in e-commerce marketplaces in December will prove to be an advantage for Reliance over Amazon and Walmart-owned Flipkart.
The two FDI-funded online marketplaces can only act as technology platforms that connect independent sellers and buyers. They cannot sell, own or control inventory. However, an Indian firm with no foreign investment can exercise control over inventory, thereby controlling pricing, quality and speed of delivery — key elements for the success of any e-commerce business.
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