KOLKATA: Reliance Industries (RIL) plans to
start online sales of mobile phones, laptops, televisions and home appliances
next quarter, significantly expanding its e-commerce business currently
confined to only grocery sales in Mumbai. But the country's largest private
company is unlikely to start a price war with existing e-commerce majors such
as Flipkart and Amazon, said three senior executives in white goods industry.
According to them, the Mukesh Ambani-led
group's retail arm Reliance Retail has already started trials of consumer
electronics and home appliances e-commerce among its employees, which is likely
to have a full-fledged debut next quarter. An e-mail sent to Reliance Retail
spokesperson did not elicit any response till Sunday press time.
Reliance Retail will focus on customer
experience, installation and service support through its inhouse service
network, Reliance resQ, to woo online customers, said the three executives.
There would some product deals such as exclusive model launches and promotional
offers to draw traffic, they said. "The company has decided to stay
away from heavy discounting for online sales to prevent conflict of prices
with its mainstay brickand-mortar stores," one of them said.
"However, it has ambitious plans and the e-commerce foray is done by a
separate team." He said Reliance Retail is moving towards an omni-channel strategy
— which essentially means using multiple channels and resources, both online
and offline, to push sales — and digital retailing business will be one of the
main pivot. Another executive said the company will utilise the wide brickand-mortar network
of Reliance Digital stores for faster delivery and product exchange. Customers
can also buy online and pick up the product from the nearest Reliance Digital
store. Reliance Retail has a network of more than 700 Reliance Digital fulfil the
online orders in their locality.
Tata-owned Croma, which is Reliance Retail's
biggest rival in the consumer electronics retailing business, too has expanded
its focus on e-commerce and has started selling through online marketplaces
Amazon and Snapdeal besides its own e-store. Future Group, too, plans to boost
its online sales of consumer electronics while electronic regional chains
Viveks and Vijay Sales, too, have recently gone online.
Mobile phones, tablets and laptops make up one
of the largest business segment of e-commerce in India. However, discounts on
consumer electronics have recently moderated on leading websites after brands
started tightening the noose on online discounting. A recent study by price
comparison website MySmartPrice also indicated that more than half of consumers
are denied warranty for products purchased online.
Reliance Retail plans to expand its online
presence beyond electronic products. At present, it provides online shopping
for grocery in selected localities of Mumbai, which will be extended to other
cities. The company is also exploring online sales of apparel, sources said.
According to a recent Google report, India's e-commerce market will grow to $15
billion, or about Rs 93,000 crore, by 2016 from about $3 billion this year even
as the number of online shoppers rise to 100 million from 35 million now.
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