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The wealthiest man in Asia plans to take over Amazon in India

Reliance Industries will develop its online shopping platform for 1.2 million retailers and trade owners in western India, starting with an ambitious plan to take over Amazon and Walmart Flipkart on its domestic ground.

Mukesh Ambani, the richest man in Asia, intends to take over the world's largest retailers by combining Jio's telecommunications services, mobile devices and a large physical retail network. The new offline-on-online platform is likely to be launched in 12 to 18 months across the country, according to people familiar with the subject, who have been asked not to identify them because the plans are not public.

The energy-consumer conglomerate joins Amazon and Flipkart in aggressive expanding on the fastest growing e-commerce market in the world, where retail trade is still a rarity. Jio currently has 280 million telecommunications service subscribers, while Ambani has a retail store with nearly 10,000 sales outlets in more than 6,500 cities in India.

"Jio and Reliance Retail will launch a unique new trading platform that will empower and enrich our 12 small retailers and retailers in Gujarati," President Reliance told the country's event on Friday. Twelve varnish is equal to 1.2 million.

Trials for new company initiatives take place in six cities, including Mumbai, Kolkata, Chennai and Bengaluru.

As the initiative expands, Reliance Industries will look for more neighboring mum-and-pop stores that make up about 90% of India's retail space as distribution and delivery centers for some products that will be available on the mobile platform, people say. Wholesale grocery stores will help store these mom and pop operations, they said.

The base then plans to launch an e-commerce platform that is directly linked to retail outlets and neighborhood retail stores.

Rules are tightened

Last month, India tightened rules that would prohibit foreign-owned internet retailers selling products through companies in which they own equity and forbidding them to force traders to sell exclusively through their platforms. The rules are expected to affect the operations of the Amazon, as well as his rival Walmart, who bought Flipkart Online Services in a $ 16 billion transaction. It is expected to benefit from local businesses such as Reliance.

Amban gradually reveals details of its plans in e-commerce. In July, he said his platform would use an expanded reality, holographs and virtual reality to create an "impressive shopping experience".

© 2019 Bloomberg L.P

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