( with grateful ack
to “ K Lal and his Maya-Jaal “ )
Context :
·
RIL
looks to tap kirana stores / Hindustan
Times (Noida) / 23 Nov 2021
For
eight straight days, household goods salesman Vipresh Shah has failed to sell a
single pack of Dettol soap to the storekeepers who have been buying from him
ever since he took over his family business as a teenager, 14 years ago.
The
31-year-old said he lost $2,000 of his own money as he discounted products to
match prices on Jiomart, the app rolled out by Reliance
chairman Mukesh Ambani
in his drive to revolutionise retail in India.
Up
and down India, the mom and pop stores that account for four-fifths of a
near-$900 billion retail market, are increasingly turning to Jiomart to stock
up on foreign and domestic brands.
Just
as Ambani has disrupted the country’s telecoms industry, the tycoon is intent
on shaking up retail distribution, taking on US e-commerce giants like
Amazon and Walmart Inc.
The
country has around 450,000 traditional distributors, who have legions of salespeople to
service every corner of the vast nation, including 600,000 villages. They
typically earn a margin of 3-5% on product prices and mostly take orders physically once a week, making deliveries to retailers within a couple of days.
But
Reliance’s model throws a wrench in that supply chain: The kiranas, can order goods on Jiomart
Partner with deliveries promised within 24 hours. Reliance also offers training on ordering, credit facilities and free
product samples for affiliated
kiranas’ customers.
That
means hundreds of thousands of salesmen representing consumer giants like
Reckitt, Unilever and Colgate-Palmolive, face an existential threat to their business, according to
interviews with salespeople, 20 distributors and a trader group with members
across India.
Many of the distributors said they have slashed
their workforce or vehicle fleet, seeing their sales from door-to-door agents drop 20-25%
in the last year as shopkeepers partner with Reliance.
MY TAKE :
It seems like a
case of :
# Distributors disrupted / decimated
# Intermediaries eliminated
# Middlemen marginalized
# Beginning of the End
# Playing out of the following script that I
wrote 3 years ago :
Extract :
If you join Reliance Eco System, here is what it will do for you :
===================================================
SALES :
All of your merchandize will be
available for selection / ordering on our ONLINE web portal
This online presence of your
merchandize will expand / extend your " reach " to thousands of
consumers in your neighbourhood
You will need to only focus on
OFFLINE ( across-the-counter ) sales to consumers who walk into your store
For OFFLINE sales , we will install
in your stores , all the necessary Computers / POS terminals / Routers /
Internet Connections / Mobile Wallet Payment systems and an end-to-end , RETAIL
MANAGEMENT software
All of your OFFLINE sales data will
get transferred to our Central Server
===================================================
SUPPLY :
We will deliver to your store , all
merchandize on " Consignment
" basis
This means , you do NOT need to pay
us for what we deliver to you store !
Till sold, all goods in your store
will be our " stock "
This way, you do NOT need any " Working Capital " as far as your stocks are
concerned
We will also tie-up with the manufacturers
You don't need to have any
interaction / dealing with the manufacturers
===================================================
INVENTORY :
On a continuous basis , our web
server will keep a track of each and every item of merchandize sold from your
stores
Our Server will calculate , your
" Stock Movement "
Based on this data, our Server will
compute / set for each item :
# Minimum Stock Level
# Alarm Stock Level
# Stock Re-Order Level
# Re-Order Quantity ( Minimum Batch Size )
Based on this logic , our Server
will instruct the
relevant " Merchandize Manufacturers " ( or their dealers / stockists
) , to deliver the stipulated "
Re-Order Quantities " to your stores
A " Re-Order Instruction
intimation ", will get delivered to your computer
Upon arrival, you will need to update
the data
From time to time , our Software will
also figure out your current stocks of " Extremely
Slow Moving " and " Obsolete / Expired
" items , and arrange for " Return
Delivery " , which you will need to enter
in your database
===================================================
DELIVERY :
Not only we will deliver the
merchandize to your store , but we will also pick up " Ordered Items
" ( for ONLINE orders only ) , from your store and deliver the same to your customers !
Initially we will employ manual
" Delivery Persons " for this but , before long , we will deploy a fleet of autonomous
DRONES for this purpose
This fleet will cover " Kirana
Stores " and " Online Customers " , located in pre-designated
areas , covering 4 sq km ( 2 km x 2 km )
We are in talk with https://what3words.com/toddler.geologist.animated
, to enable precise delivery through your 10th floor window !
These drones will get their " Delivery Instructions " directly
from our Web Server , for all ONLINE orders
When these drones arrive at your
Store to pick up the items ( to be delivered ) , they will transfer ( Blue
Tooth / NFC ) and display on your Computer screen , following data :
# Online Order Number / time /
date
# Items covered with
description / value of each
# Customer Name / Address
# Mode of Online Payment / Bank
Details
# Your online account CREDIT details , giving,
( Sales Value ) -
( Purchase Price )
" Purchase Price
" of goods in your stock will be based on FIFO method
===================================================
FINANCE :
As explained earlier , you will have
a bare minimum need for " Working Capital " , since all of your stock will be on "
Consignment " basis
We will collect the " ONLINE PAYMENTS " directly from the customers and " Credit " the same to your "
online sales account " with us
Against same account , we will " Debit " the " purchase price " ( price at
which you purchase the merchandize from Reliance ) of the goods sold
Our server will also take care of all GST payments and filing of GST returns
As far as OFFLINE sales is concerned
, all the data captured through POS terminal will get transferred to our
Central Server
===================================================
MARKETING :
Not only will we carry out all marketing for your ONLINE sales , we will help
you with your OFFLINE marketing , through introduction of the following
technology-enhanced features :
# Arranging a better display
of merchandize on your shelves / re-arranging of
shelves
# Introducing Augmented Reality ( AR )
for clothes / fashion goods in " Trial
Rooms " for giving the
customers , an experience of " touch - feel - looks "
# Introducing Robots
to answer customer inquiries
# Eliminating " Check Out Counters " , based on "
Payments through Bio-metric
Recognition " of customers
# Embedding RFID sensors in each item of merchandize and RFID readers
embedded in Shopping Carts
# Improving your window display thru rotation
# Introducing music
# Eventually replacing " Physical " merchandize with " Holographic Display " of
merchandize on your store shelves !
===================================================
Since Reliance does
not OWN any of these ( 5 million ? ) Kirana Stores, it is unlikely to introduce
Amazon-like cashier-less automatic check-out
However, to know
what kind of a VANISHING
ACT, this Maya-Jaal will do,
read :
Extract :
WHAT
DATA WILL NOT BE ABLE TO ESCAPE THIS BLACK HOLE ?
STAGE 1
To begin with, your
entire PURCHASE HISTORY of a life-time, comprising :
WHAT
you purchased - WHEN – from WHOM – at WHAT PRICE – HOW much qty., – how PAID
for
STAGE 2
Next, it will
compile data about each unique item that you ever purchased – and some more :
Ø Frequency
of Purchase
Ø Package
Size
Ø Brands
ordered
Ø Mode
of Delivery
Ø Mobile
Number ( and, may be all of your CONTACT DATA – to entice your
friends / family
)
Ø Your
MONTHLY CONSUMPTION RATE for each item ( and by using AI, size of
your family )
Ø Whether
you are single or married (does not require sophisticated software )
Ø If
married, number – and age – of your children
Ø Your
bank ( - and your bank balance ? You bet ! )
--------------------------------------------------------------------------------------------
With regards,
Related Readings :
CC :
care@jio.com
shop@jio.com
enterprisecare@jio.com
jiofibercare@jio.com
mukesh.ambani@ril.com
jyoti.jain@ril.com
info@ril.com
