Wednesday, 29 April 2020

A White Hole called Reliance Retail



Far away in the universe, there are extremely dense objects possessing insane levels of gravitational force


An object from which, even light cannot escape !


In absence of any light emanating from these objects, these are invisible to telescopes


But scientists have developed methods for establishing their existence


These objects are called “ Black Holes


Any other object that comes within the SINGULARITY of a Black Hole, gets sucked in – with no chance to escape for ever !


Closer at home, we are in the process of observing the birth of a White Hole – otherwise known as :





A few days back , RR tied up with


#  Facebook ( 280 million Indian subscribers )

#  WhatsApp ( 400 million Indian subscribers ) ,


and launched JioMart , enabling buyer to place orders on a nearby Kirana Store, using WhatsApp and get home delivery



Within 2 years RR plans to on-board 3 crore ( 30 million ) Kirana Stores


Besides tie-ups with kiranas, Reliance has 11,316 stores across Consumer Electronics , Fashion and lifestyle


At 14 retail shops per 1000 people , India probably has 1.8 crore ( 18 Million ) retail shops in following categories :


Ø  Food & Grocery
Ø  Apparel
Ø  Consumer Durables & IT
Ø  Jewelry & Watches
Ø  Pharmacy & Wellness
Ø  Furniture & Furnishings
Ø  Footwear


Question :


Will the “ Technology Platform “ which RR is in the process of developing in collaboration with WhatsApp / Jio ( 370 million subscribers ), for the 30 million KIRANA STORES,  work equally well for 18 million Retail Stores listed above ?


Have no doubt  !

 
Just as in case of those celestial Black Holes, each addition of a Store in the RR White Hole Eco-System, increases its “ Gravitational Pull “ exponentially , enabling it to “ attract “ still more stores !



What else will RR White Hole Eco System, gobble up ?


Here is that Eco System :

Manufacturers  >  Stores  >  Delivery Agents


With several million Stores in its fold , there is no doubt that , on their behalf , RR will negotiate and drive a hard bargain with thousands of Manufacturer for lowest prices / quick and direct deliveries to specified stores all over India ( bypassing whole sellers / distributors / warehouses ) /  90 days Credit etc



Which manufacturer can resist if RR commits to “ under-write “ 100 % of its annual production ?


So, within 2 years, RR will manage to pull-off what took Walmart in USA 20 years to do


That leaves open the third side of RR triangle , viz: 

Delivery Agents



Expect the following “ moves “ from Mukeshbhai :


( A ) ….. Offer to Central Government for a Public-Private Partnership with INDIA POST


              Utilizing the DELIVERY SERVICES of 4.3 lakh postmen located at 1.53 lakh post
              offices


              Thereby , solve the problem of  maintaining “ Social Distancing “ during extended
              lockdown



              [ Read :  India Post “ morph to “ India Retail  /  12 April 2020  ]

 

            He will make his offer “ irrestible “ ( remember , gravitational pull ? ) by telling the

            government :


             Instead of suffering an annual loss of Rs 700 crore on India Post operations , how

              about making an annual profit of Rs 70,000 crore ? “

 

( B ) …. Offer the government to take over the operations of 3.8 lakh Common Service

            Centers ( CSC ) 

 

           Mukeshbhai will offer :


          #  Current average monthly earning for 2.7 lakh Village Level entrepreneurs(VLE)

               working from 1.63 lakh Gram Panchayats, is Rs 25,000 . RR will double it within

               one year


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29  April  2020

hcp@RecruitGuru.com


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