In our last post, we explained that Alien Invasion is not just a local phenomenon, it’s global. This post focuses on an Alien Invasion in India.
India is a gigantic and intricate market with culture, language, business practices, and infrastructure challenges. Each Alien Invader has selected one or more strategies that sometimes go head-to-head with competition and other scenarios see market segmentation.
Let’s take a look at Reliance/JioMart. Reliance is building a delivery and ecommerce capability where local delivery capacity is serving retail consumers, and business-to-business customers like small shops. Ready access to availability and pricing data has empowered small retailers to push back on traditional distribution B2B. Disruptions of door-to-door, high-touch, long term traditional relationships are caused by aggressive pricing by Aliens, convenient ecommerce for B2B, not solely consumer transactions, and logistics networks expanded with greater scope and scale.
JioMart, FlipCart, and Amazon are all competing for traditional small retailers who still move the greatest portion of consumer retail sales. This B2B competition sees substantial reductions in SKU costs to small retailers thus intercepting revenue and profits that formerly belonged to traditional distribution and logistics players. Invading Aliens with outside investment, operating funding, and long-term views are serious attackers on incumbent business models and players.
In our next post, we’ll be looking at how JioMart is broadening its Alien Invasion to markets beyond small retailers.
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