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Reliance Aims to Revolutionize Indian Fashion E-commerce with Budget Strategy

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Reliance Industries Announces Low-Cost Fashion Strategy for Ajio Street

Reliance Industries, run by India’s richest man Mukesh Ambani, is gearing up to deploy a winning strategy from its past playbook for the fashion market: low-cost products.

Ajio, Reliance’s retail fashion arm, has quietly launched Ajio Street. The platform boasts a vast selection of clothing and accessories, starting from a price point as low as 199 Indian rupees ($2.4). According to Ajio’s website, Street guarantees the “lowest price” for its offerings, waives delivery charges, and promises a straightforward returns process. As per reports, the platform aims to target consumers in smaller Indian cities and towns with a zero-commission model, thereby gaining quick inroads.

The roll-out of Ajio Street coincides with a confirmation from Shein, a dominant player in the global budget fashion market hailing from China, that it has partnered with Reliance to reestablish a presence in the lucrative Indian market.

The Emphasis on Affordability in India’s Fashion Sector

The emphasis on affordability is key in capturing market share in India’s fashion sector, analysts say, citing the region’s notoriously price-sensitive consumers. Reliance’s plan puts Ajio Street in direct competition with SoftBank and Prosus-backed Meesho, which specializes in selling low-cost longtail fashion and accessory items. Ajio, launched in 2016, currently commands over 15% of the fashion e-commerce market in India, according to wealth management and research firm Bernstein. Flipkart, which owns fashion giant Myntra, dominates the category with over 60% market share, while Amazon is holding on to about 20% of the slice.

Reliance’s Successful Affordability-Led Approach

For Reliance, deploying an affordability-led approach to achieve market dominance has been a longstanding strategy. This was strikingly evident in the previous decade when the company dramatically shook the Indian wireless sector with the introduction of Jio – offering free voice calls and cut-rate data rates. With a subscriber base now exceeding 430 million, Jio now dominates the telecommunications industry in the South Asian market.

Conclusion

With the launch of Ajio Street, Reliance Industries is all set to take on its rivals Flipkart and Amazon in the Indian e-commerce sector. Experts say that Reliance’s emphasis on affordability and a zero-commission model will prove to be game-changing for the company, and the new platform will become a go-to destination for price-sensitive consumers looking for fashionable and trendy clothes at an affordable price.

FAQ

What is Ajio Street?

Ajio Street is a new retail fashion platform launched by Reliance’s retail fashion arm, Ajio. The platform offers a vast selection of clothing and accessories starting from a price point as low as 199 Indian rupees ($2.4) and guarantees the lowest price for its offerings.

Why has Reliance Industries launched Ajio Street?

Reliance Industries has launched Ajio Street to capture market share in India’s fashion sector, which is notorious for its price-sensitive consumers. Reliance is betting big on affordability, and they plan to target consumers who live in smaller Indian towns and cities with the platform.

Who is Reliance’s biggest competitor in the fashion e-commerce market?

Flipkart, which owns fashion giant Myntra, dominates the fashion e-commerce segment in India, with over 60% market share. Amazon is holding on to 20% of the slice. Reliance’s Ajio platform currently commands over 15% of the fashion e-commerce market.

How has Reliance Industries achieved market dominance in the past?

Reliance has deployed an affordability-led approach to achieve market dominance in the past, which has proven to be successful. This was strikingly evident in the previous decade when the company dramatically shook the Indian wireless sector with the introduction of Jio – offering free voice calls and cut-rate data rates. Jio now dominates the telecommunications industry in the South Asian market, with a subscriber base exceeding 430 million.

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