Although Mukesh Ambani inherited a successful business from his father, he remains a pure breed entrepreneur. And his recent success in the telecommunication industry with Reliance Jio, that crippled even the established players like Bharti Airtel, is a prime example of his genius. (It’s a whole different thing though that his business tactics and the personal image remains in scrutiny for an over-exerting influence in country’s politics – and that he can learn a thing or two about business and philanthropy from Azim Premji.)
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It’s no secret that Mukesh Ambani has been trying to scale Reliance’s presence in the Indian e-commerce industry for quite some time now – an industry whose 70 percent share is controlled by Jeff Bezos’ Amazon and Walmart-owned Flipkart. And why not? With online shopping market in the country expected to be valued at mammoth $200 billion by 2028, it’s another avenue for Asia’s richest human to further grow his fortune.
Besides, unless Elon Musk is gearing up to march in the scene, Mukesh Ambani seems like the most ideal person who can take on Amazon and Flipkart, both of which have billions of cash flow at ready to squash any emerging competitive threat. (Isn’t that’s what happened with poor Snapdeal and PayTM?!)
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So, yes, Mukesh Ambani can very well take over Amazon, as well as Walmart-powered Flipkart, in e-commerce. He has the brain, he has the connections, he has the right team, he has an incredible market reach, he has brand value, and most importantly, he has money – lots of it. Indeed, ‘AJIO’ might look like a failed attempt for Mr. Ambani to explore and expand in this industry, but with how recent developments have shaped, it looks like he has a lot in his hat to pull out.
In recent times, Reliance Industries Limited has been on a spree to merge and acquire new companies – FROM Infibeam to create e-commerce market places TO Grab a Grub to establish a presence in hyper-local market TO Haptik Infotech Pvt. to use AI in its customer relation operations. If the market pundits are to be believed, these are the small pieces of a larger puzzle where RIL and Mukesh Ambani is assembling parts across different departments to not only create the next big thing in Indian e-commerce but also capture the largest share of India’s digital ecosystem.
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In January this year, Mukesh Ambani already made clear about Reliance’s plan of using “augmented reality technology and VR devices” in a bid to deliver “personalized immersive shopping experience” to the customers. Indeed, the e-commerce industry around the world is fast pacing to its next revolution where augmented reality is closely embraced for a better shopping experience. So, Mukesh Ambani is on the right path with his plans to leverage advanced technology in his e-commerce venture. This is even more fitting in India where the number of smartphone users is expected to cross the 829 million mark by 2022. So, with high internet penetration, Jio’s efforts to introduce 5G sooner than later, and powerful devices like Samsung M20 made available at very cheap – Indian online shoppers can easily benefit from tech-lashed shopping features to make right purchase decisions and enjoy a better experience.
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In addition, the Indian government’s recent moves to check on the e-commerce players are sure to help Mukesh Ambani as well. For instance, last December, the government changed the rules to stop companies like Flipkart and Amazon from selling their own products on the platforms where they own the stake. It is also coming heavily on cash-back offers and other monopolistic measures of shopping platforms to ensure a fair opportunity to the small sellers.
And not to forget, Mukesh Ambani himself urged Prime Minister Narendra Modi to bring about new steps to stop foreign companies from “data colonization”. He said that Indian data must be owned by the Indians. This move can hurt Amazon and Walmart-owned Flipkart, both of which heavily relies on user data to tailor its offers and marketing strategies. Now, of course, since Mukesh Ambani has himself made this request, it’s hard not to see it come true in the coming months once the election season is over.
Of course, beating Jeff Bezos’s Amazon and Walmart-Flipkart is no easy walk. They are literally the two biggest brands in the world. However, the strategic steps that Mukesh Ambani has taken in recent times with mergers and acquisitions, he is sure to bring the biggest competition for both of these e-commerce giants. So, in short, can Mukesh Amani beat Amazon – yes, he can. Will that really happen, Jeff Bezos won’t let that happen so easily. After all, Mukesh Ambani might be the richest man in Asia. Jeff is the richest man in the world!