NEW DELHI: Richest Indian Mukesh Ambani-led Reliance Industries' entry into on-line retailing will help extend the present 15,000 digitised retail retail outlets to over 5 million via 2023, a study of Bank of America Merrill Lynch stated.
As much as 90 in keeping with cent of India's $700 billion retail market is unorganised, made up mostly of neighbourhood kirana retail outlets promoting groceries and different sundries.
These kirana retail outlets are keen to improve their tech and that is riding a wave of modernization, the study stated.
"This is on the back of growing competition from modern trade and e-commerce," it stated. "GST implementation has also acted as a catalyst, creating further modernization pressure as GST compliant bills have to be generated."
Reliance, with a deep footprint in over 10,000 Reliance Retail shops pan-India, is operating to create the sector's biggest online-to-offline e-commerce platform within the nation.
Reliance is having a look at installing its Jio MPoS (mobile point-of-sale) instrument at kirana retail outlets to glue neighbourhood providers to its high-speed 4G community that can be utilized via its shoppers to order supplies.
It will take on SnapBizz, Nukkad Shops and GoFrugal on this fragmented MPoS house.
While Jio MPoS is available at a one-time investment of Rs 3,000, SnapBiz offers the same gadget at a one-time value of Rs 50,000, the record stated.
One-time charge on Nukkad Shops is Rs 30,000 to Rs 55,000 while GoFrugal offers POS device at a one-time investment of Rs 15,000 to Rs 1 lakh.
Jio MPoS has no service provider cut price price (MDR) on any charge and offers a loyalty programme, it stated, including its monetization strategy include merchandise delivery, advertising and supply-side aggregation.
"We consider, with RIL's entry, shall we see an building up in service provider adaptability, as the fee points will most likely come down (RIL's present one time deposit is Rs 3,000) and succeed in should extend.
"Consolidation may be an opportunity; as a big participant, RIL is entering an another way scattered market. Overall, we think RIL to help extend the present 15,000 digitized retailer base to five million-plus retail outlets via 2023," it stated.
The brokerage stated it met with SnapBizz control at their place of business in Bengaluru. It has 4,500-plus devices put in over seven towns in India or over 30 in keeping with cent of the digitised retailer base.
"The Merchant PoS via SnapBizz is some degree of sale platform the place merchants can stay a virtual file of their stock, generate GST compliant expenses and stay a observe of shopper's purchasing patterns, in addition to making bills," the record stated.
For a one-time payment of Rs 50,000, the service provider gets a PoS instrument with Snapbizz device, a display screen house to show commercials and a non-public app to engage with customers.
SnapBizz is operating with Israeli start-up Stamp.ee to design targeted couponing/promotions for customers.
SnapBizz has a contractual settlement with retailers to proportion aggregate level data with third events; on the other hand non-public shopper data isn't shared, it stated.
The brokerage stated it visited 15 retail outlets in Mumbai and Navi-Mumbai to get feedback on basic MPoS.
"Most retailers we visited had been proud of the service provider PoS and consider the return on investment is excellent," the report said. "Kirana retail outlets liked the benefit of billing/producing GST complaint expenses the best. The PoS system supplies an option of including built in discounts and likewise push offers to all the customer database by means of SMS."
Majority of stores visited are not synching stock in PoS and principally are the usage of it as a billing instrument.
Kiranas both found it tough to go into new stock pieces or had been reluctant to go into with a terror of sharing data to POS companies.
As much as 90 in keeping with cent of India's $700 billion retail market is unorganised, made up mostly of neighbourhood kirana retail outlets promoting groceries and different sundries.
These kirana retail outlets are keen to improve their tech and that is riding a wave of modernization, the study stated.
"This is on the back of growing competition from modern trade and e-commerce," it stated. "GST implementation has also acted as a catalyst, creating further modernization pressure as GST compliant bills have to be generated."
Reliance, with a deep footprint in over 10,000 Reliance Retail shops pan-India, is operating to create the sector's biggest online-to-offline e-commerce platform within the nation.
Reliance is having a look at installing its Jio MPoS (mobile point-of-sale) instrument at kirana retail outlets to glue neighbourhood providers to its high-speed 4G community that can be utilized via its shoppers to order supplies.
It will take on SnapBizz, Nukkad Shops and GoFrugal on this fragmented MPoS house.
While Jio MPoS is available at a one-time investment of Rs 3,000, SnapBiz offers the same gadget at a one-time value of Rs 50,000, the record stated.
One-time charge on Nukkad Shops is Rs 30,000 to Rs 55,000 while GoFrugal offers POS device at a one-time investment of Rs 15,000 to Rs 1 lakh.
Jio MPoS has no service provider cut price price (MDR) on any charge and offers a loyalty programme, it stated, including its monetization strategy include merchandise delivery, advertising and supply-side aggregation.
"We consider, with RIL's entry, shall we see an building up in service provider adaptability, as the fee points will most likely come down (RIL's present one time deposit is Rs 3,000) and succeed in should extend.
"Consolidation may be an opportunity; as a big participant, RIL is entering an another way scattered market. Overall, we think RIL to help extend the present 15,000 digitized retailer base to five million-plus retail outlets via 2023," it stated.
The brokerage stated it met with SnapBizz control at their place of business in Bengaluru. It has 4,500-plus devices put in over seven towns in India or over 30 in keeping with cent of the digitised retailer base.
"The Merchant PoS via SnapBizz is some degree of sale platform the place merchants can stay a virtual file of their stock, generate GST compliant expenses and stay a observe of shopper's purchasing patterns, in addition to making bills," the record stated.
For a one-time payment of Rs 50,000, the service provider gets a PoS instrument with Snapbizz device, a display screen house to show commercials and a non-public app to engage with customers.
SnapBizz is operating with Israeli start-up Stamp.ee to design targeted couponing/promotions for customers.
SnapBizz has a contractual settlement with retailers to proportion aggregate level data with third events; on the other hand non-public shopper data isn't shared, it stated.
The brokerage stated it visited 15 retail outlets in Mumbai and Navi-Mumbai to get feedback on basic MPoS.
"Most retailers we visited had been proud of the service provider PoS and consider the return on investment is excellent," the report said. "Kirana retail outlets liked the benefit of billing/producing GST complaint expenses the best. The PoS system supplies an option of including built in discounts and likewise push offers to all the customer database by means of SMS."
Majority of stores visited are not synching stock in PoS and principally are the usage of it as a billing instrument.
Kiranas both found it tough to go into new stock pieces or had been reluctant to go into with a terror of sharing data to POS companies.
Reliance entry to digitise 5 million kirana stores by 2023: Report
![Reliance entry to digitise 5 million kirana stores by 2023: Report]()
Reviewed by Kailash
on
May 12, 2019
Rating:
