The impact of Jio and Facebook coming together-
what it means for small businesses.
Amid all the economic effects of COVID-19 global pandemic situation, the news of the investment of Facebook in Reliance Jio is a relief. Also an indication of how the market is going to function post C-19 times.
On Wednesday, when Facebook announced the investment of 5.7 billion dollars (43,574 crore rupees), which translates to 9.9 % equity stakes.
The CEO of Facebook has said,”We’re partnering with Jio to help people and businesses in India create new opportunities. We’re committing to work together on some major projects that will open up commerce opportunities for people across India.”
The CMD of Reliance Industries had said,”The synergy between Jio and Facebook will help realise Prime Minister Shri Narendra Modi’s ‘Digital India’ Mission with its two ambitious goals — ‘Ease of Living’ and ‘Ease of Doing Business’ – for every single category of Indian people without exception.”
This deal is going to impact the small e-commerce businesses in the country, as both Facebook and Jio both are very popular brands among Indians. This also indicates the potential growth of the e-commerce industry in India.
The partnership of Jio and Facebook, will have a strong ripple effect on the Indian market overall. Amid all the financial insecurities, this deal officially puts a stamp on the importance of Indian market in the global economy.
The focus of this deal is JioMart which is by far an online grocery delivery business. Both the companies are gold mines of important consumer data, it’s unclear where this stands in this deal.
What’s in it for Small businesses in India?
Reliance JioMart’s primary business model is to connect nearby kirana stores to customers. These two companies are coming together to make it possible on a larger scale. So this transaction between local kirana stores will happen through JioMart and Facebook’s Whatsapp channel.
The larger model doesn’t only include kirana stores but also farmers and other under-recognised retail businesses like spices and raw materials. The success of this ‘New commerce’ model of Reliance Retail’s is depending on the response of local merchants.
With Facebook’s advanced technology and impeccable reach to the market, this new friendship between these two companies will surely pay off for small businesses. As 80% of the Indian retail business is from kirana. Whereas Whatsapp has reached 80% of smartphone users in India. This collaboration will benefit the small merchants in taking their business online. Whatsapp is launching its new UPI payment app. And this deal will help acquire users rapidly in a competitive market with GooglePay and PayTm.
Are you thinking about taking your retail business online?
Read about top 8 online marketplaces where you can start selling your products here.