How Reliance’s Ajio went from trendy end to flavor of the season
Targets have been set; the plans have been drawn up; warehousing and logistics teams put on hold; and the workforce has been vaccinated and ready to work long hours. Thanks to sales orchestrated by leading e-commerce companies Flipkart, Amazon and Myntra in India, October is now associated with a degree of craziness when it comes to online shopping. With the addition of Ajio’s Big Bold Days, the rush for bargains has only grown.
The Reliance Retail-owned buying portal has been around for more than five years and launched its annual sale in 2019. But it wasn’t until recently that Ajio entered the big leagues. “The pandemic has accelerated Ajio’s growth,” says a former Ajio executive. According to the annual reports from Reliance Industries, Ajio’s revenue increased fourfold between March 2020 and March 2021.
The turning point for the company was the Covid-19 pandemic. Reliance had tons of inventory in malls and other retail stores for months on end, and no way to offload it all.
Come in, Ajio.
As India’s first nationwide lockdown eases, the company’s daily orders have increased fivefold, according to two other former Ajio executives. It went from around 20,000 orders per day in December 2019 to over 100,000 orders per day in June 2020. The three former executives of Ajio, as well as other former and current employees of e-commerce companies in India, spoke with The Ken on condition of anonymity as they were not authorized to speak to the media.
Ajio is not the only e-commerce player to have grown during the pandemic. Its biggest competitor, Myntra, owned by Flipkart, has seen its daily orders increase twice to 100,000 orders per day. pre-pandemic to more than 200,000 orders after the first wave of Covid, say industry executives. Flipkart and Myntra control
AJIO, backed by Reliance, rides India’s e-commerce wave – fierce competition for Myntra
of the online fashion retail market, according to a 2020 Bank of America report.
Ajio is however gaining ground. According to a report by investment bank Goldman Sachs, which obtained data from analytics firm Sensor Tower, Ajio’s monthly app downloads have been neck and neck with Myntra’s since the start of the pandemic. . For several months, especially in early 2021, Ajio even beat Myntra. In addition, Ajio also became a
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Amazon’s sales channel for some fashion brands.