Ajio expands proprietary brands to drive high-margin digital expansion

Reliance Retail’s e-commerce platform, Ajio, is accelerating operational profitability by prioritizing high-margin private fashion labels across its catalog of 3 million active listings. By expanding proprietary brands - which deliver 15 per cent to 20 per cent higher gross margins relative to third-party vendors - Ajio increased its average bill value by 23 per cent and average selling price by 17 per cent. This margin-driven strategy leverages Reliance's store footprint, deploying 4,000 physical retail outlets as inventory hubs to support express services like AJIO Rush four-hour delivery in over 600 towns.

Navigating supply chain costs while expanding B2B ecosystems

To mitigate sector-wide logistics friction and high return costs, Ajio lowered product return rates from 36 per cent to 28 per cent by using local store networks for fulfillment and reverse logistics. Concurrently, the platform expanded its addressable market via Ajiogram for direct-to-consumer creators and Ajio Business, supplying 50 proprietary brands to tier-2 and tier-3 apparel merchants. Combining private-label volume with omnichannel inventory deployment converts digital fashion retail into a commercially sustainable, margin-accretive structure, noted a senior retail analyst.

Digital commerce pillar of Reliance Retail

Launched in 2016, Ajio is Reliance Retail's online fashion marketplace housing over 6,000 global, national, and in-house brands across apparel, footwear, and accessories. Scaling towards sustainable profitability, the platform serves Tier-I to Tier-III markets, backed by Reliance's ₹3.7 lakh crore annual retail revenue base.