30 May 2023, Mumbai
Reliance Industries, led by India's wealthiest individual Mukesh Ambani, is leveraging its successful playbook strategy to conquer the fashion market with low-cost products.
Ajio Street, a new platform under Reliance's retail fashion arm Ajio, quietly debuted, offering a wide range of clothing and accessories starting at an attractive price point of 199 Indian rupees ($2.4). Ajio Street guarantees the "lowest price," free delivery, and hassle-free returns.
Concurrently, Reliance has partnered with Shein, a major player in the global budget fashion market, to reestablish its presence in India's lucrative fashion market.
Affordability plays a key role
Analysts highlight the importance of affordability in appealing to price-sensitive Indian consumers. Ajio Street aims to capture consumers in smaller cities and towns, employing a zero-commission model to accelerate its growth.
Reliance's strategic move positions Ajio Street in direct competition with Meesho, backed by SoftBank and Prosus, specializing in low-cost fashion and accessories.
Currently, Ajio holds over 15% of India's fashion e-commerce market, while Flipkart's Myntra dominates with a market share exceeding 60%, and Amazon retains approximately 20%.
Ajio Street targets smaller cities
Reliance's focus on affordability reflects its previous success in disrupting the Indian wireless sector through Jio's introduction, offering free voice calls and reduced data rates.
With a subscriber base exceeding 430 million, Jio now dominates the South Asian telecommunications industry.
