Reliance Industries, led by India’s wealthiest individual Mukesh Ambani, is preparing to employ a winning strategy from its previous playbook to conquer the fashion market: low-cost products.
Ajio, Reliance’s fashion retail arm, has discreetly launched Ajio Street, an online platform featuring a wide range of clothing and accessories starting from an affordable price point of 199 Indian rupees ($2.4). Ajio Street guarantees the “lowest price” for its offerings, offers free delivery, and ensures a hassle-free returns process, according to the website.
The introduction of Ajio Street aligns with Shein, a major player in the global budget fashion market based in China, confirming its partnership with Reliance to regain a foothold in the lucrative Indian market.
Experts highlight that emphasizing affordability is crucial in capturing market share in India’s fashion sector, given the price sensitivity of consumers in the region.
Reliance aims to target consumers in smaller Indian cities and towns with Ajio Street, as reported by the Economic Times last month. The platform will operate on a zero-commission model, providing sellers with a quick entry into the market.
Reliance’s strategy also places Ajio Street in direct competition with Meesho, backed by SoftBank and Prosus, which specializes in selling affordable fashion and accessory items.
Since its launch in 2016, Ajio has already secured over 15% of the fashion e-commerce market in India, according to Bernstein, a wealth management and research firm. Flipkart, through its subsidiary Myntra, dominates the category with over 60% market share, while Amazon holds approximately 20%.
Reliance’s adoption of an affordability-focused approach to achieve market dominance has been a long-standing strategy. This was evident in the previous decade when the company disrupted the Indian telecommunications industry with Jio, offering free voice calls and discounted data rates. With a subscriber base exceeding 430 million, Jio now dominates the South Asian telecommunications market.
