On August 28 Reliance acquired the retail giant- future group( parent company of big bazaar, Fbb etc) in a deal of a whopping 24,713 crores. It now has set to change the whole outlook of retail,wholesale, logistics and warehousing overview of the company. This gives them an access to roughly 2,000 stores across the country to be indulged in the big hefty business of upcoming jiomart.
Looking back to 2016, when jio was growing tremendously, the telecom company operators went from 14 to 4, while the other three ( airtel, vodafone etc) are still bleeding with heavy losses.
This creates a monopolistic situation in the market and its future.
And this is how it can be harmful to the consumers and competitors.
Talking about it’s competitors, shares of Dmart, aditya birla retail, V mart fell drastically. Now, as they’re consumer based industries, it restricts the entry of new firms too. India currently has about 12 million small grocery stores. Such a giant company pushes them out of business. With coming out of a pandemic one leg short, it will leave other retailers bleeding.
A monopoly isn’t always bad. But seeing the view of how reliance has a dominant stake in every major industry, it can easily exploit the consumers with higher prices which might lead to allocative inefficiency since it is the sole supplier in the future. Monopolies can gain political power, specifically in a country like India, and can have the ability to shape the society while being unaccountable too in the worst case scenario.
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Rashika namdev 
what an understanding of Socio-Economic scenario in our county.Hope your Article would act as an eye opener to policy Makers and Political class.
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God knows what competition commission of India (CCI) is doing in this regard.
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It will create a monopoly but just like the telecom sector i think the customers might benefit from jiomart, although you are right small groceries will take a heavy hit. Anyways dude you have a great understanding of socioeconomics. Keep it up, i am looking forward to more blogs like this.
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Amazing Rashika. I like that you gave a thought about it and explained it so easily. Keep it up. 🙂
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I’m astound as all the words and understandings I could never make people understand due to shortage of words I can now just open this and show it to everyone ! Can’t wait to read more from you babe 😘
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The above content is very insightful !!! I hope you will find the below blog useful.
https://fundamentalmarket.wordpress.com/2020/09/04/why-you-should-avoid-investment-in-future-group-now/
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You have great understanding and the insight in this one article is amazing. Eagerly waiting for more from you!
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Reliance is definitely going to be a monopoly in the future however jiomart is planning to unify the whole retailer’s market and also becoming a whole sale supplier . What this will do is it will uniform the prices of products in all the shops in the city and if they control the prices in all the shops they can use the shop that is closest to the customer house as it store for delivering groceries . This will also eliminate the distance charge for customers. I think this would be beneficial for customers and also benefit the shopkeepers because this brings them more business however this could have reverse effects on shopkeepers depending on what comission jio charges.Now regarding the public trust in jio , Reliance shares were soring high and people expected that they will break all records after Reliance finalized it’s deals with Google but government authorities noticed this and put a cap on Reliance shares and they have been down since then. So I think if reliao becomes a monopoly ,this would shed more light on them which could get them in trouble.
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This is a topic which doesn’t interest me much. But your analysis and explanation made it way uncomplicated and interesting.
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ब्लॉग की दुनिया में आपका हार्दिक स्वागत है और मुझे इस बात पर गर्व है कि आप वर्तमान स्थितियों में रुचि ले रही हैं और भविष्य की चिंता जाहिर कर रही हैं। आप जो कह रही हैं उससे मैं पूरी तरह संतुष्ट और सहमत हूँ। आपके उदार दृष्टिकोण के तहत इस विशेष क्षेत्र या अन्य किसी भी क्षेत्र में भविष्य के खतरे और उपभोक्ताओं के हित को ध्यान में रखते हुए यह चिंताजनक संकेत बिल्कुल सही है।
उत्पादन के लिए जिम्मेदार किसी भी कंपनी या व्यक्ति या समूह में प्रतिद्वंदियों का होना बेहद जरूरी है अन्यथा भविष्य में एकाधिकार स्थापित होने से यह परेशानी का सबब बनके सामने आ सकता है अर्थात यह महंगाई, दवाब या शोषण या अलग मानसिकता के विकास का भविष्यसंभावी कारण बनके सामने आ सकता है।
आपको पता है! विदेशी कंपनी हिंदुस्तान यूनिलीवर बहुत समय पहले से भारतीय बाजार पर एकाधिकार स्थापित करने की कोशिश में हैं। भारत में इसके कई उत्पाद बिकते हैं। यह भारत में अपने कारोबार का 67% हिस्सा इंग्लैंड भेजती है और बाकी का भारत में कारोबार और बढ़ाने व लाभ को बढ़ाने आदि में खर्च करती है। नीलसन नामक एक कंपनी के द्वारा किए गए सर्वेक्षण में पता चला की हर तीन में से 2 भारतीय इस इंग्लैंड की कंपनी का उत्पाद खरीद रहे हैं और इससे इंग्लैंड को बहुत लाभ हो रहा है तथा रुपये की कीमत कम हो रही है। जिससे महँगाई और अधिक बढ़ रही है।(स्रोत:-विकिपीडिया)
रिलायंस ने अपनी बाजारू और व्यापारिक नीतियों का निर्धारण जिस ढंग से किया, उसके आधार पर हम उसकी वर्तमान उपलब्धि पर किसी तरह का सवाल खड़ा भी नहीं कर सकते, यह तारीफ के काबिल तो है ही।
उपभोक्ता तो सस्ता सुंदर, गुणवत्ता युक्त और टिकाऊ उत्पाद खरीदने में विश्वास करता है न कि इसमें कि वह उत्पाद उसे कौन उपलब्ध करवा रहा है।
कुछ ही दिन पहले हमारी सरकार ने एक कड़ा कदम उठाया और कुछ चीनी ऐप को प्रतिबंधित किया था क्योंकि इसके पीछे एक राजनैतिक कारण था अन्यथा किसी के कहने से या अपने आप कोई भी उनका उपयोग करने से खुद को रोक नहीं पाता तब तक जब तक कि वे सभी पर्याप्त सुविधाएं देते रहते, जब तक कि इनसे अच्छी सुविधाओं से युक्त कोई दूसरे ऐप न आ जाते या जब तक वे सभी अधिक मंहगे न हो जाते।
मैं हमेशा से किसी भी मंच पर ‘एकाधिकार’ होने से पहले इसके अंत की उम्मीद करता हूं।
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You are a very warm welcome to the world of blog and I am proud that you are taking interest in the present situation and are worrying about the future.
I am fully satisfied with what you say. Under your liberal approach, this alarming indication is quite correct in view of the future risks and interests of consumers in this particular area or in any other area.
Any company or person responsible for the production must contain competitors otherwise, it is disturbing because of future monopolies, that is, it may become a future cause of inflation, pressure or exploitation or a divert mindset.
Do you know! the foreign company, Hindustan Unilever, has been trying to monopolize the Indian market in the long past.
Many of its products are sold in India. It sends 67% of its business to India in England and spends the rest in India to increase business and increase profits. A survey conducted by a company called Nielsen revealed that 2 out of every three Indians are buying the products of this England company and this is benefitting England and reducing the price of Rs. Due to which inflation is increasing more.(Source:- wikipedia)
Based on the manner in which reliance worked out its business policies, we cannot even put a question of the present achievement of it, that is worthy of compliment.
The consumer believes in buying cheap, beautiful, quality and durable products and not in who is making the product available.
Just a few days ago our government took a firm step and had banned the Chinese app because there was a political reason behind it otherwise
neither from anyone’s saying nor on his own. no one can stop himself from using them if all those facilities were provided until they received some other better apps with better facilities or until they all get too expensive.
I always expect end of it before it is monopoly on any plateform.
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