Daybreak

Does Reliance really know what it wants from e-commerce?

6 snips
Jul 6, 2025
Dive into the chaotic world of Ajio, where rapid changes and internal turmoil are the norm. Discover the challenges faced by Reliance Retail's fashion platform, including leadership shake-ups and mass layoffs. Learn how attempts to shift strategy towards premium brands led to declining customer interest. Former employees reveal the struggle for identity amidst intense competition, all under the pressure of maintaining profitability. It's a gripping tale of adaptation and survival in the fast-paced e-commerce landscape.
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INSIGHT

Why Reliance's Ajio Is Struggling to Find Its Identity in Fashion E-Commerce

Ajio, once Reliance Retail's flagship e-commerce fashion platform, is facing deep internal confusion about its identity and strategy. Despite rapid early growth powered by aggressive discounts and strong brand partnerships, the platform has undergone leadership upheavals, layoffs, and shifting priorities—from ultra-fast delivery to luxury fashion—which have caused its momentum to falter.

The company has struggled with a blurred focus, wavering between appealing to budget buyers and premium customers, and operational changes like moving from a costly inventory model to dropshipping. Profitability remains elusive as Ajio fights against competitors like Myntra, which has recently turned profitable with faster delivery and better execution.

This turmoil highlights a larger question: does Reliance truly know what it wants from e-commerce? While Reliance's physical stores remain profitable, its online ventures, including Ajio, are under mounting pressure and risk becoming missed opportunities due to unclear priorities and reactive strategies.

INSIGHT

Agio's Identity Crisis

  • Agio's unclear identity led to blurred roles and shifting leadership strategies.
  • This reflects Reliance Retail's broader confusion about its e-commerce goals and priorities.
ANECDOTE

Agio's Fast Delivery Fumble

  • Agio launched a 4-hour delivery during early 2024 but quickly rolled it back due to poor results.
  • Despite rapid sales growth, profits stayed elusive and teams faced layoffs amid confusion.
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