What's Stopping Ajio From Living Out Reliance Retail's Digital Dream
Reliance Retail didn’t have yet another ecommerce experiment in mind when it rolled out Ajio. Instead, it wanted to make a statement to challenge online fashion giants. With its strong liquidity support, sprawling offline presence, and partnerships with global and homegrown brands, Reliance wanted to replicate its offline dominance on the digital landscape.
Reliance had complete clarity when Ajio took off. It wanted Ajio to be India’s definitive premium fashion destination – a sleeker alternative to the chaotic, deal-driven marketplaces.
The early-day traction was impressive, especially during the period when Myntra’s integration with Flipkart had blurred user experiences. “There was a time when Myntra shoppers were receiving their orders in Flipkart packaging,” recalled a former fashion category manager at an ecommerce platform. He chose to stay anonymous since he was not authorised to comment on a rival platform. “It broke the brand experience and pushed consumers to explore Ajio. The platform looked fresh, the product mix felt aspirational, and the timing was perfect.”
But, the rise was short-lived. Nine years on, Ajio still commands a meagre 9% of India’s $20 Bn online lifestyle market, comprising apparels, accessories and footwear, according to inputs from Datum Intelligence.
Reliance, however, continued to harp on Ajio’s initial momentum by splitting its online fashion play into two verticals – Ajio as a mass-fashion platform led by discounting, and Ajio Luxe for premium and luxury labels. The structure neatly mirrored Reliance’s offline strategy – Trends for the masses and The Collective for the elite. On paper, it was elegant as a multi-tiered approach designed to serve both aspiration and affordability under one roof.
Yet, the promise of Ajio began fading out soon. Reliance’s financial disclosures say little on Ajio’s true standing. Reliance Retail reported a 19% on-year surge in revenue to INR 90,544 Cr for the quarter ended September 2025, surpassing analyst estimates.
The company highlighted Ajio’s digital expansion, claiming a 35% year-on-year growth in its products range to 2.7 Mn options, a 33% rise in Ajio Luxe brand choices, and a 52% jump in average bill values in its jewellery segment. The momentum looks strong on paper, but behind these figures lies a frustrating absence of clarity.
Reliance does not give a break-up of Ajio’s individual revenue, GMV, or order volume metrics, which makes it difficult to benchmark the company’s performance against peers like Myntra, Meesho, or Amazon Fashion.
“Reliance reports growth percentages, not impact metrics,” pointed out a Mumbai-based retail analyst who tracks the company’s filings. “Expanding your catalogue by 35% means little if delivery times are slow or conversion rates are dropping. Ajio’s data looks more like scale inflation than competitive momentum.”
There’s fallacy in the figures, vision is foggy, cracks are visible in the business model, yet, Ajio continues to control a 9% share of an increasingly crowded market. “It’s a significant base, but not a leadership position by any measure, especially in a segment where Myntra controls around 25%, with Amazon and Meesho steadily expanding their footprints at opposite ends of the value spectrum,” Satish Meena, founder of Datum Intelligence, said.
Inc42 tried to comprehend what ails Ajio in a market that has emerged as a global retail powerhouse with a $60 Bn GMV, aided by the world’s second-largest online shopper base, and thronged by an increasing number of fashion startups.
Identity Crisis: Scale Dilutes StrategyAjio was born with a clear thesis – to bring curated, premium fashion online. The strategy was simple and distinct – focus on mid-to-high-end consumers, offer exclusive collections from global brands, and launch editorial-style campaigns to position itself as an urban, fashion-conscious destination.
But, as Reliance altered its ecommerce ambitions, Ajio’s mandate changed. The goal shifted from building a differentiated brand to scaling the gross merchandise value (GMV). The platform launched deep discounts, mass-market labels, and observed frequent Ajio Days and flash sales. Once a curated, aspirational marketplace soon became a discount-heavy platform, making a directionless blend of premium and bargain-bin products.
“Ajio lost its premium shoppers even before it could attract price-conscious buyers who would log into Meesho, Flipkart, and Amazon. Ajio started with a fashion-first mindset, but once the pressure for numbers came in, the focus shifted to discounts. It started chasing scale, instead of soul,’ Meena said.
Unlike Myntra, which carefully segments its audiences between Myntra (mass) and Myntra Luxe (premium), Ajio’s bifurcation between Ajio and Ajio Luxe has been inconsistent. “The Luxe vertical operates like an afterthought, with limited marketing,” a former executive at Ajio said, requesting to stay anonymous.
While premium consumers looking for reliability and seamless service gravitate to Tata CLiQ Luxury or Nykaa Fashion, Ajio’s mass segment is also not price-efficient enough to compete with budget-first rivals.
But, why does nothing seem to be in sync at Ajio? Experts blame it on Reliance’s offline-first mindset. The company’s retail DNA revolves around merchandising, vendor negotiation, and physical store planning. All these are critical for physical formats like Trends or Azorte. But digital fashion requires different instincts. It needs rapid iteration, data-led curation, and agile category management. Ajio still functions with the inertia of a traditional retailer trying to adapt to an online medium.
“In an age where consumers demand constant novelty and experience personalisation, Ajio’s catalogue feels mechanical – a large inventory without a clear point of view. Its campaigns lack the cultural pulse and influencer-driven storytelling that define the GenZ fashion ecosystem,” the former Ajio executive said.
There’s a strong whiff of JioMart in Ajio’s pricing model. The company experiments with dynamic pricing, gamified offers, and algorithmic discounts and strategies. “These are fit for groceries, but falter in fashion,” said Sachin Taparia, who founded community and research platform LocalCircles.
Fashion buyers don’t chase flash discounts. They seek trust, consistency, and perceived value. Ajio’s pricing often feels arbitrary – the same product might have three different prices across the app, the website and promotional banner. Coupons stack unpredictably, and additional delivery charges or convenience fees pop up at the time of checking out.
This inconsistency creates cognitive friction. The buyer is often confused about the authenticity of the product. An erosion in trust is a natural fallout. The experience is more transparent and satisfying on rival ventures like Myntra.
The issue extends beyond user experience. “Even regulators are tightening the noose around dark patterns, manipulative design or pricing tactics that mislead consumers. Ajio’s variable pricing and hidden fees risk regulatory flak, just as public sensitivity to fairness and transparency grows,” Taparia said.
The damage to brand credibility is also significant. Slow refunds, return fees, and fluctuating prices hurt Ajio’s net promoter score (NPS), which measures how likely users are to recommend it. In a hyper-competitive market, that erosion of trust can be fatal.
Execution Gap: Lack Of Agility Slows GrowthAjio’s operations reflect both its strength and weakness: enormous capacity, but limited agility.
The company has the infrastructure with huge warehouses, deep logistics networks, and a nationwide retail presence. Yet, its delivery timelines lags behind the competitors. A typical order takes five to seven days, while Myntra fulfills most urban deliveries within two to three days. “Reverse logistics is clunky, with delayed refunds and inconsistent pickup experiences that frustrate customers,” Taparia said, citing customer feedback.
That’s a major drawback for the platform in the age of quick commerce.
Ajio’s seller ecosystem has a centralised, control-heavy approach. It leans heavily on Reliance’s own brands and a few large vendors, leaving smaller sellers struggling with opaque payout systems and visibility bottlenecks. Shoppers often complain of a lack of variety that Amazon or Myntra offers, said a small seller, who is planning to delist from Ajio.
On the tech front, too, Ajio feels like an extension of an offline business, and not a digital-native brand. The app’s interface emphasises catalogue management over discovery. “The search feels repetitive, recommendations lack personalisation, and the design, though functional, misses emotional appeal,” the former Ajio executive said.
Behind this runs a deeper structural issue – Reliance’s core tech stack was built for stability and control, not for continuous iteration. In contrast, Myntra and Nykaa deploy weekly updates, experiment rapidly, and use real-time data to evolve.
The difference is as much cultural as it is technical. While Reliance operates in hierarchy, digital fashion thrives on experimentation and speed. Ajio fails to bridge this execution gap.
Ajio’s story mirrors Reliance’s broader digital journey of immense scale, unmatched assets, yet an ongoing struggle to translate offline dominance into online relevance. Winning in digital fashion isn’t just about infrastructure. It’s about clarity, agility, and empathy.
Despite catalysing India’s internet revolution with Jio, Reliance struggled to replicate that success across its online ventures. While JioMart staggered on the quick commerce turf racing against Blinkit and Instamart, beauty platform Tira couldn’t take on Nykaa. It also had to write off its entire investment in Dunzo after the hyperlocal delivery startup ran into financial troubles.
On the fashion front, Reliance has doubled down on Ajio. An aggressive attempt has led to an 18% surge in user additions, while the average bill value jumped 17% in Q1FY26.
Reliance rolled out Ajio Rush as a four-hour delivery model in six cities. Early data suggests the bill values in Ajio Rush are 50–60% higher, with significantly lower return rates helping strengthen its unit economics. Eyeing the premium segment, Ajio Luxe tied up with global brands like H&M and Audi Collect. The relaunch of Shein through Ajio too sees encouraging traction, with over 2 Mn app downloads and 20,000 SKUs live despite minimal marketing.
But, a deeper look into Ajio’s staggered growth brings two core factors to the fore – lack of focus and absence of decisiveness. “The platform must now choose its future: reclaim its premium DNA or commit fully to mass scale,” said the founder of a rival fashion ecommerce platform.
If it returns to its original vision, Ajio needs to rebuild trust through transparent pricing, faster service, a cleaner user experience, and storytelling that would once again stoke aspiration. If it chooses volume, it must double down on efficiency with sharper logistics, leaner operations, and consistent affordability.
Although Reliance Retail never thought so, Ajio turned into its most ambitious, yet most unfulfilled, digital experiment.
[Edited by Kumar Chatterjee]
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