New e-commerce rules could shake up the market and put consumers at disadvantage.
In early 2015, two years after Amazon’s entry into India, Reddit tweeted a photograph of a delivery box of the US online giant at a Flipkart office reception. The photo sparked a barrage of twitter exchanges between Amazon and Flipkart, then India’s largest e-commerce firm, and also signalled the start a fierce business rivalry that continues to the day. The next few years brought a bonanza for Indians as the two e-tail giants ramped up their rivalry with eye-popping discounts and “sales” that appeared to defy gravity. But the story is about to change from February 1.
In a recent notification that could change how e-commerce functions in India, the government has barred online retailers from offering massive discounts, and also limits the amount of sales a single company can give. The move is seen as an attempt to prevent predatory pricing and deep discounts which have hit millions of small shopkeepers, especially in areas like mobile phones and electronics. According to market data, around 60 per cent of mobile phones were sold through the online channel last year. These businessmen have been lobbying for government support in the face of the cut-throat rivalry between Amazon and Flipkart, which was acquired by Walmart for $16 billion last year. The local traders fear that Walmart’s entry could drive the mom-and-pop stores out of business.
Amazon and Flipkart dominate India’s e-commerce market, which is expected to rise to be worth over $32 billion by the end of the decade. Other players include Snapdeal, backed by Japan’s SoftBank, Paytm E-Commerce backed by SoftBank and Alibaba Group, and Tiger Global-backed ShopClues. People with knowledge of the market say that the new rules could have a telling impact, not just on Indian consumers but also impact company-owned sellers, especially Amazon and Flipkart.
This story is from the January 28, 2019 edition of Outlook.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 28, 2019 edition of Outlook.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Pillars of Viksit Bharat 2024
The Hon'ble Prime Minister Narendra Modi's vision of Viksit Bharat 2047' represents a complete blueprint for the country’s prosperity during its Amrit Kaal towards attaining resolutions made for Aatmanirbhar Bharat’
Innovation in Healthcare Products
Vatsal Desai pioneering the path to healthier living in a growing India
A Master Weaver of Heart Health
In the intricate tapestry of interventional cardiology, Dr Vashisth Das stands out as a master weaver, deftly navigating the delicate threads of life and technology to mend hearts and restore hope
Viksit Bharat 2047: Empowering India through Education & Self-Reliance
As India approaches 2047, the centenary of its independence, the dream of a “Viksit Bharat” – a fully developed, selfsufficient, and inclusive nation – is steadily turning into reality.
Revolutionising New Age Learning
A visionary leader and an educationist par excellence, GS Patnaik shares with the Outlook Group his approach towards driving Value-based and holistic learning initiatives
Pioneering Social Transformation
Achyuta Samanta dedicated to bringing about social change through education and social services for people at the grassroots level
A Vision for Developed India
The concept of Viksit Bharat” Developed India) embodies the aspiration for a prosperous, inclusive, and sustainable India. The framework for achieving this ambitious but achievable goal, in my opinion, can be articulated through some key pillars that serve as the foundation for national progress
Chasing Dreams Relentlessly
For the young and aspiring youth, Manu Bhaker is a fine example of how hard work and perseverance can help achieve set targets
Standing Tall as a Pillar in Healthcare Sector
As technology is advancing and there is an upsurge in medical sciences, Yashoda Hospital is keeping up to its promise of providing top tier healthcare services using specialised and advanced medical technologies and equipment.
Upholding/Strengthening India's 'Viksit Bharat' Dreams
Landmark Crafts Pvt. Ltd., Ghaziabad, Delhi-NCR, is a flourishing enterprise where necessity, keen identification of agap and the right timing of launching HP Self-Drilling Screws in 1995, backed by grit, is a perfect recipe of a success story that pioneered an industry. Mr Pankaj Lidoo and MrVipin Lidoo, Directors of the company, hailing from Kashmir, have set their target to achieve India's dream of a Viksit Bharat by 2047 with visionary zeal