Page 33 - 30NOV2019E

e- commerce

Retail details: Ecommerce details, to ensure e-commerce portals
are not the ones financing it.
The CAIT has been pressing hard
fails traditional businesses and the government has made it clear
that it wants to ensure offline retailers
are not rooted out by major e-com -
merce firms. Online marketplaces, on
their part, have always maintained that
E-commerce majors may feel the heat from traditional retailers now as the latter launch a they were following all the guidelines
around discounting and that it is the
nationwide movement to protest against online giants such as Amazon and Flipkart, seller offering the discounts. Offline
reports tehelka bureau traders or traditional traders want the
policy framework in place with a clar-
ity on the issue of deep discounting
ur Special Story in pricing.
Tehelka in the previous E-commerce companies offer deep
issue was about e-com- discounts particularly before the on-
merce outlets pushing big set of festival season. Recently before
O retailers to bankruptcy Diwali and other festivals, the online
with top brands announcing closure companies launched their heavy sales
of stores. Now days after the story, and offered unheard of discounts. On
the traders body CAIT has threat - their part, the e-commerce platforms
ened to launch a nationwide move- have been claiming that deep discounts
ment to protest against e-commerce are offered by the sellers only. They are
majors Amazon and Flipkart, alleging at pains to explain that e-marketplaces principle and that marketplaces should
they are flouting FDI Policy norms and themselves have not directly or indi- The traditional not have any of its own or related party
destroying retail business. The Confed- rectly influenced them on the matter. retailers and trader sellers on the platform. Also about 94
eration of All India Traders said that a The traditional retailers and trader per cent felt that sellers controlled
memorandum would be submitted to bodies like CAIT allege that online com- bodies such as CAIT by the marketplace hurt the business
MPS and “dharnas” would be organized panies come out with mega sales under allege that online of independent sellers on the platform.
in 200 cities. their names and not in the name of dif- About 90 per cent respondents said
It is learnt that the Competition ferent selling brands. It is learnt that the companies come out private labels by marketplaces create a
Commission of India (CCI) is planning government is looking into whether conflict of interest for the marketplace
a policy advisory for the e-commerce hefty discounts offered on Walmart- with mega sales under and that marketplaces should not be
industry to come out with solutions owned Flipkart and Amazon.com dur- their names and not in allowed to sell their private labels on
over concerns over deep discounting ing their online festive sales violate their platform.”
and predatory pricing across online foreign investment rules. The govern- the name of different Survey done by TECI, saw participa-
platforms. The CCI would issue a soft ment was reviewing complaints and selling brands. The tion from 541 respondents who were
policy advisory in this regard shortly. evidence filed by the Confederation of selling online for at least 12 months on
CCI Chairperson Ashok Gupta offline businesses are down 30 per cent All India Traders, a group represent- govt reviews the issue Flipkart, Amazon, Snapdeal, Paytm Mall
agreed that, “nobody can deny that We continue to engage to 40 per cent this month.” ing some 70 million brick-and-mortar and ShopClues. The survey found 89
online is here to stay” but added that e- with the government Of late, there have been complaints retailers. All India Traders has now called for a per cent respondents saying “the laws,
commerce industry has to address all galore about deep discounting and The traders’ body CAIT has an - nationwide agitation against Flipkart, rules and responsibilities for online
concerns being raised by retail sector and have emphasised offline traders are up in arms against nounced a series of actions and pro- Amazon and other ecommerce com- sales should have parity with those for
in India. how we have the e-commerce companies and tests this month to get the govern - panies to continue its months-long offline sales”.
Praveen Khandelwal, secretary-gen- the government demanding a ment’s attention. It had earlier written protests. While the survey obliquely supports
eral, Confederation of All India Trad- consistently worked “level playing field”. A policy is like- to the Prime Minister urging him to Actually, the major issue is of neu- the view point of the CAIT, the traders
ers (CAIT) observed that “Policy is the closely with local ly to be decided in next couple of take action against ecommerce dis- trality because online sales directly body has alleged that both Flipkart and
domain of every country and if multi- months with e-commerce play - counts. It is learnt that farmers, hawk- affect the profitability of traditional Amazon are flouting the government’s
national corporations wish to carry on kirana stores and other ers insisting that more foreign ers, small industries and self entre- sellers and the e-commerce creates foreign direct investment (FDI) policy
business, they are under obligation to small businesses in investment must come in and business preneurs will be asked to join the a sort of “conflict of interest.” A survey rules and destroying the country’s retail
follow the policy in letter and spirit”. environment improved. The prospec- movement. Reports suggest that after by The E-Commerce Council of India business through predatory pricing and
Khandelwal said that “Customers are the last six years, says tive policy would limit the maximum taking ecommerce companies to me- (TECI) found that 89 per cent of the deep discounting.
going online because of the unbeliev- Amazon spokesperson discount on a product and give detailed diatory meetings, courtrooms, and respondents felt that neutrality of the
able discounts. Because of this sales at break-ups of the discount in the pricing the government, the Confederation of marketplace was important as a core letters@tehelka.com

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