Retailers claim that online shopping websites have eaten 45% of their biz
Retailers claim that online shopping websites have eaten 45% of their biz
New Delhi: Small traders and retailers have claimed that online shopping websites have eaten 45 percent of their business during this Diwali.
Retailers complained of loss of about 60 per cent of footfall during the festival season. The small traders and wholesalers association Confederation of All India Traders said on Friday that the most hit segments were mobiles, electronics, computers and accessories, travel luggage and gift articles.
“Segments like mobile, electronics and computer and its accessories, travel luggage suffered a business loss of about 60 percent,” said CAIT. It said segments including writing instruments, lingerie, sports goods and accessories registered a business loss of about 50 percent. Items like watches, clothing and apparels, sunglasses, make a loss of about 45 per cent business in offline market, said CAIT.
“The aggressive marketing through whopping expenditure on advertisements coupled with unfair business practices involving predatory pricing and putting element of dominance in their respective business module is a calculated strategy of online retailers to control and dominate the retail trade,” said CAIT.
It said that online retailers are backed and funded by investors through either private equity or venture capital. “But it is most surprising that most of the online companies have declared losses but still they have been giving huge and unbelievable discounts which speaks some sort of hidden mechanism which needs a thorough investigation,” it added.
The small traders are threatening to hold countrywide protests demanding regulations for onlineretail on 31st October. CAIT has also called a meeting of officials from various other brands.
( Source : dc correspondent )
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