Traditional retailers fear losses with online mega-discounts
Flipkart's much-hyped Cyber Monday flash sale came under intense criticism. The Bengaluru-based e-retailer had offered incredible discounts on a variety of products, some up to 80 per cent. (Photo: PTI/File)
Chennai/New Delhi: Just a few days after being celebrated as the next sunrise sector in the Indian economy, the cash-rich Indian online retailers have come under the government scanner for adopting a predatory pricing to wean away people from traditional brick-and-mortar shops.
The outcry from traditional retails led by Future Group’s Kishore Biyani was so loud that the government in Delhi had to take notice of the tussle between online and offline retailers.
“There are many complaints (from traders on Flipkart’s massive discount sale). We will study the matter. Whether there is a need for a separate policy or some kind of clarification is needed, we will make it clear soon,” commerce and industry minister Nirmala Sitharaman told reporters on Wednesday.
While all online retailers have been using discounts to woo Indian customers, who have traditionally preferred malls for touch and feel factor, Flipkart’s much-hyped Cyber Monday flash sale came under intense criticism. The Bengaluru-based e-retailer had offered incredible discounts on a variety of products, some up to 80 per cent.
In a letter to Ms Sitharaman, small traders association Confederation of All India Traders (CAIT) asked, “How can the marketplace model companies offer ‘big sale’ or ‘Diwali Sale’ when they are not the owners of the inventory.” Fearing a huge loss of business, retailers have branded these deals “as crazy as they advertise”and them anti-competitive.
( Source : dc correspondent )
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